Welcome to the Binary Options Strategy section. Here you will find a beginner’s guide to strategies where you can find advanced information, such as 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. Fund management rules, how to make money in the market, etc., is the framework upon which trading decisions are based. Unfortunately, there is no single holy grail. Then we will all use it!
The most basic types of strategies are as follows:
- Basic
- Artificial.
Fundamental strategy is important to focus on and understand the fundamental health of the company, the index, the market and the economy, but not so much as binary options as the technical aspects of trading.
Technical trading or technical analysis is a measurement of charts and price behavior that looks for patterns in those measurements and patterns and makes educated guesses.
Simplify trading strategy, speculating that you don’t have to pick an item and reduce overall risk.
The textbook definition is as follows: Action plans designed to achieve a goal or overall goal, direct planning and operating skills to achieve victory. The goal of trading is 1) making money and 2) not losing money .
The first way to achieve this goal is to use a rule-based approach to select entries based on old, tried and true technical analysis metrics. There can be dozens, perhaps hundreds of ways to trade the market. They can be classified by the tools used, the range of scheduled time, the amount of risk involved and many other ways.
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- Price Action / Scaling Strategy – Strategy price behavior is based on movement in the direction of market penetration. This trend can be long term or short term, and can take advantage of bullish or bearish positions.
- Trend/trending strategy – Strategy trending targets high-trending assets to identify a wide range of profitable items profit with high success rate.
3 support and resistance levels, reversals, and short-term trends as asset prices rise from support to resistance and vice versa.
- Long Term / Momentum Strategy – The strategy targets stronger and longer term signals, so the risk of the strategy is less These signals are more likely successful, but they take longer to develop and take longer to deploy than other types of signals.
Technical analysis indicators are often mathematical formulas that translate price behavior into an easy-to-read visual format. Popular indicator types include moving averages, trendlines, support and resistance, oscillators, and Japanese candles.
Money Management
This strategy is one of the two pillars of risk management and the other is money management. You only aim for the good signals, eliminate the obvious bad signals and invest too much money in one trade to control the risk without destroying your account.
Money management is the control of the total trading fund. Clarify trade sizing and long-term financial management so you can focus only on trades. A well-managed money management structure will simplify the following:
- Agreed size
- Crisis Management
- Future growth
- Stress
Traders with a clear financial plan don’t have to worry about whether they can trade tomorrow, whether the trade size is correct or how to increase their investment depending on the progress. degree. All decisions are controlled by full capital management with a clear plan.
Learn more about managing your money.
Japanese candles
This is the most common way to view price charts. Candles jump over the chart in a way you can’t do with any other chart style, making it easy to see the price, open with highs and cigars. They are the basis of most price action strategies and can be used to provide signals and identify other indicators.
Learn more about candlestick strategy
Support and resistance
These are the price areas where the price stop is likely to be reached when the price on the asset chart is reached. If the price stops falling, you get support. This happens when a buyer enters the market and says “support price”. When the price stops rising, resistance is found, which happens when sellers enter the market or buyers disappear and those who resist are high. Usually marked by a horizontal line, this area is a good target for commodities and possible areas where price action could be reversed.
Trendline
These lines connect the highs and lows formed by the asset’s price. A series of lows and highs is considered an uptrend and a signal that the price is likely to rise, the highs and lows are considered downtrend and the price is likely to fall. Trendlines can be used as both support and resistance and as a starting point for trend following strategies.
Moving Average
Moving average takes the average of the asset’s price over X days and then plots that value as a line in the price chart. Moving averages come in many forms and are often used to identify trends, provide targets for support and resistance, and point out commodities. There are dozens of ways to get a moving average, the most common of which are the simple moving average, the exponential moving average, and the volume weighted moving average. It can be used in any timeframe and can be set to any timeframe to provide multi-timeframe analysis and crossover signals.
Oscillation
The oscillator is possibly the single largest indicator used for technical analysis. This includes MACD, Probability, RSI and many more. These tools often combine price positions and moving averages to determine market conditions. This tool is represented as a standalone instrument and is usually represented by a line between or between two extremes or midpoints to help identify trend, direction, support/resistance, market strength , momentum and input signal.
Trading psychology
Of all the forms of trading, psychology can play a big role. Lack of confidence can cause you to miss a deal or invest too little capital in winning a prize. At the other end of the spectrum, excessive trust can lead to overtrading or increased risk.
Therefore, the trader’s trading psychology is very important. It can also be actively controlled or managed (at least recognized). Often overlooked in the areas of transaction technology, but there is time to consider.
Learn more about psychological trading and learn through experience.
Basic Binary Options Strategy
Here are some basic rules of binary options strategy:
- Trend is your friend, follow the trend.
- In an uptrend, enter only if price is close to support, and in a downtrend, enter only if price is close to resistance.
- Wait for confirmation candle signal when price is near support/resistance.
- When the candlestick signal appears, the bullish cross of the uptrend or the bullish cross of the downtrend until stochastic and/or MACD is confirmed.
- If rule 1-4 is met, start trading and use only 3% of the account in each trade.
- Use 2XCandle length when picking expiration. IE, if you use 1 minute seconds, 2 minutes expires, 1 hour seconds, 2 hours expires.
- If the deal fails, investigate why it didn’t work, adjust if necessary, and move on to the next deal. If the transaction is active, it goes to the next transaction.
Best Broker
No strategy is profitable if you trade with an unreliable broker. These are the best trading platforms that we recommend you to try our strategy on.
Choose a trading strategy
Developing a trading strategy for the binary options market requires a great understanding of how the market works in order to understand the available trading agreements, different expiry times and behavior of individual properties.
The profit options market is unique, unlike the forex market, which requires assets to be moved in one or a significant amount before the trader makes a profit. In addition to up/down trading, which is based on direction and mimics the trading requirements of other markets (with the exception of pip movements), other types of trading in the binary options market work in completely different ways. different. Different platforms have different trading agreements. Some binary options contracts do not require traders to claim the correct direction of their assets. For example, trading the OUT contract requires the asset to reach one price boundary or another in order to make money. Therefore, the trader must be able to identify the right trading contract that will allow him to create the right strategy. What is used to trade up/down contracts is different from what is used for in/out contracts. The type of contract defines the strategy.
For example, trading up/down contracts requires a strategy that can determine whether an asset is bullish or bearish. To trade in/out contracts, you need a range trading strategy or a mini trading strategy to determine when an asset is in or out of range. If you want to develop a trading strategy for in/out trading, this is how your mind works.
There are tools to help traders when developing strategies based on the binary options trading type to trade. This is where chart patterns , signal services and candlestick technical indicators come in. Simple tools like the Pivot Score Calculator can be used as part of a very effective results sales strategy. With these tools you havecan move on to the next step in choosing a strategy. Here’s how you understand and set the expiration time.
Understanding expiration times
Expiration times are very important for binary options as every trade in this market has a time limit. However, not all binary options trading requires a time limit. Trades like up/down trades should expire before the trade results are known. Conversely, a transaction, such as the OUT component of a boundary transaction or the TOUCH component of a High Yield Touch or Touch/No Touch transaction contract, may not mature before the outcome of the transaction is known. If the trader bets on the TOUCH outcome before expiration and the asset reaches the strike price, the trade outcome is known and the trade ends in a profitable trade.
Therefore, if a trader is not good at setting expiry times/dates (and in fact a trader cannot always boast of expiry in the market), the binary options trading strategy must adjusted according to the transaction contract. It does not depend entirely on expiration.
Now, identifying and separating trades that are not based on expiration will help you better understand the strategy you are considering.
Understanding asset behavior
The binary options market combines assets from different asset classes into one market. These properties do not behave equally. Some assets are very volatile because they fluctuate throughout the day. A very obvious example is gold. Some binary options assets are not traded 24 hours, only at a specific time (e.g. stock indices). The factors that can cause sharp swings in stock price indexes will not be the same in terms of commodities or currencies. Even within the same asset class, two devices do not behave identically or identically.
Therefore, understanding asset behavior is crucial for developing trading strategies for the markets. The trader must study the behavior of an asset, understand the technical and fundamental indicators that will affect the behavior and price movements of that asset, and then create a trading strategy that is suitable for the asset. that product.
Demo
This section shows you how to apply all the above mentioned parameters using a simple yet effective trading strategy.
– The strategy we will use determines the price increase/decrease and thus trade the Call/Put contract.
– Trading strategy with one hour chart leads to one hour expiry. We do this with the understanding that the effect you want to trade on the hourly chart happens within an hour.
– Try to use it on strategic fluid and responsive assets. So we will use EURUSD.
This strategy is used to create color coded indicators that show green arrows on bullish signals and red arrows on bearish signals. The coin is aimed at EURUSD trading as it is very sensitive to price stimuli during the London/New York overlap in the forex time zone and can give a response in less than an hour.
As soon as the red arrow appears, the signal is to exchange the PUT option in the Call/Put digital option. Using this signal, trades are done on binary options platform . The price of the asset (EURUSD) fell within an hour of the signal being generated until the expiration date, which gave us a favorable trading result.
This strategy (custom strategy) meets all the conditions.
a) It is suitable for commercial contracts in the binary options market.
b) It is a strategy that allows traders to use appropriate expiry times.
c) it matches the behavior of the asset, and above all, the strategy is beneficial.