welcome to franco binary options signals · welcome to franco binary options signals introduction 1...

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PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe the way we trade and provide our signals for no less than 3 days! Welcome to Franco Binary Options Signals Introduction PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe the way we trade and provide our signals for no less than 3 days! Take that time to READ this document several times, OBSERVE the room, and write down any questions that you have. Feel free to ask your questions on your 4th day. Believe me when I say you are not missing anything in these first days. You are honing the skills required for your new profession. The room will be open when the market is open, therefore 5 days per week unless there is a Holiday. Please use this starting 3 or 4 days to observe how the room works as well as to witness how the trading days are different. ** Even though the room is indeed open Monday through Friday, it should be noted that the best historical trading days are Tuesday through Thursday. Mondays and Fridays are therefore viewed as somewhat more cautionary days. It is estimated that 70% of all trade calls on Monday and Friday are successful, but it is also estimated that 90% of losses have come on these days. ** Use proper etiquette while using the chat function of the trading room. Email addresses and URL links cannot be posted in the chat window; the software will automatically block such attempts. PLEASE DO NOT use the chat window to try to solicit other members contact information (contact sharing must be arranged and approved by Franco privately) or try to advertise any other trade service providers.. Abuse of this will result in your being banned from the room. Also PLEASE refrain from posting any trade suggestions. Lastly, try to use English while typing in the chat window. Use any free time that you may have to educate yourself about trading. GOOGLE the following terms as we will use them on a daily basis: “Head and Shoulders Pattern”; “Candle Stick Chart”; “Currency Pair Correlations”; “Bollinger Bands”. It is very important that you know what Binary Options are: you must know the advantages and risks involved. 1. 2. 3. We would like to take this time to congratulate you on making a wise investment. You have taken an important step in becoming a profitable and knowledgeable trader. We have made this Study Guide to help our members understand how things work here and to help them develop their personal strategies for trading with us. This service is unique in every sense of the word. We focus as much on providing quality signals as we do on actually educating you the trader and helping you get an understanding of the market as well as developing a sense of confidence and independence. We will not throw you into the water to see if you can swim. We will guide you every step of the way. It is important to understand you have embarked on a new and profitable journey. We are not promising to turn you into a millionaire overnight. We urge you to not take unnecessary or uncalculated risks which can crash your account in a single day of trading. PATIENCE IS A VIRTUE. PATIENCE IS THE KEY. Some of our new members feel overwhelmed or even intimidated by our methods, and the terminology that we use. Here is a step by step guide to help make your transition into becoming a profitable trader smoother. If you follow this step by step guide you will improve your chances of being a successful trader ten-fold.

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Page 1: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe the way we trade and provide our signals for no less than 3 days!

Welcome to Franco Binary Options Signals

Introduction

PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe the way we trade and provide our signals for no less than 3 days! Take that time to READ this document several times, OBSERVE the room, and write down any questions that you have. Feel free to ask

your questions on your 4th day. Believe me when I say you are not missing anything in these first days. You are honing the skills required for your new profession. The room will be open when the market is open, therefore 5 days per week unless there is a Holiday. Please use this starting 3 or 4 days to observe how the room works as well as to witness how the trading days are different. ** Even though the room is indeed open Monday through Friday, it should be noted that the best historical trading days are Tuesday through Thursday. Mondays and Fridays are therefore viewed as somewhat more cautionary days. It is estimated that 70% of all trade calls on Monday and Friday are successful, but it is also estimated that 90% of losses have come on these days. **

Use proper etiquette while using the chat function of the trading room. Email addresses and URL links cannot be posted in the chat window; the software will automatically block such attempts. PLEASE DO NOT use the chat window to try to solicit other members contact information (contact

sharing must be arranged and approved by Franco privately) or try to advertise any other trade service providers.. Abuse of this will result in your being banned from the room. Also PLEASE refrain from posting any trade suggestions. Lastly, try to use English while typing in the chat window.

Use any free time that you may have to educate yourself about trading. GOOGLE the following terms as we will use them on a daily basis: “Head and Shoulders Pattern”; “Candle Stick Chart”; “Currency Pair Correlations”; “Bollinger Bands”. It is very important that you know what Binary

Options are: you must know the advantages and risks involved.

1.

2.

3.

We would like to take this time to congratulate you on making a wise investment. You have taken an important step in becoming a profitable and knowledgeable trader. We have made this Study Guide to help our members understand how things work here and to help them develop their personal strategies for trading with us. This service is unique in every sense of the word. We focus as much on providing quality signals as we do on actually educating you the trader and helping you get an understanding of the market as well as developing a sense of confidence and independence. We will not throw you into the water to see if you can swim. We will guide you every step of the way. It is important to understand you have embarked on a new and profitable journey. We are not promising to turn you into a millionaire overnight. We urge you to not take unnecessary or uncalculated risks which can crash your account in a single day of trading. PATIENCE IS A VIRTUE. PATIENCE IS THE KEY. Some of our new members feel overwhelmed or even intimidated by our methods, and the terminology that we use. Here is a step by step guide to help make your transition into becoming a profitable trader smoother. If you follow this step by step guide you will improve your chances of being a successful trader ten-fold.

Page 2: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

Remember: use this for 3 or 4 days to observe how the room works and to witness how the

trading days are different

Take the time to familiarize yourself with the terminology that is used in trading and in this room. The following terms describe the instruments that are most commonly traded.

Once you are a member please add us to your Skype: Franco857 as this is often a great way to communicate with the trader during hours when we are not in session. Franco has Skype logged out during trading hours. This is important because the 2 hours a day that we trade as a group should be

used just for that.

The trading room signal sessions run from 9:30 to 11:30 am Eastern Time (UTC-05:00). There are sessions that are more challenging to trade due to low volume or other variables such as days with lots of financial news, Holiday times, slow Fridays, etc where the session may not run the full 2 hours.

Alternatively our primary trader may at times leave the session open past the 2 hour window so that members can view and take advantage of his charts. It is up to the discretion of our primary trader if a particular session will end early or extend past standard times. Although our signal/trading sessions begin at 9:30 am EST, we urge all members to sign into the conference room at 9:00 am as we have a mental conditioning/motivational video session which is of great benefit. Use this time as well to ensure that you are able to log into or refresh your broker(s) platform. We believe that all traders should take the time to view the video below as well. It is the film “The Secret” and is 90 minutes long but well worth finding time to review!

The SECRET

Broker: you can sign up with any of our trusted brokers through the link below. In our experience, these brokers are the BEST for our style of trading. ** NOTE: If the broker banners in the above link do not appear, please turn off pop-up or ad blockers for this page.

BROKER SELECTION We would like to mention that most brokers offer a first deposit BONUS. READ THE FINE PRINT GUYS!!! What most traders do not realize is that if you take this BONUS from your broker, often times you will be unable to withdraw funds until you accumulate 30x the amount that you initially deposited. Now if you’re in it for the long run why not take the BONUS. Just understand the conditions before you do. If you want the flexibility of being able to switch brokers or withdraw your funds at any time, we do not recommend you taking any kind of deposit BONUS.

4.

5. 6.

7.

PAIRS: Euro or EU = EUR/USD Pound or GU = GBP/USD Aussie or AU = AUD/USD Kiwi or NU = NZD/USD CAD = USD/CAD YEN or UJ=USD/JPY The other Yen crosses will be spelled out such as EUR/JPY or Euro/Yen but can be shorted to EJ. Same applies to GBP/JPY: Pound/Yen: GJ

NQ = Nasdaq YM = Dow /GC = Gold (vs. USD) /CL = Oil (vs. USD) AAPL = Apple

INDEX (not tradable but is used to gauge Strength or Weakness): DX = US Dollar Index. 6J = Japanese Yen Index 6E = Euro Index 6B = Pound Index

Page 3: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

Ultimately the decision is yours to make, just like it will be your decision which signals to trade and how to manage these trades. We pride ourselves into giving you the information and the knowledge, but it is you who must pull the trigger.

The Screen

The trader who will be providing your education/signals uses a very important platform which we urge you to get as well. It is called Think or Swim you will also see it called “TOS”. When you sign up with one of our

brokers with our link below, our team will program this software for you free of charge. For more information click this link:

TOS SETUP Then make sure you come back to this page to complete your introduction course.

Please note that your TOS charts will not look exactly like that of

our primary trader: there are additional indicators on his charts that produce Momentum bars, Arrows and Yellow Dots for confirmation of trade triggers. These additional indicators are proprietary and are NOT made available to members. Please don’t ask for them. The charts that you will have are configured to have 2 moving averages and a set of Bollinger bands. The Bollinger bands are set to 20 period and 2 deviations. The upper Bollinger band is Red, the lower band is Purple and the middle (which is the 20 period moving average) is Blue. The remaining 2 moving averages are Exponential or EMA applied to close and are 30 (Yellow) and 8 (Green) period. Asset placement in the 9 ‘boxes’ will change often and will be communicated at start of each session. All charts that you will see are based on the 1 minute time frame.

Note the screen shot picture: you will notice on the right side of the page are faint icons that are “+” ; “-“ ; and 1:1. Use these buttons to zoom in and out to better size the chart screen from the room so that you can see all of the asset location and charts better on your screen. Alternately you can also

close the chat window to the left of the charts. Clicking the “Chat” icon in the upper left corner of the screen will close the chat window and allow more room on your screen for charts. Simply clicking the same icon will re-open the chat window. Also notice that you have Audio Controls on the lower left of the screen. These are used to mute the audio and change volume.

1.

2.

3.

White arrows

chat box

Yellow dots

Moving Average +

Bollinger Bands

Momentum Bars

zoom in/out

open/close chat

box

Audio on/off

Page 4: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

Your PC/Internet are your tools of your trade!

Internet: As fast and reliable as possible.

Computer: Dedicate to trading, close software not

used for trading. Set up time synchronization

Software: Run cleaner software, install and update

AntiVirus. Install Adobe Flash updates when prompted!

Your PC Although beyond the scope of this document all traders should ensure that their technology is suited to the task at hand and we will address some points to consider here. Trading is your profession and you need suitable tools to perform the task at hand. The following will greatly help to reduce the potential of technology getting in the way of your trading success.

Reliable internet: Obtain an internet connection that is as fast and reliable as possible for your specific circumstances. The majority of our trades

are based on short term expiry. Any internet delay will only serve to cause you difficulty in matching the performance of the room. A reliable internet connection is not based merely on speed. Traders should also monitor performance of the speed. For speed testing please use Speedtest then for performance testing please use Pingtest. The results from Pingtest will show you the quality of your connection. Both of these sites will let you select the server that you want to test from. As a point of reference, the server that is hosting our live room software is located in Dallas Texas, USA. You may want to test both the closest server to you as well as a Dallas server to get 2 different data points. Pingtest will give you a ‘grade’ for line quality and also show a MOS score. IF you have a MOS score below 4.0 you may experience issues with video or audio streaming from the room software. If you have a low grade and associated MOS score here are some things that you can do to help increase it.

i. Close all non-essential software while testing, and while in the room (see 2 below). ii. See computer maintenance section 4 below.

iii. Restart all network components such as modem, router, and switches. iv. Contact Internet Service Provider with Pingtest results for help with troubleshooting.

Dedicated trading computer: If at ALL possible, your trading computer should be dedicated to just that purpose. Some traders use multiple monitor setups and higher performance machines for trading which is a great idea. Traders should resist the temptation to turn this machine into a family

PC or ‘the ultimate gaming rig’. Close ALL non-trading applications such as Skype, Facebook, Email, etc. Use your trading gains to fund other computing needs.

Computer security software: Although this topic varies widely with regards to operating systems, some basic items should be considered a must. Hardware or Software based firewall and Antivirus platforms should be installed and updated regularly. There are several free sources here, please do

the research and install and update the software of your choice. It is recommended that antivirus software is running in real time and that a full system scan is done at least weekly.

Computer maintenance software: Since all Binary brokers at this time use web browser based platforms, some form of maintenance software should be considered and used. When broker platform related issues come up often times brokers will point towards user’s browser software as

the culprit. We recommend running CCleaner on a regular basis to clean up unused files from your system

1.

2.

3.

4.

Page 5: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

thus increasing browser and overall system performance. If your computer continues to run slowly and is Windows based, you may wish to run Microsoft Fix-It to help to speed up system performance.

Software Updates: It is recommended that your trading computer has current operating system and other updates such as Adobe Flash, Java etc. performed on a regular basis. We have confirmed that outdated versions of Adobe Flash cause issues with the room software audio and/or video.

Computer Internet Time Server: With the technology used in streaming audio and video there will be some delay. A delay of 3 to 5 seconds is normal, and should not cause concern. To this end traders should ensure that their PCs are synchronizing their time with the same clock that Franco uses.

Please ensure that you clock is set synchronize with an internet time source. The recommended time source is pool.ntp.org See instructions below for Windows based computers. If needed, use google for instructions on how to sync your computer for internet time.

Trading

Momentum Bars

The bar graph indicator on the upper left corner of some selected assets (not available for all assets) is our “Momentum” indicator. The purpose of this indicator is to alert us when price is pushing very strongly in a particular direction. We are reversal traders and want to trade in the opposite direction of a price run, but IF this price run has LOTS of power, we need to know this so that we can stand down for a few minutes to let the momentum ease. The graph has 9 lines indicating level of momentum. The lines will be all grey if momentum is normal. When price has good momentum behind a movement, you will see the lines fill in (Green from bottom to top for UPWARD price movement and Red from top down for DOWNWARD price movement). With the Momentum indicator, traders should consider the following guidelines:

5. 6.

We stop trading 5 minutes before until 5 minutes after any news release and after we see DX flash 100% Momentum. News and high DX momentum can have an unpredictable effect on our trading system so we just suspend trading and come back after the dust settles. You should refresh your trading platform browser at the start of each trading session as well as towards the end of the news break. Refresh the browser by highlighting the browser tab with the broker platform and hitting “F5”.

We are reversal traders. We trade 60 sec, 2 minute and 5 minute in the opposite direction of current short term trend.

Page 6: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

1 or 2 bars filled in, the trader can consider a trade that reverses the direction with some caution. 4+ bars filled in on the asset you are looking to trade or on multiple assets, traders should stand down and let the market settle down a bit. When the DX has 8+ bars filled in, we usually take a 5 minute break. The USD controls the market during the time that we trade and if the DX is pushing very strongly in either direction we take a break to let things settle down.

Trade Signal Arrows

There are trade signal arrows that appear on the charts. These arrows can appear and disappear quickly “Flashing Arrows” so traders must pay attention. For this reason the White arrows have been programed to have sound alert (which is the sound of a phone ring). The arrow will point in the direction that we want to trade, thus an up arrow will mean that we are buying a call anticipating that price will go higher and a down arrow means that we are buying a put anticipating that price will go lower. If the arrow is ‘wrong’ and price continues against the direction of the arrow, there may be another arrow printed on the next candle. If the price moves against the direction of the arrow, you can see multiple candles with arrows on them. These 2nd or 3rd arrows build a stronger signal of price reversal. The meaning of these arrows are as follows:

Pink and Blue Arrows – These arrows are more frequent than white and as such have no alerts. Franco performs analysis before opening the room and assigns bias to certain assets. Bias being our guide for the session as to if we are more interested in trading an asset up or down for the session. Generally speaking Pink Arrows are with the Bias and Blue Arrows are against the Bias. White Arrows – These arrows have the alert sound to them and are used to alert us to potential trade setups. What we want to look for are white arrows in combination with Pink, or Blue arrows to confirm trade setups. Super Arrows – These are arrows that occur on a candle where there is a White arrow that includes a Pink or Blue Arrow on top of them. This is a candle that closes with both arrows printed on it. This is a strong signal in that there are 2 arrows on the same candle. Flashing Arrow – This will be any arrow that can appear and disappear as the current candle is still building. This can be considered a good signal especially if there are 2 to 3 same color and direction arrow flashes while the candle is still being created. Permanent Arrow – This is an arrow that remains permanent on the chart after the candle is closed. These are considered a better signal especially if they are combined with other arrows. Multiple Permanent Arrows – This is when you see multiple permanent arrows after their respective candles have closed or a “Super Arrow”. This is considered the best signal. When observing multiple arrows you should watch for the location of the 2nd arrow with respect to the first permanent one. What this means is that if you are looking to go UP we prefer that the 2nd arrow appears HIGHER than the first. See examples below in the “Strong Signals” image.

Page 7: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

1st Hour (9.30-10.30 EST)

2nd Hour (10.30-11.30 EST)

General guidelines for the arrows: ALL arrows during the first 5 – 10 minutes (or so) of the session should be traded with caution. You will notice that when Franco comes into the room at the start of the session there is often plenty of action with the arrows and associated audio alerts. For the arrows and how to trade them, we divide the session into 2 parts:

For the 1st hour, the arrows should be traded with more caution: the conservative trader would be better served by beginning to consider “Super Arrows” or 2 consecutive arrows to trade or simply wait for the 2nd hour. It has been established that once there is an arrow that is permanent the next arrow becomes more reliable. A permanent arrow means that a candle closes and the arrow stays on the chart. Once you see this and the next candle prints an

arrow, the chances increase that price will go in the direction of the arrow. An even more conservative and VERY reliable method is to let 2 candles close with arrows. Once this happens and the 3rd candle prints an arrow, this is a VERY powerful signal! For the 2nd hour of trading the arrows become more reliable.

During the 2nd hour of trading the arrows become more consistent. In this hour, traders may elect to start with first arrow trading or, if desired, “Super Arrows” or 2nd arrows depending on risk tolerance. The more conservative trader can wait for 2nd or 3rd arrows where the more aggressive trader can trade the first arrow or flashing arrow.

A Note about Yellow Dots: You will see yellow dots that flash and/or remain solid on the charts. These dots should not be traded on their own. These are used as secondary triggers after the main trigger (Arrows) have appeared. The yellow dots are remnants from previous versions of the charting software and left here for reference only.

Moving Averages Moving averages have entire trading strategies created around them. The primary use that WE have for them is to analyze them when you get an entry trigger arrow. If the 8 MA is very close to or just crossing the 30 MA there is good potential that the current price move will NOT reverse as indicated by the arrow trigger. Many traders use this crossing of the MAs as a trigger to enter a position and as such this can drive price farther in its current direction. It is safer to trade these arrow triggers when the Moving Averages are farther apart, (fanning out) or when price pulls away from them quite a distance.

Page 8: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

2 m

in. /

5 m

in.

Trad

e

1. 2 and 5 minute trades can be taken on a flashing arrow, permanent arrow, Super Arrow, or 2 permanent arrows. Franco calls the arrows as they appear. 2. Listen to the asset he calls (example, EUR/USD, Gold etc). Franco may call…”Flashing arrow on the GU”… This would mean that your attention should be on the GBP/USD. Unless specified the pair called will be against the USD; e.g. “Pound” = GU = GBP/USD. When direction not specified, see #3 below. 3. Remember, the signal goes AGAINST the current TREND (if you see the asset moving up on the charts (buy/call), the signal is in the direction of the arrow, or down (sell/put)). 4. Based on your strategy you can enter based on the number of arrows etc. that you feel comfortable with and select either a 120 or 300 second expiry trade. 5. If you wish you may elect to follow Franco and trade as he does. Directions will be clear but you must pay attention to follow his trades.

Correlation Much can be found on the topic of correlation. We do observe correlation while trading that differs in a way from what most Spot Forex traders do. The way we implement this correlation is to watch the index (DX) of the signaled pair to watch for hints. In this screen picture you can see how closely the EUR/USD correlates to the DX. If you have signal arrows down on the DX at the same time as signals up on the EUR/USD this will increase the chances of winning the trade. Although not 100% accurate: in general if DX signaling UP that means EUR/USD and GBP/USD will go DOWN.

How to trade…

60

sec

. Tra

de

1. 60 second trades can be taken on a flashing arrow, permanent arrow, Super Arrow, or 2 permanent arrows. Franco calls the arrows as they appear. 2. Listen to the asset he calls (example, EUR/USD, Gold etc). Franco may call…” Flashing Pink arrow on the GU”… This would mean that your attention should be on the GBP/USD. Unless specified the pair called will be against the USD; e.g. “Pound” = GU = GBP/USD. When direction not specified, see #3 below. 3. Remember, the signal goes AGAINST the current TREND (if you see the asset moving up on the charts (buy/call), the trade is in the direction of the arrow, or down (sell/put)). 4. Look at Franco's charts, and watch the arrows on the chart of the asset called. 5. Decide if you want to trade 60 second and what your rules are with the arrows. When you see the arrow signal that you like (examples below), execute a 60 second trade immediately. When starting out, PLEASE just start with 2 permanent arrows or “Super Arrows” until you become more comfortable with the system. When you get more comfortable, there are martingale techniques mentioned above.

Page 9: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

Trade signal examples with arrows

For the best chances of success the patient trader will wait for one of our best trade signals.

Below are examples of the very best signals that you will see in the room. If traders are patient and wait for these signals they will experience much success. The key of course is waiting for them. There may be days when you will not see any of the setup signals shown below. You have to be comfortable knowing that you may walk away with 0-0 for the day knowing that you are waiting for the best of the best signals.

Please remember this is a journey not a destination. This will take time. DO NOT FEEL OVERWHELMED, DO NOT GIVE UP! Most of our members after just 2-4 weeks are winning 3-8+ trades daily without losing a single one!!!!! That is not to say that we don’t have our rough days; which brings me to the next point. Besides getting the education that we will provide and that you can supplement during your free time. The single most important factor of being a profitable trader is this: MONEY MANAGEMENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You need rules and discipline to ensure that one or two bad days of trading do not crash and wipe out your account. It is our professional opinion that a trader should NEVER invest more than 5% of their total bankroll!!! For example if you deposit $500 into your brokers account, the most you should ever put on a single trade is $25. This of course does not include any martingale trading. Use the information below to calculate total risk when considering martingale strategies.

Page 10: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

Martingale Strategy

Traders may elect to implement a martingale strategy to recover losses while trading in our room. There are several ways that a trader can implement a martingale system. The intent of this system is to reverse a loss of an initial trade. It should be noted that this method should only be used once the trader is very comfortable with the trading style used in the room. There is multiplied risk associated with martingale due to the fact that the trader is increasing the amount of risk in each additional trade to recoup any loss and end up with a net small gain for the ‘set’ of trades. For the 60 second trades this will be referred to as a 3 or 4 candle system. For the 120 and 300 second trades this is not the case as there are multiple candles that make up those trades. Take the time to work out all of the numbers associated with this strategy well in advance. You have to understand that you can’t simply double the entry position each time due to the fact that a winning trade on 60 second options pays out 70% and a losing trade will lose 100%. See the table below for an example of using a 3 or 4 candle strategy with an account balance of $1000.

Candle Trade Value Total Risk Net Profit

First $10 1% $7.00

Second $25 3.5% $7.50

Third $60 9.5% $7.00

Forth $150 24.5% $10.00

You can see that you have to be committed to this strategy well in advance of implementing it. Notice that at the 4th candle you will be risking 24.5% to win 1%. That being said, with our system, martingale is an excellent way to manage loss. There are many different ways to build out your personal system; this is merely an example that explains the math. Depending on your broker you may have enter multiple positions that add up to the next trade value. Make up your own plan that you are comfortable with and stick to it in the heat of battle. The final decision needs to be made with regard to when the trader decides to enter the next trade in the cycle. This also needs to be a personal decision. IF price runs against your direction and there is limited time left in your 60 second option and it is obvious that you have a losing trade; you may elect to enter the “2nd candle” trade before the first candle has closed, or wait for the trade to complete before entering the 2nd candle trade. The decision on when to pull the trigger on subsequent trades in your chosen cycle will come with experience and practice.

There is no right or wrong way to implement this. Each trader MUST take the time to analyze the martingale technique and decide if they are comfortable with this strategy. Each trader must decide for themselves what their risk tolerance level is and have all stages of your trade pre planned before the initial trade so that emotion does not hinder implementation. Use your demo / practice time to understand if you are comfortable with this strategy. This is considered advanced trade management and has multiple forms of implementation. Use the information below to help decide your personal risk tolerance level and the type of strategy that best suites you. This is a vital aspect of trading that you HAVE to be honest with yourself about, and have clearly defined before using this strategy.

Page 11: Welcome to Franco Binary Options Signals · Welcome to Franco Binary Options Signals Introduction 1 PATIENCE, PATIENCE, PATIENCE!!! We STONGLY urge all new members to simply observe

Read the following and pre-define what type of trader you are:

A) NO martingale B) Martingale based on trade signals “Broken Martingale” C) First candle loss strategy “Failing Arrow” D) 3 candle martingale E) 4 candle martingale

BEFORE starting martingale style trading it is imperative that the trader understands FULLY the total risk that is being accepted by ‘doubling down’ on losses.

The following are methods of using the martingale system. The methods below are primarily suited to trading 60 second expiry options. Martingale can be used as well for 120 and 300 second expiry options as well but are less structured in that additional trades can be entered before the initial trade has closed. With these longer expiry trades there may for example be an instance where a 2nd ‘candle’ trade may make sense before the first trade has expired. The methods below will need to be tried and tested in demo by each trader to find their own set of desired rules.

The trader can elect to not martingale a trade signal.

Simply enter each trade at the same pre-determined monetary value per trade signal. The trader can elect to start a martingale system on the next trade signal only, entering 1 trade per signal and increasing after a loss. This is also referred to as “Broken Martingale”.

1. Pre determine the maximum number of ‘levels’ that you are comfortable trading which will help determine the initial trade risk amount.

2. Enter a trade based on a trade signal. Let the trade run its course once entered. 3. If the trade is a loss, implement martingale on the next trade signal. 4. Reset after a win to your base starting amount.

The trader can pre plan to enter a 3 candle (or 3 trade) system ONLY after the initial trade is a LOSS. This will result in fewer trades, however is safer as you are in effect trading a 4 candle system with only a 3 candle max risk as you have not experienced the first loss.

1. Pre determine the maximum number of ‘levels’ that you are comfortable trading which will help determine the initial trade risk amount.

2. Prepare to enter a trade based on a trade signal. 3. The first candle of the trade MUST be a loss this is also called a “Failing Arrow”. 4. Enter the trade on the candle after the first arrow candle has failed. 5. Additional trades may be taken while the initial trade is still running. For example if there is

a very strong push against the trade, a trader may elect to enter their ‘2nd candle’ before the trade has expired. Or just let the first trade close and enter immediately the 2nd candle.

6. If the first 2 trades are a loss, you will have 1 remaining chance to enter thus reaching your 3rd candle.

7. Reset after a win to your base starting amount.

The trader can pre plan to enter a 3 candle (or 3 trade) system if the first trade is a loss. 1. Pre determine the maximum number of ‘levels’ that you are comfortable trading which will

help determine the initial trade risk amount. 2. Enter a trade based on a trade signal.

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3. Additional trades may be taken while the initial trade is still running. For example if there is a very strong push against the trade, a trader may elect to enter the ‘2nd candle’ before the first trade has expired. Or just let the first trade close and enter immediately the 2nd candle.

4. If the first 2 trades are a loss, you will have 1 remaining chance to enter (your 3rd candle). 5. Reset after a win to your base starting amount.

The trader can pre plan to enter a 4 candle (or 4 trade) system if the first trade is a loss.

1. Pre determine the maximum number of ‘levels’ that you are comfortable trading which will help determine the initial trade risk amount.

2. Enter a trade based on a trade signal. 3. Additional trades may be taken while the initial trade is still running. For example if there is

a very strong push against the trade, a trader may elect to enter the ‘2nd candle’ before the trade has expired. Or just let the first trade close and enter immediately the 2nd candle.

4. If the first 2 trades are a loss, you will have 2 remaining chances to enter (your 3rd and 4th candles).

5. Reset after a win to your base starting amount.

KEYNOTES

- After you read these instructions, PLEASE sit back and watch the room FIRST. Ask your questions after your first 3 or 4 days in the room, or after 11:00 am EST in Questions and Answers Session.

- Timing is everything on 60 second trades, use the first few days in the room to work on your timing.

- To gain confidence members should start out by executing trades on a DEMO (fake money) account which you may be able to request through your broker. If your broker doesn’t offer a demo account, you can just paper trade by jotting down the numbers from the broker platform and use a 60 second count down timer.

- The best way to “demo” is to open a small account with something like $250 and trade the smallest position that the platform allows. This will give you the most honest results as it is live, in the market, trading. It is HIGHLY recommended that new traders initiate a minimum of 50 trades in demo/paper or very small trade size to get a feel for this type of trading and to track performance.

- Practicing works on your timing, understanding, and personal technique to profit from the trading room the most.

- Traders MUST evaluate the full implications of martingale trading. You as a trader must define your risk appetite / tolerance and pre-plan what you will do if you experience a loss. This CAN’T be done on the fly or ‘in the heat of the trade’. This self-evaluation and full calculation MUST be done in advance. Decide if you are a martingale trader or not. The next step is to determine how many ‘levels’ you are comfortable with. The last step is to accept the above decisions and stick to them.

- Please do not post your own trade recommendations, solicit members contact information, or recommend other trading services / systems. This will confuse the chat window and fill it with off topic chatter.

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- PLEASE don’t ask for the exact rules or for specific details about the primary trader’s system. The system details used to make calls and associated proprietary indicators are not made available to the public. Just sit back and enjoy the trade signals that are provided. Your job is to refine how you will profit from the signals, not ask how they are determined.

Frequently Asked Questions / Issues

- I don’t have audio / I can’t hear anything. - If you can see from the chat that Franco should be talking and you can’t hear, try playing with the audio buttons on the lower left of the screen to un-mute or turn up volume. Also while we are on a break due to DX or news, there may not be any audio. Often times during news break there will be a countdown timer on the screen.

- I hear audio but don’t see the charts. – If you hear audio but don’t see charts, log out and back in first. If that does not bring the charts back follow the steps in the Your PC Section above.

- I see the charts, but they are fuzzy and I can’t read what the assets are. – The video streaming of the charts is intentionally not in HD. We have done this so that the data bandwidth requirement is as low as possible for both you and us. The main thing you need to see are the arrows. As for which chart is which asset, Franco will announce the placement of assets in the 9 box grid at the beginning of the session.

- I keep getting kicked out / booted from the room. – This is related to your PC or internet connection speed and quality. Again follow the steps in the Your PC section above.

- How do I know when to trade 1m, 2, or 5m expiry? – This decision will be up to each trader. Franco typically trades 60 or 120 seconds. The main thing that will define the expiry time is market momentum. If the market has a lot of momentum and is quite volatile, 60 second trades should be considered. When the market slows down it may take a bit more time for the trade to work out so this is when 2min and 5min trades should be considered. This is all up to the style of the trader.

- Where can I trade the 2min (120 Second) and 5 min (300 Second) expiry options? – At the time of this writing these options are only available on 24Options, GrandOptions and OptionFair with GTOptions offering 30, 60, and 120 second trades. Other brokers will most likely follow suit but at this time the number of brokers offering these expiries is limited.

- What are these score numbers that I see such as 3-0? – Traders in the room will report their ‘score’ from time to time. A Score of 3-0 means that you have 3 wins and 0 losses. When you are trading with martingale strategy and recover a loss that is shown as a win due to the net $$ win of the trade. So for a martingale trade “set” of candles that goes Loss… Loss… Win… that is reported as 1-0 since you have in effect won 1 net trade.

- I understand that we stand down when there is too much momentum, is there to little? – We need momentum to trade our style due to the fact that we are reversal traders. The momentum indicator will not ‘alert’ us if too little momentum as it will just show as gray bars. The indication that there is little momentum is to look at the candles. If there are lots of candles recently with very small bodies and wicks this is a very difficult market to trade. There may be arrow alerts shown in this situation and it is up to the trader to judge recent lack of momentum as a warning signal.

- Can you explain a bit more about how to use correlation? – Reading correlation is not required to trade our system but can be used as an additional confirmation. Typically what will happen is this. For example there is 1 closed arrow on EUR/USD that points DOWN. While you are watching and waiting for the 2nd arrow you can also start looking at /DX. Once the 2nd arrow is

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closed on the EUR/USD chart focus on the /DX and wait for that next candle to turn GREEN or show an UP arrow. Often times the /DX will lead the way. Generally speaking if the /DX is going UP the EUR/USD and GBP/USD ‘should’ come DOWN and the USD/JPY ‘should’ move UP. This will take time for you to watch and learn and is not 100%, but it is time well spent.

Rules to guide you to success!

1. Stay away from small candles too close to the green MA8 line.

We are reversal traders and our system needs momentum in price

action. When candles are very small and close to the EMA 8 line wait for more price movement.

2. Stay away from grinding assets:

Grinding occurs when there is not a lot of volume in price movement. You'll

notice that the candles are very small

indicating low price fluctuations.

3. Do not trade 5 minutes before until 5minutes

after a news release

News Releases cause rapid price fluctuations in the market that will often go against the signal arrows for some time.

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4. If there are 4+ flashing bars, do not

trade that asset

If there are 4+ flashing momentum

bars, this indicates that there is strong momentum in a particular direction. A strong surge in momentum can go against the signal arrows for some time.

5. Do not trade when there is a Moving

Average Cross

Crossing occurs when the Green EMA 8 line crosses over the Blue MA 20 and Orange EMA 30 lines in an up or downward direction. Occasionally, during a cross, the price can go up or down for some time.

6. Leave the room after 3-5 wins

After 3-5 wins, depending on your strategy, leave the room to avoid over trading.

7. Leave the room after losing 3 martingale trades

After losing 3-4 martingale trades, leave the room to avoid emotional trading.

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8. If you're in a trade and 4+ flashing momentum bars appear on the pair or on an index, do NOT continue

to martingale the trade.

9. Take a 5 minute break when the DX hits 8-9 momentum bars.

Also, take a break when the other indexes hit 8-9 bars

When the DX's momentum indicator

creates hits 8-9 bars, take a 5 minute break.

The DX controls the market so the momentum of the currency pairs are affected as well.

10. If there is more than five news alerts between

8:30-10 am EST, only Trade between 10:05 am-10:45 am EST

For daily news releases, visit Forexfactory.com or Investing.com

11. Focus on trading during the session

Focusing on trading will give you more trading opportunities than someone who is multitasking.

These rules have been created by our most successful traders in the room. Following these rules will GREATLY increase your success with us as well!

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Once again congratulations, and welcome to the family!