«Crazy Trend» Trading Strategy
The combination of indicators and experimenting with their settings are building blocks to create a different kind of trading strategies that enable highly accurate predictions on the movement of market prices. The trading strategy «Crazy Trend» is one way of using of classical technical analysis indicators, which demonstrates the high profitability results in binary options trading. This simple approach to the preparation of forecasts for binary trading allows you to bring trading on the financial market to new performance heights.
Technical requirements and system indicators
For the effective implementation of a trading strategy, we need to: have a trading terminal with the use of the function to the trading graph indicators, a broker company with trading conditions that will properly manage the risk and capital, the range of expiry of contracts by 60 seconds. In order not to bother you looking for companies that meet all the above conditions, we advise to use the Binomo broker. At this company you can find everything you need: the indicator set in the high-tech platform, the minimum trading conditions – the amount of the initial trading deposit of $10, the transaction price of $1, as well as a wide range of options with expiration of 60 seconds.
The trading strategy uses some simple automated analysis tools – the MACD indicator with standard settings option and the moving average with two build interpretations – we set a period of 15 for the first indicator, and period of 7 is for the second one. After setting the indicators up and installing them on the shopping chart, the picture on the monitor must show the following form:
As a result, we will get a confirmation signal to the binary trading. The moving averages will point us in the direction of the trend with a different period, and the MACD indicator will filter false alarms out, and point to point short-term trend reversal. Doing this, we will be able to process more than 80% of contracts with profitable results.
The trading signals of «Crazy Trend» strategy
A forecast for UP option we get on the basis of the following indicators signal:
- Moving of the short-term indicator of MA with the period -7 crossed a line up of MA indicator with a period of 15
- The indicator MACD oscillator line crossed up, and the histogram columns were built above the center line of the scale
Upon receipt of these signals make out an option Up:
A forecast for DOWN option we get on the basis of the following indicators signal:
- Moving of the short-term indicator of MA with the period -7 crossed the down line MA indicator with a period of 15
- The indicator MACD line crossed down the oscillator, and the histogram columns were built below the center line of the scale
Upon receipt of these signals we create DOWN option:
Applying these settings of technical indicators, we have confirmed the trading signal with a high level of efficiency, which gives us the ability to trade binary options with minimal risk and at the same time receiving a high profit. The Binomo options broker with a maximum level of payments of 89% – is a great indicator for the rapid increase of the trading account balance.
This system is designed for active traders who are engaged in frequent trading on binary options. For this reason, we use short periods of indicators – it allows us to receive trading signals with high frequency. For this mode you need to use short-term trading options contracts with expiry period of 2-3 minutes. For scalpers, the expiration is being set with the minimum range of 1 minute. The effectiveness of the system will not be harmed.
When a large number of trading signals and their usage in binary options, traders are tempted to increase the volume of profits by trading contracts with high value. However, this approach may result in loss of money. The risks of using the «Crazy Trend» trading strategy should be installed at a minimum of 2% of the trading account and the best option is to use the Binomo contracts with a minimum value of $1 – so you can avoid overloading the deposit and get good trade statistics.