The «Caldera» Strategy For Options Day Trading
Despite the fact that the binary market offers investors fairly wide technical and time ranges for trading, the vast majority of players trade during the day period. This is logical in all respects – the dynamics of operations, the speed of profiting, the availability of analysis techniques, and the overall financial performance indicators. Precisely for intraday trading we offer a highly professional method of market assessment and forecasting – the “Caldera” strategy. Its universal set of forecast generation tools provides great capabilities for forming the accurate forecasts necessary for registering options. By applying the system in practice, investors can achieve, in the most stable format possible, more than 85% of their trades with profitable expirations.
Trading system services
To generate signals and technical forecasts for asset price market movements, the strategy uses a technological set of indicator instruments that are able to respond correctly to most trend changes on the financial market. In order for the system to start providing the required signals, configure the following set of technical resources on the chart:
- The Sell-Buy Line indicator – this service automatically forms the boundaries of price fluctuations for several technical periods. Thus, the investor is presented with an optimal set of indicators capable of determining the levels of trend reversals.
- The MACD-VXI indicator – this is an oscillator with a technically advanced signal generation algorithm, and market information processing is required as a technical indicator filter for the strategy’s main tools. The oscillator accurately and quickly reacts to price reversals, and is capable of confirming market trends.
- The Laguerre-based RSI indicator – this is a standard technical analysis tool, and with a more productive build mode it makes it possible to obtain smoothed quote fluctuation indicators, which improves the efficiency of trading forecasts. In this version, it is used as an information resource for determining medium-term trends and market indicators.
As you can see, in our approach to technical forecasting we use a set of tools that have a high-tech construction mode. Such indicators are not offered by binary options brokers, so a specialized technical resource will be required to use the strategy. We suggest the most professional service, tradingview.com, which provides traders with all the necessary tools and asset liquidity charts. After configuring the strategy tools on the minute chart of the asset, you get the following type of technical markup:
A broker for trading
When choosing a trading platform, pay attention to the following list of required conditions and services:
- The financial conditions – they should have the minimum specifications
- A wide selection of assets
- The level of return on options
- The accuracy of the liquidity charts and their compliance with technical resource charts
- Trading platform security
- Convenient monetization of trading profit
As the most acceptable platform in all regards, we recommend the resource from the Binomo broker. It offers the most optimal set of conditions and tools for investing in options.
Trading rules of the system
Call-options are acquired when the following signals are formed:
- The Sell-Buy Line indicator – the red and green lines of the price channel are in close proximity to each other while quotes have reversed upwards from the indicated lines
- The MACD-VXI indicator – a black reversal point of moving averages upwards appears on the oscillator
- The Laguerre-based RSI indicator – the technical trend line intersects the level of oversold and begins to grow
Put-options are acquired when the following signals are formed:
- The Sell-Buy Line indicator – the red and green lines of the price channel are in close proximity to each other while quotes have reversed downwards from the indicated lines
- The MACD-VXI indicator – a black reversal point of moving averages downwards appears on the oscillator
- The Laguerre-based RSI indicator – the technical trend line intersects the level of overbought and begins to fall
When working on the strategy, you can use three contract formats: with expirations of 30 minutes, 15-minute maturity trades, and options with expiries of 5 minutes. The last two types of contracts are recommended to be used when forming trading packages. This way you can increase the profitability of intraday trading and diversify risks and decrease your volume of losses.
In this regard, the strategy offers the standard set of limitations – for safe trading, use options worth up to 5% of your available funds. When working with packages, the risk level should not exceed 10%. If your account size is minimal, use trades worth 1 USD.