Analytical Challenges

While putting on trades is ultimately the best form of testing your skills, it’s important to also challenge your analytical abilities. The following analytical challenges are evergreen; they do not go out of date and can be done anytime.

• What is the sentiment of the market regarding the U.S. dollar? Is it risk averse or risk appetite, and why?
• Scan the binary option underlying markets for markets which just reached new weekly highs. What is the reason for the new highs?
• Among the floating currencies, what are the widest interest-rate differentials?
• What is your adjusted win/loss ratio (remove the highest gain and the highest loss, and then recompute the result)?
• Scan the four-hour charts of the underlying markets and select one that has a compressed triangle forming. Put on a breakout trade around that triangle.