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- Martingale strategy for trading binary options
- How to apply the Martingale strategy on binary options?
- “Martingale”: The Positive Aspects Of The Strategy When Trading Binary Options
- Martingale: Negative sides of the strategy
- A unique strategy for accelerating a deposit on binary options
- An example of buying a CALL option (Above)
- An example of buying a PUT option (Below)
- What if the contract turns out to be unprofitable?
- Alligator strategy for binary options. How to earn
- How to set up a trading strategy for binary options Alligator
- Binary options strategy – averaging and increasing positions
- How to Increase Positions on a Binary Options Strategy – Averaging and Increasing Positions
- Scalping strategy for binary options
- Requirements for trading with a scalping strategy
- How to trade scalping binary options
The best simple and reliable top 5 strategies for trading and earning on binary options. All the strategies are tested.
Martingale strategy for trading binary options
Not everyone makes money on the binary options market, but which of the traders succeeds in making money on binary options, they use the Martingale strategy for binary options. This strategy is written to cover unprofitable positions and, as a result, be in the black. There are a large number of traders who trade on BO, like in a casino. That is, they either win or lose their investments. And there is some truth here. Nevertheless, nobody canceled technical analysis. And the use of the trading system for binary options Martingale will turn any unprofitable deal into a profitable one.
How to apply the Martingale strategy on binary options?
The essence of the Martingale strategy for binary options is to multiply the bet by a certain coefficient if the deal was unprofitable. For example, a player placed a minimum bet of $ 1 and entered into a CALL contract with an expiration period of 5 minutes, but the forecast was not justified. A trader opens a trade in the same direction with a stake of $ 3. If this time there is a loss, then a trade is opened in the same direction, but with a bet of $ 7, and so on, until the position turns out to be profitable.
After winning, the trader starts his investment from the beginning.
Open trades in the direction of the global trend are more likely to close with a plus than those concluded against the trend. In addition, use trend lines, indicators that allow you to track overbought / oversold price zones.
“Martingale”: The Positive Aspects Of The Strategy When Trading Binary Options
- The main advantage of trading using the Martingale method is correct money management. After all, if a trader decides to double the option rate again after winning, this can lead to the loss of a significant part of the deposit. However, with the correct application of the Martingale strategy, in theory the speculator will always be in the black.
- Also, trading using this tactic justifies itself, since the probability of winning / losing 10 times in a row is extremely small. The more trades in a row are closed at a loss, the greater the likelihood of winning.
- In addition, it should be borne in mind that there are indicators and strategies, trading by which the trader gets up to 8 profitable trades in a row.
Important: If you adhere to the basic rules of the Martingale TS, then in many games, including options, you will earn money, and not drain deposit after deposit.
Martingale: Negative sides of the strategy
There are disadvantages in any trading system. And Martingale is no exception to the rule.
So, the negative aspects of using this trading system on the BO market include:
- It won’t work without a large deposit. If you replenished your account with only $ 10, then it is understandable that this amount is only enough for 3 transactions. The safety factor here will be very minimal.
- Knowledge level in technical analysis. The Martingale system should be used in conjunction with price action patterns, the release of economic news, the activities of market makers and other nuances that a simple beginner hardly knows about.
- Low profitability. For example, a trader trading according to Martin’s system lost $ 5 in the first deal, $ 15 in the second, $ 45 in the third, but in the fourth he won $ 70, then in fact, in just four deals, his profit was only $ 5. So, it will be very difficult to earn thousands on it. It will take hard and hard work to earn really a lot on BO.
A unique strategy for accelerating a deposit on binary options
The strategy is perfect for both beginners and experienced traders who want to take risks and start with a relatively small deposit of $ 10 – $ 300. The trading system for accelerating the deposit will allow you to finish your trades with a plus on a daily basis.
START. Let’s resort to the help of one popular service among traders https://ru.tradingview.com/chart/ . We’ll need his trading platform.
Let’s put several indicators on its chart:
1. Improved Linear Regression Bull and Bear.
2. Moving average (exponential). Install 2 identical indicators.
3. Set up moving averages (exponential). Let’s call this indicator EMA in short.
4. For one of the EMAs, set a period of 21 in the settings (gear sign). And a bold red line color.
As a result of the indicator settings on the chart, you should get the following:
An example of buying a CALL option (Above)
In order for a trader to have the opportunity to conclude a deal Above, the following conditions must be met:
- Japanese candlestick closes above two EMAs;
- the Improved Linear Regression Bull and Bear indicator shows a green upward line above zero.
An example of buying a PUT option (Below)
To be able to conclude a PUT deal (Below), the following picture should be observed on the chart:
- Japanese candlestick closes below two EMAs;
- the Improved Linear Regression Bull and Bear indicator shows a red descending line below zero.
Expiration dates: before a more measured and confident trade, it is recommended to conclude deals for 3-5 time candles. For example, with a 1 minute timeframe, as in the examples above, the expiration time should be 3-5 minutes. It all depends on the volatility of the market. If the candles are with small bodies, then we advise you to set the expiration date of transactions of 5 minutes, but if the volatility is high, then 3 candles.
For more confident traders, you can set an expiration of 1 minute (with a M1 working chart).
What if the contract turns out to be unprofitable?
This is the foreign exchange market and fluctuations in it in different directions are inevitable. Even if we do everything according to the rules of our strategy, but the candlestick still closes against the forecast, then the Martingale rule must be applied. Do not be afraid to increase the losing trade by 2.5 times and open a trade in the same direction as the first contract. So, consider an example of such a losing position:
We were expecting a signal to open a CALL position (Above). Expiration time is 1 candle or 1 minute. As you can see, the deal turns out to be unprofitable (a red candle is formed). We are not upset – we immediately make a deal, but with a rate of 2.5 more than the first. That is, if the bet on the first trade was $ 10, then the second trade will have a bet of $ 25.
Alligator strategy for binary options. How to earn
Alligator Binary Options Strategy is a simple working binary options trading strategy for beginners. The main tool used by this strategy is the Alligator indicator of the same name, which we will discuss below.
The Alligator technical indicator is a combination of 3 moving averages calculated with a shift forward at different time intervals. The calculation uses not the closing price, but the weighted average price (Median Price = (candle high + candle low) / 2).
Moving Average 1 (Alligators Jaw, blue in the figure) – “Alligator’s Jaw”. Corresponds to a period of 13 and a forward shift of 8 candles.
Moving average 2 (Alligators teeth, red in the figure) – “Alligator’s Tooth”. Corresponds to a period of 8 and a shift of 5 candles into the future.
Moving Average 3 (Alligator Lips, green in the figure) – “Alligator’s Lip”. Corresponds to a period of 5 and a shift of 3 candles forward.
The main advantage of this binary options strategy is the ability to avoid ambiguity in the interpretation of most of the market signals. When the amplitude of fluctuations of moving averages in a flat grows, which is accompanied by an increase in the distance between them, one should expect the moment of the beginning of a new trend.
How to set up a trading strategy for binary options Alligator
The Alligator strategy assumes preliminary setting of the indicator parameters. By default, the classic settings are set (moving periods 3,5,13 and color matching – respectively green, red and blue), which are recommended to be kept. Having installed the indicator on the preferred timeframe, we monitor the dynamics of the price chart. At the moment when the consolidation ends and the green moving average with a period of 5 crosses the blue one with a period of 13 from bottom to top, we buy a Call option. The corresponding circuit is shown in the figure below.
On the contrary, when the green moving average crossed the blue one from top to bottom, buy the Put option.
- When the moving Jaws is located at the maximum distance from the price chart, the Teeth between the Jaws and the Lips, and the Lips are closest to the price chart, you should wait for the trend to start.
- The further the moving averages have diverged from each other, the stronger and longer the current trend.
- If the Alligator’s Jaws, Teeth and Lips in a trend are strictly parallel, this trend is very strong and long-lasting.
- The accuracy of the indicator readings increases with the increase in the timeframe.
- The approaching moment of the end of the trend is evidenced by the mutual intersection of moving averages or the intersection of any of them with the price chart.
In addition to the Alligator, it is useful to use another Williams indicator – a fractal, the breaking of which downward confirms the emergence of a downtrend, upward – an upward trend.
Despite the simplicity and efficiency, this binary options trading strategy is very profitable: with the correct interpretation of the price chart, without much preparation, you can reach a yield of 65% . The simplicity of this binary options trading strategy does not mean that the Alligator indicator is a magic wand that will save you the trouble of analyzing what is happening.
Binary options strategy – averaging and increasing positions
There are several effective tricks to improve your trading results. These are the averaging of trading positions and their increase. In this article, we’ll look at how these approaches work, how they differ, and when to use them. The timeframe was chosen – 1 HOUR.
Averaging is a method of concluding deals according to a specific algorithm, which allows a trader to cover losses with the total profit on additionally opened deals. In fact, the main task of averaging is to bring the overall trading result to a plus at the moment when the open deal did not meet expectations. This happens when you entered the trades early, that is, made a mistake with the choice of the moment of completion of the previous trend in the market, or set the expiration period too short.
In practice, the averaging algorithm works in the simplest way. If, after opening a trade, you see that at the moment of expiration the price of the asset will not have time to justify your forecast, you add new trading positions with the forecast similar to the first trade. Thus, on the first trade, you will most likely get a loss, however, with a profit on new trades, you will completely cover it and get an additional profit.
For example, you are trading in an uptrend, entering trades with an UP forecast for price rebound from the trend level. Once again, you entered into a transaction with a forecast of the growth of the asset price, however, the quotes broke the downward trend level, that is, the asset price made a deeper rollback than you expected.
After that, you add 2 positions with an UP forecast, and when the price reaches the trend level, you open the last trade with a similar forecast. As a result, your first trade is closed with a loss, however, thanks to the profit on two or three additional deals, you cover the loss and, in the total result, go into a plus.
However, so that you don’t go broke even more with averaging, you must adhere to some rules:
- Trade only with the trend
- Add new positions only when you are sure that your forecast remains up-to-date
- Conclude no more than 3 averaging positions in a row
- Open averaging positions after a certain distance
- Trade with minimum lots
Similarly, averaging is carried out in a downtrend – you add averaging positions with a forecast of a decline in quotations.
How to Increase Positions on a Binary Options Strategy – Averaging and Increasing Positions
If in the first variant you need to use averaging when everything went wrong, then in this case you can improve the trading result by using a variation of this trick – increasing trading positions. So, if your trading strategy brings you good results, you can make it even more profitable by gradually adding positions. The main purpose of the build-up is to improve the performance of an already profitable trading system. That is, this trick is not used to save the trading result, as in the first option, but to improve it.
The principle of adding up trading positions is also very simple – you need to “add” to an existing trade as the price moves in the direction of your forecast, gradually increasing the average value of all open contracts.
In fact, all open positions within the framework of one trading signal are one big deal, divided into several parts, therefore, when adding new positions, you need to expect that they should all be closed at the same time, and that their total amount does not exceed 10% of the size deposit.
For example, according to the signal of the trading strategy, you entered into a trade with the forecast of the growth in the value of an asset with an expiration of 15 minutes. After that, you can add new trading positions at certain distances, calculating their expiration time so that it expires along with the first contract.
Rules for adding positions
- Trade strictly according to strategy signals
- Use any additional graphic patterns or indicator signals that indicate the continuation of the trend as signals for refilling.
- Apply strategies, the relevance of trading signals is at least 10 minutes
- Do not add more than 3 additional deals in a row
Scalping strategy for binary options
Trading binary options in scalping mode is the most effective way to increase the amount of trading capital in the shortest possible time. Scalping is a style of trading that involves the execution of a large number of short-term trades with minimal market fluctuations. When trading in scalping mode, a trader can open up to 15 options per hour, which promises him a very large profit. That is, in just 1-2 hours of trading, you can earn a profit that others earn with the classic style throughout the day.
Requirements for trading with a scalping strategy
- trade only on a high-tech trading terminal
- using only a reliable and proven scalping strategy for binary options
- competent money management
How to trade scalping binary options
Optimal for this strategy will be the wave movement of the market, so first you need to find the underlying asset with the appropriate market situation (I chose the eur / jpy forex pair), in general, choose any volatile pair.
After that, indicators with the following settings should be applied to the quotes chart with a 15s timeframe:
- MACD – standard
- RSI – period length 14, level 50/50
After setting up the chart layout should be something like this:
The MACD indicator is used in the strategy to identify short-term trend reversals – its signals are displayed as the intersection of two movings. The Leading RSI Oscillator filters the MACD signals, confirming that the new trend has taken hold and will last enough time to enter a binary option trade.
An asset price growth forecast transaction is concluded when:
- in the window of the MACD oscillator, the lines will cross each other in the upward direction
- on the RSI indicator, dynamic mov will start moving above level 50
This is what a trading signal looks like on a chart:
A forecasted asset decline transaction is entered into when:
- in the MACD oscillator window the lines will cross each other in the downward direction
- on the RSI indicator, the dynamic mov will start moving below the level of 50
This is how this signal looks on a similar segment of the chart:
The expiration period of options must be set for 2-3 minutes, however, if you enable the chart timeframe for 5s, then the expiration time can be set when scalping on binary options for 1 minute, which will only increase the frequency of trading signals. It is necessary to enter the market immediately after the scalping indicators for binary options form a complex trading signal.