The «Welbeck» Operating Strategy For Options
Professionals of the financial market are well aware that it is simply impossible to predict quote movement. However, certain technical tools and principles of analysis can provide information on the possible direction of an asset’s price fluctuation in a clearly outlined perspective. There are tons of various automatic tools for this called indicators. Today, we offer the “Welbeck” system for trading on the options market. It is built on technological indicators that can clearly show profitable levels at which to register trading contracts. When working on this trading system, binary options investors can steadily achieve successful positions at a rate of up to 88%, which will allow them to constantly stay well within the profit zone.
The “Welbeck” market assessment technique uses as its means of generating signals for trading the following indicator tools:
- The HullMA indicator – a classic “moving average” tool, which includes a custom algorithm for assessing trading quotes. This indicator signals not only the direction of the trend, but also allows you to clearly identify areas of reversal. The official indicator signal used here is when the instrument’s moving average changes color
- The 4 color MACD indicator – this derivative of the standard oscillator makes it possible to more accurately assess market trends. This improves the effectiveness of the strategy and gives more potential for constructing accurate trading signals
- The Slow Stochastic indicator – this classic tool to determine possible areas of market reversals is used as a technical signal filter and a means of determining the general trend of quote movement. The signals of this oscillator improve the quality of forecasts and increase the effectiveness of the strategy
To use this technical set of analysis tools, you will need a specialized service with access to a certain list of market assessment tools and live asset charts. Custom indicators can be used on high-tech platforms to work on Forex-MT4 (website) or you can use specialized online services for this. We recommend the professional and easy-to-use resource for working with financial assets called tradingview.com. The main advantages of this resource are its large selection of technical tools, access to liquidity of a huge number of assets, its operating speed, and the fact they offer free access to it.
In addition to the technical resource, you will also need a platform for options registering. For this we recommend the terminal from the secure Binomo broker. This resource offers investors the most optimal financial conditions for trading and technically advanced trading parameters:
- 10 USD in capital, contracts from 1 USD
- A wide variety of assets
- The maximum speed for options processing
- Exact quotes corresponding to the technical service figures
- Payouts at rates of up to 87%
- Fast banking operations
The strategy tool signals for the purchase of CALL trading contracts are the following:
- The Slow Stochastic indicator – the technical lines of the oscillator reverse from the level of oversold and begin to grow
- The HullMA indicator – the price during chart building intersects the indicator level upwards and then it changes color to green
- The 4 color MACD indicator – the bars of the histogram begin to line up above the axial level
The strategy tool signals for the purchase of PUT trading contracts are the following:
- The Slow Stochastic indicator – the technical lines of the oscillator reverse from the level of overbought and begin to fall
- The HullMA indicator – the price during chart building intersects the indicator level downwards and then it changes color to red
- The 4 color MACD indicator – the bars of the histogram begin to line up below the axial level
The figure for the expiration period of options should be calculated based on the volatility of market movement and depending on the assessment range. We used the M1 timeframe for trading. With this configuration, the optimal expiration for contracts is the range of 5 minutes – 10 minutes. This provides for maximum effectiveness of the strategy.
Risk management for this system is based on the standard limitations. For relatively safe trading on the minimum-size account, use trades of the starting cost. When trading with large amounts of funds, work with contracts with a risk level of no more than 5%.
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