Binary Options Tactics – The Giant

Only a profitable trading system can provide high-yield option trading — this is an axiom every stock trader knows by heart. If you haven’t chosen an appropriate type of trading system or are looking for a simple and effective option, we suggest you use a trading indicator system, which brings quite decent results despite a simple working algorithm. The method behind the Giant strategy proved most effective in trading classical options and will bring, when correctly applied, more than 85% of profitable deals.

 

How the strategy works

The strategy is based on an algorithm of three technical indicators (William’s Alligator, Exponential Moving Average and MACD). The combination of their settings allows trader to identify a likely trend in the asset market for a period of 10 minutes. As a binary options trend indicator, William’s Alligator indicator will determine the starting points of impulsive market movement after the flat fluctuations of the price stop. When applied for this strategy, MA indicator is set for Exponential type and long period of operation, so that Alligator signals will be confirmed during a longer period. Finally, the profit binary options indicator MACD will fixate a new price trend, signaling a profitable price level for concluding a transaction.

The strategy gives a simple recipe for determining the impulsive trend movement during according to which the trader needs to open a deal. Please note that Giant is intended only for daytime trading on the market with a pronounced trend — that is, this strategy does not work at night and on the flats.

Like any other indicator-based strategy, Giant technique is applied with the help of a specialized template which you need to create on the price chart. To give you an example of how the trading system works, we will use the platform of the Binomo company on which we can build an indicator template and properly use the trading signals.
First, we set the following indicators on the price chart:

  • Alligator (standard settings)
  • Moving Average (period — 100, type — Exponential)
  • MACD (parameters 24/52/9)

We can use any timeframe of the chart, and in this particular case we shall set an interval of 30 seconds. As a result, the Giant template will be displayed as follows:

Binary Options Tactics — The Giant

 

Binary options tactics The Giant — rules for concluding transactions

The comprehensive trading signal of the technical tools looks very simple: Alligator lines cross the moving average, indicating a new trend, and the MACD indicator confirms a lingering trend by crossing the zero line in its own window.

UP deals are made when:

  • Alligator lines start crossing the EMA moving
  • On the MACD scale, the movings break the zero line up

The deal must be concluded immediately after the signal is confirmed by the MACD indicator:

Binary options tactics The Giant — rules for concluding transactions

DOWN deals are made when:

  • Alligator lines start crossing the EMA moving
  • On the MACD scale, the movings break the zero line down

The deal must be concluded immediately after the signal is confirmed by the MACD indicator:

Binary options tactics The Giant — rules for concluding transactions

As you can see, the signals of the system are formalized, so you will not only be able to easily determine a new trend, but also make a transaction at the very beginning of this trend. The expiration term with this strategy is set depending on the timeframe used. In this case, with an interval of 30 seconds, contract expiration should be around 5 minutes – 10 minutes, depending on the volatility of the market. With other timeframes, the expiration time should be calculated additionally — remember, that while the deal is open on the market, 5 to 10 price candles should form.

 

Risk Management

The level of risk in the strategy is low, therefore it is enough to follow the standard rules of money management: the amount of one transaction should not exceed 5% of the deposit (or exceed the minimum available price of a deal when you trade with modest funds). You can safely use the signals of the strategy and not go broke because of several unprofitable contracts.


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