Binary Options Ladder Strategy Profit

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Binary Options Minimum Risk High Profit Strategies

This is invincible… Its hard to lose with this strategy…

I am going to show you how to double your money every 10 days with MINIMUM RISK

Sounds too good to be true….

But if I rephrase the above sentence like “I am going to show you how to make 10% profit everyday”.

If you know about binary options and its potential, you’ll probably say “What the crap? I can make 70% profit in a single half hour trade in binary options”

If you can really make that kind of profit consistently, this is not for you.

But if you have been excited about making big money from binary options but have only faced the losses till now, your destiny is about to change.

The keyword here is “MINIMUM RISK”.

Every binary option product in the market will say “$500 in 60 seconds”, “$1500 in one day”, “$1000 in an hour”, but no one talks about the long term consistent money.

This is because no one can guarantee you a consistent profit. The reason is the risk associated with the binary options. This is where my strategy differs from the rest as it is designed for long term and consistent profits.

These days, everyone says that binary options is an easy form of trading… anyone can trade in binary options… you dont need to know the market basics to profit in binary options… I beg to differ.

Without the proper know how of the market and trading, you may win occasionally, but overall you will only face losses. Binary Options is not simply guessing, whether the market will be up or down after certain time. There are important questions which need to be asked and analyzed…

  • Up or down.
  • What’s the trend.
  • Are there chances of trend reversal.
  • What should be the expiry time.

You cannot just guess all these answers and expect to get all of them right at least 60% of the time. So this requires you to understand the market if you really have to profit consistently from binary options. And thus comes a huge risk for the trading virgins out there.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
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    Good Choice For Experienced Traders!

Pro in binary options looking for right strategy??
Click Here for “The Real 60 Seconds Binary Options Trading Strategy”

So what should you expect from my strategy…

I am not going to teach you about the market basics and all that technical crap… although my strategy requires you to understand some of the basics.. some very minor ones, which you may already know.

I am going to show you a strategy which keeps the simplicity of binary options for newbies and simply reduces the chances of losses and hence reduces the risk. With my strategy, the probability of getting all the above questions answered correctly increases and you profit from most of your trades.

Let me get you a little more excited by showing you the money at stake. If you start from the initial investment of $100, here are the profit levels that you will reach:

  • After 10 days – $200
  • After 20 days – $400
  • After 30 days – $800
  • After 40 days – $1600
  • After 50 days – $3200
  • After 60 days – $6400

If you consider 20 trading days in a month, you will have $6400 after 3 months. And once you reach 5000 mark, you just have to double it every 10 days to make a handsome $10000 easily with very little work and with MINIMUM RISK.

All you will ever invest is $100. In fact, you can invest as little as $5 and keep doubling it every 10 days with my strategy.

So allow me to present to you my goldmine, my secret system, my strategy that will double your money every 10 days guaranteed.

Firstly, in order to use my system, you will have to open an account with binary.com. Binary.com, a company of Regent Markets, is a very old and highly respectable broker. It is important to open an account with Binary.com as they have a unique feature which allows you to select your own barrier and expiry time when trading Touch options and High/Low Options. The returns are adjusted based on the current market value, the selected barrier and the expiry time. This feature is not offered by any other broker and this is exactly the feature that we require for my strategy.

Another great feature offered by Binary.com is that they offer you to create a demo account without having to invest even a single penny. Once you are good to go, you can create a real account and deposit the real money. The minimum deposit amount is just 5$ and the minimum trade investment is just 1$.

Binary.com offer 4 types of trades:

  1. Rise/Fall: The usual binary option trades where you have to predict whether the market will be up or down from the current level at the expiry time.
  2. High/Low: This is similar to Rise/Fall Trades except you yourself get to select the barrier instead of the default current level. The return profit percentage is adjusted according to the selected barrier and expiry time.
  3. Touch/No Touch: Here, you have to predict whether the market will touch or not touch the selected barrier before the expiry time. Again, you yourself get to select the barrier. The return profit percentage is adjusted according to the selected barrier and expiry time.
  4. In/Out: This has 2 variations:
  • Stays Between/Goes Outside: Predict whether the market will remain between or go outside the selected Low and High Barriers before the expiry time.
  • End Between/Outside: Predict whether the market will be between or outside the selected Low and High Barriers at the expiry time.

For my strategy, I will be concentrating on Touch Options.

Binary.com has six type of assets – Forex, Stocks, Sectors, Commodities, Indices and Random Indices. Random Indices are their own version of indices based on randomly generated numbers. Although, they can be profitable and they are available 24 X 7, they are highly unpredictable and I don’t really prefer to use them for my strategy.

Touch Options are not available for Stocks and Sectors. For Indices, the minimum expiry time is 7 days, so not useful for my strategy.

For Commodities, the minimum expiry time for Touch options is 15 minutes. For Forex, the minimum expiry time varies from 15 minutes for some Forex pairs to 1 day for others. Expiry time of 1 day means that if I place a trade today, it will expire tomorrow at 23:59:59 GMT.

This is the reason why I prefer to trade with Forex because my strategy concentrates on daily targets.

Another important feature of Binary.com is the ability to Sell the trade prematurely. So if I have made a trade on EUR/USD with expiry time of 1 day, I will be able to Sell it before today end i.e. 23:59:59 GMT. The rate at which the trade is sold is displayed and keeps on changing according to the current state of the trade.

Learn the concept of matching trades… Click here to earn big from binary options without risk

With all that information, let me reveal my strategy.

As I said before my strategy works on daily target of 10%. If you have more time, you can go for 20% and if you want to be more cautious, you can go for 5%. (Read my last sentence very carefully, I’ll come back to it later)

So here’s my strategy for Touch options.

Touch Options

Go to Trade -> Touch/No Touch tab

You can select the market and it will show you the Current spot of that market. Then you can input a barrier and duration for which you want to place a trade. The payout refers to the total amount that you will receive along with the profit if you win the trade.

You can also see 2 trade options on the right. In the above example, in order to get a payout of 100$, you will have to buy the Touch trade at 61$ i.e. your trade investment. That means if EUR/USD touches 1.23746 before 1 day, you will make a net profit of 39$ i.e. 63.9% profit of your invested trade amount of 61$.

As you make the barrier closer to the current spot, the Return percentage for Touch option decreases. For No Touch options it goes over 500%, but that is not important to us.

You can also see the trend graph at the bottom of the page. You can select ticks, minutes, hours or days trend for the selected market. The below graph shows the hourly trend. You also have the option to see different chart types like line chart, dotted or as shown below candlestick chart.

Looking at the graph, it is easy to predict that it will touch the barrier of 1.2313 in not more than an hour or two from now. So if you invest 100$ in the Touch option right now, you will make around 5$ profit, absolutely risk free.

How to place and monitor your trade

Placing the trade in Binary.com is easy.

Once you have selected the market to trade on and the target barrier, just go to Trade –> Forex –> Touch/No Touch tab, select the market, input the barrier and duration (in our case, 1 day), select the Payout that you want from the trade (Investment + Profit). You will get two options on the right – one for buying touch option and other for No Touch option. Click on “PURCHASE” button of Touch option and that’s it.
Once you have made the trade, you can see it in your Portfolio.

You will see the Trade Details, your Purchase Price and the Indicative Price of your trade. Indicative Price is decided by the current state of your trade i.e. the time left and the closeness to the barrier among other factors.

If you click on View, you can see more details about your trade and can also get the “Sell At Market” option.

If you have made the trade of 1 day, the Sell button will remain active till the end of current day i.e. in above example, I made the trade on 13th February, so the Sell button will remain active till February 13, 23:59:59 GMT. Note that the trade of 1 day made on February 13 will expire on February 14 at 23:59:59 GMT.

For our strategy, we will never have to use the Sell button, but it is just nice to know that we have the option of selling our trade prematurely.

Once your Touch trade is successful, you can see the profit details in your Profit Table.

Also notice that the Sale Price is the Payout that we had selected. So that will make you a profit of $3.73, absolutely risk free.

The above trade took about 50 minutes to reach the target barrier. Normally, these trades may take about 2-3 hours to complete.

This is why I had said earlier that if you have more time, you can aim for a daily target of 20% as it will take 3-4 trades to earn 20% profit from such trades. Also, I had said that if you are more cautious, you can select just one perfect trade a day and earn 5-10% daily.

Making it INVINCIBLE

Let me take an example of EUR/USD. Go to investing.com. Investing.com is a definitive source for tools and information relating to the financial markets such as real-time quotes and streaming charts, up-to-date financial news, technical analysis, brokers directory & listings, an economic calendar, and tools & calculators. The site provides in-depth information on Currencies, Indices & Stocks, Futures and Options, Commodities, and Rates & Bonds.

Go to investing.com. You can see the complete technical analysis of all the major forex currency pairs on investing.com. Just select the currency pair in which you are looking to trade in.

Under the Technical tab, you can see the various Support and Resistance points for the currency for different time scales from 5 minutes to 1 day. Also, the overall Summary is given from “Strong Sell” to “Strong Buy”. You dont need to understand the technical details of Support and Resistance points for my strategy. Just need to know that all these figures together provide you the guarantee of a successful trade, but this is not important for us right now.

In the General tab, select Historical Data. Here, you can see the Open point, Closing point and High and Low values of EUR/USD currency pair for each day of the selected duration.

Select the data for duration of over 6 months and copy it in a spreadsheet. Now compare the Open time for each day with the highest point of the day. Do the same with the Lowest point of the day. The data that you get also include the Saturdays, so remove the Saturdays from the list as there is not much movement on Saturdays.

Now if you’ll see the two calculated values i.e. (Highest – Open Point) and (Open Point – Lowest Point) for each day, you’ll see that for about 75% of the days both the values are above 0.001 i.e. the market moved 10 pips from the Open point in both directions.

What it means is if you make a trade right at the start of the day i.e. with Open point as the current point, there is 75% chance that you will win the trade even if you have made the trade with your eyes closed.

Now, if you look for the days when the market has not moved more than 10 pips in either direction, you won’t find any such day.

So we are left with the days when the market has moved very less i.e. less than 10 pips in one direction. For these days, just looking at the trend line will tell you about the trading direction. So this makes your trade 100% secure if you make a trade close to the Opening time of the day i.e. 00:00 GMT.

I haven’t touched any technical aspects of Binary Options till now. I haven’t asked you to do any sort of data analysis before placing a trade, apart from just looking at the trend. I have just introduced you to investing.com and given you the hint that I am going to use the data from investing.com for my strategy.

But still, using only the knowledge that you have till now, you can start trading. Just open an account with binary.com and make a trade on EUR/USD using the above mentioned guidelines and timelines. Just give it a try for 5 days. You can use a virtual money account for now.

Please do let me know whether you succeeded or failed.

Covering up all bases

In order to reduce the maximum possible risk, some level of analysis is required before placing a trade. And there comes my MAGIC STEP.

THE MAGIC STEP

There are 2 things which you should consider when choosing your trade:

  1. A growing trend
  2. A strong indicator

If you kept waiting for some hard hitting trend to make a trade you’ll not be able to make any profit. You don’t even need a strong trend for this strategy. You just need a subtle trend.

More than a strong trend, you need a strong indicator. Indicators are available on investing.com. As I mentioned before, the Support and Resistance points, the Strong Sell to Strong Buy indicators, all these figures together provide you the guarantee of a successful trade.

So all the data, facts and figures are right in front of you. You just need to put it together to achieve profits every time you trade. For the people, who are scared of so many numbers, my MAGIC STEP is just for you. It does not involve any in-depth analysis of all the numbers and facts and figures. It just involves certain rules which can be understood with just one look at the screenshot I had given before.

My MAGIC STEP makes it all so easy for you. There is no technical expertise required in order to understand my MAGIC STEP, even a complete novice can understand it. Its just a set of rules that you should follow before placing a trade.

…and it comes to you for just $10.

This magic step really makes each and every trade of yours invincible. I guarantee, that you will be able to recover your $10 in 1 day.

Although my strategy itself is very low risk, but this step removes even further elements of risk. This Complete Money Making Guide educates you about:

  • The MAGIC STEP – a set of rules that you should follow before placing any trade
  • How to find the target point of your Touch Option trade
  • How to monitor your trade in detail
  • A strategy that makes your trade end successfully and quickly
  • Making it invincible strategy in detail

However, you can easily and safely use my above described strategy even if you decide not to buy my Binary Options Strategy – The Complete Money Making Guide.

Стратегия Binary Profit Heaper

Binary Profit Heaper – это универсальная тактика, благодаря которой вы сможете обуздать пятиминутные и пятнадцатиминутные бинарные опционы. Четкое следование правил стратегии позволит в короткие сроки получить первые результаты, при этом вы навсегда избавитесь от невероятной психологической нагрузки денег. Binary Profit Heaper применяется сугубо при анализе валютных пар и драгоценных металлов.

Установка торговой стратегии Binary Profit Heaper

Стратегия Binary Profit Heaper, а именно ее компоненты требуют предварительной установки. Для начала загрузите архив с индикаторами и шаблонами одним файлом в конце этой статьи. Далее в запущенном MetaTrader4 войдите в меню файл и откройте каталог данных. Скиньте индикаторы в папку с названием indicators, а шаблон в template. Более наглядно вы можете познакомиться с процессом установки в универсальном видео Установка индикаторов в МТ4. Перезапустив платформу, войдите в список шаблонов и запустите Binary Profit Heaper.

Кратко о торговой стратегии Binary Profit Heaper и индикаторах

Торговая стратегия Binary Profit Heaper применяется на минутном и пятиминутном графике с временем экспирации от пяти минут до пятнадцати. В составе Binary Profit Heaper шесть различных технических индикаторов, однако, главной изюминкой стратегии является ориентирование на силу валют, а не простое следование за трендом. Итак, давайте по порядку разберем функционал индикаторов, чтобы вы сами могли вносить любые правки.

  1. FPH Meter – это индикатор, который выводит слева в виде таблицы силу валют. В стратегии играет немаловажную роль, поскольку чтобы убедится в сигнале, вы будете прибегать к данным из этой таблицы. Для примера вы получили сигнал на повышение опциона по валютной паре евро/доллар. По всем законам движения валютных пар в этот момент доллар будет слабее евро, что будет зафиксировано в таблице. Если этого нет – перед вами обманный маневр, который следует проигнорировать.
  2. FPH Bars – индикатор, который окрашивает свечи в красный и зеленый цвет, символизируя об определенном направлении тренда. В основе индикатора лежит индикатор Relative Strength Index, поэтому базовые параметры легко поддаются настройке. Принцип работы прост, если линия Relative Strength Index над уровнем 50 – свечи зеленые, если под уровнем 50 – свечи красные.
  3. FPH Line – это индкикатор, который вы можете наблюдать на графике с ценой в виде линии синего и красного цвета, символизирующей о смене тенденции. Данная линия является отчетной точкой, исходя из которой, происходит сравнение показателей всех индикаторов. FPH Line строится на основе стандартного ADX, поэтому с оптимизацией и настройкой не должно возникать проблем.
  4. FPH HistoBars – индикатор-гистограмма в первом дополнительном окне графика. Настройки инструмента закрыты, однако вы можете включить или отключить звуковое оповещение при пересечении сигнальной линии, а также отправку уведомления на почту. Основная задача – фильтр направления сделки.
  5. FPH Filter – это гистограммный индикатор, находящийся во втором окне. По принципу работы является аналогом MACD, однако имеет в себе элементы осциллятора Momentum. При появлении сигнала очень важно сверить размещение гистограммы относительно сигнальной линии и выполняет функцию фильтра.
  6. FPH Oscilator – индикатор осциллятор, который выполняет функции, которые мы перечисляли про индикатор FPH HistoBars и FPH Filter.

Сигналы торговой стратегии

Торговля по Binary Profit Heaper сводится к соблюдению основных правил, а также покупке опциона по сигналу на страничке брокера. Анализировать график необходимо на минутном графике, если вы хотите работать с пятиминутным сроком экспирации опциона или на пятиминутном графике, если вы хотите работать с опционами время экспирации которых 15 минут.

  1. Линия индикатора FPH Line сменилась с красного на синий.
  2. Свечи окрашенные индикатором FPH Bars в зеленый цвет.
  3. Гистограмма FPH HistoBars над сигнальной линией.
  4. Гистограмма FPH FPH Filter над сигнальной линией.
  5. Гистограмма FPH Oscilator над сигнальной линией..

При соблюдении всех условий обязательно посмотрите на таблицу силы валют FPH Meter и убедитесь, что направлении сделки соответствует силе базового актива. Пример:

Сигнал на покупку :

  1. Линия индикатора FPH Line сменилась с синего на красный.
  2. Свечи окрашенные индикатором FPH Bars в красный цвет.
  3. Гистограмма FPH HistoBars под сигнальной линией.
  4. Гистограмма FPH FPH Filter под сигнальной линией.
  5. Гистограмма FPH Oscilator под сигнальной линией.


При соблюдении всех условий обязательно посмотрите на таблицу силы валют FPH Meter и убедитесь, что направлении сделки соответствует силе базового актива. Пример:

Управление рисками

При торговле стратегией Binary Profit Heaper можно применить две модели управления капиталом, а именно первая более агрессивная, а вторая более консервативная. Суть первой модели состоит в том, чтобы размер ставки был равен 3 процентам от депозита, что при росте будет приводить к увеличению ставки в денежном эквиваленте. Вторая модель заключается в том, чтобы разбить ваш депозит на равные сумы и всегда работать одной ставкой. В качестве примера 100 долларовый депозит можно разбить по 1 доллару на 100 ставок и так далее.

Binary Options Strategy

Welcome to our binary options strategy section. Here you will find a beginners guide to strategies, leading on to more advanced information about things like money management, and articles on specific strategies.

Basic Strategy For Successful Trading

Strategy is one of the most important factors in successful binary options trading. It is the framework from which you base your trade decisions, including your money management rules, and how you go about making money from the market. There is no one Holy Grail unfortunately, if there were then we’d all be using it!

The two most very basic categories of strategy are:

Fundamental strategies focus on the underlying health of companies, indices, markets and economies and while important to understand, is not as important to binary options as the technical aspect of trading.

Technical trading, or technical analysis, is the measurement of charts and price action, looking for patterns and making educated guesses, speculations, from those measurements and patterns.

Strategy simplifies your trading, takes guesswork out of choosing entry and reduces overall risk.

The text book definition reads like this; a plan of action designed to achieve a goal or overall aim, the art of planning and directing operations in order to achieve victory. When it comes to trading the goal is to 1) make money and 2) not lose money.

The number one method of achieving this goal is to use a rules based approach to choosing entries that relies on ages old, tried and true technical analysis indicators. There are dozens, possibly hundreds if not thousands, of ways to trade the market, all strategies. They can be categorized in terms of the tools used, the time frames intended, the amount of risk associated with and many other ways, these being the primary.

  • Price Action/Scalping Strategies – Price action strategies rely on the movement of the market to time entry. These can be trend following or not, long or short term and utilize bullish or bearish positions.
  • Trend Following/Directional Strategies – Trend following strategies target assets that are trending strongly to pinpoint a series of profitable entries with a high rate of success.
  • Range Bound/Short Term Strategies – 99% of the time the market, or an individual asset, is not trending but trading in a range within a high and low mark. These strategies focus on support and resistance levels, reversals within the range and short term trends as asset prices move up or down from support to resistance and vice versa.
  • Long Term/Momentum Strategies – These are the less risky of the strategies as they target stronger signals and longer term time frames. These signals have a higher chance of success but take longer to develop and longer to unfold than other types of signals.

A technical analysis indicator is, most often, a mathematical formula which converts price action into an easy to read visual format. Common types of indicators include but are not limited to moving averages, trend lines, support and resistance, oscillators and Japanese Candlesticks.

Money Management

Strategy is 1 of the 2 pillars of risk management, the other is money management. You control risk by targeting only good signals, weeding out obviously bad signals, and never putting so much money on one trade that it will wipe out your account.

Money management is the control of your overall trading fund. It should clarify trade size, and long term financial management – leaving you to focus only on trading. A well thought out money management structure should simplify:

  • Trade size
  • Risk management
  • Future growth
  • Stress

A trader with a clear financial plan should not need to be concerned with whether they can trade tomorrow, or if their trade size is correct or how they might grow investments in line with their progress. All those decisions are controlled by managing their overall capital with a clear plan.

Japanese Candlesticks

This is the most common method of viewing price charts. The candlesticks give an easy to read view of prices, open high low and close, that jumps off the charts in way that no other charting style can do. They are the basis of most price action strategies and can be used to give signals as well as to confirm other indicators.

Support And Resistance

These are areas of price action on the asset chart that are likely to stop prices when they are reached. Support is found when prices stop falling, this happens when buyers step into the market and are said to be “supporting prices”. Resistance is found when prices stop rising, this happens when sellers enter the market (or buyers disappear) and are said to be “resisting higher prices”. These areas, often represented by horizontal lines, are good targets for entries and possible areas where price action may reverse.

Trend Lines

These lines connect highs and lows formed by asset price as it moves up down and sideways. A series of higher lows and higher highs is considered to be an uptrend and a sign that prices are likely to move higher, a series of lower highs and lower lows is considered to be a downtrend and a sign that prices are likely to move lower. The trend line can be used as a target for support and resistance, as well as a an entry point for trend following strategies.

Moving Averages

Moving averages take an average of an assets prices over X number of days and then plots those values as a line on the price chart. Moving averages come in many forms and are often used to determine trend, provide targets for support and resistance and to indicate entries. There are dozens of methods of deriving moving averages, the most common include Simple Moving Averages, Exponential Moving Averages, volume weighted moving averages and many more. They can be used in any time frame, and set to any time frame, for multiple time frame analysis and to give crossover signals.

Oscillators

Oscillators may be the single largest division of indicators used for technical analysis. They include tools like MACD, stochastic, RSI and many, many others. These tools, in general, use price action and moving averages in a combination of ways to determine market health. They are displayed as a stand alone tool, usually as a line that ranges between two extremes or above and below a mid point, that can help determine trend, direction, support/resistance, market strength, momentum and entry signals.

Trading Psychology

With any form of trading, psychology can play a big part. A lack of confidence can mean missed trades, or investing too little capital in winnings trades. At the other end of the spectrum, over-confidence can lead to over trading, or increased risk – either of which could wipe an account very quickly.

So the trading psychology of the trader is very important. It can also be actively controlled or managed (at the very least, acknowledged). It is another often overlooked area of trading skill, but one well worth spending time to consider.

Read more on trading psychology and learning from experience.

A Basic Binary Options Strategy

Here is an example of some basic rules for a binary options strategy.

  • The trend is your friend, only take trend following entries.
  • In an uptrend only enter when prices are near support, in a downtrend only enter when prices are near resistance.
  • When prices are near support/resistance wait for a confirming candlestick signal.
  • When the candlestick signal appears wait for stochastic and/or MACD to confirm, a bullish crossover in an uptrend or a bearish crossover in a downtrend.
  • When rules 1 through 4 are met, enter the trade, only use 3% of account on each trade.
  • When choosing expiry use 2XCandle length. IE, if you are using 1 minute candles then 2 minute expiry, if 1 hour candles then 2 hour expiry.
  • If the trade fails examine why it did not work, make adjustment if necessary and move on to the next trade. If the trade works move on to the next trade.

Top Brokers

No strategy is going to be profitable if you trade with an unreliable broker. These are our top recommended trading platforms for trying out your strategy.

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Strategies for Different Markets

Choosing a Trading Strategy

Developing a trading strategy for the binary options market requires a key understanding of how the market operates in terms of the trade contracts available, the various expiry times, and the understanding of the behaviour of the individual assets.

Unlike the forex market where the asset has to move in one direction or the other by an appreciable number of pips to the trader’s favour before profits are made, the binary options market is peculiar. Apart from the Up/Down trade which is based on direction and mimics the requirements of the trades in other markets (except the pip movements), other trade types in the binary option market operate in totally different ways. There are different trade contracts for different platforms. Some binary options contracts do not even require the trader to get the direction of the asset correct. For instance, trading the OUT contract will need the asset to hit one price boundary or the other for profit to be made. So it takes the trader being able to identify a suitable trade contract to be able to fashion a suitable strategy. What is used to trade the Up/Down contract is not the same as will be used for the In/Out contract. The contract type will determine the strategy.

For instance, trading the Up/Down contract will require a strategy that can determine if the asset will make a bullish or bearish movement. Trading the In/Out contract will require either a range trading strategy or a breakout trading strategy to identify a time when the asset stays in a range or breaks out of that range. If you are looking to develop a trading strategy for the In/Out trade, this is how your mind should be working.

In developing a strategy based on the binary options trade types to be traded, there are tools that can assist the trader. This is where chart patterns, signals services, candlesticks and technical indicators will come in. A simple tool like the pivot point calculator can be used as part of a TOUCH trade strategy with very effective results. Using tools like these will take us to the next part of choosing a strategy, which is how to understand and set expiry times.

Understanding Expiry Times

Expiry times are very important to binary options, because all trades in this market have time limits. However, not all binary options trades require time limits to be successful. Trades such as the Up/Down trades must reach expiry before the trade outcome is known. In contrast, trades such as the OUT component of the boundary trade or the TOUCH component of the High Yield Touch or Touch/No Touch trade contract must not necessarily reach maturity before the outcome of the trade is known. If a trader bets on a TOUCH outcome and the asset touches the strike price well before expiry, the trade outcome is already known and the trade is terminated as a profitable one.

So if the trader is not very good at setting expiry times/dates (and really, no trader in the market can boast of getting his expiry settings right all the time here), the binary options trading strategy will have to be tailored towards trade contracts which are not totally expiry-dependent.

Now when you identify and separate trades that are not so dependent on expiries from those that are, you can better understand what kind of strategy you would be looking at.

Understanding Asset Behaviour

The binary options market combines assets from different asset classes into one market. These assets do not behave alike. Some assets are very volatile with large intraday movements. A very clear example is gold. Some binary options assets are not traded round the clock but only at specific times e.g. the stock indices. The factors that may trigger a massive move in a stock index would obviously not be the same for a commodity or a currency. Even within the same asset class, no two instruments are exactly the same or behave alike.

An understanding of asset behaviour is therefore key to being able to develop a trading strategy for the market. It is up to the trader to study the behaviour of assets, understand the technical and fundamental indicators that will influence the behaviour and price movement of that asset, and then create a trading strategy that will work for that asset.

Demonstration

In this section, we will demonstrate the application of all the parameters we have mentioned above using a simple but effective trade strategy.

– The strategy we will use determines price bullishness/bearishness, so we will trade a Call/Put contract.

– We will trade the strategy on a one hour chart, so it will be have an expiry of one hour. We do this using our understanding that the effect we want to trade on the hourly chart, will happen in an hour.

– We want to use this on an asset that is liquid and responds to the strategy. So we will use the EURUSD.

The strategy has been used to create a colour-coded indicator, which shows a green arrow on bullish signals and a red arrow for bearish signals. It aims to trade the EURUSD because this currency responds very well to price stimuli during the London/New York overlap in the forex time zone, and the response can be delivered in an hour.

As soon as the red arrow appeared (as shown above), the signal was to trade a PUT option on the Call/Put digital option. Using this signal, the trade was executed on the binary options platform. The price of the asset (EURUSD) fell in one hour from the time the signal was generated to the expiry, producing a trade result in our favour.

This strategy (a custom strategy) fulfilled all our conditions:

a) It was suited to a trade contract on the binary options market.

b) It was a strategy that was suited to help the trader use a suitable expiry.

c) It was suited to the behaviour of the asset and above all, THE STRATEGY WAS A PROFITABLE ONE.

Best Binary Options Brokers 2020:
  • Binarium
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  • Binomo
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