Binary options trading strategies can be with indicator and without indicator. Under without the indicator I understand trading on emerging shapes or fundamental factors, but still indicator strategy is able to give more accurate signals and more frequent entry into the market. Below are a couple of strategies of indicator type.
- Important! These strategies are relatively working. Why relatively? Because market conditions are different, and in different conditions, the indicators behave differently. Therefore do some testing on a demo account, testing at least a month. You may write an expert Advisor under this strategy, if you have experience in programming. These strategies require customization for your risk management and money management.
Basic indicator strategies
Trading strategy for the M30 chart
- TopDream indicator;
- Drake Delay Stochastic indicator;
- exponential moving averages. The recommended period is 130, 50, 30 and 10, but you can adjust periods as you prefer.
Sale of option (purchase for reduction) is possible only when mentioned conditions match at the same time:
- ЕМА (130), which has a yellow color on the graph below, should be placed above the price trend;
- line indicators TopDream and Drake Delay Stochastic should be above the level «80»;
- TopDream needs to take a red tint;
- a candle closed above EMA (50) or, EMA (130).
The period of expiry 30-90 minutes, which is approximately 1-3 candles for the M30 chart. I agree, that indicator strategies are not so simple, but the simultaneous use of proven indicators reduces the risks.
The purchase of the option (purchase price increase) is only possible when mentioned conditions match at the same time:
- EMA (130), which is yellow on the graph below, should be placed below the price trend;
- line indicators TopDream and Drake Delay Stochastic should be below the mark “20”;
- TopDream need to take a blue tint;
- the candle closed in the gap between moving averages period 50, and 130 (between the lines yellow and green colors).
The period of expiry is the same. In the framework of risk management it is recommend to risk a maximum of 5% of the Deposit in the indicator strategies. Choosing a currency pair not fundamental.
Trading strategy with native MT4 indicators
MT4 is a very user-friendly trading platform, it has almost everything you need for successful trading. No need to buy or install. No, of course you can download some templates and strategies, but if you haven’t mastered the native capabilities of the terminal?
The basic conditions of the strategy:
- indicators Bollinger, BandsStochastic;
- application of Martingale strategy;
- risk in the amount of 2% of the deposit.
Sale of option (purchase for price reduction) is possible only when mentioned conditions match at the same time:
- stochastic is above the level of “80” (in the overbought zone);
- the price chart crosses the Bollinger band and strengthened at this level.
Here the Bollinger indicator is responsible for determining the pivot points and stochastic for filtering false signals. However, the indicator strategies of this plan do not give greater accuracy, so we should talk about next opening with a larger lot by 50-60%. The recommended timeframe is H1, the expiration period is 1-2 hours (1-2 candles).
The purchase of the option (purchase for price increase) is only possible when mentioned conditions match at the same time:
- stochastic is below the “20” (oversold zone);
- price chart crossed below the lower Bollinger band and strengthened at this level.
Important point: if the first signal was false, the reversal was not followed, make the second signal (delayed price) rate with a larger lot, to compensate for the loss. However, if the second time you lose the position, no need to proceed.
If these indicator strategies interested you, and you managed to make money with them, then leave your comments below. And if you have suggestions on how these strategies are refined, also waiting for the opinion!