Welcome to our Binary Options Strategies section, here you will find beginners guides to lead strategies, more advanced information on things like money management and articles on specific strategies.
Basic strategies for successful trading
Strategy is one of the most important factors in successful binary options trading, it is the framework you use to make trading decisions, including your money management rules and how to make money from the market. The Grail doesn’t have one, if we have it, we’ll use it all!
The two most important basic types of strategies are:
- basic
- academic
Fundamental strategies focus on the fundamental health of companies, indices, markets and the economy and, while important to understand, do not matter to binary options in terms of trading techniques.
Technical trading or technical analysis is the process of measuring charts and price movements, looking for patterns and making predictions, studying predictions from those measurements and patterns.
Strategies simplify your trading without guesswork and overall risk choices.
The definition of the text book reads like this: Action plan designed to achieve a goal or goal by combining the art of planning and directing operations to achieve victory When it comes to trading the goals are 1) make money and 2) Don’t waste money
The number one way of achieving this is by using a rule based method of selecting entries based on the tried and true technical analysis indicator age. There are dozens, if not thousands, of trading methods. All strategies market They can be classified in terms of the instruments used, the time frame that determines the amount of risk involved, and these other methods primarily.
- Price Action/Scalping Strategies – Price Action Strategies are based on market movements to enter time, these can be trend following or not, long term or short term and take bullish or bearish positions.
- Trend Following / Directional Strategies – A trend following strategy targets trending assets to identify a series of profitable entries with a high success rate.
- Down/short strategy – 99% of the time the market or individual asset is not trending. Instead, trading during highs and lows, these strategies focus on support and resistance, reversals within ranges and short-term trends as asset prices move up or down from support and resistance and vice versa.
- Long-Term/Momentum Strategies – These strategies are less risky as they target stronger signals and longer-term time frames. But it takes longer to develop and will take longer than other signals.
Technical analysis indicators are usually mathematical formulas that convert price action into an easy-to-read visual format. Common types of indicators include but are not limited to moving averages, trendlines, support and resistance oscillators. Japanese lanterns and candlesticks
financial management
The strategy is 1 of the 2 pillars of risk management, the other is money management, you can control your risk by only targeting good signals, eliminating bad ones clearly and not spending a lot of money on them. One time trade which will wipe your account.
Money management is total control of your trading fund, trade size and long-term money management should be more clearly described, a well-thought-out money management structure should make this easier.
- trade size
- risk management
- future growth
- tension
Traders with a clear financial plan should not worry about whether they can trade tomorrow or if their trade size is correct or whether they will grow their investment in line with their progress. All decisions are governed by overall capital management with a clear plan.
Read more about money management.
Japanese candlestick
This is the most common way of looking at price charts, candlesticks provide an easy-to-read view of opening low and closing high prices, which can jump off the chart in a way that no other charting pattern can. They form the basis of most price action strategies and can be used to provide signals as well as confirm other indicators.
Read more about candlestick strategies.
support and resistance
These are the parts of price action on the asset chart that tend to stop when price reaches, support is found when price stops falling, this happens when buyers step into the market and are said to be in the market. The “support price” encounters resistance when the price stops rising, this happens when sellers enter the market. (or missing buyers) and being said to be These areas, often represented by horizontal lines, are good targets for entries and possible areas where price action may reverse.
trend line
These lines connect the highs and lows formed by the asset price as it moves up, down and sideways. A series of higher lows and higher highs is considered an uptrend and a signal that the price has. A tendency to move higher, a series of lows and highs that are considered bearish and signal that price is likely to move lower, trendlines can be used as targets for consolidated support and resistance levels. to be the starting point of the following strategy
moving average
Moving averages take the average price of an asset over X number of days and then convert those values into lines on the price chart.Moving averages come in many forms and are commonly used to determine trends, provide targets for support and resistance and to There are many ways to find moving averages, the most common are simple moving averages, exponential moving averages, moving averages, and moving averages.It can be used on any timeframe and set to any timeframe for multiple timeframe analysis and to provide crossover signals.
oscillators
Oscillators are perhaps the largest indicators used for technical analysis, they include tools such as MACD, stochastic, RSI, and many others. Combined to determine market conditions, they are represented as standalone tools, usually lines with ranges between two extremes or above and below the midpoint that can help determine the trend, direction of support/resistance, strength of Momentum market and entry signals
Trading Psychology
With all forms of trading, psychology can play a big role.Lack of confidence can mean missed trades or underinvestment in winning trades.The other end of the spectrum of high confidence can lead to trading. Excess or increased risk, one of which can quickly clear the account.
Therefore, the trader’s trading psychology is very important, it can also be actively controlled or manipulated. (At least admittedly) is another trading skill that is often overlooked.
Read more about trading psychology and learning from experience.
Basic Binary Options Strategy
Here is an example of some basic rules for binary options strategies.
- Trends are your friend, only get the following trends.
- In an uptrend only when prices are near support, in a downtrend only when prices are near resistance.
- When the price is near support/resistance wait for confirmation candlestick signal.
- Once the candlestick appears, wait for the Stochastic and/or MACD signal to confirm a bullish crossover in an uptrend or a bearish crossover in a downtrend.
- Once rules 1 to 4 are met, enter trades using only 3% of the account on each trade.
- When choosing expiry use 2XCandle length IE if you use 1 minute candle then 2 minute expiration, if 1 hour candle then 2 hour expiry.
- If the trade fails check why it doesn’t work, make adjustments if necessary and move on to the next trade if the trade moves to the next trade.
top broker
No strategy is profitable if you trade with unreliable brokers, this is our recommended trading platform to try out your strategies.
Brokers are filtered based on your location. (Ukraine) Reload this page with location filtering off.
General Risk Warning: Your capital is at risk.
* The amount will be credited to the account in case of successful investment.
Choosing a trading strategy
Developing a trading strategy for the binary options market requires a critical understanding of how the market operates in terms of available trading contracts, different expiration times, and understanding the behavior of individual assets.
Unlike the forex market where assets have to move in one direction or another by an appreciable number of pips to the trader’s favor before making a profit, the binary options market is a strange thing. Oddly enough, aside from the up/down trade, which is directional and mimics the terms of trading in other markets (except pip movement), other trade types in the binary options market operate in completely different ways. There are different trading contracts for different platforms, some binary options contracts do not even require the trader to get the correct direction of the asset, for example trading the OUT contract will require the asset to be traded. Hit one price range or the other to make a profit, so the trader can identify the appropriate trading contracts so that the appropriate strategy can be formulated, what is used to trade up/down contracts is not the same as what would be used for entry/exit contracts. The contract determines the strategy.
For example, trading Up/Down contracts would require a strategy that could determine whether the asset would produce a bullish or bearish movement, trading an In/Out contract would require a range trading strategy or a breakout trading strategy to identify it. When an asset remains in range or breaks out of range, if you are looking to develop a trading strategy for In/Out trading, this is where your mind should be working.
In developing a strategy based on the binary options trading type to trade, there are tools that can help traders, this is where chart patterns, signal services, candlesticks and technical indicators will come in. It is a simple tool like the pivot point calculator that can be used as part of a contact trading strategy with very effective results.Using a tool like this leads us to the next part of choosing a strategy which is how. Understanding and expiration times
Understand the expiration time.
Expiry times are important to binary options as all trades in this market have time limits. However, not all binary options trades require time limits to succeed. Trades such as the Up/Up trade. In contrast, trades such as the OUT component of the trade area or the TOUCH component of the High Yield Touch or Touch/No Touch contract must not reach maturity before the result is known. Trade If the trader bets on the TOUCH result and the asset touches the strike price before the expiration time, the trade result is known and the trade ends with a profit.
So if a trader is not good at setting expiration times/dates (and really no market trader can boast of his expiration settings at all times here) binary options trading strategy. must be adjusted according to the sales contract which does not all depend on expiration.
Now, when you identify and separate trades that are not subject to expiration from those that are, you can better understand the strategy you are looking for.
Understand asset behavior
The binary options market combines assets from different asset classes into one market, these assets do not work the same, some assets are very volatile due to large intraday movements, a very clear example is gold. Not all binary options are traded all the time. But only over time, like stock indices, the factors that can cause big moves in stock indices are not the same for commodities or currencies, even within the same asset class, no two instruments are exactly the same or behave the same. things
Understanding asset behavior is therefore key to developing a trading strategy for the market, it is up to traders to study asset behavior, understand the technical and fundamental indicators that will influence their behavior and price movements. that asset and then create a trading strategy that will work for that asset.
demonstration
In this section, we will demonstrate the use of all the parameters we have mentioned above using a simple trading strategy. but effective
– The strategy we will use to price bullishness/bearishness, so we will exchange Call/Put contracts.
– We will trade the strategy on an hourly chart so it will have an hourly expiration time We do this using the understanding that the effect we want to trade on the hourly chart will happen in one hour.
– We want to use this with liquid assets and react strategy, so we will use EURUSD.
This strategy is used to create a color coded indicator showing green arrows on bullish signals and red arrows for bearish signals.It is intended to trade the EURUSD because the currency responds well to price stimuli during London. / New York overlaps in the forex timezone and responses can be sent in an hour.
As soon as the red arrow appeared (as shown above) The signal will trade the PUT option on the digital call/put option. Using this signal, the trade is executed on the binary options platform. Signals are generated for expiry, producing our favorite trading results.
This strategy (custom strategy) satisfies all our conditions:
a) It is suitable for trading contracts in the binary options market.
b) It is a proper strategy that helps traders use appropriate expiration.
c) It fits the behavior of the asset and above all the strategy is a profitable one.