The High-Frequency Trading Strategy «Woodworm»

The combined approach to generating trading signals used in this trading system on the binary market allows you to generate the most accurate forecasts for contracts. The “Woodworm” high-frequency trading strategy is built on a dedicated chart tool that creates channels and combines the classic trend indicator. The use of the “Woodworm” trading system leads to highly dynamic growth of funds in your trading account and allows you to earn a stable income with minimal experience in trading.


The «Woodworm» trading system – an effective platform for trading

Despite the simplicity of building the trading strategy template, specific terminal operating parameters and trading conditions offered by a broker are required. The problem is the availability of special means of market analysis on the trading platform, as well as trading conditions that could contribute to minimizing loss on high-frequency short-term options. So, for effective trading, we need an efficient platform with these settings and tools:

  • An indicator set
  • A chart analysis tools service
  • The minimum trading conditions
  • Short-term options with optimal expiration terms
  • Precise asset quotes
  • A selection of assets with high options payouts

There are quite a lot of brokers offering individual items from this list, but companies offering all of them are few. As a recommendation, we offer you the best option – the Binomo broker. This company’s platform meets all the parameters of high-performance trading on the “Woodworm” system:

  • Chart tools
  • An indicator set
  • Trading conditions – investments from $1, an initial account balance of $10
  • Turbo options with expiry terms of 60 seconds
  • A reliable liquidity provider
  • More than 80 assets with contract payouts of up to 90%

Binomo broker


The «Woodworm» high-frequency trading strategy – configuring the chart

Trading signals for the strategy are generated using MA indicators with different settings of short-term periods. We configure automatic analysis tools with the following periodic intervals on the chart:

  • The MA 3 Simple indicator
  • The MA 5 Simple indicator
  • The MA 10 Simple indicator

Then, from the terminal’s chart service, we select the position of “Channel” and build a price corridor on the quotes for the underlying asset. To do this, we connect the extremes of the quotes using the lines of the chart tool. As a result, you will get a chart with the following markup:

The «Woodworm» high-frequency trading strategy - configuring the chart


The «Woodworm» trading system  – registering contracts

Transactions are concluded on the binary market according to simple rules: wait until the asset quotes touch the upper limit of the price channel and rebound from it, and the MA indicator moving averages intersect down. In such a market situation, we register contracts DOWN:

The “Woodworm” trading system - registering contracts

To trade in the opposite direction (UP), wait until the quotes reverse after briefly hitting the lower limit of the price channel, and the MA indicator lines intersect up. As quickly as we can, we open a market contract UP:

The “Woodworm” trading system - registering contracts


Expiration and money management for the «Woodworm» trading system

The “Woodworm” strategy is designed for high-frequency trading on minimal fluctuations of the market. Given that quote tick charts with price candle periods of up to 5 seconds are often used in binary trading, the most optimal contracts for trading on system signals will be positions with expiry terms of 60-120 seconds. Thus, the trading system will yield the highest results.

Trading on the short periodicity chart is accompanied by a high degree of risk. For this reason, the best way to reduce losses is to use the Binomo broker’s (visit website) contracts with the minimum cost. If the amount in your account balance allows for a more expensive position, then we limit the cost level to 3% of your capital.

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