The strategy is for every trade to be a plus. Strategies for binary options. Crosshairs of moving averages
The rules that a trader needs to listen to and follow correctly are binary strategies. By completing them, you can achieve the desired result of increasing your capital. Proper binary options trading strategies are very valuable information as it helps to significantly increase the money a trader invests in trades.
Each trader has his own strategies for trading binary options, which are very different from each other. Among traders themselves, they are often called “trading systems.” Using these systems, you can find out the trader’s character and his preferences. The main thing for every person who decides to engage in trading on the market is to create his own unique binary strategy (system), since, having developed a comfortable trading option, a person will be able to understand it well, which will bear fruit in the form of profitable transactions. If a trader does not have such systems, it is better to wait to trade with real money, otherwise there is a chance of losing your capital.
Binary options strategies are based on charts, market overview and information that can affect the price change of the lot. When creating his own trading system, a trader must decide for what period of time he needs to create a strategy, because transactions can be opened for both a short period and a long one. Although a long period for concluding a deal is not quite the definition, since the deal usually does not exceed one month. Also, the system that the trader adheres to must be flexible, and, accordingly, the binary options trading strategy must have several options for the trader, since the market is not stable and can change at any time. In addition to all this, when creating your own system, you need to understand it very well and use only those methods that the trader knows.
On the Internet you can find video strategies for binary options, where traders discuss the use of automatic trading programs. Usually, new traders who use such programs lose their capital very quickly, and this is not without reason. This is due to the fact that when resorting to prompts for opening a lot, a novice trader simply does not understand why this is happening, and, without correctly assessing the situation, trusts the program that offered to buy the lot. And as has been said more than once, you should not carry out an operation without understanding the factors that prompted the trader to do so. However, advisor programs also have their advantages, and they can be used to create a strategy for trading binary options. Programs cannot be influenced by emotional factors. They also do not make stupid, random mistakes, but act according to a planned algorithm. But there is simply no formula in the world based on which the program will predict the price of an item with a 100% chance, which means that without human help it is useless.
As has been said more than once before, all tools that can be used by a trader must first be studied in detail. Superficial knowledge about trading strategy is completely insufficient. However, a trader must always rely on his own strength, and the tools he uses in his strategy are just advisors. For profitable trading, he needs to weigh all the current market events and its news background, and then make decisions calmly. This way, and only this way, can you achieve success and your intended goal, namely, to be a successful and prosperous trader when trading assets on the financial market.
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Lately, my inbox has been flooded with the same type of questions about how I manage to stay on top for so long and not lose my money. Of course, I understand you perfectly, I used to be like that myself and I was very interested in people who were really able to achieve something in the stock exchange world. Everything is described perfectly in the books, and websites on financial topics are simply full of their promises to achieve the so-called “Financial Independence.” But, unfortunately, no matter who I tried to reach in personal communication, everyone turned out to be either ordinary scammers who promised mountains of gold for exorbitant money or reserved professionals who were not eager to share their secret of profitable trading.
Actually, you yourself have encountered this, and you most likely have suspicions about me. What are the questions about how much I earn, how, what strategy I use. To be honest, I’m tired of proving something to everyone and constantly answering the same questions, so in this article I’ll probably be the first to lay all my cards on the table.
I'll start with my personal account at the broker Utrader. In order not to be unfounded, I suggest you look at the screenshot of your personal account:
I hope that after what you saw, you no longer have any thoughts that I don’t really have an account and that I’m far from real trading. I think now we can safely move on to the second, most common question about what strategy I use. Actually, I have extensive experience in trading on the stock exchange, from Forex to binary. However, lately I prefer options because I personally find them much easier to trade.
I use standard and time-tested exchange tools, but I conduct my analysis in the MT4 terminal because of its convenience. There are only three indicators in my set, namely Moving Average(period 14 and 7), Bulls Power And OsMA. I hope you are familiar with how to install the terminal (and if not, then it will help you), since the entire further story about my strategy will be completely based on it.
So, I suggest not to torment you for a long time with stories about how to plot all these indicators on a chart, so I recommend immediately installing a ready-made strategy template. You can download it from the link below:
This is very easy to do, place the downloaded file in the root folder called Template and restart the trading terminal. Next, right-click to open the menu on the chart and select from the list of templates “My strategy for BO for 10-15 minutes”. As a result, you will get a graph like this:
A little about strategy. What assets to trade
I can boast that I came up with this strategy myself through, to put it mildly, “mistakes and trials.” In general, I came to the conclusion that it is better to use it on options with an expiration time of 10-15 minutes, since if used on a turbo, the signals are delayed and there are many unsuccessful trades. I only trade currency pairs with it, but this is more likely due to the functionality of MT4 rather than my dislike for stocks and indices :). We carry out the analysis on a five-minute chart. In general, I won’t pull the cat by the tail and let’s move straight to the signals.
Buying a CALL option:
1) The blue line of the Moving Average indicator crossed the red one from bottom to top.
2) The Bulls Power indicator tells us about the strength of the bulls by drawing a histogram above the 0 level.
3) The OsMA histogram indicates the development of an ascending market and draws bars above the 0 line.
Finmax where I buy a CALL option.
Buying a PUT option:
1) The blue line of the Moving Average indicator crossed the red one from top to bottom.
2) The Bulls Power indicator tells us about the weakness of the bulls by drawing a histogram below level 0.
3) The OsMA histogram indicates the development of a downward market and draws bars under the 0 line.
After the signal appears, I wait for the candle to close and go to my Finmax personal account where I buy the PUT option.
How do I manage capital
You've probably come across different money management models, and the most popular one is the risk on a bet of 2% of the deposit. But personally, I don’t like this model, so I always work with a static rate. For myself, I chose a sum that is not difficult for me to lose and I always bet with it. In my case, this is $100 per transaction, but this amount is individual for everyone, so I am not your advisor here.
Latest transaction statistics
I specifically did not indicate the amount that I personally earn, because I’m not prying into your wallet. By looking at the statistics of recent transactions, you can easily estimate how much profit you can get per month. I would like to warn you that these are the latest statistics from my personal account, and, to be honest, they make me happy. In practice, everything rarely happens so smoothly, so don’t be surprised if you get a losing position or your result is not the same as mine. However, in general, you should always end up with a pleasant plus at the end of the week.
Once upon a time, there were very few strategies for binary options with an accuracy of 90% or higher, but now there are plenty to choose from. However, options trading is more complicated than it seems; it requires a systematic approach. Tactics are only part of a trading system, which includes money management rules, the principle of determining the moment to buy an options contract, and much more.
Before you start trading BO, you need to study the literature and articles, and also write a trading system based on the knowledge gained.
Classification of strategies
- Before choosing a strategy for BOs, it is a good idea to familiarize yourself with the principles of their operation. If we carry out a conditional division, then all strategies can be divided into three broad groups. The main criterion for distribution into groups is the method underlying the operation of a particular tactic. These are the groups:
- Trading using indicators.
- Trading by patterns.
Combined trading. You need to choose based on personal preference and convenience
. All of the examples of tactics below are very effective. Testing has shown their profitability with a result of 90%, but subject to the recommendations. They will perfectly complement any trading system.
Indicator Strategies
Indicators are the most common trading method. They are effective if used in a trading system. You need to thoroughly know the operating principle of the indicator advisor before using it. Strategies can be based on one, two or more indicators, each of which has its own function.
Crosshairs of moving averages
- The most popular indicator tactic for BO. It's extremely easy to use. First, you need to select a one-minute time frame and an EMA (exponential moving average) indicator. The first line should have the following settings:
- Blue colour
period 14
- The EMA can then be re-plotted. Its settings will be as follows:
- Red color
period 9 Before you start trading using this strategy, you need to select the appropriate type of option contract. The moving average calculates the average price of an asset for a certain period, therefore, you can only trade time options and regular classic contracts
It is also necessary to check the area of the market where trading is carried out. These settings are intended for flat trading. During a trend, there will be false signals on pullbacks. It is very important. The accuracy of the strategy directly depends on the market area. Don't forget about risk management. The minimum investment in a transaction cannot exceed 10% of the deposit.
After following all the recommendations, you need to wait for a signal to buy the “Higher” or “Lower” option. A good time to buy a bullish option will be when the lines intersect, as shown by the arrow labeled “Call”. The signal to buy a down option will be the crosshairs of the lines in the opposite direction, as shown by the arrow labeled “Put”.
"Silomer"
This is an interesting binary options strategy with 90% accuracy, designed for turbo options. The tactics are based on the use of two indicators with very simple settings.
- Alligator: 24; 14; 6;
- RSI: period 14 with standard levels of 70 and 30.
A one-minute time frame is required for trading. This is where the settings end and you can safely move on to trading. This profitable and simple binary options strategy is based on trading along with the general trend movement. This approach is the most profitable, since catching the moment of reversal is much more difficult. Now you need to wait for a clear signal to buy “Higher” or “Lower” option contracts.
The formation of an uptrend serves as a signal to purchase a bullish option. The entry point is the moment the price touches the green line of the Alligator. In this case, the RSI indicator should confirm the rollback.
If a counter trend is formed, this serves as a signal to buy an option contract on a decline. The entry point is when the price touches the green Alligator moving average. RSI also needs to be taken into account.
Pattern Strategists
Patterns appeared long before indicators and have proven their effectiveness. In fact, technical analysis began with them. Patterns also include trend reversal patterns. There is no single textbook on technical analysis with clear divisions, so there is a little confusion in terminology.
Pin bar
This is one of the powerful patterns. The pin bar goes well with trend reversal patterns. If a trend movement has been going on for a long time, then sooner or later it will end. And at this moment you can observe reversal candlestick formations, one of which is a pin bar. To be fair, it can be false if it occurs during a consolidation, or if its shadow is within previous candles.
This pattern is difficult to confuse with any other. The essence of the strategy is that you need to catch the moment of a trend reversal. If the trend was up and a pin bar appeared, then you need to buy a down option. If there is a long counter trend and a pin bar has appeared, it is worth buying a bullish option.
A signal is considered strong if one of the reversal formations is present. The very moment of buying an option should not be at the moment the pin bar appears, but a little later, when the price changes direction to the opposite and passes several points.
"Flag of Success"
This is a rather unusual tactic based solely on candlestick analysis. Its simplicity makes it popular among novice speculators. The flag figure consists of a pole and a canvas. Details of what this figure looks like will be outlined in the screenshots. The flag represents a pullback in a trend movement, upward or downward. It should be interpreted as a continuation of the asset price dynamics in the same direction.
Trading will require some chart adjustments. It should be switched to a 15 minute time frame. The recommended expiration time for this strategy is 15 minutes, although it can and should be adjusted depending on your own preferences.
The flagpole is formed by a sharp price movement, and the canvas is a correction after it. The shaft is usually depicted as a line, and the canvas as a rectangle. Together they make up the flag. The screenshot below gives a clear example of it.
A signal to buy a “Higher” or “Lower” option will be when the price goes beyond the border of the canvas in the direction of continuing the trend. This point is circled in the screenshot above. You need to enter a trade only after the signal candle closes. This is a profitable strategy for binary options, with an accuracy of 90% and above.
Combined tactics
Combined strategies are based on a combination of patterns with indicators. There are a variety of possible uses for both methods. Below we will describe several of the most common strategies as examples.
"Candles + Bollinger Waves"
For BOs, Bollinger Waves are one of the best indicators. It can be called an indicator advisor for all occasions. Candlestick analysis very successfully complements it, forming a profitable tandem. This strategy is designed for flat trading. To trade on it, it is necessary that there is no clear trend. The width of the indicator is also important, since with a narrow flat it is difficult to make money on BO. If the conditions are met, this strategy for binary options, with an accuracy of 90% or higher, will work as profitably as possible.
The necessary settings are to select a 5 minute time frame and an expiration period from 3 to 5 minutes. Everything is very simple and effective. Now about signals for entering the market. When the price approaches the lower Bollinger moving average and the second candle closes within the indicator, this is a signal to buy an upside option contract.
When you touch the upper Bollinger line, followed by the closing of the candle within the indicator corridor, you need to buy a downside option contract.
A good trading system combined with a highly effective strategy for binary options, with an accuracy of 90%, will allow you to consistently earn money on any assets and markets.
BOs are no exception, because the number of profitable transactions is important here. It is important for any trader to understand what characteristics a full-fledged binary options trading strategies
- . We can say that they are effective only if they completely determine the necessary actions. In other words, the chosen rules must clearly indicate the following points:
- signal to open a deal;
- preferred assets;
- the most appropriate time;
- capital management plan. That is, the trader must know exactly how much funds he may need;
- minimum required deposit amount;
moments of possible withdrawal of funds.
For successful trading, it is important to strictly follow the adopted plan. You should make a deal only if absolutely all the signals have worked. Moreover, even a slight deviation from some rules should serve as a reason to refrain from making a transaction.
The analysis and development of such tools usually takes place over a fairly long period of time. Indicators are tested on a huge number of transactions, and only after that they are released to the masses.
Fundamental trading is based on global market analysis, as well as its conditions. In this case, the trader is based on a variety of news, as well as company reports and government indicators. Such trading systems are quite complex to use; they are suitable for experienced market players. This is due to the fact that when using them it is necessary to analyze a huge amount of information.
Successful Trading Principles
A huge variety of trading methods are popular among traders. They all differ from each other in the set of instruments used, the required deposit amount, and the level of risk. Let's take a closer look at some of them.
Many of those who prefer technical analysis trade using the Alligator indicator. It consists of three moving averages, which differ from each other by different periods and displacement indicators. There is no need to specify any additional parameters. The indicator's developer, Bill Williams, has already calculated them.
Using the Alligator allows you to predict the emergence of a trend and its strength. A signal to open or close a position is a simultaneous reversal of all three lines. Call options are opened when all moving averages are moving up. For Put options, the opposite rule is provided: they are bought when the lines turn down. At the same time, the indicator can be analyzed on any time period depending on the preferred expiration value.
The most popular trading principles among those who prefer fundamental analysis is news trading.
Its essence lies in the fact that the account owner carries out certain actions at the time various news appears. Most of them can lead to fluctuations in the underlying asset.
There are a number of rules that must be followed in this case. You can invest no more than 2% of your deposit into any transaction. In this case, even a negative result will not lead to a significant drawdown. The second rule is that transactions should be carried out at the time the news is released, and not before it. This is because high activity up front significantly increases the risk of failure.
Trading on the news requires maximum composure and regular analysis of upcoming events. It is necessary to learn to determine with the maximum probability what events can lead to movements in quotes and in which direction the market will go under their influence.
Ready-made strategies
Today the Internet is replete with offers to purchase a ready-made trading plan. Many people get hooked by tempting promises. This is due to the fact that commercials claim a guaranteed profit. They promise that with the use of purchased programs, even an absolute beginner, by investing a small amount of money, can suddenly become rich.
Unfortunately, all this remains empty promises. If you spend money on ready-made trading systems, there are a huge number of risk factors. Often, sellers of such trading systems do not develop them themselves. They take free, available strategies, create extensive, beautiful advertising, and sell it to unsuspecting newbies.
However, many do not even bother to check it and do not trade according to the plan they propose. Most of the ready-made systems sold are unfinished. They don't have clear rules. Upon purchase, the trader will receive only small recommendations for their use.
Those who trade binary options should know that even successful systems may sooner or later stop making a profit. Any trader using a certain plan in trading must continuously analyze it. If necessary, trading rules are subject to adjustment.
Newbies can be given effective advice. You should not believe promises and invest in ready-made strategies. It is better to prefer the simplest free trading systems. Despite their simplicity, such trading methods usually turn out to be quite effective.
After choosing a trading plan, you should definitely try it on demo accounts, which provide the opportunity to trade using virtual funds. Only after the trading system has been carefully studied and, if necessary, adjusted to the needs of a particular trader, can you begin to use it with real money.
