Every trader wants to find a winning strategy for binary options trading. But what is the strategy, understand not all. Strategy - an algorithm, a set of rules and actions that help to always be a winner? It would seem logical, but if the strategy is to take the case, the trade binary options definitely will not bring satisfaction and, most likely, will not bring the expected result.
A profitable strategy - is the goal. By selecting a certain strategy binary options, you must comply with it, come what may. That means - not to throw at the first failures, and purposefully, strictly go further. Only in this case you will be able to operate stably in a plus, but in this case, we can confidently talk about a profitable strategy for binary options.
Communication with a wide variety of traders (with different experience and level of achievement) allows me to affirm an important thing. The success of a trader is determined by how correctly he set himself the tasks of his work. To earn more on a particular day is a wrong task. Do not lose your deposit - this is a wrong task. Why? Because, not having fulfilled this task in a particular period of time, traders are disappointed at first in a certain strategy, then in the profession, they begin to hate the market of binary options, and this mood inevitably affects the further work. As a result, the success of such traders is getting worse and worse, and inevitably the day comes when a person decides to quit trading binary options, as he ceases to see in this perspective.
A successful trader behaves quite differently. It can work in the negative for a particular business day. He can trade at a loss for a week, a few weeks, a month. But at the end of the year its activities pays off many times - and all business in compliance with its own strategy. Universal recipe, all the relevant strategy here again is not there: you just need to choose a strategy, through which you will really work comfortably, enjoying every day spent in the auction.
Options Trading. Market analysis. entry point to the position
Here is an example from my own experience. At the heart of my binary options trading strategy is based on technical analysis. However, this concept is very extensive, including a great variety of models. I chose there are some models, checking them carefully and understood. One of these models - the option is to work with "One Touch / No Touch"(He means that the price reaches a certain level during the time of expiration) with the time of expiration, equal to one dnyu.Podrobnee about these models binary options trade, I explain below.
It is impossible to trade binary options "on the machine", just performing certain transactions and not paying attention to contextual factors. Rather, the trade so you can - if you want to quickly pull your deposit. If you set to work seriously and consistently profit from binary options, you can not do without the study of strategy, fundamental analysis of news.
At the same time I draw your attention - it is not only and not so much the economic calendar analysis. First of all we should be interested, as investors react to the situation, so every important news we consider it from this point of view.
So fundamental analysis begins with a study of the most important economic news. Tools work with the calendar is very convenient, they can be used immediately to separate the most important news of the minor. Pay attention only to the "three-star" event. Then you need to define a global trend. To do this, choose a long-term timeframe D1 (one day), the graph of binary options select support and resistance levels (indicators to be reliable, the price should start from them at least twice).
Then upgrade to a shorter timeframe - 4-hour chart of binary options. We work on specific technical model, then try the following. Rush is not worth it: personally I make at least one 100 formation transactions, and only then it menyayu.Voobsche, I'm interested in only three of the pattern, which I decided to focus on.
What is needed to determine my trading model? First, select the level of support and resistance levels. Formation level can determine:
- Extremum, minimum or maximum (ie critical points);
- Retail corridor;
- Long shadows of candles with a large volume.
The strength level can be different:
- The weakest level - new. It is formed by only two points.
- Sredniy level - by three points, already encountered in the market earlier.
- The strongest level - the mirror.
By the way, I recommend not to consider the level of a line chart, but as the area between the specific points: the accuracy in this case would be higher. In addition, pay attention to the false breakdowns: a sign of growing importance.
On the strength of the level of rates should depend on the size. Thus, at low levels, I use a maximum of half of the total daily trading, that is no more than 1 percent of the deposit. In high levels, you can operate full: for me it 2 percent deposit. Why is the ratio of such can be found below.
How formed a new level?
Note the screenshot:
And this is how the chart looks like binary options have been encountered level. Please note: it is formed not two, but three or four points.
And this is an example of the strong level - a mirror. The term "mirror" domestic traders binary options is called a level which in the past served for the price and the level of resistance and support levels.
Next, we look at - it is the most common model.
False breakdown level
False sample forms one or two candles. At the same time it is necessary to remember one condition: at least four candles and the breakdown between the last peak. To see what it looks like, look at the chart (real situation).
And here is the breakdown of which is formed by two candles. Here we get the signal that you want to open a deal for a fall.
When you want to open a deal? Only then, when the closing will take place candles forming the model. Many traders binary options can not withstand these periods and start to force things. Doing this is not: some of the transaction will be successful, but will be losing a lot more. If false breakdown form two or more candles, you do not need to open the transaction.
In operation, the model should be chosen such expiration time in one day. With this method, trading in options I close "a plus" to the 80 percent of transactions, which is a very good indicator. Of course, the percentage of successful transactions on binary options depends on the experience, but to go in a short time to figure 75% is realistic.
The breakdown level
There is no longer in question on a false breakdown, and on increasing trend. The most common so-called "triangle". Before there is a progressive accumulation level - and then there is a sharp, almost vertical on the sample volumes. This is clearly seen on the graph that shows the use of this strategy.
The percentage of successful transactions in this case is comparable with the figures for the false breakdown: with due skill, he will be from the 75 80 before.
Strong trend pulses
Not the most common, but very profitable strategy for binary options. Here we use the moving averages (MovingAverage). Choose a timeframe of one day and put on the schedule of the five indicators moving averages. That's five, as we need periods 8, 21, 50, 100 and 200. Mode - Exponential. All moving must be directed upwards or downwards. The graph is as follows.
Pay attention should be primarily on the sliding 8 and 21 - or rather, their intersection. The graph marked by periods when the image of a strong short-term direction, signals the entrance to the deal. During these periods, and it is necessary to make the transaction, which will be very successful.
Why, then, the other moving averages are needed? Do not forget that we need to constantly monitor (local and global) market trends. These indicators serve as just such a purpose.
Work with sliding, I started to learn that such a procedure makes the transaction one of the most successful companies on Wall Street. Percentage of binary options transactions "in plus" in this case can go off-scale for the 90! It should be understood that such a "catch" is possible very rare because there are strong trends is not the time.
Trading binary options strategy. The main thing - Risk Management
Risk is one of the key concepts in trading, so anyone who works with options will not be prevented from learning the basics of risk management. One of the most successful and famous traders in the world, Jack Schwager, argues that two people with an equally high percentage of successful transactions can have completely different, and even directly opposite, signals to enter the transaction. However, one condition must still be general. Those whose material for work are binary options must clearly represent their risks and work in accordance with this view. These requirements must be consistent with the strategy by which it works.
Schwager talks mostly about forex, but risk management is no less important for options trading. It is worth noting that we expect the risks to successful binary options strategy is easier, because the trade does not expose the trader to the broker a stop order to fix the damage (and it is not an easy art). We need to remember a few basic rules for binary options traders.
И first rule It reads: "Do not take risks in one transaction more than 2 (two) percent of its capital." Never, under any circumstances. No matter how reasonable and "absolute" deal may seem. Remember that you do not try to break a big jackpot - you work, you most effectively manage its own funds.
You have to deposit enough funds and two percent - this is a tiny amount? Refill your account with real money: it is technically easy. If you think about it, a way to store money earned effective than placing them in the bank. Profit from the bank deposit amount 6-7 percent per annum - here you can count on the annual profit of 250, and even in the 300 percent! At the same time accurate trading strategy does not allow you to lose your entire investment overnight. Well, if you want you can always re "cash out" money.
Go to the second rule. It reads: "Do not take risks in the past month more than 20 (twenty) percent of its capital." Never, under any "lucky days". If you remember this rule, the contribution to the deposit you in any way will be enough for at least six months. In fact, more and for a longer period because the previous statement is true even for those hypothetical traders that all transactions are closed only in the negative. Of course, in practice, in the binary options trading is not possible.
Two simple rules are your guaranteed protection against losing your deposit. If you always keep your head on your shoulders, do not succumb to the temptation to "play big", then you will have much less reason to criticize binary options trading, to compare this complex craft with roulette or lottery.
Options Trading and psychological comfort
For all its scientific and objective options trading refers to studies where important man, but rather, psychological factor. If the trader does not feel comfortable if he forgets about the strategies, attitudes, and policies under the influence of bad (or good) mood, the success of the work can not walk and talk. Everyone has their own "psychological rule": its share.
- I pause after a series of setbacks. Three days ended in the minus (which, incidentally, is not so rare)? No need to try to "get even" put a huge amount, think "hit or miss" - all this will inevitably lead to failure, after which will get even longer. So if I have a bad week issued (the deal on Monday, Tuesday and Wednesday were below zero), then I'm in good conscience cease to trade on the model until the following Monday.
Does this rule work in the opposite direction? Yes, if the streak is too long, you can also pause. Well, or not to do it - but never increase the transaction amount if you go beyond the rules. Euphoria is no less dangerous for a trader than depression from failure. In a word, less emotion, more logic - and failed deals will forever be a thing of the past!
- If I can not concentrate at work, I do not work. Inability to fully immerse themselves in the transaction for options can be caused by a variety of reasons. Disease, turmoil in his personal life, problems with the main work (if the trading for you (yet?) Part only) ... In any case, better to refrain from work, if you can not tune in to it.
Here too there is a double edged sword: too deep dive into the binary options nothing good can not be held. You must be able to be distracted from work, do not think about work in leisure time, not too much to worry in case of failures. Do not confuse the concept of "living with the help of trading" (make a living) and "live trading" (just think about it). The second path leads to a rapid emotional exhaustion, which is fraught with problems and work and health.
So I summarize the content of your article. In order to develop a truly profitable strategy when trading binary options, we operate in the following order:
- We analyze the market. We track the most important news and be sure to see how traders react to them.
- We look at the chart with 1 expiration date and define the global market trend, the level of resistance, the level of support.
- If you see the true breakdown, we have been built in the local levels and the entry point forward.
- On the breakdown of a false act in the same way as true.
- You can trade on the basis of the Moving Average (MA). We arrange the five indicators and waiting for the moment when they are down and sliding 8 and 21 intersect.
In addition, trading in binary options, we will:
- Do not forget about the most important risk rules. 2 percent of the deposit - per transaction, 20 percent of the deposit - the total volume for the month. Not more! Never!
- Listen to yourself and determine their psychological rules.
Top, profitable strategies do exist, but it is not a gift of fate, as the result of serious work. Work hard, cultivators, learn. Do not let your emotions take up. Listen to yourself - and do not forget to listen to others. Here are simple recipes for becoming a successful trader!