Working binary options trading strategies. How binary options really work. Strategies for binary options by duration
This trading technique can be classified as one of the simplest indicator approaches to market forecasting - it is built on one well-known Moving Average indicator, configured to determine short-term changes in the value of an asset. It is no coincidence that due to its reliability in professional circles this system is called working strategy for binary options for 60 seconds, let's look at the details in more detail.
In other words, the MA Wave tactic is designed not only for trading turbo options, but also for successful scalping. The Moving Average indicator is perhaps the first technical tool that a trader learns about when starting financial trading.
And this is not surprising, because the moving average is not only the most universal trend indicator, but also the main basis for many automatic market analysis tools.
The indicator algorithm is based on the principle of calculating the average price of an asset taken over a selected period (by default, the last 14 candles). The trader receives one moving average on the asset chart, displaying the current direction of the trend, its rollbacks and global reversals.
Depending on how long the evaluation period is set, the moving average can be used for a variety of purposes. So in this system the MA is used for intraday scalping.
System parameters:
- Difficulty level – I;
- Chart timeframe – M1, 30 seconds;
- Type of options – turbo options;
- Suitable time of use is from 9 a.m. to 6 p.m. Moscow time;
- Assets for trading – any trading instruments.
To apply the technique, the MA indicator should be applied to a price chart with a 1-minute timeframe, and in the settings you should set the moving average period parameter to 15. The Binomo broker platform allows you to easily configure the quote chart accordingly and get the following markup:
As we see, the red smoothed MA moves on the chart, moving either above or below the value of the asset - it is this natural behavior of the technical indicator that is the basis for the operation of this system.
Trading signals and transaction rules using MA Wave
The principle of trading using strategy signals is very simple - the trader needs to select an underlying asset with a current pronounced trend and place bets on the output of quotes from short-term corrective pullbacks using the following signals:
For CALL options:
- in an uptrend, quotes broke through the MA from bottom to top;
- the price candle closed above the red MA.
A contract with a forecast of price growth should be drawn up at the opening of a new candle that appears in the same direction as the previous signal candle:
For PUT options:
- in a downward trend, quotes broke through the MA from top to bottom;
- the price candle closed under the red MA.
A contract with a forecast for a decrease in quotes should be drawn up at the opening of a new candle that appears in the same direction as the previous signal candle:
It is necessary to enter the market only in the direction of the general trend, which will allow you to avoid unprofitable positions.
pros
First of all, the MA Wave technique is the simplest tool for making short-term option bets in scalping mode, which means it can be easily used by novice traders. If all application rules are followed, the efficiency of the system reaches 85%, and the cyclicity of trading signals with increased volatility is up to 8 per hour, so it can be used to accelerate the acceleration of a deposit.
Minuses
The technique will not work on sideways trends or at times when the asset market is “feverish” - it should only work on a moderate trend, where the price of the asset rolls back to short-term corrections during fluctuations.
Expiration and money management
Using trading tactics on a 1-minute timeframe (the safest time interval), the expiration time for executed contracts should be set to 60 seconds.
However, with a similar expiration period, it is allowed to use this technique on the 30s timeframe, which will improve the cyclicality of trading signals and trading dynamics. It all depends on the player’s skills and preferences.
Since scalping is considered the most dangerous trading mode, it is recommended to place contracts for a small amount. With large capital, the maximum amount should be limited to 2%-3% of the deposit volume, and with the initial size of the deposit account, the bet amount should be set to the minimum possible (Binomo has a minimum option of $1).
In this risk management mode, you will eliminate deep drawdowns in the event of a negative result and will be able to steadily increase your deposit, receiving profitable options.
To work successfully and profitably with binary options, a trader must quickly analyze the situation on the market, predict further price movements and make the right decisions. In case of unexpected market movements and rapidly changing situations, a trader needs a pre-prepared action plan.
For today, working strategies for binary options enjoy significant success among both beginners and experienced traders.
Successful traders with extensive practical experience in trading in financial markets are able to create working strategies. In order to minimize financial risks, beginners should learn and apply these strategies.
Is it so important to use binary options strategies?
Practice shows that various situations in financial markets are constantly repeated. A combination of circumstances familiar to the trader pushes him to make a decision that showed the best result earlier. This action is most likely to bring profit because it is based on past experience. All strategies work according to this scheme. It is not necessary to come up with your own every next step; it is enough to study working strategies for binary options.
Let's look at the best strategies that will save your time and increase your capital.
Elementary 60 Second Options Strategy
Types of binary options strategies based on durations of 60 seconds and 5 minutes
Each trader chooses a strategy based on his own preferences. It is recommended to use different strategies and combine them.
There are two types of duration strategies:
- short-term (binary options “ 60 seconds" and "5 minutes”);
- long-term (more than one day);
Binary options strategies are very popular. After purchasing an option, you receive income in just 60 seconds.
The main advantages of such options: minimum investment, high profit percentages, fast payments.
When working on options in 60 seconds, strategies based on those are also applicable. analysis using standard indicators. Indicators help determine the dynamics of a trend. News strategies have also proven themselves successfully when trading binary options “60 seconds”.
Strategies for options with a long expiration of “5 minutes”, are also popular among traders.
The “5 minute” expiration allows a trader to make a lot of transactions in a day and make a good profit. To make money on options, you need to be able to determine the direction of the trend. One of the most effective strategies on is based on determining the support line and resistance level. The main signal for a trader is a rebound from the trend line.
Working strategies lasting 60 seconds and 5 minutes
There is no perfect strategy. Sometimes, top scores show proven strategies, for example: based on news signals and moving averages.
Martingale is considered a win-win strategy, because if the first bet does not work, the trader doubles the amount of the second, and so on.
New highly profitable strategies include:
- “Star” strategy
- and “Three Candles”
Strategies are based on candlestick patterns.
“Three candles” - a simple and effective binary options strategy
Types of strategies and techniques for binary options based on market analysis
Let's consider those strategies that have shown the best profitability and are characterized by ease of operation.
There are two types of market trend analysis:
- news (fundamental analysis);
- and technical analysis;
So let's start with fundamental analysis. Before starting trading on the stock exchange, the trader comprehensively evaluates all economic, political and social events around the world. The following should not be left without due attention: statements of a political and economic nature, new laws, reports of large corporations, bans, general news background, etc.
Good news has a positive effect on the market growth upward, and bad news - downward. The accumulated experience will allow you to select those news that affect the market to a greater extent.
To trade, a trader will not need any special practical skills, because news trading involves searching for and analyzing news signals. Such signals can be tracked in .
What is the algorithm for working with the economic calendar?
- checking news on the economic calendar for the coming day;
- celebrate important events, which can affect the movement of the trend;
- We are waiting for the news to come out;
- open a deal;
News associated with a fall in price is marked in red, and news associated with a rise in price is marked in green. All significant news affects the market, therefore, the trader can predict the direction of the trend. This strategy is working and proven over years of successful options trading.
Technical analysis is unthinkable without the use of technical indicators. Binary options indicators are an auxiliary tool for a trader, which is located on the chart and displays the direction of trend movement.
Binary options are a highly profitable form of trading in financial markets, allowing you to earn up to 92% on each trade. At the same time, working strategies for binary options are practically no different from the strategies used in the Forex or stock markets.
The fundamental approaches to market trading remain the same - fundamental and technical, regardless of what tools are used. Working strategies for binary options are also divided into fundamental and technical.
Technical analysis- a very capacious concept and has great amount different approaches, indicators, and if the boundaries of a trend are easy to determine, then predicting a reversal is a more difficult task. Most often, a reversal is not a matter of one day, so when working with it it is not so important. Technically, a trader needs to find an asset that has a pronounced trend and work on a rebound from the boundaries of the price channel. At the same time, it is better to remember that in a growing trend it is better to work exclusively from the lower boundaries, and in a downward trend from the upper ones.
When determining a trend, it is very important to choose the correct candle time frame. The higher the timeframe, the stronger the trend. Therefore, it is best to choose a time frame of M60 or higher to determine the trend, and to enter the market approximately three to four times less than the expiration date of the option. That is, if you work with options for 1 hour, then the chart needs to be built with the M10-M15 time frame.
Fundamental strategy is based on economic data relating to the selected assets. Each change in the relevant indicators affects the price and sets the tone for further movement. Indicators for major economic sectors from around the world are displayed daily and in accordance with the time of their publication, you can plan transactions with.
Working with the economic calendar implies entering the market during the publication of statistical data. At the same time, you need to remember that in the first minutes the market seems to be “thinking” and does not give a clear signal to action. However, after two or three minutes, its further direction becomes clear and after that you can join. The first impulse usually lasts 10-12 minutes, so it is advisable that the option is already closed by this time. If work is carried out with longer periods, then it is very important that the output of statistics does not coincide with the expiration time.
Any strategy becomes working after testing and refinement, taking into account the individual preferences of the trader.
There is no way to trade without a trading strategy, and it doesn’t matter what you trade, binary options or forex. It is the ability to analyze the market and create trading tactics that distinguishes it from casinos and other gambling games, where the main emphasis is on luck, which, as we know, can be very touchy.
With the development of computer technology, more and more strategies are appearing on the Internet, and partly due to the fact that now anyone can create their own indicators, which, in their opinion, can make a profit.
Of course, among all this diversity there is a lot of garbage, that is, tools that do not deserve attention at all, but sometimes you come across interesting options that simply need to be considered more carefully.
In this article we will look at a simple working binary options strategy for 85% profit called “Ping-Pong”. This is an original tactic that uses only two indicators, but despite this it shows very good results.
Description
The main advantage of the Ping-Pong strategy is that it performs equally well both in a trend and during a flat. That is, to trade, we do not have to wait for strong market volatility to enter the market. It will especially appeal to those who, for some reason, cannot work during the American and European trading sessions, and trade only on Asian markets.
Important! Ping-Pong is a working strategy for binary options with 85% profit, but in a flat market the performance may be slightly lower, and this is due to the slight lag of indicators, which is inherent in all technical analysis tools, without exception.
As you know, Asian markets are calm and measured; there are no strong trends here, and important news has virtually no impact on the market. For Forex traders, the flat market is of little interest, since income there consists of the number of points passed by the price. In binary options, we only need one point to make our profit.
But this is far from the only advantage of this tactic. Here are a few more important nuances:
- Simplicity. There are only two indicators and they are located under the working chart without overloading it.
- Speed. Signals arrive quite often, so this tactic can also be used in short-term trading.
- Flexibility. Here you can trade any contracts and at almost any expiration, without changing the indicator settings.
- Conciseness. Ping-Pong is equally suitable for both professionals and beginners, who can easily learn to read market entry signals simply by looking at the chart.
Well, and the most important thing is high performance. In historical tests, Ping-Pong showed 4 profitable trades out of five concluded, that is, only one contract turned into a minus, which is very good in a low-volatile market.
Installing Items
As mentioned above, the Ping-Pong strategy uses only two indicators, and the first of them is the standard MACD oscillator, which does not need to be downloaded, since it is available by default in all MetaTrader models, as well as in many online binary options broker platforms .
We do not touch the oscillator settings and leave them by default, that is:
Important! after downloading an indicator or strategy template, they must be unzipped, and only then placed in trading terminal. Also, these files only work in MT4; they will not work in other terminals and MetaTrader modifications.
Essentially, this indicator is a modification of the standard momentum oscillator, but with some additions. Here we need to set the parameter to 3.1 in the settings and also add two levels: 20 and 80, respectively. These are overbought and oversold zones, and if you don’t know how to set them, or don’t want to spend time on it, you can just download ready-made template follow this link, after activation of which the indicators themselves will be installed on the chart with the necessary settings.
The strategy template is installed in the system templates folder, and can be accessed using the MetaTrader “navigator” function. You should also remember that the template only works when the author's indicator is installed. If it is not in the archive, the file will not open.
Rules
Another advantage of the Ping-Pong binary options working strategy is that here we not only receive entry signals, but also use a filter, which is the standard MACD oscillator.
Simply put, if the signal line of the indicator is above the zero level, then we consider opening contacts only for an increase, and vice versa, if the line is below zero, we look only at signals for a decrease, and consider increasing ones as false or low-quality.
For options "above"
First of all, we look at the MACD. If its signal line is above the zero mark, we begin to look for an entry point into the market. Ideally, if it is not just above zero, but has already left the histogram bars. This indicates that a trend has formed in the market, which means that our trading will involve much less risk.
Important! such a signal is considered the strongest, but it is not necessary to wait for it. You can simply enter at the moment when both the signal line and the histogram are rebuilt above the zero mark.
In this case, this will indicate that a new trend has not only formed, but has also rolled back, therefore, you can enter the market even at short-term expiration.
Momentum is a very fast indicator that reacts even to small market changes, therefore, to open a transaction, we consider only those situations when the line has touched the lower border or has gone beyond it. If the fracture occurred inside the corridor, this is not considered a signal.
And of course, don’t forget to wait for the current candle to close. If, after it has completed its formation, the momentum still remains in a refracted state, open a contract.
For options "below"
In order to buy a downside option, first of all we look at the histogram and signal line of the MACD indicator. They should be below the zero mark, and the strongest signal will be if by this time the signal line has left the histogram and began plotting outside it.
Once the signal is filtered, we look at the momentum line. It should approach the upper limit of its corridor, which we set in the settings. If the line touched the border or even went beyond it, and then turned downward, this is a signal to buy the contract.
Also, do not forget that before concluding a deal, we need to wait for the candle to close. This is a feature of the oscillator in which it can rearrange itself several times during the formation of a candle. Accordingly, as soon as the candle closed and momentum confirmed the signal, we boldly enter the market.
The departure of the line into the overbought zone, and a reversal outside the boundaries of the corridor, is considered the strongest signal, as it tells us about the completion of the rollback and the end of the attack of the opposing side.
Types of options
As mentioned above, the working strategy for binary options Ping-Pong can work with any type of contract. If we are talking about working during a flat, then turbo contracts are best suited here, since the momentum line will break very often in such situations. And based on the fact that we don’t need to collect points like in Forex, we can enter the market several times as long as the rules of the tactic are followed by all its elements.
If we observe the formation of a strong trend on the chart, then ladder contacts with unlimited profits will look most attractive, if, of course, your broker provides them. Here we will enter the market after each pullback, and accordingly, as a result, we should receive only one losing trade at the time of a reversal or a strong slowdown.
But it is better to avoid touch and corridor options in this tactic, especially if we are not trading with the trend. It is very difficult to predict where the price will end up at the end of expiration, since the momentum indicator does not determine the strength of the trend, and the MACD lags significantly.
Expiration
Expiration in a working strategy for binary options for 85% of the profit depends on what signal the indicators give. In a flat, when momentum breaks very often and the histogram bars are small, contracts for 30 and 60 seconds, that is, turbo options, will look most attractive.
If we are talking about trend trading, then it is best to start from the time frame used to search for signals. So, if we analyze the market on a 30-minute chart, then we conclude contracts for 15 minutes and no more. If an hourly time frame is used, then the contract life should be 30 minutes.
Advice! It is better not to use a time frame of 4 hours or older in this strategy, since contracts will have to be opened with a very long expiration, and most binary options brokers do not transfer open transactions to the next business day.
If we enter the market at the moment when the signal line has gone very far into the overbought or oversold zone, and then reversed, then we can judge that in the near future there will be no pullbacks in the movement, and therefore it makes sense to maximize profit. open several short-term contracts with a low life expectancy.
Money management
Despite the fact that Ping-Pong is a working strategy for 85% profit, that is, for every five trades we have only one losing one, do not forget about external factors, which can completely change the statistics:
- Release of news of high importance.
- Emergence of major players in the market
- Opening or closing of trading platforms.
All these and many other factors must always be taken into account, which means that risks must be controlled. Money management rules say that the risk from each transaction should not exceed 2-3% of total amount deposit.
In some cases, a risk of 5 percent is allowed, but this is only if a pronounced trend appears and there is no news background.
Simply put, if you have a thousand dollars on deposit, the size of one trading lot should not exceed $30. We also avoid working with Martingale systems, since despite the fact that this tactic has very high performance, a series of unprofitable contracts cannot be ruled out, which will simply destroy your deposit as the bets increase progressively.
As for the news background, despite the huge temptation to trade on strong price jumps, it is better to refrain from doing so. News fluctuations are extremely unpredictable, and all signals from strategies or indicators are canceled at this time.
Conclusion
In fact, the high performance of the Ping-Pong strategy is a convention, since it has only been tested in history. That is, indicators were installed on the chart, after which it was rewinded, and each entry point was analyzed.
This makes it possible to judge the performance of a tactic with a certain degree of probability, but does not replace real-time tests, which each trader must conduct independently, and the more signals are tested, the better.
Well, don’t forget to use a demo account for tests so as not to risk your deposit in vain.
Beginners who find themselves in the binary options market for the first time often make the same mistake: hope to find universal binary options strategies with accurate signals, which would always work, regardless of external conditions.
In the world of finance, it is important to remember that a recipe for luck that suits another person will not necessarily suit you due to time and a different consciousness (making different decisions with the same knowledge).
There are many factors that influence the success of a particular strategy, and one of them is the temperament of the trader himself, the speed of his reaction, as well as standard behavior patterns in different situations. For example, it is not suitable for everyone binary options strategy for 60 seconds– many people prefer more conservative and long-term methods. This doesn't mean the model is bad, just that you need to find a different way of working.
In addition, if you first stumbled upon an algorithm that helped you get high profits, don’t think that it will always be like this. Some binary options strategies become obsolete over time and stop working, so you should always have backup options in mind.
The best binary options strategies are the ones that work for you.
A successful trader will call good strategy not because it is now at the peak of popularity, but because at one time it brought him great profit personally.
Profitable strategies for binary options are divided into the following categories:
Strategies for how to analyze the market
- strategies based on fundamental analysis;
- strategies using technical analysis.
One of the most common ways to make money based on fundamental analysis is. The idea is that you analyze economic, political and even weather news and predict which ones will resonate in the financial world.
For example, hurricanes in the United States affect exchange rates, as well as commodities.
If we talk about strategies for binary options, then 99% of them are based on technical analysis, namely indicators (, ...) - these are parameters by which you can determine the future rise or fall of prices and make an appropriate forecast.
Binary options strategies by complexity
There are 2 types of strategies here - simple And complex. The difference between them is only in the analysis tools themselves. Simple strategies use one or at most 2 indicators with very clear signals, such as arrow indicators. Complex strategies include those where you need to open indicators on different timeframes, connect more than 2 indicators and use more complex tools like “ ” or “ “.
Strategies for binary options by duration
- long-term(transactions last for one day or more);
- short-term(binary options strategies for 60 seconds, 5 or 15 minutes, hour).
According to statistics, more than 80% of traders prefer 10-15 minute strategies. They are more predictable than for 60 seconds, and more profitable than for an hour or a day.
Binary options strategies with 90% accuracy
If you have not yet decided what exactly is right for you, it is best to familiarize yourself with examples of the best binary options strategies for beginners and others, which have long proven themselves in the market. Once you get to know them better, you will understand the mechanism of how binary options trading works and develop your own algorithm.
60 Second Strategies
Strategies for 5-15 minutes
Strategies for 30-60 minutes
Why is it important to choose your own strategy?
The best and most profitable strategies with precise signals cannot be universal. Yes, they help many people earn money, but not everyone. Even if you decide to use paid strategies, this does not mean that you will be able to rake in money with a shovel from the very beginning. Paid versions are just commercial projects of those who created them. You may like this option and develop a good strategy that you can sell later.
Don’t be naive - the binary options trading market is not built on random luck, but on constant daily work and improving your skills.
Of course, it happens that newcomers hit the jackpot on the very first day, but there are actually only a few of them. Noticing emerging signals (indicators) on the chart and interpreting them correctly is not a matter of one day, but if you want to develop this area will bring a lot of money.
How to create your own strategy?
First of all, observe yourself - even at random you can determine which trading strategies for binary options are suitable for you and which are not. If you like speed, quick response and instant profit jumps, pay attention to short-term options ( strategy for 5 minutes or even 60 seconds).
Assess your ability to switch to another task if plans suddenly change - if you can easily change positions, pay attention to aggressive trading. This is not to say that aggressive traders act at random - they are also obliged to soberly assess the situation, and do this in a much shorter period of time than conservatives.
Compare several trading options, learn the basics of fundamental and technical analysis - all this will be useful if you intend to become a good trader.
Don't get hung up if something goes wrong. In any business there will be failures, but the percentage of successful transactions will inevitably increase unless you give up after one or more failures.
Poll: What assets would you like to make money on in binary options?
