The «Ribbon» 15-minute Options Strategy

All experienced traders working on the options market know that the success of trading depends on the strategy that the investor uses to evaluate quotes. A strategy is nothing more than a set of technical tools that generate forecasts, rules for opening contracts, and a management regime. Together, all the services and techniques of a trading system make it possible to achieve the greatest possible advantage over the market when trying to register profitable positions. Without a strategy, investors are simply not able to get consistently positive trading results. Against this background, we provide at your disposal the “Ribbon” system, designed specifically for 15-minute options. This technique is the result of non-standard use of channel and trend indicators which allow the investor to clearly define market movements of asset value throughout the work day. When trading on the rules of the system, even investors with minimal capital and work experience can achieve very good results – on average, capital growth is up to 100% per day.

 

Configuring the system services

The “Ribbon” system’s technical process of market valuation and trading forecast construction is based on the following set of analysis services:

  • The Bollinger Bands indicator. We will use this channel indicator in a non-standard configuration – we need the tool with a period of 10 and a technical shift in the channel lines of 1. Despite the narrow market valuation range for the indicator, we will use this tool as a component for determining medium-term trend reversals.
  • Two EMA indicators – exponential moving averages with a valuation range of 50 and 75 are needed as services for determining relatively long trends. Together with the channel tool, the EMA services will deal directly with the generation of signals for registering trades
  • The MACD indicator – an oscillator we will use in its standard form as a signal filtering service. It will determine the overall current market trend and thereby confirm the trading forecast from the main components of the strategy

To trade options in 15 minutes, you will need to create a template for this system on a chart with an M1 timeframe. After configuring the services and installing them, you will get the following type of markup:

The «Ribbon» 15-minute Options Strategy

The “Ribbon” trading approach was developed specifically for the terminal from the Binomo company. Therefore, as an ideal service for effective implementation of the strategy, we recommend this trading resource. However, considering that we’re using a standard and accessible list of tools, you could use the strategy on any terminal which is similarly equipped. There is one caveat – before you apply the system in real trading, test it on your terminal. This will allow you to fine-tune the analysis indicators and determine the optimal conditions for management and contract maturity.

 

Trading rules

The signals for CALL options are the following:

  • The narrow-range channel of the Bollinger Bands indicator intersects the corridor of exponential moving averages upwards
  • On the MACD indicator, the trend moving averages are above the median of the technical scale

Trading rules

The signals for PUT options are the following:

  • The narrow-range price channel of the Bollinger Bands indicator intersects the corridor of exponential moving averages downwards
  • On the MACD indicator, the trend moving averages are below the median of the technical scale

The signals for PUT options

 

Expiration

Despite the fact that the main type of transaction when working on the “Ribbon” system is a 15-minute option, the duration of confirming the strategy’s trading forecasts allows for relatively efficient use of contracts with expirations of 5 minutes and 30 minutes. But the system demonstrates maximum efficiency on options with maturities of 15 minutes.

 

Money management

The financial risks of binary trading when using this system are minimal due to its effectiveness. However, it is impossible to completely avoid losses, so use trades on the market with the minimum value – this rule applies to traders with a minimal investment account. If you have a large amount of capital, trade options with a risk level of 5% of the amount in your account.


Сomments