«Topping», The Strategy For 5 Minutes Options
The binary trading with 5 minutes contracts is optimal by indexes of capital growth and contract execution speed. Many investors use just this mode for the day-trading in binary market. But this trading approach needs highly precise and most effective technical analysis techniques. That is the approach we want to offer you today. «Topping» trading system is an indicator strategy for the estimation of quotations and contract execution in relatively safe financial mode. Our technique of option trading brings the stable efficiency index on the level of 86% gainful contracts.
«Topping» trading system – platform choice
To get the declared index of the strategy efficiency, smooth and effective trading you will need the platform of the most professional level. The main parameters for the choice of a trading terminal in this case are the following technical and financial indexes:
- Access to the indicator services
- Minimalstart-up capital and option price
- A set of high/yielding assets
- Periodicity of the option expiration of 5 minutes
- Highpayouts for entries
- Precisetrading quotations
- Superfastmode of order processing
As an example of such sophisticated terminal we suggest you the service of Binomo. This professional terminal fully complies with the requirements and has the following performance parameters:
- The set of 5 professional analysis indicators
- The possibility to trade the startup capital of 10 USD and contracts of 1 USD
- The stock of 80 assets
- The range of option encashment up 1 minute to 24 hours
- Payouts for the contracts up to 87%
- High-precise charts with the market liquidity
- The order procession speed of 1,7 ms
System technical tools
For the strategy pattern technical marking to form on the chart, put it to the time frame mode for 30 seconds and apply to quotations the following list of the indicator analysis algorithms:
- Indicator Bollinger Bands with the settings 40/3
- МA indicators in Weighted mode with periods 5/10/15
- MACD indicator 15/30/9
Applying the big set of indicators and mixed technical settings of the analysis tools you can estimate the big technical range of the market indexes and increase the efficiency of the trading strategy performance.
After setting the trading system analysis tools the following pattern shapes up on the chart:
The rules of the system work
For trading UP contracts you need to use the following set of the system technical service signals:
- WMA indicator lines along the trading asset quotations crossed the moving average of Bollinger Bands indicator in the upward direction.
- On MACD indicator the break of the median happened, by oscillator lines in the upward direction:
For trading DOWN contracts you need to use the following set of the system technical service signals:
- WMA indicator lines along the trading asset quotations crossed the moving average of Bollinger Bands indicator in the downward direction.
- On MACD indicator the break of the median happened, by oscillator lines in the downward direction:
With the settings of the analysis technical tools and quotation chart described above the optimal mode of trading with strategy are the contracts with 5 minute encashment. But this universal system may be applied in other modes of the time frame settings, where the range of option expiration may significantly vary – up 5 to 30 minutes.
When trading with the strategy the financial risks are the relatively low, but you can’t entirely avoid losses. To decrease them and continuously grow the capital you need to use entries with the risk level of 5% of the total amount of the funds available. If the investor’s capital doesn’t allow using the described rule of money management, work with the entries of 1 USD.