3 Best Strategies In Binary Options
Among the variety of trading strategies in binary trading, there are a few key areas: the strategy on technical analysis, system analysis, fundamentals and a strategy indicator. In our collection we have got the systems of the indicator type and tried to apply high-efficiency strategies and different approaches to trade on binary options. Here you will find the channel strategy, the trend trading system and method of trading on corrections. So, let’s see all in order.
Channel trade on Bollinger
This method of binary options trading is working well in scalping, because it has a high frequency signal generation and allows you to make a profit in any market fluctuations. The system is based on the use of the Bollinger channel indicator . The principle of trade on a simple system – the deals open at the touch of the transaction or the short breakdown of the channel boundaries in the direction of the opposite boundary. Practically, the strategy signals are shown here:
The main advantage of the system is a high efficiency and accuracy of the signals.With proper money management and high-speed operation of the trading platform, the trader can get a result in the form of a 80% option positions with a profitable result. The Money management system is in use for the trade contracts with a minimum value, for example, the contract value of $1, which is offered by Binomo broker. By the way, the trading terminal of this company has the highest speed of orders execution- 1.7 ms.
There is another trick with this system. Occasionally, when moving on a channel long enough, the time quotes are near one of its boundaries:
To avoid losses in such a situation, you need to add any oscillator, such as MACD indicator. In such preset you will receive an additional signal turn for reversal movement of quotations. Transactions will be processed at the same time as follows:
Trading on the trend indicators
This trading strategy refers to the classical approaches of binary trading and is one of the easiest. The whole algorithm of such a strategy is built on the same trend indicator MA (moving average). Determining the direction of the trend movement by using the average values of the cost of an asset over a specified time period, the trader is able to completely control the orientation of quotation fluctuations, and, accordingly, has a clear direction for trade. In order for this system to work, the MA indicator must be installed on a shopping chart with the duration of the period of building set at 100. Trading on binary options in the system occurs at the moment of a trend reversal. The entry point is the intersection of the market price quotes in MA line indicator:
To trade in the direction of reduction of quotations, the signal appears in the reverse interpretation:
The strategy is ideal for options with expiry of 5 minutes and shows very good results of the binary trading. On average, 75% of contracts executed in the system, will bring profits.
Binary trading on corrections
Profiting on corrections is one of the ways to increase your trading results and a quick way to increase the volume of trading capital. However, such a system of binary options trading is characterized by high risks, therefore, requires a precise execution of money management rules. The Binomo broker and minimum trading conditions (minimum investment of $ 1, the minimum volume of a trading account of $ 10) will help you in this matter. So, the trading strategy on corrections. The basis of this work is a combination of two indicators – the Alligator and the trend moving average with a long period of 100.
The MA indicator is used to determine the orientation of the classic medium-term trend, and the alligator used to obtain a point where the reversals of the short-term corrections occur on the chart. As a result, we are able to trade on binary options with the trend and the corrections, that brings us additional volumes of profits. The basic principle of registration of contracts for the strategy of the binary trading as the following:
The trading strategy works effectively on options with a five-minutes expiration. The signals have a high efficiency of up to 85% of profitable trade positions. However, once again we remind you about the rules of money management and high risks of the strategy.
As you can see, the systems with a high efficiency can be simple and straightforward, even for a new trader with minimal experience. The main thing is to clearly understand about the strategy signal system and money management correctly, then all of our recommendations will be converted into a good trading result. We want also to draw some attention of traders, to use highly professional trading platforms on these strategies, that have their own set of indicators, clear quotes assets, and high speed processing of contracts in non-stop mode. As such, we recommend the latest software of the Binomo terminal (a link to a broker’s website) – one of the leaders on the binary market.