The «Night Channel» trading

The trading techniques for binary options with a 5 minute expiration time have the parameters that allow you to minimize the risks of trading, and work with excellent results. The most important question – what method should be used for trading  with a steady and highly profitable result? Today, we will show you the «Night channel» trading system with minimal risks and good profitability.

 

Reasons to trade with the «Night Channel» strategy?

Of course, if you do not have to conduct binary options trading at night or in the late evening hours, you still do not know how much a night trading style will be different from daytime. See for yourself: in the afternoon, we tend to trade in the direction of the main trend, and at night, when there is no trend as such, the trading will be going on the flat channel. Why is that? Because in the later hours the main site on the stock exchange, generating the rapid movement of market quotations, is  closed. That’s why the prices during the night period are being «flat», moving almost horizontally, forming a kind of «night channel», from which the «night traders» are trading off.

Now we shall define the broker, which supports trades in the night trading channel. Without any doubt, the best option would be the Binomo platform. Based on fact that this company, the profitability of options at night are the same asas during the day hours, the highest level (about 87%), the slippage at transactions opening are eliminated (your trading positions will be opened in optimal locations), also, a large chart of quotations is present,so you can both zoom in and zoom it out (it will be necessary to determine the night channel), and the trading positions displayed as levels on the chart (which allows you to control the trading process visually).

binomo

5 minutes system of trading binary options – how to trade in the Night channel

In order to trade in the Night Channel, you will need to determine the lower and upper limits of the night channel, for which we minimize the chart of quotations on the Binomo platform:

price borders

Then we need to wait when the asset quotations will rise or fall to any of the marked borders, and conclude a deal on a release from one of the boundaries of the channel, sending it inside:

night channel

The asset quotes move exactly like this at night, in 90% of all possible cases. This movement is directed horizontally, it is quite predictable, and it gives us the opportunity to trade on the «night channel» to obtain a stable profit!

 

Expiry time

It would be logical if we are describing the five-minute-binary options system, so the expiry times should be also set to 5 minutes. But, of course, you can experiment and independently determine the appropriate period of expiration for yourself. The Binomo terminal’s chart of quotations can be shifted back, which allows testing of trading strategies on the history of quotations. Now, it is about the choice of options for trading – it is the easiest part.For trading on the night channel we recommend the conventional binary options of the above mentioned brokerage firm.

 

Risk Management

A high profitability (70% -75% of positive closings from the total number of transactions) trade in Night channel does not mean that you can safely inflate the size of the trading lot. The risk management system for options trading requires an obedience to the rules of trading. The size of trading positions, while trading in the system, should not exceed 2% of the amount of your deposit. For example, if the amount of the deposit is $ 1000, the transaction value shall not exceed $20. By the way, At Binomo (visit website), a smallest possible size of the deposit is set at $ 10 and the minimum lot is $ 1. This means, that trading on the night channel, with the position of $ 1, you must have a deposit balance, equal to just $50.


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