Table of Contents

1. Introduction ...................................................................................................................................... 3
1.1. Synthetic indices and binary.com ................................................................................................. 3
1.2. A brief overview on binary.com.................................................................................................... 4
1.3. What are synthetic indices?.......................................................................................................... 4
1.4. Boom crash indices from synthetic indices.................................................................................. 4
1.5. The anatomy of boom and crash indices ...................................................................................... 5
1.6. The edge of synthetic indices over currencies (why synthetic indices are better than
currencies) ................................................................................................................................................ 6
1.7. Any drawbacks? ............................................................................................................................ 7
2. Trading strategies part 1: specific moving averages......................................................................... 9
2.1. Specific moving averages .............................................................................................................. 9
2.2. Setting up moving averages........................................................................................................ 10
2.3. Moving averages as support and resistance............................................................................... 16
2.4. Moving averages as trend line .................................................................................................... 21
2.5. Summary ..................................................................................................................................... 22
3. Trading strategies part 2: dynamics secrets of the RSI you never knew. ....................................... 24
3.1. First dynamic: RSI as overbought and oversold. ......................................................................... 27
3.2. Second dynamic: RSI divergence. ............................................................................................... 29
3.3. Third dynamic: trend lines, support and resistance in RSI......................................................... 32
3.4. Summary ..................................................................................................................................... 35
4. All strategies traded in harmony ................................................................................................... 37
4.1. Trending ...................................................................................................................................... 37
4.2. The double entry confirmation ................................................................................................... 39
4.3. Plan B games ............................................................................................................................... 40
4.4. Summary ..................................................................................................................................... 41
5. Money management....................................................................................................................... 43
5.1. Trading spikes is already a money management method .......................................................... 44
5.2. Managing money through lot sizes............................................................................................. 44
5.3. There is a wallet with binary.com ............................................................................................... 46
5.4. When plan B fails. ....................................................................................................................... 47
5.5. Summary ..................................................................................................................................... 47
6. Conclusion....................................................................................................................................... 48
 Disclaimer............................................................................................................................................... 50

1. Introduction

1.1. Synthetic indices and binary.com

An idiosyncratic broker called binary.com offers many markets such as

commodities, currencies and specific SYNTHETIC INDICES which will
form the center of gravity of this book. These simulated markets can be
traded via an MT5 account type provided by binary.com called
SYNTHETIC INDICES account. They are of course provided through other
platforms however the best way to predict synthetic indices is only
when they are traded as CDFs.
Synthetic indices in general and boom crash indices in particular are a
gold mine. These trending markets have attracted more traders these
recent days and by rebounce many traders extract millions of dollars
out of them, although every trade involves risk.
Boom crash indices which are the core subjects of this book are only
found with binary as a broker.
Social media is a channel proof that shows how synthetic indices spread
like wild fire in popularity and in first choice.
Before we go any further into the meat of the subject, hope you
already have an account with binary.com however in case you have not
opened an account with binary.com yet, then stop for a while and
simply click on the link below that will usher you to opening an account
with binary.com.
Make sure your internet is on, or the link will not open.

https://track.deriv.com/_ZDqG1bAOVbS2vdm9PpHVCmNd7ZgqdRLk/1
 1.2. A brief overview on binary.com

Binary.com has been providing financial trading services since 1999 to a

worldwide audience of more than over 1,000,000 accounts with over
two billion dollars in trades. With years of creativity and innovation
continuously pumped into their pursuit of excellence, Binary.com offers
one of the best binary option platforms around. The return rates in
Binary.com are above 1000% on selected trades, and it costs a mere $1
(minimum trade) to start trading.

1.3. What are synthetic indices?

Synthetic indices are strictly regulated markets with a high level of

transparency. The market makes use of randomly generated
numbers to reflect the real financial market patterns, creating a
resemblance with the Foreign Exchange and Stock markets in terms
of the pattern of price movement. They are made in such a way
that they can be approached and traded in the same fashion with
currencies or stocks; Similarities in candlestick formation, trading
platforms (Meta trader 5), stops orders and many more.

1.4. Boom crash indices from synthetic indices

Synthetic indices implies a coagulation of many simulated markets that

also include boom crash indices. It is broad. With binary.com there are
3 types of synthetic indices:
 1) Volatility indices containing volatility index 10,10(1s) 25,
50,75,100 and 100(1s)
2) Boom crash indices containing boom 1000, boom 500 and crash
1000, crash 500
3) Step index
4) High frequency volatility index 10,25,50 and 100
Among all these synthetic indices the more profitable indices are boom
crash indices and volatility indices. This being so, you should anticipate
a well refined book on volatility indices which is of course a horse of a
different color or a whole new ball game but with few similar game
rules.
Back to the salt mines; our main aim is to extract serious money out of
the boom and crash market which is of course a juicy market

1.5. The anatomy of boom and crash indices

Crash and boom simulate the rising and falling of real world markets.
We discovered earlier that boom and crash are both divided in two
types:
The Crash 500 Index has on average 1 drop in the price series every 500
ticks, while the Crash 1000 Index has on average one drop in the price
series every 1000 ticks. In other words, in a market with a Downward
(Crash) trend, look out for a drop that happens every 1,000 ticks on
average.
The same applies for boom; For the Boom 500 Index there is on
average 1 spike in the price series every 500 ticks, and for the Boom
1000 series there is on average 1 spike in the price series every 1000
ticks, in other words In a market with an upward trend (Boom), look out
for a drop that happens every 1,000 ticks on average.
This might be like mandarin for you at this moment, but worry not
because this is just an informational part. You will understand it better
with charts and examples.

1.6. The edge of synthetic indices over currencies (why

synthetic indices are better than currencies)

1) HIGH VOLATILITY: one of the most outstanding characteristics of

synthetic indices is the current and frequent volatility they
display. In case you may be wondering from the beginning what
does volatility might mean; to put it bluntly, volatility means a
frequent and rapid change in price of the market. The higher the
volatility, the higher the reward but in case of wrong market
analysis it can lead to higher risks. So one can make a lot of money
with a small movement in price of the market.
2) NEWS PROOF: synthetic indices are not affected by news; in other
words they are not affected by external and unexpected events
that can change the course of the market pattern and put you into
losses. Remember that there are natural, political and economic
events that do not care about price action and price patters to an
extend that price patterns can be modified unexpectedly because
of them. This will lead us to the third edge of synthetic indices
over currencies…
3) PRICE PATTERN RESPECT: That is one of the reasons why many
people are now running away from currency trading. Only large
institutions remain unmoved but many retailers diversify into
volatility indices, Gold and NASDAQ or US100 mainly because
these markets cited earlier follow patterns and are not much
manipulated. Following price action and patterns for a market
 means it is easily predictable and can make one gain from his
accurate analysis. This being so you should anticipate another
book on volatility index and NASDAQ as they too have their own
strategy, so stay connected.
4) TRADABLE 24/7: yes, compared to currencies, stocks and other
commodities, synthetic indices can be traded everyday including
weekends. This is a good arrow in their quiver, an outstanding
edge.

1.7. Any drawbacks?

It is without contradiction that synthetic indices can make you earn a

lot of money? However this can only be done when one has the right
knowledge and strategy.
This is why you picked the book, to be equipped with the right and
productive knowledge. You will not be disappointed after you are done
absorbing secrets of trading that this book offers.
On the other side, remember that volatility is a double edged sword: it
is of course an edge as it can enable the trader to earn money in a short
moment of time. On the other hand, it can be a drawback when one
does not analyze properly the market and does not use proper money
management and lot size calculation.
To help you overcome this obstacle, the book has provided a segment
where you will learn how to make calculated risks, manage lot sizes.
In other segments of the book, money management will be learned in
forms of ”when to exit trades when in profit and in case a loss is made,
how it can be managed or recovered.”
Now that you have an in depth view of what you are about to trade,
stay focused as you are about to be ushered into the real realm of
knowledge that will help you make serious money with boom and crash
indices.
 2. Trading strategies part 1: specific moving
averages

It is paramount to know that the moving average is a widely used

indicator and a preferred choice of many trading schools as well as
major institutions. The moving average is a twofold indicator in
essence:
1) It serves as support and resistance
2) It displays the direction or trend of the market; showing whether the
market is an uptrend or a downtrend.

There is really no need to define the moving average and demonstrate

its algorithmic formula. The best way to define indicators is by exposing
their roles.
Remember this is not a memorizing lesson but an understanding lesson.
The aim of this book is not to give you an exposition of knowledge only,
but to make you earn money from every single knowledge you acquire.
Knowledge on its own is not power, but the application of knowledge is
power.

2.1. Specific moving averages

We will work with two specific moving averages which are:

1) The 200 Exponential moving average (EMA)
2) The 10 SMA
Here you will be told how to set them up both on the computer and on
the mobile phone. In case you have not downloaded your binary MT5
software, click to the link below that will usher you into the website in
order to download the MT5 software:
https://record.binary.com/_pz55aRSvOcu6tyDIijdDK2Nd7ZgqdRLk/1/

2.2. Setting up moving averages

For a PC we need to go to trend indicators as the arrow indicates on

figure 1 a
Fig 1.a

When you click on “trend”, you will realize that there will be an
unveiling of many trend indicators. Locate the moving average and
double click
Fig 2.b
Fig 2.c shows how you can set up the 200 exponential moving average.
Period number: 200, method: exponential, style: yellow.
Fig 2.c
Then comes fig 2.d for the 10 SMA with period: 10, method: simple,
color: red.
Fig 2.d
Your chart should look more like on fig 2.e. do not forget to put your
timeframe on a 1 minute.

Fig2.e

Now let us try to quickly show how some can set up their moving
averages indicator on their mobile phone. Although it is evident that
you should be taken step by step in everything, but there are certain
things that are just too basic to take you through .you can find them on
your own. This is why, for the mobile phone, you will only be given
moving averages set ups.
Fig 2.f
This is for the 10SMA. The following is for the 200 EMA
Fig 2.g
After everything is done, your chart should look more like what is on
figure 2.h:
Fig 2.h
 2.3. Moving averages as support and resistance

Remember that the moving average is a first choice indicator of many

traders. This being so, many traders are able to spot certain levels of
support and resistance and thus make significant decisions and make
decisive orders that can affect the direction of the market. Note that
Support and resistance is similar to supply and demand.
By definition, Support is a price level where a downtrend can be
expected to pause due to a concentration of demand. On the other
hand, resistance is a price level where an uptrend can be expected to
pose due to a concentration of supply. At support and resistance, the
price will either bounce back or change the direction, or breakout by
continuing with the trend; oftentimes after many difficulties.
So these moving averages do act many times as support and resistance
and because of that we can know when to enter a trade and when to
exit too.
Let us start with how we can use the 200EMA to our advantage and
catch sudden spikes.
With the fig 2.i, you will see how boom 1000 did reject at support level
many times. So if you enter a buy trade near the support level, you will
most likely be able to catch a spike. See the figure below to understand
better.
Fig 2.i

See? When the price comes closer to the 200 EMA there is a spike
happening because of the rejection.
However note that it is not all the time that there will be an immediate
spike as soon as the 200EMA is touched by the price. It can take few
minutes to make a spike after the 200EMA is touched but when a spike
happens, you will make profit. Analyze the figure below for a better
understanding;
Fig 2.j

Through the above figure you will see that it took few minutes before
there could be any spike. There was no spike immediately the 200EMA
was touched, but overall it ended up in profit.
Let us also see the same behavior with crash. With the figure below, it
acted as support and made the price reject few minutes after the price
hit the 200EMA. Black arrows are for entries of trades and yellow
arrows are for exits of trades.
Fig 2.k
Now let us talk about the 10SMA. This specific indicator serves as
support and resistance in very particular instances:
For boom, there is a way of catching spikes through 10SMA when boom
start going on an uptrend. The uptrend is the overall direction of the
market moving upwards. So whenever at least 2 spikes have happened
close to the 10SMA then get ready for 2 or more other spikes around
the 10 SMA.
The figure below shows with stars how you do spot signal spikes (in
black stars) in order to anticipate upcoming spikes (in red stars).
Fig 2.l
Let us get another example for better understanding. The figure below
shows boom 1000 going through an uptrend. Through the 2 first spikes,
you can make more money by anticipating the upcoming spikes…
Fig 2.m

Note that the same is applicable with crash. There should be a

downtrend (i.e. the overall direction of the market moving downwards)
with at least 2 spikes around the 10 SMA in order to be confident to
enter the third spike around the 10 SMA.

2.4. Moving averages as trend line

We stated earlier that moving averages can indeed serve as trend lines
showing the overall direction of the market. It is important to know
that the trend line is best portrayed on a higher timeframe like 1 hour
timeframe. Through the higher time frame you can detect the overall
direction of the market.
Fig 2.n

Fig 2.n shows that boom is on a downtrend. This being so there will be
less spikes in the market. Because spikes on boom are directed
upwards but as you can see for the market to go downwards, there has
to be less spikes. This market can be traded but one should be very
careful to open positions anyhow.
Fig 2.o
Fig 2.o shows the direction of the market as being an uptrend. For this
case there will be less spikes on crash 1000 because spikes are directed
on the downwards direction but the trend is upward. This being so, one
should trade more carefully and not enter trades anyhow.
Understand that the other way round is also important to consider:
boom in a downtrend and crash on an uptrend show that there will be
more spikes and you can trade more safely and more swiftly.
Remember that despite seeing the overall trend, it is advantageous for
you to go back to the 1 min time frame in order to look for sniper
entries. These will even help you spot multiple spikes before they
happen.

2.5. Summary

We discovered that the widely used indicator could help us catch

spikes.
Therefore we did set up two special moving averages that could help us
as support and resistance. They also helped us identify trends of the
market and take advantage of them.
Moving averages are very powerful. However for them to even be more
precise, they should be combined with the dynamics of RSI. Get ready
for these secrets in the next chapter.
 3. Trading strategies part 2: dynamics
secrets of the RSI you never knew.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a
momentum oscillator that measures the speed and change of price
movements. The RSI oscillates between zero and 100. Traditionally the
RSI is considered overbought when above 70 and oversold when below
30.
Now try to set up your RSI indicator. By now you should be able to find
indicators. In case you forgot, kindly get back to the previous chapter
and see how we did find indicators.
This time select “relative strength index”.
Settings on your mobile phone are as follows:
Fig 3.a

After finding and clicking on relative strength index, you should see
these parameters and click “done”.
For the computer, after you find the RSI, click on it. Settings will display.
Follow the template below then click “ok” .
Fig 3.b
After your settings are done, this is how your chart should display on
your mobile.
Fig 3.c
 3.1. First dynamic: RSI as overbought and oversold.

From the beginning of the chapter it was brought to our attention that
The RSI oscillates between zero and 100. Traditionally the RSI is
considered overbought when above 70 and oversold when below 30.
Fig 3.d shows overbought levels “in red circles” and oversold levels “in
white circles”
Fig 3.d
Since we would want to catch spikes ,you can immediately see that as
soon as the overbought level was hit (see red circles), there was a
potential sell opportunity and if you entered a sell, you could have
caught a spike and be in profit. Therefore understand that for boom we
look for an overbought opportunity in order to enter a “sell” position.
But on crash we look for an oversold opportunity in order to enter a
“buy” position.
For a better understanding of what I just said earlier, Let us take
another example with boom. The following figure shows how a spike
happened when the RSI was oversold.
Fig 3.e
Now, this dynamic of the RSI is more accurate on ranging markets.
Ranging markets are markets that are temporarily neither on an
uptrend nor on a downtrend. The probability of success of this dynamic
is reduced when the market becomes either an uptrend or a
downtrend. This is why there is another dynamic of the RSI called “RSI
DIVERGENCE”.

3.2. Second dynamic: RSI divergence.

Divergence is an important strategy that can read potential market

reversals by comparing the direction of an indicator in contrast with the
market direction. ... Divergence occurs when the price of the market
and the indicator follow two different directions. A figure will help you
visualize what divergence really is:
Fig 3.f

See? The figure 3.f shows how the case number 1, the 2 PICS of the RSI
pointed downwards while the price of crash was going on an uptrend.
That was a divergence. The same happened in case number 2 and case
number 3.
So for crash, if as soon as the price of the market reaches the price of
the previous pic, and when you check on the RSI the direction is a
downtrend, understand that there is divergence and a spike is likely
going to occur.
Now, if you draw a white line on every last pic and wait for the price to
reach that zone again. Whenever the price reaches the price of the
previous pic, check your RSI and see if it is on a deep downtrend. If yes,
then enter a sell because a spike is more likely going to happen.

This dynamic of the RSI has proven to be the most accurate among all
other dynamics.

For a better understanding, let us analyze boom and see how through
divergence you can spot winning opportunities.
Fig 3.g
See? As soon as there is a divergence, there is a high probability of a
winning trade. With boom, whenever the price reaches the previous
lowest point, check your RSI. Whenever there is a high probability
winning trade, you can enter a buy position without a lot of stress.
The reality behind divergence is the loss of momentum of a trend. Even
if it does not show on a chart that there is an exhaustion on the trend,
the indicator reveals it through a divergence.
Remember that there is no strategy that is 100% accurate, but there
are strategies that have a high level of accuracy and the divergence
dynamic, when used properly, can give you a row of outstanding
winning trades. More winning trades, more profit; more profit, more
money.

3.3. Third dynamic: trend lines, support and resistance

in RSI.

The RSI can of course display strong support and resistance levels. In
case you forgot what support and resistance is, kindly get back to the
previous chapter where we did give a proper definition of support and
resistance.

Fig 3.h
Through fig 3.h you can affirm that there was a strong resistance on
level 56 of the RSI. This resistance level spotted many spiking entry
zones. See? You only needed two support areas in order to spot the
two or maybe three other spikes…this dynamic is even perfect when
used on 1 hour timeframe;
Fig 3.i

Through the figure above one can identify the highest level on the RSI
which acted as resistance. Knowing the highest level, one can easily
spot a strong probability of reversal. You will be able to identify a
change in the trend of the market and by rebounce, adapt your strategy
to the trend of the market.

We can also spot specific entries through trend lines drawn on the RSI

Fig 3.k
 Through trend lines, one can also spot good entry points. However
these instances do not occur all the time and they should be used with
other strategies given above in order to be more specific.
The other disadvantage of the trend dynamic is that you can miss out
two first spikes in order to catch out the third and the following
ones…reason being that without two first pics, on cannot draw a trend
line.

3.4. Summary

We discovered that the Relative strength index is an indicator that

measures the momentum and speed of a price movement.
We understood through the first dynamic of the RSI that we can sell at
the overbought level and buy at the oversold level.
Through the second dynamic of the RSI we understood divergence and
how we could use it to premier spikes.
Lastly we learned how through the third dynamic of the RSI we could
draw trend lines, support and resistance levels so that we can speculate
where the spike might occur.
 4. All strategies traded in harmony
In previous chapters we discovered secret strategies that revolutionized
our way of trading boom crash indices. They can of course be traded
separately, but it is an advantage to combine forces for better results.
Harmony is key. This being so, you will learn in this chapter various
ways you can use the combined indicators to read future movements of
the market.

4.1. Trending

One important factor we talked about concerning the two set of

indicators is that they can unveil the trend of the market. Whenever
there is a trend, one can confirm its strength if both set of indicators
point in the same direction of the trend. Let us take a look at a figure
for a better understanding.
Fig 3.a
On fig 3.1 the big arrow points out the direction of crash 1000. Pointing
out that it is a downtrend. The first indicator which is the 200EMA in
yellow has already approved it because the current price and previous
prices are below the 200EMA.
On the other hand the RSI has confirmed it too with the first two pics
rounded in purple. Those two pics circled in purple are enough to draw
a trend line. When the trend line is drawn, you can easily know the
trend of the market.
As if that was not enough, when both indicators point in one direction,
it will be easier for you even to catch specific entries for spikes either
through the 10SMA or through the resistance level on the RSI.
Remember this:
“The safest way is to set orders or entries in the direction of the trend.
If the market is on an uptrend, you are safer if you look for buy
entries. If the market is a downtrend, it is safer for you to look for sell
opportunities”.
This initiative can be made possible with the combination of both
moving averages and the RSI. See? The 10SMA gave accurate signals
together with the RSI. You could eventually anticipate many spikes.
Even if the following parts of the charts were hidden to you, still you
could have anticipated the spikes because these indicators do not
repaint. An indicators Repaints when it changes its past forms or data
as soon as its expectation goes unfulfilled.
A good example is that of fractals that sometimes disappear when a set
resistance or support is broken. So you are safer with the RSI and
moving averages.

4.2. The double entry confirmation

On the previous section we identified entries through trend lines. Now

let us spot entries through support and resistance offered by the
200EMA together with the overbought and oversold zones of the RSI.
Fig 3.b
Through the figure 3.b you can see how, with the first and the second
instance, the RSI released a signal as the price already reached the
overbought level (i.e. above the level 70). This was confirmed sooner by
the strong resistance from the 200EMA.

4.3. Plan B games

Kindly pay attention to what is going to be said:

Whenever you trade, you should follow our plan and be able to leave
the trade when your plan b is brushed off. Here the plan b is that if per
adventure the price does not spike at the first entry signal, wait for the
second signal to occur. Now the market is more likely to spike on the
second signal.
But if does not, get ready to exit the trade even if you are in a loss.
Remember that we are trying to minimize losses and maximize profits.
Strategies given to you in this book do yield a higher probability of
success, however they are not the HOLY GRAIL that never fails. We are
trying to save you from losses caused by greed and lack of discipline.
In other words, when we follow the fig 3.b, on the crash 1000 chart, we
realize that the first indicator that gave the signal was the RSI. However
a spike did not occur as soon as it did reach the overbought zone. The
plan B here is to wait until it reaches another signal which is the
resistance of the 200EMA. Thank God a spiked happened and our plan
B succeeded. This also happened on the second instance that is seen on
the fig 3.b, where after the first signal did not deliver as expected, we
held the trade hoping it rejects either as soon as possible, or as soon as
it reaches the resistance level set by the 200EMA. When our plan A was
wavering, our plan B took over and succeeded: there was a rejection on
the resistance area set by the 200EMA.
Now note that there are few cases where even our plan B fails. And you
need to be humble enough to minimize your losses by exiting your
trades.
This was supposed to be discussed in the “money management”
chapter of the book, but it is better to address it now so you
understand how to manage your money in accordance with the
combination of strategies.

4.4. Summary

Although strategies given in previous chapters can work

interdependently, they can also work efficiently in symbiosis. We
discovered that there is a higher probability of success when our
positions are in line with the leading trend of the market; especially
when both the moving average and the RSI confirm the direction.
We also dealt with the plan B alternative which is an extra arrow in our
quiver. We understood how to use it and what to do in case it does not
work out as expected.
 5. Money management
Money Management is one of the most important area in trading boom
crash indices as well as in trading at large. It helps you Control risks in a
fashion that will allow you to be consistent in your profits, grow your
trading account balance and continue trading through the inevitable
dicey moments.

Money management is often non-intuitive and generally does not

require charts or figures. Of course, there are minor exceptions to the
general rule; like the plan B game that was talked about in the previous
chapter.

There is no cogent strategy that stand on pillars without a set of money

management in it. With trading boom and crash indices, there are
many people who have multiplied their account by 3, 5 and even 10 but
have lost everything again simply because of greed and lack of money
management.
This is why although it might be simple, it takes a lot of discipline to put
money management into action.

Money management is not for smart traders, but for disciplined

traders. One can be smart with the ease understanding of the market
but does not have the discipline to implement money management.

Since boom and crash indices do not respect stop losses stop orders
(buy stops and sell stops), it is paramount to find how to minimize
losses without putting stop losses.
 5.1. Trading spikes is already a money management
method

Trading spikes is already a money management method because when

you look for spikes, there is no spike that catches you by surprise so you
can be in a loss. The price that goes against you for a moment is
calculated and you can know how much you are willing to loose for any
given position. But when you trade against the spike, in case it happens,
you got no idea how much you can lose neither do you have control
over it.

5.2. Managing money through lot sizes.

It is important for you to know the approximate lot size that can be
allowed with different capital sizes.
To put it bluntly, a lot is simply the size of your trade

1) The approximate maximum lot size of 100$ is 3.

2) The approximate maximum lot size of 1,000$ is 30
3) The approximate maximum lot size of 20,000$ is 600
4) The approximate maximum lot size of 100,000$ is 3000

The leverage for this type of lot size is 1:500

Some reading this book might have asked themselves: “why isn’t the
author showing his results and his entry trades with his lot size?”

The answer is simple but profound: Everyone grabs this book because
he wants to make money and expectation are different in accordance
with every reader’s starting capital.
If results show a smaller lot size with a small digit figure, it will
encourage the trader with a small capital convincing him that the
strategy can work even on the smaller capital.

However for a trader with a bigger capital might tend to underestimate

the book thinking how all the book’s strategies did not make the author
a millionaire. He will be right to think that way.

The other scenario is that if trades and results are shown with bigger
capital and juicy revenue, a holder of a fat capital will easily relate as
the strategy is tried and approved for their fat hard earned capital. But
the trader with a smaller capital might think he will need to at least
accumulate more money and have a bigger capital in order to trade
effectively the strategy. This is a misconception because the strategy is
workable both on bigger accounts as well as on smaller accounts.

The second reason is for design and display purposes: there were
sometimes so many lines on the chart that it was difficult to draw clean
figures for a better understanding. At times there can be 5 entries and
it was difficult to explain the other 4 previous entries because they are
already exited. This was indeed the second biggest challenge in showing
entries. Now let us get back to our horses.

This information is given to you so that knowing the maximum capacity

of your capital in handling lot sizes, you should not use it to the hilt. In
other words, use at least 30 % or less of your maximum lot size. For
example, if you have an account of 10,000$ it is safer for you to use a
maximum of 100 lots or less. You might be right on a trade, but
sometimes the trade can take few minutes before the spike. Now, if
you are using the maximum lot size because of greed in search of quick
gains, you can blow your account before a spike can happen and before
you profit from your accurate speculation.

Even though you are 100% sure on your entry do not put your
maximum lot size as at times you might be so confident with an entry
and per adventure it turns out to be the wrong move. If you are
moderate in your lot size and consistent in trading, you can make a
100% return on a daily basis. You can even make more than that, if you
use the strategy right and follow the right money management. Money
management is a very important factor in trading and yet it is very
neglected, especially by amateur traders who just started trading.

5.3. There is a wallet with binary.com

The Meta trader account and the wallet are two different accounts. The
wallet is for mainly for storage (although in other instances it can serve
as a trading account), while the Meta Trader 5 account is mainly for
trading.
Whenever you make profit, transfer a part of it in the wallet.
Remember that although one can be consistent in trading, it is very
important for one to know that sometimes the unexpected can happen
and savings can make a difference.
This is also a good money management method. You cannot really be
told how much of your profit should be released. The choice is entirely
up to you; after all it is your profit. Make sure there is a backup money
just in case.
 5.4. When plan B fails.

In the previous chapter, we talked about how we could implement a

plan B in case the initial plan fails. We saw how the plan B oftentimes
help our failed plan A. this works in many cases. But there are times
that even plan B fails. this being so, you should be humble enough to
recognize and accept the loss while it is still early then exit trades
. Higher returns never exclude losses. Higher returns only mean higher
profits with minimized losses. The way to minimize losses is by exiting
in case plan B fails. Trading without plans leads to successive failures.
Whenever you know how to fight greed, it will be easier for you to
minimize your losses and manage your money effectively.

5.5. Summary

Money management is a very important topic in trading indices and yet

it is very neglected by many. We learned why money management
should not be overlooked. From the beginning we understood that
trading spikes was already a money management initiative.
Then we discovered that one can manage his money effectively
through a wise use of lot sizes in accordance with the capital at hand.
Binary.com has a wallet and you can use it to you advantage.
Lastly we learned what to do in case our plan B fails.
 6. Conclusion

Now that you are empowered with knowledge, it is your role to put it
into practice.
Consistency in trading is key when trying to perfect and sharpen the
strategy at hand.
The more you trade, the more you develop a subconscious skill that will
enable you to make trading decisions that are accurate. The
consistency of trading makes you enter trades without fear nor
trembling.
Remember, better trades and better spiking entries are those that are
spotted in a sideways market or in the direction of the spike. For crash
1000 and crash 500, good trading setups are when the market goes
sideways or when the market is a downtrend. On the other hand, the
market is favorable for boom 1000 and boom 500 when the market is
goes sideways or is an uptrend.
Trading against the trend might still work but out well, but never for
too long because facing the waves is never too friendly. But diving in
the direction of the wave has less stress and resistance.
The best way to get to understand the main trend of any market is by
analyzing bigger timeframes like 1 hour chart or 4hour charts. When
you are able to spot the leading trend through bigger timeframes, then
look for entries in accordance with the corresponding timeframe.

Remember also that there are no successful trade without successful

money management techniques. To grow your account does not mean
you will never make losses; to grow your account simply mean that you
will have minimized losses and maximized profit.
Do not be anxious for nothing when trading, stick to the rules and
manage your trades and your money well as you have been taught in
the book.
A trader should be psychologically fit by not falling in the trap of greed
and the trap of fear. The best way to overcome greed and fear and
greed is by sticking to your trading plan.
Master all strategies but above all look out for the divergence strategy
because according to experience it has proven to give more accurate
signals.

I wish you the greatest success as you delve enter into this amazing and
exciting journey of extracting money out of the boom crash indices. I
believe you eventually get the lion’s share in this market.
 Disclaimer
Trading synthetic indices on margin carries a high level of
risk, and may not be suitable for everyone.

Past performance is not indicative of future results. The

high degree of leverage can work for you as well as
against you.

Before getting involved in boom crash indices trading you

should carefully consider your personal venture
objectives, level of experience, and risk appetite.

The possibility exists that you could sustain a loss of

some or all of your initial deposit and therefore you
should not place funds that you cannot afford to lose.

You should be aware of all the risks associated with

Cryptocurrency trading, and seek advice from an
independent financial advisor if you have any doubts.

The information contained in this book does not constitute

financial advice or a solicitation to buy or sell any
synthetic indices contract of any type.

Solomon Serge Maheshe will not accept liability for any

loss or damage, including without limitation any loss of
profit, which may arise directly or indirectly from use of
or reliance on such information.