Why binary options (at least for beginners) popular Forex? Because it is easier and more profitable when it comes to short-term trading. Traders in the Forex market in a single trading session do 3-4 deal with their capital increases, at best, on the 2 percent. options traders for the same period of time can make 40-50 transactions to raise capital and solidly.
Why then do not go all in with Forex Binary Options? Because lose capital in this case is also simple. If you do not have a clue about the strategies of binary options (or, what is better, to have but use inefficient strategies), you can very quickly give up all their contributions and give up forever in options trading.
I want to tell my clients that represent the best binary options strategy. Ever wanted to make it clear: focus on the strategies that are effective for short-term trading (the time interval - 5 minutes).
«MACD + Parabolic SAR»
The essence of this strategy - in its name. On the schedule are applied to binary options indicators MACD and Parabolic SAR (settings - standard). The algorithm further action based on the analysis of changes in these schedules. That's what it is:
- Graph Parabolic SAR indicator is "under quotes" (lower graph quotes), MACD shows growth bar chart from scratch. We look forward to when there will be a local correction on the chart in 15 seconds or minute. After this purchase options to increase (the period - 5 minutes).
- On the contrary, the graph Parabolic SAR indicator we can see the graph of quotes, charts and MACD columns are formed below zero. In this case, open a five-minute options for a fall.
Here is a graph that clearly shows that this strategy is effective 5 minutes. Please note: on it there are three at the entrance to the market signal. And all transaction performed in accordance with these signals, were profitable.
However, such a strategy is necessary to address very carefully. The transaction is successful only if the expiration time will be five minutes. If you put a little time, that does not happen enough signal processing, and it would be misleading.
Experienced traders may argue by saying that this strategy is intended primarily for medium and large intervals. For example, long ago proved its efficiency in transactions with the time expiration of one hour. However, everything is correct: the strengths of the "Alligator" can be used when options trading for a period 5 minutes.
So, what is the "Alligator"? It is a strategy in which you need to follow the change in the schedule of the three lines. Here are some options may arise:
- All three lines intersect and move up. Open a deal to increase.
- All three lines intersect and move down. Here it is necessary to open the options for a fall.
- If quotes sideways (the so-called flat), no need to open the transaction, even if it seems that no particular risk. Wait until the start trend (ie, when the will form one of the previous situations), and only then begin to act.
How to make sure that the strategy on 5 minutes work? It is possible to install another graph namely moving average (Moving Average), and with a period 200 above. If the moving average is below the price and the signal "Alligator" indicates the game to increase, it is better not to risk it, because it is a greater risk. However, if the Moving Average is observed above the graph, it is better not to trade CALL.
Very popular oscillator is virtually the same high demand, as everyone knows Stochastic. Its popularity is due and efficiency, and to a large extent, ease trade. How can make transactions in accordance with the signals of the oscillator?
- Bids CALL We do when the indicator indicates oversold: The line is heading up from the oversold zone.
- Bids PUT open when the indicator indicates perekuplennost: directionally line moves down from the critical zone at the top of the graph.
- Deal to sell (PUT) opened under the condition that the indicator is in overbought condition, and its signal line begins to move down from the top of the critical zone.
- Buying CALL options It performed when the line goes from% R pereprodannosti zone. And in fact, and in another case, the optimal time interval for the transaction - 5 minutes.
What can be dangerous to work with this indicator?
Trade is unprofitable, if premature to make a purchase. Remember: if a line goes out of the critical zone, and only suited to its border, open the deal early. Situation, when the schedule is delayed for a long time at the exit from the zones of overbought or oversold, there are very often and trust the oscillator signal in this case is not worth it. Remember, we must act only after you have verified that the indicator line is already out of the critical zone.
Not enough to know a good strategy: the need to be able to calculate the risks, not to be tempted by the prospect of "right" winning by doing too much at stake. Remember two simple rules.
- Never, no matter what, do not place on the binary options more than one percent of the total amount on your deposit. If you think that this is not enough, in which case you can not win a lot of money, remember that 5-minute expiration will allow you to open at 10-12 transactions per hour (and this is just one asset). If all goes according to plan, and you close a plus 80 percent of transactions and higher, to increase the capital by about 10 percent per hour! Is that enough?
- If you have completed a few bad trades in a row, be sure to take a break. 10 «minuses" one after the other - this is the right occasion and even mandatory to interrupt the work and to analyze their actions. Return to trade binary options, you can only draw conclusions and adjust the strategy.