Binary Options As A Modern Fenomenon Of Financial Business

Authors

  • Andrea Kolková University of Entrepreneurship and Law, Prague, Czech Republic
  • Lucie Lenertová University of Entrepreneurship and Law, Prague, Czech Republic

DOI:

https://doi.org/10.37335/ijek.v4i1.37

Keywords:

Binary option, Bollinger bands, backtest, forex

Abstract

Binary options are a new instrument of the financial market. The aim of this paper is to analyze the use of binary options with trading and to illustrate this on the practical example of trades based on Bollinger bands indicator. Currency pair EUR/USD and 6912 time series values of this instrument will be put to analysis. The contribution will be evaluated 8 strategies based on Bollinger Bands. There will be used a backtesting method. From the results follows the most trades could have been realized with the use of Bollinger bands with a double deviation. This strategy, however, also showed the greatest percentage of failed trades. On the contrary the fewest transactions could have been carried out with Bollinger bands with a triple deviation and the MACD filter.

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Published

2016-06-30

How to Cite

Kolková, A. ., & Lenertová, L. . (2016). Binary Options As A Modern Fenomenon Of Financial Business. International Journal of Entrepreneurial Knowledge, 4(1). https://doi.org/10.37335/ijek.v4i1.37

Issue

Vol. 4 No. 1 (2016): International Journal of Entrepreneurial Knowledge

Section

Research

License

International Journal of Entrepreneurial Knowledge (ISSN 2336-2960) is published by the Center for International Scientific Research of VŠO and VŠPP in cooperation with the following partners:

  • University College of Business in Prague, Czech Republic
  • University of Entrepreneurship and Law, Prague, Czech Republic
  • School of Business and Administration of the Polytechnic Institute of Setúbal, Portugal
  • Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovakia
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