Trading Strategy «Atomizer»
In this article we will review the trading strategy «Atomizer». There is the indicator Madrid Moving Average Ribbon behind it, with RSI and MACD used as filters. We reviewed the «Madrid» strategy already, talking about the trading technique with this tool. But the signals of the clear indicator are less precise than those undergone the double level filtration.
The standard trading terminal of Binomo broker has the constrained functional in the context of technical analysis. There are just 6 indicators available, along with some drawing tools. This is why the professional traders use the special platform of TradingView to make forecasts. It offers hundreds of indicators and auxiliary tools, moreover: you can develop your own scripts. This opens for traders great opportunities for effective trading.
Step one. You need to open TradingView chart on https://www.tradingview.com. You shall sign up at the website at once, as the services are constrained in demo version. It’s free.
Step two. You need to choose a preferable asset on the chart. The best for this are the currency pairs with the dollar. While choosing you shall consider the current trading conditions of Binomo. The broker often offers to its customers «The asset of the day» with increased profit ratio.
Step three. Add the following indicators to the chart:
- Madrid Moving Average Ribbon;
- Relative strength index(RSI);
- MACD Colors.
There is the extensive list of the available indicators on the platform, so you can use the integrated search for ease.
Signal to purchase «Down» option
1. Madrid MA shall show the start of the descending trend. On the chat it looks like the green light changing to red. Besides the indicator band consisting of many moving averages needs to be narrow, when the visible gap between the lines disappears.
2. RSI line shall also signal of the decreasing price.
3. The brown bars shall appear on MACD Color histogram, located below the neutral level.
On the example above all market entry conditions are considered, but this example is not perfect – the wide band indicator band shall get narrow to the color change point. This case is different – the green light of moving averages was just for 5 candle sticks, besides all lines gathered in one point. It wouldn’t stop our getting profit by signal, but traders shall know any nuance.
Signal to purchase «Up» option
1. Moving Average gathers to the narrow beam and changes the color from red to green.
2. Relative strength index also shows the ascending trend.
3. MACD Colors histogram starts filing with ascending green bars.
The image above shows the more adequate signal, than in the last case, but still not perfect. The matter is, that MACD histogram didn’t descend beyond zero level, but turned around close to it.
Example of trading with the strategy
The real trading is performed on the data far from historical ones. So to make a point we will consider the strategy of trading by signals on a real deposit.
Well, the asset EUR/USD was chosen, as Binomo (go to the website) offered the increased profit percentage for it. On the «Live chart» of TradingView the interval of 1 minute was set, the necessary indicators added. As we can see, all three indicators speaks for the price growing in the near future. This is the signal for purchase «Up» option. We used the time frame of one minute, so the expiration term of 5 minutes was chosen.
Five minutes are gone. As we can see on the image below – the price is not too active in going up. But in the trend intensity doesn’t matter in binary trading, the main thing is to guess its direction, 1 point will be enough to get profit. On this, the signal didn’t quit on – the transaction closed with profit.
A discriminating reader will notice that at the moment of transaction opening there was $348 on the account, and after it was closed $456. The matter is that after the signal appeared three options 20 dollars each were purchased at the same time: two on the pair EUR/USD and one of the asset AUD/USD. All of them were closed with profit. Below you see the screen shot of the last transactions on a real deposit.
As we can see, of 8 transactions only one is closed in the red. The thing is that the trading is executed entirely by rules of the strategies published on our website. Also the money management rules are considered – no more than 5% of the deposit for a transaction. With around $400 on the account the trading is performed with the investments below $10. It’s 2.5% of the total sum.
Follow the rules of trading strategies, described on our website and you too, will get the stable profit.