Not long Travis. That’s part of the reason why I took the money out. The goal of this particular type of strategy is not to compound the account consistently, as you rightly point out this is impossible with this much risk eventually I would blow up the account. The point is to make some money, withdraw and start over with a portion of the profits. I realize that I am risking the entire account when I trade like this, I will either lose it all or make a lot. Sometimes I do lose the entire account such as I did on Tuesday. That is why I like to keep the account small. Call it gambling if you want, but according to the US government if I were to lose money overall doing this I could write it off on my taxes so technically it is not gambling per the law. Thankfully I have been very profitable with my trading using similar high risk strategies in Forex, Futures, and binary options so I have some taxes to look forward to paying. Maybe you are right and I will eventually lose all my money but by withdrawing my profits quickly and keeping the accounts small I have thus far been able to mitigate that risk.
In terms of having a data set going back 5 years and all that of course I don’t and neither does anyone else; considering that these 5 minute binary options have only existed for less than a year, it’s a bit of an impossible standard, don’t you think?
As far as selling out of the money contracts I think you are confused. If the strike price is below the market then that option is in the money by definition. I don’t like to sell in the money options, I want to have time decay on my side when I take a trade, that’s why I typically buy the in the money options and sell the out of the money options when I see the bullish or bearish divergences forming on the 1 min charts.
Anyway I appreciate your input, and maybe I will even consider utilizing lower risk strategies such as you seem to be advocating. Based on your experience what percentage of an account do you think is reasonable to risk on any given trade?