Trading Strategy «LeConfort»
The strategy is based on use of 2 indicators, classic oscillator CCI and Bollinger Bands. Two-level filtration lets you get highly accurate trading signals. Entering to the market happens while maximum price deviation from the «standard» value. Such situation preceeds the short time correction period. The price bounce off is seen in around 70% cases. Due to this the good profit may be gained. The new strategy «LeConfort» will help us with this.
The trade will be executed on Binomo platform, but the technical analysis you have to do in the special service – live chart of TradingView (go to website). The basic services are available for anyone, with no need of paid subscription, the registration on the website is enough. So, step-by-step guide for adjustment of everything you need for trading with the strategy.
1. You shall pick the currency you will use. The standard choice is EUR/USD. Binomo often offers the higher percentage figure of income for this asset. It’s shall be set on Live chart and trading platform.
2. Add the CCI (Commodity Channel Index) indicator to the chart. The settings shall be as follows: Length — «40», upper band — «180», lower band — «-180».
3. Add the indicator Bollinger Bands to the chart. Standard parameters shall not be changed.
4. Set the time frame for 3 minutes. It’s the optimal option. On M1 we can see too much false signals.
Increasing the time frame of the chart is unadvisable as the trading platform Binomo (go to website) is geared towards trading with turbo-options, differing by short expiration terms.
The signal to purchase «Down» option
The deal «Down» shall be open when 3 parameters are observed:
- Commodity Channel Index line (CCI) должна выйти за рамки верхней границы (180);
- Ascendant (green) candle stick shall go beyond the upper boundary of Bollinger Band;
- Candle stick closing point is located above Bollinger Bands, the option shall be bought right after this.
On the image above 4 signals are fixed, just one of them is false. But even it could appear to be gainful, if the expiration term was equal to 5–6 minutes.
It’s impossible to set the time frame of 3 minutes on the trading platform, so 5M shall be picked. As an example we cite the image of the possible trading with signals in gear of Live chart and Binomo terminal. The expiration term of options is 10 minutes.
The signal to purchase «Up» option
The conditions for entering the market are similar, just you shall focus on the breakout of lower level of CCI (-180) and Bollinger Bands. So before the correction short time period the following indicator signals come up:
- CCI line breaks the lower boundary and goes beyond;
- The descendant candle stick on the chart goes beyond the lower boundary of Bollinger Band;
- Entering the market happens while the candle stick is opening beyond the Band.
On the image above two signals preliminary to the price growth are marked green. Apart from this, CCI line went twice beyond the upper boundary of the channel. This suggests that for the time frame indicated on the chart 4 deals might be opened, all of them would close with profit.
Expiration and money management
The durations of options shall be chosen so that they would be equal nearly three Japanese candle sticks on the TradingView panel. Generally with time frame of 3 minutes the optimal will be the length setting for 10 minutes on Binomo platform.
Possible options for time frame combinations:
- 3 minutes on Live chart, 9 – 10 minutes in the terminal (optimal option);
- 5 minutes on the chart, 10 – 15 minutes in the terminal;
- 15 minutes on the chart, 45 – 60 minutes in the terminal (maximal expiration in Binomo).
The rules of money management provide that maximum 5% of the balance is allowed to be brought to deals. The advised investment into one option shall be less than 1% of deposit. The minimal investment into deal on Binomo platform (go to website) is $1, suggesting that you shall trade with over 100 dollars on your account, but no less than 20.
The considered strategy «LeConfort» has very simple rules. With it you can get around 1-4 signals an hour. Better trading while American-European trading session, when the volatility of EUR/USD and other similar pairs is the utmost.