Reset Call/Reset Put: The Second Chance

The Reset Call/Reset Put contract is a variation of standard Rise/Fall that provides a built-in risk mitigation feature by allowing the trader to potentially "reset" their entry price.

Core Concept:

• Standard Rise/Fall: One entry price, one comparison at expiry
• Reset Call/Put: Two possible entry prices, better one used at expiry

Two Contract Types:

• Reset Call: Predict upward movement with reset protection on downward pullback
• Reset Put: Predict downward movement with reset protection on upward pullback

Key Difference from Standard Contracts:

• Dual Entry Spots: Initial entry OR reset entry (whichever is more favorable)
• Risk Mitigation: Built-in protection against early adverse movements
• Lower Payout: Trade higher win probability for reduced payout

The reset feature creates unique trading opportunities:

For Reset Call Contracts:

• If price drops initially, reset triggers at lower price
• New entry spot is more favorable
• Increased probability of Exit Spot being higher

For Reset Put Contracts:

• If price rises initially, reset triggers at higher price
• New entry spot is more favorable
• Increased probability of Exit Spot being lower

Strategic Implication: This contract type rewards traders who predict direction correctly but want protection against timing errors or early pullbacks.

This contract has two possible comparison points, giving the trade a "second chance" to win.

Two Reference Points:

• Initial Entry Spot: The price at which contract was executed
• Reset Spot: A lower (for Reset Call) or higher (for Reset Put) price that becomes new reference if price moves unfavorably

Reset Condition (Crucial):

Reset Call:

• If price drops to or below pre-determined Reset Barrier during observation period (usually first few ticks/seconds)
• Current market price at that time becomes new, lower Reset Spot

Reset Put:

• If price rises to or above pre-determined Reset Barrier during observation period
• Current market price at that time becomes new, higher Reset Spot

Reset Call Win Conditions:

• Exit Spot is strictly higher than Initial Entry Spot, OR
• Exit Spot is strictly higher than Reset Spot (if reset was activated)

Reset Put Win Conditions:

• Exit Spot is strictly lower than Initial Entry Spot, OR
• Exit Spot is strictly lower than Reset Spot (if reset was activated)

Observation Period:

• Usually first few ticks or seconds after entry
• Platform automatically monitors for reset trigger
• Reset can only occur once per contract

Strategic Advantage:

• Converts potential losing positions into winners
• Provides better entry price through automatic adjustment
• Increases overall win probability

Lower Payout for Higher Probability:

• Standard Rise/Fall: Higher payout, single entry spot
• Reset Call/Put: Lower payout, dual entry spots (better odds)
• Trade-Off: Sacrifice payout percentage for increased win probability

Probability Enhancement:

• Reset feature increases statistical probability of winning
• Two reference points mean two chances to win
• Lower payout reflects this enhanced probability

Strategic Balance:

• Reset is risk mitigation tool, not profit maximizer
• Suitable for conservative directional trading
• Ideal when direction is clear but timing uncertain

Risk Characteristics:

• Limited Risk: Loss capped at initial Stake amount
• Enhanced Probability: Reset feature increases win probability
• Mitigation Tool: Built-in protection against early adverse movements

Risk Management Considerations:

• Direction Still Matters: Must predict overall direction correctly
• Reset Not Guaranteed: Price must move against you to trigger reset
• Lower Payout: Requires higher win rate for profitability

Risk-Mitigated Rewards:

• Lower Payout: Fixed profit lower than standard Rise/Fall
• Higher Probability: Two entry spots increase win chances
• Consistent Returns: More frequent wins offset lower payouts
• Suitable For: Conservative directional traders

Strategic Advantages:

• Protection against early pullbacks
• Better entry price through automatic reset
• Reduced timing risk
• Ideal for volatile consolidation markets

Statistical Reality:

• Must win more frequently to compensate for lower payout
• Reset is contingency, not primary strategy
• Enhanced probability worth payout reduction

Anticipated Pullback Strategy:

• Strong Move Expected: You anticipate strong directional move (e.g., Call)
• Initial Pullback: Expect short, immediate pullback first
• Reset Triggers: Pullback triggers reset at better entry price
• Subsequent Trend: Main directional move follows reset

Market Conditions:

• Strong trends with expected initial retracements
• Support/resistance bounce scenarios
• False breakout patterns

Success Factors:

• Requires understanding of pullback patterns
• Benefits from technical analysis
• Suitable for trend traders

Choppy Market Protection:

• Whipsaw Protection: Reset protects against whipsaws
• Directional Conviction: Clear long-term direction despite short-term noise
• Risk Mitigation: Reset absorbs initial adverse movements
• Eventual Direction: Price eventually moves in predicted direction

Market Conditions:

• Choppy markets with clear underlying trend
• High volatility consolidation periods
• Price moving strongly both directions

Success Factors:

• Requires patience for price to recover
• Benefits from longer duration settings
• Suitable for volatile market traders

Strategy Overview: Identify a confirmed support level where you expect a strong bounce (Call). Instead of standard Rise, use Reset Call. If price dips slightly below support (false breakdown) before reversing, reset triggers at lower price.

Execution Steps:

1. Identify confirmed support level with expected bounce
2. Place Reset Call contract (not standard Rise)
3. Wait for potential false breakdown below support
4. Reset triggers at lower price if breakdown occurs
5. Price bounces from support, confirming true entry

Why It Works:

• False breakdowns common at support levels
• Reset captures better entry on false breakdown
• Increases chance of Exit Spot being above at least one reference
• Lower entry spot improves win probability

Step 1: Select Contract Type

• Navigate to Trade → Options → Digital Options
• In contract type dropdown, select "Ups/Downs"
• Then select "Reset Call/Reset Put"

Step 2: Set Duration and Stake

• Choose duration (e.g., 5 minutes)
• Enter your stake amount
• Review payout (lower than standard Rise/Fall)

Step 3: Reset Barrier Set Automatically

• Platform determines initial Reset Barrier
• Based on asset's current price and volatility
• No manual barrier setting required

Step 4: Execute Contract

• Click "Buy Reset Call" (betting on eventual upward movement, potentially after drop)
• OR
• Click "Buy Reset Put" (betting on eventual downward movement, potentially after rise)

Step 5: Monitor Reset Activation

• Observe if price touches Reset Barrier
• Reset activates automatically when barrier touched
• New entry spot becomes active reference

Pre-Trade Planning:

• Identify expected direction
• Anticipate potential pullback
• Plan for reset scenario
• Set risk parameters

During Trade:

• Monitor for reset barrier touch
• Observe which entry spot is active
• Track price movement after reset

Post-Trade Analysis:

• Record if reset was triggered
• Compare outcomes with/without reset
• Analyze win rate vs. payout trade-off
• Refine reset strategy based on results

Common Mistake: Assuming price must reset to win

Why It Happens:

• Misunderstanding reset as requirement
• Thinking reset is the primary strategy
• Not appreciating immediate favorable moves

How to Avoid:

• If price moves favorably immediately, initial entry spot is used
• Reset is contingency, not the goal
• Appreciate immediate wins without reset
• Understand reset is safety net, not strategy

Common Mistake: Complaining about low payout without understanding trade-off

Why It Happens:

• Not appreciating enhanced win probability
• Comparing to standard Rise/Fall without context
• Expecting high payouts with risk mitigation

How to Avoid:

• Understand lower payout is price for reduced risk
• Calculate required win rate for profitability
• Accept payout reduction as cost of protection
• Compare total returns, not per-trade payouts

Objective: Experience the reset protection mechanism in action.

Step-by-Step Challenge:

1. Switch to Demo Account and select the Volatility 50 Index

2. Place Reset Call Trade:

   • Set duration to 3 minutes
   • Use moderate stake amount
   • Note the payout percentage

3. Place Standard Rise Trade (Comparison):

   • Immediately after Reset Call
   • Same duration (3 minutes)
   • Same stake amount
   • Note higher payout percentage

4. Wait for Price Drop:

   • Observe if brief drop triggers Reset Call's second spot
   • Monitor both contracts during duration

5. Compare Outcomes:

   • When trades expire, compare results
   • Did standard Rise lose while Reset Call won?
   • Understand value of reset protection

Reflection: This illustrates the value of the protection mechanism and the payout trade-off.

Variation 1: Reset Activation Tracking

• Track 20 Reset trades
• Record how many times reset was triggered
• Compare win rates with vs. without reset activation
• Analyze effectiveness of protection

Variation 2: Payout Comparison

• Calculate total returns over 50 trades
• Compare Reset vs. Standard contracts
• Account for win rate differences
• Determine which is more profitable

Variation 3: Pullback Pattern Testing

• Identify markets with consistent pullback patterns
• Test Reset contracts on these patterns
• Track reset trigger frequency
• Optimize duration for maximum protection