Once upon a time, there were very few strategies for binary options with an accuracy of 90% or more, but now there are plenty to choose from. However, option trading is more complicated than it seems, it requires a systematic approach. Tactics is only part of the trading system, which includes money management rules, the principle of determining the moment to buy an option contract, and much more. Before you start trading BO, you need to study the literature and articles, as well as write a trading system based on the knowledge gained.
Classification of strategies
Before choosing a strategy for BO, it will not be superfluous to familiarize yourself with the principles of their work. If we make a conditional division, then all strategies can be divided into three broad groups. The main criterion for grouping is the method underlying the work of a particular tactic. Here are the groups:
- Indicator trading.
- Pattern trading.
- Combined trade.
You need to choose based on personal preferences and convenience.. All of the following examples of tactics are very effective. Testing showed 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. It is necessary to thoroughly know the principle of operation of the indicator adviser before using it. Strategies can be based on one, two or more indicators, each of which has its own function.
Moving average crosshairs
The most popular indicator tactic for BO. Its extremely easy to use. First you need to select a minute time frame and the EMA (exponential moving average) indicator. The first line should have settings:
- Blue colour
- period 14
After that, you can re-plot the EMA on the chart. Its settings will be as follows:
- Red color
- period 9
Before you start trading with this strategy, you need to choose the appropriate type of option contract. The moving average calculates the average price of an asset over a certain period, therefore, you can only trade on time options and regular classic contracts. It is possible to apply to a turbo, but the periods will need to be slightly changed. The recommended contract execution time is 5 minutes.
It is also necessary to check the area of the market where trading is carried out. These settings are for flat trading. With a trend, there will be false signals on pullbacks. It is very important. The accuracy of the strategy directly depends on the market segment. Don't forget about risk management. The size of the minimum investment in a transaction cannot exceed 10% of the deposit.
After fulfilling all the recommendations, it is necessary to wait for a signal to buy the “Higher” or “Lower” option. A good time to buy an up option would be when the lines cross, as shown by the arrow labeled “Call”. The signal to buy a put option will be a cross of the lines in the opposite direction, as indicated by the arrow labeled "Put".
"Silomer"
This is an interesting binary options strategy with 90% accuracy, designed for turbo options. The tactic is based on the use of two indicators with very simple settings.
- Alligator: 24; fourteen; 6;
- RSI: 14 period with standard 70 and 30 marks.
A minute time frame is required for trading. This completes the settings and you can safely proceed to trading. This profitable and simple binary options strategy is based on trading along with the general trend movement. It is this approach that is the most profitable, since it is much more difficult to catch the moment of a reversal. Now you need to wait for a clear signal to buy option contracts “Higher” or “Lower”.
An uptrend is a signal to buy an upside option. The entry point is the moment the price touches the green Alligator line. In this case, the RSI indicator should confirm the rollback.
If a countertrend is formed, then this serves as a signal to buy an option contract on a decline. The entry point is the touch of the Alligator's green moving price. The RSI also needs to be taken into account.
Pattern strategists
Patterns appeared long before indicators and proved their effectiveness. In fact, it was with them that technical analysis began. Patterns also include trend reversal patterns. There is no single textbook on technical analysis with a clear division, so there is a slight confusion in terminology.
pin bar
This is one of the powerful patterns. The pin bar goes well with trend reversal patterns. If the 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. In fairness, it should be said that it can be false if it occurs during the consolidation, or its shadow is within the 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 short option. With a long countertrend and a pin bar that has appeared, it is worth buying an up 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 reverses direction and passes several points.
"Flag of Success"
This is a rather unusual tactic based solely on candlestick analysis. Its simplicity makes it popular with novice speculators. The figure of the flag consists of a flagpole and canvas. Details of how this figure looks will be presented in the screenshots. The flag represents a pullback in a trend move, up or down. It should be interpreted as a continuation of the asset price dynamics in the same direction.
Trading will require some chart setup. It should be switched to 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. It is customary to depict the shaft as a line, and the canvas as a rectangle. Together they form the flag. The screenshot below shows a good example of it.
A signal to buy an option “Higher” or “Lower” will be the price going beyond the border of the canvas in the direction of the continuation of 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% or more.
Combined tactics
Combined strategies are based on a combination of patterns with indicators. There are many different uses for both methods. Below are some of the most common strategies for example.
"Candles + Bollinger Bands"
For BO, Bollinger Bands are one of the best indicators. It can be called an indicator adviser for all occasions. Candlestick analysis complements it very well, 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 it is difficult to make money on BO with a narrow flat. Subject to the conditions, this strategy for binary options, with an accuracy of 90% or more, will work as profitably as possible.
The necessary settings are to select a 5-minute time frame and an expiration period of 3 to 5 minutes. Everything is very simple and effective. Now about the signals to enter the market. When the price approaches the lower Bollinger moving and the second candlestick closes within the indicator, this is a signal to buy an upside option contract.
When touching the upper Bollinger band, with the subsequent closing of the candle within the indicator corridor, you need to buy an option contract for a fall.
A good trading system, combined with a highly effective strategy for binary options, with an accuracy of 90%, will allow you to consistently earn on any assets and markets. BOs are no exception, because the number of profitable trades is important here.
If you analyze the trading of the most successful binary options traders, you will notice that most of them have achieved success using their own trading strategies. This is not surprising. After all, a trader, creating his own trading system, takes into account the parameters that are convenient only for him and analyzes his own mistakes and observations. This leads to the fact that the trading strategy becomes the most convenient and understandable trading tool. At its core, such a strategy is a combination of all the best practices of a trader, understandable and convenient only to him.
The best option trading strategy
However, considering this issue from the position of a novice trader, we can say that this category of financial market participants often does not know how to trade in their own way. After all, what could be easier than taking advantage of other people's developments and trading rules? But these rules are not always clear and do not always fit the personal characteristics of a trader's trading. A novice player in the financial market, first of all, needs to understand that the path to success is their own strategy or a system borrowed from someone else, which ideally matches the style, time, asset, and many more trading parameters of the trader. It is quite difficult to choose such a system, so in this article we decided to highlight the main principles of creating a trading strategy.
What is the best trading time?
The first thing to do is to determine in what time frame it is most convenient for you to trade. How do you trade in the short term (scalp), enter into medium-term contracts or engage in long-term investments? This indicator, in most cases, depends on the personal employment of the trader and how much time a person can spend on trading during the day.
You need to decide on the following questions:
If you have the opportunity to spend most of the day trading, then the scalping trading strategy is ideal for you, which is characterized by a large number of executed contracts and a high level of profitability.
If you are limited to 3-4 hours, then your strong point will be the medium-term trading system
If you have a minimum of time and it falls at different times of the day, then you need to choose a long-term trading strategy.
Indicator or non-indicator - which one best option trading strategy?
This indicator will depend on the experience of the trader. A person with minimal experience should start with indicator strategies, as they are more understandable and do not require a large amount of special knowledge of stock trading. If you are a fan of trading on clean charts and have a basic set of knowledge, then a trading system on patterns or graphic figures will suit you. These strategies are often referred to as so-called Price Action systems. You can find examples of strategies of this kind on the pages of our portal.
Binary options trading platform
This is probably the weakest point of most binary options brokers. Imperfect trading terminals that do not allow for an analysis of the asset market, which leads to a high loss of trading. After all, it is impossible to make a correct and high-quality forecast by observing the situation on a small chart window, where there is no timeframe switching, chart display changes, and it is often impossible to set a technical indicator on it. It is almost impossible to determine the situation and predict its further development on such a small segment of the graphical display of the price.
But there is still a way out - there is additional software that can be used in parallel for market analysis:
Meta Trader 4 is the most technically advanced terminal with all the necessary market analysis tools
A variety of live charts that allow you to install technical analysis tools on them, and also have graphical tools for building channels, levels and figures.
Speaking of which, there is an excellent web-terminal for trading binary options - this is the platform of the Binomo broker, which also has the ability to switch timeframes, select options for plotting quotes, a whole set of technical indicators, and most importantly, you can start trading with this broker from $10 on the account, setting the transaction size to only $1. The platform of this company is available in demo mode with an unlimited virtual account. So this web terminal will be the most successful choice for creating your own best binary options strategy!!
Beware of Exotic Assets
If you open a list of underlying assets with any broker, you will find a huge list of 100-150 items. You can use them all! But, as you understand, only the most popular of them can be used most effectively. Because the patterns of movement of their quotes are the most studied, long and detailed, which makes them quite predictable. Also, a large number of trading systems have been built for trading popular assets, which can be used as the basis for building your own trading strategy. And, finally, all the most important macroeconomic news and indicators are published based on the movement of quotations of these particular assets. Therefore, throw the exotic out of your head right away and don’t take risks!
Everything ingenious is simple!
Do not overload your strategy with a large number of indicators or conditions for receiving trading signals. The simpler your system is, the more it will bring you profit. Always stick to this golden rule. For example, you can take just one Moving Average indicator and build a trading system based on it that will bring you more than one million profits, or you can purchase an expensive indicator that turns out to be just a beautiful wrapper. Therefore, one more rule - use only time-tested technical tools.
Do not rush - test the strategy on a demo account
Do not try to earn all the money in the world at once! Even if you have developed an extremely profitable trading system, sooner or later it will fail, albeit a little. Therefore, you cannot do without taking into account trading risks. Your trading lots should be no more than 3% of the size of the trading capital, which is a generally accepted money management rule for option trading. Only after testing the strategy for six months and receiving at least 1000% profit, we can talk about the effectiveness of the system.
Keep yourself in control - follow the rules of risk management
On the way to creating your own system, you will experience ups and downs, as well as many difficulties. Therefore, many break down and throw everything halfway. Don't be led by your emotions. Be purposeful and bring your ambitious plans to their logical end, because there you will find success and wealth!
Scalping and intraday trading strategies for options, CFDs and Forex.
The section contains the best, profitable, author's, free trading strategies for binary options, CFD contracts and the Forex currency market, which can be downloaded for free
Sergei Medvedev
Trendy Crossroads - another Maxim strategy, a regular subscriber and active binary options trader, which perfectly captures short-term and medium-term trends, while having the strongest core based on a number of oscillators with different periods.
Although the tactic is designed to work with short-term price changes, in practice, signals appear only at the moment of the emergence of strong movements that are characteristic of large trends.
Its advantage is that due to different calculation periods for the same instruments, it is possible to simultaneously monitor different parts of the trend. This makes it, on the one hand, a little difficult to perceive, but on the other hand, the number of false signals is minimized ...
Sergei Medvedev
Sergei Medvedev
Ursus Aurum (Golden Bear, lat.) is a trending strategy that is built using the correct interaction between trend indicators and oscillators. As a result, the strategy performs well in trading in a volatile market.
Moreover, Ursus Aurum not only fixes reversals of long-term trends, but also allows you to find points of continuation of price movement within an existing trend.
That is why it will prove to be an indispensable assistant for trading not only on the Forex market and CFD contracts, but also on binary options...
Sergei Medvedev
Pin Bar Detector - trending strategy for BO and CFD, which is built on the basis of one of the most popular Price Action patterns called as well as a number of trend indicators that are used to correctly select the direction of transactions.
A feature of this tactic is the fact that it is completely indicator. Therefore, if you have never even been familiar with pin bars, and the very principle of pattern trading caused you disgust or fear, using this strategy you can fully automate the entire process of finding the famous trend figure.
It is great for beginners, because thanks to the notification system, you will never miss a signal or misunderstand it ...
Sergei Medvedev
ATR Stops with Magic FX is an indicator-based trend trading strategy Magic FX, which is sold on foreign sites for $147.
Yes, today blog subscribers will receive not only a paid indicator for free, but also a comprehensive strategy that builds its signals based on volatility and trend movement.
The ATR Stops with Magic FX strategy is quite suitable for use in different markets, therefore, it can be used both on binary options and on Forex with CFD...
Sergei Medvedev
"Fractal Breakthrough" - a comprehensive strategy based on the breakdown of a fractal or a local extremum, which is combined with a competent trend filter, as well as market volume.
Such a combination of diverse technical indicators allows:
- First, provide signals purely in the direction of the trend;
- Secondly, it will get rid of transactions in the passive market (flat), when the price practically does not make any movements after the signal.
Actually, it is precisely these properties of the strategy, its versatility, that make it possible to apply the "Fractal Breakthrough" on any market from Forex to binary options and CFDs...
The strategy is based on the search for an acceleration point when the price goes beyond a rather narrow price channel. Due to this, it turns out to find short price deviations, which are actively used in trading with a short expiration time.
This gives a huge number of signals, and in combination with the Martingale, excellent performance...
Lately, my mail has been inundated 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 really managed to achieve something in the exchange world. Everything is perfectly written in the books, and the websites of 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 closed 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 will probably be the first to put all the cards on the table.
I'll start with my personal account with a broker Utrader. In order not to be unfounded, I suggest looking at the screen of your personal account:
I hope that after what you saw, you no longer think that I do not have a real account and I am 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 rich experience in trading on the stock exchange, from Forex to binary. However, lately I prefer options, because for me personally trading them is much easier.
I use standard and time-tested exchange instruments, but I conduct the 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 rest of 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 the chart, so I recommend that you immediately install 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 call 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 bit 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, because if used on a turbo, then the signals are late and there are many unsuccessful transactions. I trade it only in currency pairs, but this is more due to the functionality of Mt4 than from my dislike for stocks and indices :). The analysis is carried out on a five-minute chart. In general, I will not pull the cat by the tail and go straight to the signals.
Buying a CALL option:
1) The blue line of the Moving Average indicator crossed the red one from the bottom up.
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 the CALL option.
Buying a PUT option:
1) The blue line of the Moving Average crossed the red line from top to bottom.
2) The Bulls Power indicator tells us about the weakness of the bulls by drawing a histogram below the 0 level.
3) The OsMA histogram indicates the development of a downtrend and draws bars under the 0 line.
After the signal appears, I wait until the candle closes and go to the Finmax personal account where I buy the PUT option.
How do I manage capital?
Probably, you have come across different models of money management, and the most popular is the risk at a rate 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 make a bet with it. In my case, this is $ 100 per transaction, but this amount is individual for each, so here I am not an adviser to you.
Latest trade statistics
I specifically did not indicate the amount that I personally earn, because I don’t climb into your wallet. After looking at the statistics of the latest transactions, you can easily estimate what profit can be obtained per month. I want to warn you that this is the last statistics from my personal account, and, to be honest, it makes me happy. In practice, everything rarely happens so smoothly, so do not be surprised if you get a losing position or your result is not the same as mine. However, in general, you should always come out in a pleasant plus at the end of the week.
