Not long ago, I explained the Martingale system traders can use her at Trades Robot. Actually, there are 2 other trading systems that can be used besides the Martingale system. They are the Classic and the Fibonacci systems.
In this post, I am going to explain the Fibonacci system. The idea is to educate you on these binary options trading systems that Trades Robot utilizes.
Keep in mind that Trades Robot does not choose the system; that decision is up to the trader, along with some other decisions such as the signal services used, and the amount of each trade.
Origins Of The Fibonacci System
The Fibonacci system, or sequence goes back for many years. It all started with an Italian mathematician by the name of Leonardo Fibonacci. He developed a number pattern that can be used to describe some of the most “perfect” items in nature. Flower petals have a Fibonacci sequence, as do the hairs on a porcupine.
To keep from getting too technical, the Fibonacci sequence simply works on the basis of numbers summed with each other. The basic Fibonacci sequence is: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233.
If you study closely, 1+1=2 (the 3rd number), 13+21=34 (the 9th number), etc…
So, how does this work with binary options and Trades Robot?
How The Fibonacci System Works In Binary Options
Both gamblers and traders in binary options have found great success and accuracy using the Fibonacci sequence. In gambling, we will look at someone playing roulette. The wager is $1 on black and the wheel spins red, so the gambler follows the sequence and again bets $1 on black. If it loses again, he bets $2, and follows the sequence until he wins. Win he wins, he drops 2 numbers back in the Fibonacci sequence and resumes betting. So, if black finally hits when he bets $13, he will bet $5 on the next spin. He moves forward 1 spot in the sequence on losses, and 2 spots back on wins.
Now, this is basically the same system Trades Robot uses when an investor chooses to use the Fibonacci system. We will use the U.S. dollar and the Australian dollar. The Robot puts $20 on the call and it doesn’t hit, so it puts another $20 on call and it does win. This means the Robot will start at square 1 with $20 again, and it will follow the same basic idea as the roulette example…wins move down 2 places and losses move up in the sequence 1 place.
When you take a look at the Fibonacci system in binary options, you will discover it to be considered the most accurate system used, especially when used with currency pairs.
Keep in mind that at Trades Robot, you do have the 3 various systems, and you set the system you want the Trades Robot to use for your trades.
If you have any questions about the Fibonacci system used here at Trades Robot, feel free to ask. Remember that no system is 100% perfect, so be wise. But, you did make a wise choice when you decided to make Trades Robot your preferred binary options automated trading system.