«Breakthrough Channel» Strategy
Specifics of the binary contracts and short-term periods of charts, used in trading, with this tool, allows a very effective use of classical approach to positions forming on market’s trending fluctuations. Today, we look at the trend strategy, based on technical signals – breaking a price corridor. The trading systems of this type will let a trader form more than 80% of profitable forecasts, which is the optimal mode for a stable profit.The price corridor – is limited, by a dedicated graphical tool, range of market fluctuations. The asset quotes, as they move, create multiple pullbacks and corrections, resulting in the chart, forming the corridors of fluctuations, which can be captured to delineate the boundaries and use as a strategy of market analysis.
In practice, it looks like this:
Take for an example the most advanced trading platform for binary trading – the Binomo broker, where we can use its chart service to build a price channel:
Now, using the short-term extremums of the market (local maxima and minima) we define the borders of price corridors which are always present on the chart:
As you can see, the cyclical formation of price corridors, allow you to apply this strategy at any time of trading on the binary market.
Now, let’s focus on the terms of trading on the «Breakthrough Channel» trend strategy. For a maximum effect, and to gain high profits, you need to do trading in the professional trading platform that will have:
- Various analysis tools
- Terms of trade with minimal rates
- Choice of different types of assets for trading
- Exact market quotations
- Optimal range for use of the repayment contracts system
- Trading non-stop mode
- Options with a high level of payouts
Such high-performance parameters and services can be found at the Binomo company terminal, where the traders get the best possible results.
Practical use of the «Breakthrough Channel» trend strategy
The system generates a forecast for the registration of the contract on the binary market with a simple signal, which looks like a breakdown of the channel in a certain direction.
For a DOWN contract, the quotes must break through the lower limit of the price corridor:
For an UP binary contract, the asset price should break through the upper boundary of the channel:
The simplicity of a signal makes good use for traders with a minimum experience in trading on the binary market. The system demonstrates high performance parameters and allows you to make a profit consistently.Thus, building the channels of market fluctuations, and using high-cycle signals of the strategy, you can dynamically increase your trading profits.
Expiration and money management
The frequency of the quotation chart, used in trading, and the cyclical signals of trading system, allows making deals with an expiration of up to 5 minutes. The optimal range of contracts, in which this trend strategy demonstrates the best results, is 120-240 seconds.
Rules of the risk management, in the «Breakthrough Channel» trend strategy, apply the basic parameters to the trading position’s price limit. To minimize the risks, and prevent any damage to operational capital, sets the maximum value of the contracts at the level of 3% of the trading balance. For the minimum retail deposits, we recommend to use the contracts offered by Binomo broker (visit website), priced at $1.