The «Sliding On The Averages» Strategy For Binary Trading
The MA indicator itself and derivative technical forecasting tools based on it are the most suitable means for carrying out analysis and building successful forecasts for binary trading. Today we offer a classic strategy (what is it ?) for working on the options market, “Sliding on the Averages”, which uses the MA indicator and an automatic algorithm for channel building, the Bollinger Bands, which is based on a combination of moving averages. This technical analysis approach allows the trader to stably obtain more than 85% of their trading forecasts with profitable expirations, which has the biggest possible impact on the dynamics of capital growth.
The «Sliding on the Averages» trading system – technical requirements
Trading options according to the rules of the system will require a set of technical and trading services which are provided only on professional trading platforms from systemic brokers of the binary market. The most optimal use of the strategy in regard to its basic parameters is the platform from the Binomo broker, where you will have access to the following tools and set of trading services for the implementation of high-impact binary trading:
- The required list of technical indicators
- Accurate market quotes
- Trading contracts with maturity intervals from a minute to a day
- A trading chart with the ability to customize the operating timeframe
- Profitability of options contracts up to 90%
- The fastest possible speed of trader order processing for trading – 1.7 ms
- More than 80 financial trading tools
- The minimum working conditions for options – the initial level of operating capital is $10, the bet amount of the minimum value is $1
The technical forecasting template for the “Sliding on the Averages” strategy consists of a combination of MA 10 indicators (Exponential building format) and the standard Bollinger Bands indicator installed on the quote chart with a one-minute timeframe. After configuring the strategy analysis tools and chart settings, it will look as follows:
The «Sliding on the Averages» strategy – practical application
This use of indicators forms a fairly simple and distinct signal with easy identification for binary trading. So, to register trading contracts UP, you must wait for a market situation in which the asset quotes and the MA indicator line (red moving average) intersect the central level (blue line) of the Bollinger Bands indicator upwards:
To register trading contracts DOWN, you must wait for a market situation in which the asset quotes and the MA indicator line (red moving average) intersect the central level (blue line) of the Bollinger Bands indicator downwards:
The optimal frequency of expiration in which the trading system shows the maximum level of profitability is in the range of 5 minutes to 10 minutes. When using the “Sliding on the Averages” strategy on other underlying asset chart timeframes, use the following rule to calculate the bet expiration period: no less than 5 price candles should be formed on the quote chart during the time period of the contract.
For the most secure trading regime on the signals of this approach to market forecasting, we must use minimum bets or limit the cost of options, if the account size allows, to no more than 5% of the amount in the operating account.