The Trading System «Toledo»
Every day developers of innovative indicator services for the analysis of financial quotes expand the opportunities of traders to effectively determine trends in market fluctuations. As a result, active investors can receive a higher and more stable rate of profitability of option trading. Today we propose to consider a system of the indicator format built around the work of custom analysis services. Toledo enables you to enjoy a decent level of profitability – up to 86% of all deals. So you can count on the most stable rate of capital growth. At the same time, the system is available for investors with experience and knowledge.
Forming a working template
To form a working template of the system we will traditionally use the online resource tradingview.com. It will allow us to use all the necessary technical services for analyzing trading quotes in the market. Additionally, it will also enable us to conduct trading operations with binary options on any trading platform. In order to analyze fluctuations in quotations of the underlying asset, it’s necessary to apply the following technical indicators on the working chart with a minute timeframe:
- The FibFib indicator is a tool for generating dynamic Fibonacci levels on the working chart. We have already offered you several strategies based on these mathematically calculated levels, however, there we used static levels, which were built in the graphic format. Here we offer you to work at dynamic levels calculated as the market moves, considering the current volatility and direction. This way, we will increase the ability to receive a clear signal for trading.
- The Wave Trend and Crosses indicator is an oscillator, capable of determine wave trend oscillations. It’s necessary as the first stage of signal filtering. Its narrow range of market valuation makes it possible to determine the likelihood of a market reversal from the Fibonacci level, which is an excellent confirmation of the market’s turn.
- The CM_RSI_EMA indicator is an additional combined indicator. It acts as the main signal filtering service. Its more extensive range of measured indicators and periodicity enables us to determine current trends of the market.
Having set up the technical chart with the help of the system indicators, you will form the following markup on the quotes:
Having created the system template, go to your trading platform and open the asset chart with the same timeframe, adjust the bid and wait for the trading signals.
The strategy signals
In order to make an effective deal in an uptrend you should utilize the following set of technical indicators of the system:
- Having reached the lowest level of the FibFib indicator’s grid the price turned up.
(Keep in mind: you shouldn’t use price turns from the intermediate levels for trading. It’s due to the use of the minute timeframe as the evaluation period. Under such conditions, turns from the intermediate levels often appear to be false signals that can lead to a loss of a significant amount of funds.)
- The Wave Trend and Crosses had generated a confirmation signal in the form of an upward swing of the oscillator.
- On the auxiliary oscillator the lines show an upward trend in the divergence of the moving averages.
In order to make an effective deal in a downtrend you need to use the following set of technical indicators:
- Having reached the top level of the FibFib indicator’s grid the price has turned down.
- The Wave Trend and Crosses indicator has generated a confirmation signal in the form of a downward swing of the oscillator.
- On the auxiliary oscillator the lines show the descending dynamics of the divergence of the moving averages.
We’ve just set the system template for the minute period of the technical chart. Therefore, we offer to use the period of 5 minutes – 10 minutes as the main range of option redemption. Thus, you can effectively respond to the bulk of the system’s technical signals and enjoy the highest efficiency of the system.
In terms of risk management, the system offers to work in a standard mode of limiting the cost of contracts. So, for a small deposit it’s recommended to work with the initial cost bids, while for large trading accounts we use trading bids with a cost level of no more than 5% of the total capital.