I will try to make it easier for others(me including to understand his method).
What is Martingale and Binary options
1) Martingale - Doubling up of your money/wager for every trade/bet that you lose. The law of probability states that you will eventually win and will never lose indefinitely. Thus if you bet $2 and lose you do the exact same bet again and put in $4 and if you lose again you double that to $8 and then $16 and so on until you win. Your eventual win will cover all your previous losses and make a small amount of money for you. Not hard to see that you need deep pockets and an appetite for risk doing this method.
2) Binary options - It is a "simple" type of options. Options are a favourite tool for hedging used by the big boys and to a certain extent the general investor/trader as well. In simple terms a binary option is a form of trade that gets exercised at the expiry date. Example you are in a normal FX trade shorting the EU. To hedge your position you buy a binary option that will be exercised at the end of the day that says that a trade will end up bullish(normally a certain price will be stated in the contract) at the end of the day or other determined time period. What happens in this case is if your initial EU short went the other way and hit your SL you will incur a loss. But because you took a Binary Option contract that gets exercised at the end of the day for a long position of EU you essentially covered your loss and potentially can make some money as well.
MK please correct me if I am wrong.
1) Go to M1 TF and decide the trend.
2) Look for an engulfing candle be they a bullish engulfing or bearish engulfing candle. Enter at the close of the engulfing candle.
3) If another engulfing candle that is opposite to the candle you entered appeared. You close that position for a loss and enter in the direction of the engulfing candle.
4) If after 4 trades and you are not in the money, you stop trading until another trend appears. You stop because the market is in accumulation mode i.e. ranging.
The 4 steps above identifies entry and stop loss.
1) Ride on the profitable trade until it hits another opposite engulfing candle and close?
Not explained yet exactly how to TP.
1) Does the direction of the trend matters?
2) Is this method only for trending markets meaning you don't enter in a ranging/accumulation market?
3) Do you blindly take any engulfing candle or are there other confluencing factors to consider before opening a position?
4) How do you determine the R:R?
5) How do you determine the TP? Do you only have 1 TP or a few? Do you use trailing stops?
6) Do you move trade to break even after a certain number of pips?
7) Does this only work for M1?
8) How do you use Binary Options and martingale in this strategy?
9) Do you use any indicators?
10) How much do you risk per trade?
11) Your MyFXBook shows all(there are 5) profitable trades. Why is it that there are no losses? It means you have a certain setup you look for before entering. What is the setup?