A trading strategy for binary options “5+5”
First of all I would like to explain to beginners briefly the basic tools of a trader. These are: graph of price movements, economic news and of course exchange clock.
I also want to remind you, or to open a big “secret” that trade in the financial market is first and foremost a discipline of mind and confidence in what you’re doing. This means that if you are excited, depressed, or excited that “This is it. I’ll earn a lot of money!!! The market works round the clock 5 days a week, so I can sit at any time and earn!”, you’re not guessing and you will have a quick and, depending on the size of the Deposit, varying degrees of pain and disappointment. Because right now, in one of these states, you will merge all that you have in the account. To have any chance to avoid this remember some well known experienced traders moments.
First, we need a schedule with a sufficient set of tools for the analysis, because graphs of brokers absolutely not suitable for analysis. I use and recommend this https://www.tradingview.com Its free version is enough for you, at least to start. To save the installed settings there is enough to login using the profile of one of the social networks in which you have an account. The result: a Chart is your basic tool for analysis and trade, choose it carefully!
Second, during the opening and closing sessions, the market often makes unpredictable jumps, due to the fact that traders close or open position at the beginning and at the end of the day. So before trading, ensure that at the moment or during the time the position is open, there are no boundary moments of opening/closing of the sessions. Check stock clock. It is not difficult to deal with it, so I will not go deep abot their description. The result: During the opening/closing of the exchanges, we should not trade!
Third, economic news. For most people interested in trading Economic calendar is a known tool. We are only interested in the important news, marked with the three bull’s heads. We don’t trade with news as well as with trading sessions. We don’t work unless we get during the release of such news and then at least another half an hour or an hour until the market calms down.
So, make sure you are calm and concentrated, checked the time of opening/closing sessions, convinced that soon there will be no strong news and we can begin opening and configuring the graphics for one of the strategies which I represent to your attention and it is called:
Strategy for turbooptions “5+5”
Very interesting strategy for excitable beginners, everything happens very quickly, we need a determination and quick response, and exposure and cold calculation. Like any strategy, turbo requires strict money management. Just make equal bets. For testing I recommend working with not more than $ 1, no matter what happens, do not use martingale, it’s really not the case. Cut to the chase.
“5+5” in principle consists of three fives. On the live chart we should select the 5 minute timeframe.
Set MA (Moving Average) with a period of 5
And the final touch, set the indicator RSI (Relative Strength Index) also with the period of 5
If you managed, it is well done! Even if you are reading this article, hurry hurry to begin to drain their money, then in the process of identifying these indicators and their settings, I’m sure you calmed down a bit and feel that you will find not a fun toy, and quite a difficult intellectual work. But if you still possess strong emotions, for example, are you annoyed or even angry that you see, could not explain more in detail… Then you are just too lazy to learn, do not want to understand everything, no desire to work on them. So today should not try to trade first have to learn patience. Well, or this simple experience you will be forced to buy, and its price — your several merged deposits, however, most importantly, the choices you have!
So, setup is complete
The strategy itself is simple, as five cents, looking at the graphs:
I want to draw your attention to the strange, but logical match of pairs of numbers 1-1, 2-2 and 3-3…
- the downward candle confidently crossed the MA5 and at the same time the RSI confirms the intention of the price to go down, crossing the mark of 50.
Bundles of 2-2 and 3-3 suggests the same. 2-2 the price goes up, 3-3 the price goes down.
Now, for those who guessed that things are not so simple, in detail. In fact, the details of such “simple” is the most delicious!
First, the expiry time, one of the fundamental points in binary options. I recommend to enter the market by 3-4 candles, i.e. as it is we have 5-th TF, one candle to five minutes (the candle is formed within 5 minutes, watch…), so 3-4 candles is a 15-20 minute expiration.
Example 2 similar to the first, see for yourself.
Important! To wait for a clear intersection if you are not sure that the candle crossed the MA5, do not open the bargain, if you missed the time of entry and the price has gone down, open the trade if the RSI has not passed the mark of 50, do not open the transaction!
Second. But the second part exemplifies the expression that the devil is in the details.
Example 1-1 shows the classic entrance to the trade. It will be useful with practically all brokers who have a fixed expiration time 5, 10, 15, 20, etc. minutes. But among the time-tested brokers there is (I know this one, sorry) the one that has a dynamic expiry time step of one minute and in this case you can apply this strategy with one small, but very significant safety net… I said at the beginning about the details, so let’s look at the chart closer, more detailed.
Unobtrusively demonstrating my wild imagination, I added purple circles to the same graph, note the behavior of prices in them. Before you go in the right direction, price retreated in the opposite direction, I have already recommended to observe the formation of candles. Do it again, paying attention to the moments of shadows (kickbacks), look at history, almost every candle has shadows. So, for insurance I recommend to open position when the price rolls back, not immediately after candle closing, not for 15-20 seconds before closing, and after 30-60-90 seconds after the closure of the crossing candle.
It closely brings us to the example 3-3 of the transaction, the attentive observer has noticed that the transaction is questionable, even if there is a positive result, it is random for a few thousandths of one point, but! If we adopt a rule to open the transaction for rollback (purple circle, remember?), the transaction is absolutely indisputable in profit, either for three candles, or for four.
Important! ALWAYS go with the trend, trade with the trend, if price moves up, you enter into a deal only on the increase, the signals on the decline is better to skip if down, respectively, on the contrary, it is VERY helpful to increase the percentage of profitable trades.
And last, I really hope this will help you to save earned money
For those who are serious about trade, it is no secret that the Internet is full of angry screams that they were cheated by the broker, that the broker had not paid the money. Certain percentage of screaming really got a fraud from unreliable brokers. I will not list them, the black list of brokers is available to everyone who wants to find them. From personal experience I recommend broker Binary.com in the first, the biggest company with millions of turnover, and secondly, the only broker with regulation MFSA ( and third time from 1999 year, and 17 years in THIS market — it really is a weighty argument). This is with regard to the reliability of the broker, now the practical plus for the trader. Wildest rarity is step of expiry 1 minute that enhances the chances of profit (3-3 deal remember?), very simple interface without unnecessary graphics that allows you to use your tablet as a second screen with virtually no slippage rates!
You can ask questions via the feedback — I will try to respond as quickly as possible!