Among the strategies for binary options is to provide a special kind - skalpingovye. This strategy was developed in the mid-twentieth century, floor traders, who have found a new way to secure a profit. Inside trading day was done several operations, risk and profit from which is not distinguished by high values. However, profit was stable, making trade more and more popular. In a somewhat modified form she came to our days, becoming popular in the field of trading such as binary options.
Why scalping got its name?
Yes, here there is the connection with the word "scalp" - Indian trophy, which is a hair and the top layer of skin with the opponent's head. So the trader actually removes only the "upper layer", without going into the deal, and performing diverse operations and forming a small gain profit.
However, this strategy is also safe can not be named. Its opponents believe that the binary options trader in such a case is exposed to unnecessary risks and likened the player in the roulette. I can not agree with this view: for me scalping strategy is quite acceptable, albeit with some reservations.
Modern trade binary options - high speed, rapid tools to deal with the expiration of a minute or two, and sometimes less. scalping strategy helps to effectively rabotatna such conditions. Here are the main its benefits:
- More chances for a successful deal. If you only trade on a strong price movement, it is necessary to wait for the right moment which only a couple of times a day may come, and then do not come at all. But small ripple happen all the time, and binary options based on them can bring big profits - if you work with them intelligently.
- Evidence. Traders who commit long-term and medium-term investments, have to spend a lot of time on analytical work to understand the essence of many economic processes. Work on the strategy skalpingovoy simpler model simple, clear and precise indicators - options, as a result, the winning.
- Scalping - one of the most dynamic strategies. If a trader makes mistakes, he can fix them almost immediately. There is no need to wait for a trend change: you can make a deal only swing. Of course, the trader is required maximum concentration and quick reactions, but these qualities as "pumped."
However, skalpingovaya strategy has its drawbacks, and quite serious. It is not necessary for them to remain silent: binary options trader should represent, than have to take risks at work. Here are the cons:
- High exposure to market noise. For noise are random factors, false trading signals and other information, which could provoke a wrong decision. Within the trading day there is a lot more false alarms than on large time intervals.
- To skalpingovaya strategy proved profitable, it is necessary to make transactions on the binary options with high accuracy. The ratio of risk and return here is not always good, because the goals are too close, and the level of stop orders limit losses can not understate to a greater extent than is provided.
Skalpingovye strategy can be divided into three types: a glass, a trend (Runway) and pulse (breakout). Sleeve scalping strategy acceptable to work with futures and other basic financial instruments, but it does not apply to binary options. Therefore, we focus on two other embodiments.
- RџSЂRё trending option trader analyzes the chart in the search for sites for which consolidation should be a continuation of the movement. Trading in such circumstances, you need to wait a long time until there will come acceptable conditions, set shorter Stop orders and to log in position with limit orders. This technique is beneficial for not the most short-term options: optimal expiration time here begins with 15 minutes.
- RџSЂRё pulse (breakout) option trader is looking for the most powerful quotes direction and defines the moment of entry with high precision indicators. It is this kind of considered the most appropriate when dealing with binary options: most traders using skalpingovye strategy, working under such technology. Therefore, the description will focus on indicators that help with skalpingovyh transactions.
Scalping on binary options: Indicators
- OscillatorsCapable of catching even a minor price fluctuations, seemingly created for this technology. However, it should be borne in mind that a strong trend oscillators operate far better. Furthermore, this type of indicator to the market unstable and noise, respectively, may lead to false alarms and unprofitable transactions.
However, the popularity of the oscillators falls under neat and with them the transaction can be closed very well. The most common oscillators - a classic "Stochastic" and RSI and CCI. Also worth noting is a more complex tool, is gaining popularity in recent years. It Laguerre oscillator (Lager) - the improved variety of RSI. Its action is based on the method of complex numbers Lager filter. The main advantage - more than the classical oscillators, noise to market stability.
- Volatility indicators very attractive to skalpingovyh transactions. Traders actively using Bollinger Bands, moving averages, and other tools of this type. Configure them (by the way, as well as oscillators) is quite simple: it is only necessary to choose the right times and to set boundaries volatility range.
The disadvantage of these indicators is the impossibility of their ispolzovaniyadlya binary options in the absence of a pronounced trend. If Flete lasts long, the indicators may take minor variations for the beginning of the movement and give false signals.
- Moving Averages - Perhaps the most popular indicators in today's binary options traders. They are used alone or as part of combined instruments for analysis. There are several options, but they are based on one thing: the input signal in the deal will be crossing the line and period. Configure moving averages challenging test specific values better at certain time intervals.
The disadvantage of moving is that they are constantly late, because their algorithm is to average values, and attempt to change it will lead to a sharp increase in the number of false signals. However, experienced traders know how to account for these delays and make correct predictions.
Traders from different countries have developed a variety of strategies, which are based on scalping. Here are examples of what I consider the most effective.
- Playing the moving average. This strategy can be found in the descriptions under different names. "Wave," "surfing," "Sidus Method", etc. Its essence is as follows. If there is a strong impetus to the movement, fast moving with a small period overlaps with a slow moving long period. One of the moving at this time performs the function of the dynamic trend line, and the second - indicating a trend change. Sometimes there is more and more moving to a larger period than the slow moving of the above pair. From the slope of the moving direction is determined by the main trends.
- Strategy lager and channel Donchyana (breakout). The main signal is then reverse breakdown Donchyana channel. After this event, for several minutes, there is no kickbacks, so the trader time to buy options and are more likely to make a profit on it. It is based on a complex analysis of digital data, so it has a high accuracy. Nevertheless, we should not forget its main shortcomings: in the absence of a strong trend the strategy does not work well, continually issuing false forecasts.
- The strategy of the levels. It allows the fastest trade. You can set the time to expiration 1 minute, but prefer to work with brokers that allow you to make deals in "turbo" mode, 30 seconds. It does not require indicators: only need to keep track of the consolidation area and mark their sample.
Each trader familiar with the English phrase, which played upon the word «trend» and «friend». Yes, working with the trend most favorably. Of course, there is a special strategy for the flat, but the trend - it is a much more favorable, especially for those who deal with binary options. Those who practice scalping on binary options, also have more maneuvers for wagering, if proven system works with the trend still gives failures.
How profitable your trade will be depends on several factors. This is experience in the field of binary options, as well as the trader's human qualities: his patience, composure, the willingness to always follow the rules of capital management. I recall that with any strategy of binary options it is necessary to remember about money management: do not risk for one transaction more than 2 percent of the deposit, do not spend for a month more than 20 percent of the total account. If several days in a row you do not "trade", you can not lose your head, wanting to recoup. On the contrary: spend a day or two without trends - and wait for the situation in the market to form in your favor, and there will be more winning binary options.