Risk Management for Binary Options

Never risk more than 1–2% of your account on a single trade. With 80% payouts, a 50% win-rate already loses money — your edge has to come from selectivity, not stake size.

Concretely: on a $1,000 account, a 1% rule caps each trade at $10. That feels small, but at twenty trades a day it gives you 50 losing trades in a row before the account is gone — enough room for a real strategy to recover from a cold streak.

Set a hard daily loss limit (commonly 3–5% of equity) and walk away when it's hit. Tilt — chasing losses with bigger stakes — accounts for most account blowups in fixed-time trading.

A weekly stop (10–15%) catches the case where your edge has actually stopped working and you need to step back and re-validate, not just rest for a day.

Required win-rate to break even = 1 / (1 + payout). At 75% payout you need 57.1%, at 85% you need 54.1%, at 95% you need 51.3%. Every percentage point of payout you give up forces you to win meaningfully more trades.

This is why payout shopping matters: the same strategy that's marginally profitable at 90% payouts is a clear loser at 75%.

Log every trade: asset, entry time, expiry, payout, setup, outcome. After 100 trades you'll see which setups carry your edge and which ones you should drop. Without a journal you'll cling to the trades that feel good and quietly bleed on the ones that don't.