Self weighting strategies weigh all money making opportunities the same. If you find a good trading opportunity while using this method, you will put forth a certain sum of money. Another good trading opportunity will see you use the same amount again for this trade. Trading with a self weighting strategy will yield you average results. With this you are saying that all trades are equal—if only because you are using the same amount trade after trade.

If you treat every trade the same, you will get average returns based upon the mean of all profits and losses within your results. This is a waste of time and energy on your behalf. You want to have above average results when you are trading—who wants to settle for making the same as everyone else? As a result of this, effective and profitable traders are able to determine how exactly to adjust their trading capital based upon the edge that they feel the market has in store for a specific trade.

This is quite complicated to do, but these Binary Options traders will pick and choose only the trades that they see has the most potential, and adjust their trading capital so that the most profitable trades have the most money at risk. A lot of this is theoretical, but a successful non-self weighting trading strategy will put more money where there is the most potential. Smaller profit margins see fewer dollars being invested in them, if any money is put to risk at all.