Options Trading On Flats – Trading Strategy
Today we suggest considering the most optimal market situation for binary options trading – the flat, which allows you to profit with the highest possible trading efficiency and technical forecastability of price movement of underlying assets and with minimum trading risks. This trading strategy is characterized by strong investor capital growth rates, ease of operation, and signal efficiency at a level of no less than 85%. Such advantages in conducting trading operations allow online traders to quickly and steadily increase their trading capital.
So, a flat is a period of market building without a clear trend direction. In this market situation, asset quotes move in a horizontal plane with minimal changes in value. This type of underlying asset chart building happens on the market when there is a decrease in the overall activity of investors or in conditions of market uncertainty, when traders do not register a large volume of contracts. Often, flat movements occur at night or before the publication of important financial statistics.
To identify a flat, you simply need to observe the trading chart – when quotes reduce their movement activity (volatility), it can be considered the birth of a flat. Professional market players use specialized indicator or chart services to identify this market situation. For example, simple lines that connect the highs and lows of the market not only clearly identify the flat, but also show a channel of flat fluctuation for that asset price:
As an indicator approach to identifying flats and their oscillation channels, you can use the classic Bollinger Bands algorithm, which more dynamically and correctly assesses the necessary market indicators:
Based on these approaches to identifying flat fluctuations of trading quotes, there are classic flat strategies that maximize the efficiency of the investor’s trading operations and provide excellent results on the issue of forecasting.
Options trading on flats – how to register contracts
The cyclicity of quote reversals, wave models of their building, and minimal periods of directional price movement allow investors on the binary market to carry out trading processes in two directions with well-forecasted points at which to register contracts. The principle of working on a flat is extremely simple – binary options should be registered when the price reverses from the boundaries of the flat channel in the direction of the opposite level of the reversal:
When automatically identifying a flat, trading processes on the binary market will look as follows:
For the technical settings for trading positions, it is recommended to use shorter expiration periods – from 60 to 300 seconds. As for the volume of cost, which determines the investor’s risks in binary trading, it is worth noting that despite the high level of effectiveness of the signals of this trading approach, you should use bets with the minimum amount of funds involved in trading, or contracts with a value level of no more than 5% of the volume of your capital.
In addition to the basic technical parameters for options trading on flats, a trading terminal with good technical equipment will be needed to create the most effective trading conditions. We suggest using the Binomo broker’s terminal, on which the following necessary services and tools for trading in flat channels are available:
- Tools for identifying flats – indicators and chart services
- Trading contracts with a high level of profitability – up to 87%
- Periodicity of bet expirations from 60 seconds to 24 hours
- An excellent choice of trading assets – 80 items
- The minimum requirements for working with options – starting capital of 10 USD, the amount of a trading bet from 1 USD
The simplicity of the strategy combined with the necessary trading and technical parameters of the Binomo (visit website) brokerage services operator gives binary traders quite a number of financial advantages in binary trading, which makes it possible to earn excellent money!