A strategy is a critical element in the success of long-term binary options trading. The best binary trading strategies can be defined as follows: A method or a signal that systematically generates a profit. Some strategies may focus on timeouts, such as transactions of 60 seconds, 1 hour or late, others may use a particular system (such as Martingale) or technical indicators such as moving averages, Bollinger Bands or evolutions. Binary traders only want a strategy that works. The last binary options strategy will be the one you develop yourself and that works best for you. When trading binary options, a winning strategy requires a method that allows you to win more transactions than you lose, and above all, with a profit that far exceeds your losses. Digital binary options trading generally generate less than 100% of the investment amount - therefore, merely making more binary trading than the number of lost trades is not necessarily sufficient to generate a long-term profit. Binary options trading strategies are then used to identify repeatable trends and circumstances in which a transaction can be made with a positive (profitable) expectation. It can be as simple as; • If the "Z" resource loses value for three consecutive sessions, open a call option for the duration of the next session. The above is a straightforward example of a commercial "strategy". The strategies do not have to be extremely complex (even if they can be), sometimes the most straightforward strategies work better Characteristics of the strategy Type: trend Period: Any in the range M1-D1. In our case, M1 is used, but as the analysis period increases, the signal accuracy increases. Trading asset: Any currency pair. The main requirement is a fixed spread (2-3 points) and no hidden costs. Trading time: All Global Forex trading sessions Bonus option in percentage: not less than 70-75%. Used indicators: 1. Simple Moving Average (SMA) with a period of 10. A simple moving average is an arithmetic moving average calculated by adding the most recent closing prices and then dividing by the number of periods of the calculation average. The SMA is a technical indicator to determine whether an asset price will continue or reverse a downward or upward trend. The main suggestions for using this strategy are: • The strategy is not intended to be traded during flat periods. • Trade only if the interval is between 15 and 25 points at least! • Use the cross price above the moving average as an input signal to buy. • The price that remains above the moving average confirms the upward trend. 2. RSI with a period of 14 and an additional level of 50. The Relative Strength Index (RSI) is a momentum indicator that measures the extent of recent price changes to evaluate the overbought or oversold conditions of stock prices, currencies or future options. The momentum indicator can fluctuate between 0 and 100, which provides overbought and oversold signals. The standard plan is to use 14 periods to calculate the initial RSI value. The main suggestions for using this strategy are: • RSI compares bullish and bullish price trends against an asset price chart • Signals are considered overbought when the indicator is greater than 70% and oversold when the indicator is less than 30%. • The trend indicators must be confirmed by at least one oscillator indicating a condition of overbought when buyers can no longer move the price, or oversold when there is practically no one on the market to sell at lower prices. MACD Standard (12,26, 9) The MACD line is the 12-day exponential moving average minus the 26-day average. We use closing prices for these type of moving averages. A 9-day EMA from the MACD line is traced with the indicator to serve as a signal line and identify turns. The Values 12, 26, and 9 are the typical parameters used with the MACD, although other values may be substituted depending on your style and trading objectives. The main suggestions for using this strategy are: • As long as the MACD lines are more significant than 0 and the price is above 12 and 26 EMA, the trend line is still in progress. • The MACD concerns the convergence and divergence of the two moving averages. Convergence occurs when moving averages are approaching. Divergence occurs when moving averages move away from each other. • This indicator works both as a trend and as an oscillator tool. After installing the tools, the terminal working window looks like this: INSERT IMAGE HERE i.e vfxalert interface Trading signals Let's start with the CALL option for the expected growth of the currency pair. To open a trade, you will need to follow the following conditions Find the currency pair with up to 50 candles (O low by trade). The RSI lines must cross 50 levels upwards. The MACD also crosses its zero lines from bottom to top or its histogram increases after a new local minimum (medium intensity signal). The price movement exceeds the moving average. The option opens on the second candle above SMA (10) with a timeout of 5 to 7 minutes. The strength of the signal increases if the breakout candle (or a majority of it) is higher than the moving average. For a PUT option, different conditions are required which is the opposite of the CALL option. The price moves below SMA, RSI breaks down from 50 downwards, MACD also moves upwards. As you can see, everything is relatively simple, and you can start trading quickly, but several factors influence the final result: • We did not include publication periods of strong fundamental news when technical indicators only provide false signals. Binary options are not intended for the exchange of information, because it is impossible to open order in progress and it is complicated to predict where (and especially when!) The first pulse of the market will follow. Choose intra-day periods with minimum database and average volatility. Signals occur fairly often and can be overcome with minimal risk. • Deadline. Look for an average direction: too short (1-2 minutes) and too long (10-15 minutes) is considered dangerous. In the first case, the price could be "not having the time" to go in the right direction - we get a loss. In the second case, the market will have time to turn around, which will give a negative result again. Remember that the strategy is scalping, so try not to exceed the 5 or 7 minute interval. • You can see from the graph that RSI and MACD signals are late, but there is nothing abnormal about this. The delay at various levels is present in all the technical tools, but their combined use in the strategy helps to minimize this problem and to enter the market at the best time. In conclusion After strong trends, the RSI, like any other overbought or oversold oscillator, can "trample" for a long time in critical areas or around level 50, without crossing it. Also, MACD and SMA can provide powerful signals to open options. For these signals to work or not, everyone should decide his choice, but it is preferable for beginners to expect a completely defined entry point, that the "vfxalerts" strategy gives about 70 to 75% of successful transactions. Do you have any questions about this post? Kindly leave them in the comments. We will respond to it immediately.

vfxalert.com