The «Fibo Grip» Options Trading Strategy
On the internet today you can find a strategy for any trading tempo, investor preference, or asset. But with this variety, there are few systems that are truly universal. Therefore, such systems are scarce and highly desired by many traders on the binary market. Today we offer an overview of the “Fibo Grip” strategy, which, thanks to a combined method which uses chart approaches to market valuation and highly professional indicators, allows us to evaluate any financial asset, generate forecasts on the charts of most assets, and give investors the opportunity to establish a convenient trading pace for themselves. In addition, the system provides excellent performance indicators for its signal efficiency and allows for dynamic and stable capital increases.
How the system works
The technical approach to analysis is based on the calculation of mathematical levels of a possible reversal of Fibonacci quotes – in this case the “Fan” mode is applied. This technique is well known to professional analysts and allows them to effectively use the market to profit. However, when using the classic system on Fibonacci fan levels, traders receive a lot of false signals to enter into trades; therefore, in addition to the chart service, we also suggest installing a set of indicators that can not only filter out false points for trades and market noise, but also maximize the performance indicators of the strategy.
So, in order for the system to generate trading forecasts, perform the following chart settings:
- Using a special service (available on the Binomo platform), install the Fibonacci fan – you just need to connect the current extremes of the market.
- Apply moving averages to the quotes with periods of 4/6/8 in the Exponential technical calculation format for moving averages
- Then set the MACD oscillator – in the settings, change the periods of the moving averages from the signal to these indicators – 10/20/15
In this way you will get the template for the professional strategy “Fibo Grip,” and you will be able to identify high-precision signals for trading on the operating chart:
To trade contracts UP, the following system of strategy signals operates:
- The price touches any of the Fibonacci levels (the most effective are 0% and 100%) and then reverses to growth
- The moving averages reverse to growth
- On the auxiliary MACD indicator, the the moving averages of the oscillator diverge upwards, and the histogram rises above the technical level
To trade contracts DOWN, the following system of strategy signals operates:
- The price touches any of the Fibonacci levels (the most effective are 0% and 100%) and then reverses to decline
- The moving averages reverse to decline
- On the auxiliary MACD indicator, the the moving averages of the oscillator diverge downwards, and the histogram falls below the technical level
The expiration rates for trades must be calculated depending on the volatility of the valuation tool, and also in accordance with the timeframe of the operating chart. Usually, a period is required in which up to 15 candles can be formed on the liquidity chart. So, on a minute timeframe, the optimal expiration range is a period of 15 minutes. You can adjust the tempo of trading and the rate of profiting by changing the timeframe of the chart and, accordingly, the period of market valuation.
An effective regime for managing risks and possible trading losses in this case is the standard set of restrictions on the cost of contracts – on a minimum amount of operating capital, use contracts amounting to $1 to minimize losses. When trading on large operating accounts, a maximum risk level of 3% of the available funds is recommended.