The «Slice» Trading Strategy For Binomo
The assortment of Binomo indicators includes a rather large selection of instruments, among which there are many oscillators. In this review, we will consider a strategy for short-term trading. The main system is three oscillators that provide triple signal filtering. Despite the general principle of operation of all three instruments being used, they are very different from each other. The differences can be traced in part to the mathematical calculation formula.
Overview of the indicators
The “Slice” strategy is based on three indicators: the Awesome oscillator, the CCI, and the Stochastic. The last two instruments are similar in many respects, but at the same time they are not interchangeable. Each of them is unique in its own way. The Awesome oscillator deserves special attention. Its creator is a well-known personality in the world of trading – Bill Williams. After creating this indicator, he was so delighted with the result that he chose to call it the “awesome oscillator.”
- The CCI. This is a time-tested tool originally created for commodity exchanges. However, traders began to appreciate its benefits in practice and, as a result, the indicator was quickly applied to analysis on the stock and currency markets. At present, the Commodity Channel Index (CCI) is used both on Forex and on online trading platforms like Binomo. It consists of one line curve.
- The Stochastic. This indicator is considered the main oscillator, along with the RSI. It consists of two curves – fast and slow. This gave traders another type of signal: the intersection of lines with one other.
- The Awesome oscillator. This indicator’s type is reflected in its name. Outwardly it is implemented in the form of a histogram rather than a line, which is a non-standard choice. Columns are formed around the neutral dividing line – from above or below it. There is also color indication: green bars are growth, red are a fall
Setting up the trading terminal
First, select the asset and set the chart interval to 15 seconds. This is not a strict requirement. It could be any asset, the main thing is high profitability (preferably above 80%). As for the time frame, it could also be anything. But depending on the chosen interval, contract expiration should be adjusted. The formula is as follows: “time frame” * 4 = “duration of the trade.” Given the dynamics of timing, it is acceptable to deviate up to 3-6 price bars.
- Awesome oscillator – standard;
- CCI – period: 20;
- Stochastic – period: 20, level of both areas: 50.
The strategy is simple. Attention should be paid to the standard signals of the indicators used. Mainly, it is the intersection of the levels located in the middle. The default trading channel index has an N/A line. The Stochastic is manually configured the same way.
- The signal for an increase is the intersection of the neutral level with the white Stochastic and CCI lines. As a result, the curves should rise to the overbought area above the N/A level. The confirmation of the signal is the color change of the histogram columns of the Awesome oscillator from red to green. Their position relative to the neutral line does not play a key role. It could be either above or below.
- The signal for a decrease is the intersection of the N/A level upwards. The curves of the CCI and the Stochastic should fall to the oversold area in the lower part of the indicator window. The signal must be confirmed by the color change of the histogram columns of the Awesome oscillator from green to red.
Example of trading on the strategy
At the end of a review, we traditionally present a practical example of trading on the system we’ve examined. In addition to confirming the efficiency of the strategy, it allows you to consolidate the acquired material through visual repetition.
The CCI intersects the N/A level downwards and now it has a path to further growth. A similar situation is observed in the Stochastic window, but it is a little late. Therefore, immediately after the formation of the green bar on the histogram, we open a trade on an increase. We use the minimum timing, but in our case it’s 6 candles on the chart.
As the result of this demonstration transaction made specifically for this review, we made a profit. However, this did not happen in the best possible way. Immediately after entering the market, the chart collapsed downward, but it managed to restore its positions before the expiration time. Therefore, overall, the signal worked itself out 100%.
We’ll finish the review with a few practical tips for traders. First, remember that the best moments for opening trades are the reversal points of strongly pronounced trends. Second, abstain from trading on a sluggish market. It is better to switch to another asset. For example, CRYPTO IDX always demonstrates an average level of volatility as opposed to currency pairs. Thirdly, observe the general rules of risk management by limiting the amount of investment to a maximum of 5% of the account balance.