The «Ticker» Universal Minute Strategy
The extensive range of indicators for technical analysis gives traders freedom. Experienced traders have already decided on a couple of proven tools that they regularly use. Beginners, due to lack of experience, have not yet decided on their indicators, and they haven’t developed their own strategies either. At the initial stage, the trader will benefit from following ready-made strategies for trading binary options.
A systematic approach will help you not lose money when making the basic errors common to all beginners. In this article we will look at the «Ticker» strategy, which is distinguished by its simplicity and efficiency. It will suit both experienced traders and beginners.
Overview of the indicators
Recently, due to the growing popularity of online trading platforms, approaches to market analysis have changed. Earlier technical analysis was carried out directly on the trading terminal, but now specialized platforms are increasingly used for this purpose. TradingView is the most popular and functional service in its category. Their live chart includes thousands of different indicators. In addition to the standard indicators, there is a large selection of custom ones. The ticker strategy is based on two indicators – ALMA and KPO.
- The Arnaud Legoux Moving Average (ALMA). Developed by the well-known Australian trader who creates indicators based on the Moving Average, Alan Hull. He is better known as the developer of HMA (Hull Moving Average), which was named after him. ALMA shares some similarities with that indicator. Alan Hull set himself the task of developing a perfect Moving Average that would be devoid of the main drawback of indicators of this type. The main minus of the MA is the lag of signals with a large interval and increased sensitivity, but a decrease in accuracy when there is a decrease in the averaging period. In Alan’s tools, this deficiency is compensated for and minimized. Therefore, Moving Averages show good performance in all market conditions – in medium and high volatility.
- KaseCD & Kase Peak Oscillator are developments from LazyBear, a user on the TradingView portal. On our site we have already reviewed several strategies using indicators from them. The tools are positioned as alternative replacements for the classic MACD. The calculation formula takes into account upward and downward movement of the market separately. Then those values are compared and the resulting difference is displayed on the histogram. Visually, there is a strong resemblance to MACD, but the curve used is more sensitive. Due to this, it almost never stops at an intermediate position, but immediately goes into an oversold or overbought area.
Setting up the platform and terminal for analysis
You will need two services – one for analysis and the other for trading. We recommend using a combination of TradingView (https://www.tradingview.com) and Binomo (https://binomo.com/en). So, we will give step-by-step instructions on setup for both platforms.
Instructions for setting up TradingView:
- choose a currency pair with a high percentage of profitability on Binomo and open it in the TradingView window;
- set the time frame to 1 minute, select the candlestick mode;
- add two indicators using the search function: «Indicators: KaseCD & Kase Peak Oscillator» and «Arnaud Legoux Moving Average» (copy the names without quotes).
The indicators require parameter settings. First of all, you should make them more visible on the chart. To do this, it is recommended to give them the maximum line thickness. In the KPO settings, you should also select the type for the first 2 elements – «bars» (see the picture below).
In the ALMA settings, the following parameters should be set: «window size» – 20, «indent» – 0.5, «sigma» – 6. It is also recommended that you increase the thickness of the curve in the «Style» tab.
Trading signals on the strategy
The preliminary signal is the intersection of the price with the ALMA curve. The confirmation is impulse movement of the Kase Peak Oscillator line at the moment of the histogram crossing the neutral border.
- The signal for a decease is a descending candle on the chart breaking through the ALMA, on the histogram the signal line breaks the border of 0.0000 and goes down.
- The signal for an incease is an ascending candle breaking though the ALMA, and the Kase Peak Oscillator histogram enters the overbought zone located above the zero border.
The duration of one trade should be within 4-6 candles. On the Binomo terminal, you should choose the maximum expiration time for turbo contracts of 5 minutes. The investment amount of the trade should be within 5% of the account balance, no more. Otherwise, the level of risk increases dramatically.