Options with expiration time of 60 seconds also called turbo options. Almost every broker offers turbo options service. However, this does not mean that this mode will be available for all assets. Some brokers even offer expiration of 15 and 30 seconds, but therein lies the danger. What are the dangers of fast options, how to trade binary options 60 seconds and what is the strategy read more.
- 1 The basic principles of trade “60 seconds”
- 2 Rules of trading of binary options 60 seconds
- 3 Best strategy for binary options with expiration of 60 seconds
- 4 Memo to the trader
The basic principles of trade “60 seconds”
The market is dynamic. Quotes under pressure of supply and demand change every second and this is the main difficulty to turbo options. Even the strongest trend never draws a smooth upward line, and under pressure from the bears or anyone who fixes position, is sinking. Statistics show that after news, the trend could reverse basic movement from several minutes to hours and longer, because for beginners these expiry times (from 5-10 minutes) are preferable. In turbo options no matter how strong the trend may be, the fundamental factors do not work.
Advantages of binary options trading 60 seconds:
- despite the risks, the income can be 70-95%;
- quick profits. The martingale strategy can be implemented within 10 minutes;
- the opportunity to capitalize on the correction and rebound from levels of support/resistance.
How to choose the right strategy
If you still don’t know how to trade binary options 60 seconds, use the following guidelines for choosing strategies:
- most websites offer trading on the news, with an emphasis on the fact that is already clear, where will the trend go after the news. This is a misconception. First, if the direction of the trend is obvious, the trend acts out the news even before its release (a vivid example — raising of interest rates in the USA). Second, in the first minutes traders themselves determine the interpretation of the news, which increases volatility. Professionals are advised to abstain for at least 30 minutes after the publication of the report. The strategy based on fundamental analysis is not recommended for the beginners;
- graphical analysis for beginners is not recommended. Quotes are changing very fast, and graphic shapes provide instantaneous opening of a position at the time of their appearance. Due to the lack of experience the trader can take wishful thinking, receiving the loss;
- the more indicators, the less the input signal is and the less accurate they are. But one indicator can not work. The optimal number is 1-3 indicators from among trend and oscillators.
Conclusion: do not chase yield, there are no 100% profitable strategies. Search for strategies based on technical analysis with a time-tested indicators and in accordance with the features of the platform.
Rules of trading of binary options 60 seconds
Despite the fact that there are no 100% profitable strategies, following these simple rules will minimize the risks:
- work only in accordance with your own rules of money management. Even after a series of profit do not increase the deposit;
- for short range the indicators often show errors, called the price noise. You may get rid of it by increasing the timeframe, but then you have to increase the expiration period too. The noise can be removed by duplicating the display or use of additional tools;
- test the system. Run it on real account only when you get a stable result;
- trading is performed only on the trend, you can not trade in a flat!
Best strategy for binary options with expiration of 60 seconds
What strategies are best, each defines for himself individually. We share the most interesting in our opinion. They are not just profitable, but carry minimal risk. And we will divide them into three groups, from which you will choose the best option, how to trade binary options 60 seconds.
Profitable indicator strategies for binary options 60 seconds
- MACD and МА.A lot of strategies are built on the basis of the moving averages, so it makes no sense to invent anything. MACD – is one of the interesting indicators that is used as confirming. Basic setup of MA we eave the default MA(9). Work with minute timeframe and volatile pairs.
Signals for purchase:
- the trend is upward;
- price chart the is above MA(9);
- the MACD line crossed from top to down.
Please note that the withdrawal of trend (blue line) down has begun before the intersection, but it is not possible whether the signal was accurate. And only at the moment of crossing of the MACD lines, it is possible to open a position. Below is an example of when it would be impossible to open the option due to incorrectness of the signal (flat). The more smooth the intersection angle, the less accurate the signal is.
Signals for sale:
- the trend is declining;
- the price chart below MA(9);
- the MACD line crossed the bottom up.
- Bollinger bands and RSI.Another simple tactic is built on the channel indicator and the oscillator. Period of the Bollinger bands is selected individually. Leave the settings of the oscillator the same (levels 30 and 70), for the Bollinger bands put options 20, 2. Work with minute timeframe and any currency pairs. Turn on the candlestick chart and the custom selected area with comfortable shades. For fast reactions it is important to see the reaction of regions.
Signals for purchase:
- The RSI is oversold (below 30);
- the current candle touches or breaks the lower border of the channel.
After the signal, the following 4 candles (4 minutes) were growing. Please note that from the previous 4 red candles only one could be profitable, but there was no signal from the oscillator. There was a risk that the next candle could be red. Below is an example of risk input – the signal was not accurate enough.
Signals for sale:
- RSI is in the overbought zone (above the level 30);
- the current candle touches or breaks the upper border of the channel.
Another example of unsuccessful entrance, you can see below. Here the error was that it is important to wait for a turn of the oscillator. Red candle broke the channel, the oscillator has entered the area 0-30, but the next candle was red, because RSI have not played the fall fully.
How to trade binary options 60 seconds with indicator lights, now you know, move to indicator-free.
Indicator-free strategy for binary options 60 seconds
Under indicator-free means the tactics, based on graphical analysis. Their essence is that each market situation has its own level of support and resistance, which pushes the trend. Strategy can be both interchannel (entry at the time of rebound from the level), or trending — breakout levels. Available in flat, when the risk of breakdown of levels is minimal, the second carries less risk, as after the breakdown of the likelihood of a return of the trend in the flat is practically absent. Examples of graphic pieces you may find here and here.
Other strategies for binary options 60 seconds
Other strategies that are neither indicator nor graphic, include the following:
- the martingale strategy;
- trading strategy by heat map and Pivot points. I should add that both strategies can be combined with each other, as individually without supporting tools give many false signals. The reason for this is the time in which it takes the service to update the information. Therefore I advise a heat map and Pivot points to use for strategies with expiry of 10 minutes, or use advanced technical indicators;
- trade by the signals. The broker earns on the spread, interested in the fact that the trader made a profit and increased trading volumes. Because some brokers offer the trading on their own signals. Analysts of the broker develop a unique strategy and without revealing their essence, share their signals with trader. The most valuable are those signals by which analysts of the broker trade themselves. You can get them by downloading the platform Grosl Trader;
In this example you can see that most of the signals were correct and brought 1% of profit.
- social trading. If the broker provides such an opportunity, then you can connect to account of successful manager and copy his position for a commission or % of the profits. Or vice versa to connect to the very unprofitable trader and open opposite transaction.
Memo to the trader
Now you know how to trade binary options 60 seconds. To summarize a couple of major theses:
- risk in turbo options is several times higher than in options with an expiration period of 5-10 minutes;
- do not use one indicator, use 2-3 different indicators and auxiliary tools;
- allowable risk per trade — no more than 2% of the deposit;
- test any strategy as much as you need to define its basic parameters: the ratio of profit and loss, number of losing trades in a row etc.;
- in case of series of losses change a strategy or an asset.
Leave your feedback, opinions and questions in the comments after the article!