The «Crop» High Frequency Trading Strategy

Most binary trading participants try to increase the volume of trading funds in their accounts as quickly as possible. Binary options bets are best suited for this, as they have the shortest expiry periods and the highest levels of profitability. However, when working with turbo contracts, risks are significantly increased. To compensate for these parameters and to receive stable trading results, we suggest using the “Crop” trading system for high-frequency trading, which is based on a highly professional combination of technical indicators to analyze short-term asset chart timeframes and provide a high level of accuracy of market forecasts.

 

The «Crop» trading system – indicator settings

Given the speed of building trading quotes on short-term timeframes, we need to analyze several analysis tools, which include a trend indicator, as well as several technical filters to eliminate false trading signals. The set of automatic means of analysis for our system consists of the following list of tools:

This format of trading template must be applied to the quote chart with a 5-second timeframe. After configuring the chart, you will get the following trading template markup of our “Crop” strategy:

The «Crop» High Frequency Trading Strategy

The parameters of technical indicator building when taken together will allow traders to assess narrow ranges of asset trading quotes and identify profitable price levels for turbo bet registration. In addition, the use of signal filters enhances the effectiveness of forecasts and increases the overall efficiency of trading.

We note that for high-frequency trading, traders need an additional set of operating conditions on the market, as well as technical parameters for the trading platform, which will provide the optimum performance indicators for the “Crop” trading system. These include the following:

  • The availability of the necessary indicators
  • Turbo options bids with a narrow range of expiry
  • A high level of contract liquidity
  • Quick bet registration
  • Accurate market quotes
  • Trading conditions with the minimum parameters for the initial cost of contracts and the level of initial investment

To satisfy all these parameters for working on the strategy, the best fit is the specialized trading terminal from the Binomo broker. It offers the following tools and trading conditions for binary options:

  • A set of indicators integrated into the platform
  • Turbo options with an expiry range of 60-300 seconds
  • Profitability of trading bets of up to 90%
  • Position registration in 1.7 ms
  • Highly accurate quotes in fast update mode
  • Trading conditions – bets from 1 USD, the amount of the initial capital is 10 USD

 

The «Crop» high frequency trading strategy – signal system

To register bets UP on the market, the following technical indicator signals must be used:

  • The Alligator indicator shows the formation of a new trend through an intersection of its technical moving averages upwards
  • The MACD indicator confirms the beginning of trend movement through divergence in oscillator lines upwards
  • The RSI filter indicator intersects level 50 with its moving average upwards

The «Crop» high frequency trading strategy - signal system

To register bets DOWN on the market, the following technical indicator signals must be used:

  • The Alligator indicator shows the formation of a new trend through an intersection of its technical moving averages downwards
  • The MACD indicator confirms the beginning of trend movement through divergence in oscillator lines downwards
  • The RSI filter indicator intersects level 50 with its moving average downwards

The «Crop» high frequency trading strategy - signal system

To make a profit on these signals of the “Crop” trading strategy, we use turbo options contracts, the period of expiration of which is in the range of 60-180 seconds. The use of this range of expiration is due to the indicator settings and performance indicators observed while testing this strategy in this trading mode.

 

Money management

Calculating the optimal risk parameters in high-frequency trading is critical in order to obtain stable results. Here, the trader may face a situation where several trades with inflated cost parameters as a result of failed predictions could lead to a complete loss of trading capital. To reduce the loss parameters and obtain stable, profitable results, the market participant should follow these rules:

  • When working on signals from the “Crop” trading strategy on minimal volume trading accounts, you want to use bets of the minimal cost
  • If your trading capital allows you to use bets of a higher value, limit the risk level to 3% of the trading account

Choosing A Reliable Broker

BrokerBonusMin DepositPayoutReviewOpen Account
IQ Option$10Up to 91% *ReviewVisit Broker
easyMarketsUp to 50%, not available in EU countries$100ReviewVisit Broker
OlympTradeUp to 100% deposit$10Up to 90%ReviewVisit Broker

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