Binary Opons Trading Trading Strategies
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1. Successful Binary Opons Trading Strategy Successful binary options traders approach the market with three key tools: Some great Binary options strategies Money management strategy The use of signals one way or another.
These tools are absolute necessities for any trader looking to be successful. This article will explain the basic of these three binary options strategies, and provide you with links to all relevant fields. It is the perfect starting point for you to create your own binary options strategy.
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1. Trading strategy
Binary options are short term investments. Therefore, timing is just as important to your success as correctly predicting the direction of the market. Your binary options strategies for trading should clearly define the signal you want to trade, and when you want to enter the market when the signal occurs. Based on technical analysis, there are a number of possibilities: Trading the breakout: You can trade the market breaking out of a continuation
or a reversal pattern. More accurately, you have to define whether your will invest in a binary option in anticipation of the breakout, in reaction to the breakout, or in reaction to the pullback. Which option you chose depends entirely on your preferences. Trading trend lines: Trend lines can be traded the same way as support and
resistance levels. You can invest in the impending turnaround when a trend approaches a trend line, and you can invest the price breaking through a trend line.
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Trading percentage retracements: In a trend, retracements usually end at a
percentage of 40 to 60 percent of the prior advance. Investing in a turnaround in price direction around these levels of a retracement can provide you with good trading opportunities. Trading the gap: Sometimes prices take a big jump in either direction. The
created gap is likely to close again. You can invest in the closing of the gap with a binary option. Trading technical indicators: Technical indicators can provide you with great
insight to what the market is doing. Applied the right way, technical indicators can also generate signals you can trade with binary options. Trading candlestick formations: Candlestick formation can provide you with
short term indications about future price movements. By being able to recognize and interpret candlestick formations, you can find many attractive trading opportunities. Trading a combination of these techniques: Only the most risk-tolerant traders
should base their trading strategy on only one signal or technique. Usually, the results of your strategy can be improved by combining techniques. For example, you could trade Candlestick formations in the direction of the main trend around percentage retracements. A strategy like this should help you win a
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2. Money management strategy
Without a good money management even the best trading binary options strategy will ruin you eventually. In binary options, you will inevitably lose some trades. Therefore, the main goal of your trading approach cannot be to win all trades, but to win enough trades to end up with a net profit in the end. Money management is the tool that will help you achieve that. Good money management consists of a number of rules, most importantly that you should only invest a fixed small percentage of your overall capital in one trade. This percentage should not be higher than 5 percent. 3. Trading on signals strategy
Many binary options strategies depend on technical analysis where you look for certain patterns in the way the price of an asset moves, and try to make predictions about future price movements based on these patterns. This is a great methodology. It enables you to gain a deep understanding of the markets, and use this knowledge to make money.
TIP: The best way to build the right money management strategy is to use
an automated trading tool. Today there are many binary options trading system that can analyze tones of financial data and to give you more than 94% accuracy.
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How to base your binary opons strategies on signals? Signals are simply recommended trades generated by very sophisticated pieces of software. These programs absorb and process enormous amounts of market data and uses advanced algorithms to identify good trading possibilities. This might sound almost like cheating, after all computers are tremendously good at this sort of thing, but there’s no need to worry. There are essentially two different binary options strategies that you can use that are both based on signals. The first is to subscribe to a signals provider. This is a company that has as its only function to identify promising trades. They use their own computer algorithms to do this, often in combination with personal expertise and market knowledge. By subscribing to a signal provider you receive a certain amount of signals in return for a monthly fee. The cost is in most cases around $100 per month. There are a lot of signals providers out there. Take care when choosing a provider. Make sure they provide signals with a strike rate in the region of 70% – 85%.
How to base your binary opons strategies on robots? The second strategy you can use that is based on signals, is employing a robot. A robot is a software that is even more advanced than the ones used by signal providers. A binary robot also processes huge amounts of data and uses algorithms to identify promising trades. It also does one more thing - executes trades on your behalf. This means that by using a robot you are effectively outsourcing all your trading. An automated system will scan the markets, do the analysis and even take care of the decision making process. This offers a number of advantages. 5
If you would like to go with a robot-based strategy, we recommend you sign up with this provider. Your Binary Options strategy determines whether you will win or lose money as a trader. Many traders, therefore, are constantly looking for a better strategy to increase their profits. Our best suggestion to users would be to get started with a truly genuine piece of investment technology. A fine example of such would be the HBSwiss System. It has very high return rates, thanks to the fact that it features a unique Swiss trading principle. If you are looking for alternative strategies our team would recommend you to choose one of the following automated tools – this way you can maximize your gains and minimize the risk of financial losses.
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2. Which kind of Binary Opons strategy is right for you? Is there such thing as the perfect binary options strategy?
In real life binary trading, the winning percentage of each strategy will be relatively constant. The percentage of successful trades, however, will vary greatly, depending on which trader applies a certain strategy. If you like to be right, you should choose a Binary Options Strategy that will guarantee you a high winning percentage, even if the return per trade is not as much as with a more risky strategy.
See a list of strategies with high winning percentage Click Here.
If you can live with winning only slightly more than half of your trades, and if the prospect of many losing trades in a row does not scare you or make you abandon your strategy, a more risky Binary Options Strategy might be better suited for you.
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A Binary Opons strategy must suit your character There is no such thing as a perfect strategy for every trader. There is only a best strategy for each individual trader. You should not simply copy what someone else is doing or choose a strategy because of the money it mathematically can generate if you apply it perfectly. The success of a strategy is determined by your ability to follow it as close to 100% of the time as possible. Choosing a strategy that suits you, your tolerance for taking risks, and your tolerance for being wrong is far more important than choosing a strategy with high potential return that you cannot apply. Chose a strategy you feel comfortable with and that will generate a profit. When you are new to Binary Options it may be a smart idea to try several strategies with a demo account before you use them with real money. This way, you can eliminate strategies that are not working for you without losing real money, and you can learn about your own preferences. 60 Seconds Binary Options Strategy will provide every trader with a greater insight
to how the market works. To create your own 60 Seconds binary options strategy first of all, you can look for trends in short time frames. These trends are short lived and most of the time does not obey to trend lines as strictly as trends in longer time frames. Therefore, you have to be quick when trading them. As a 60 Seconds trader, you have to work with less secure predictions than other traders. On the other hand, you will have an abundance of trading opportunities compared to other strategies. A 60 Seconds binary options strategy can generate tradable signals every few minutes. This means, although you have to accept a higher percentage of losing trades, if you still manage to make a profit, a 60 Seconds binary options strategy can help you make a lot of money in a short time.
Read More About The 60 Seconds Strategy Click Here.
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Candlestick Strategy - A candlestick chart is used to visualize the price movement
of an asset. It can compress all the information of a given time period into one candlestick. This enables you to get all the important information you need quicker than with a regular price chart, and derive even more information, which you then may use for your own candlestick strategy. Each candlestick represents the price movement of a certain time interval from a few seconds to days, and consists of a body and a wick. The body represents the opening and closing price of the asset in the given time period. If the closing price is higher than the opening price, the body color is white and the candlestick is classified as bullish. Is the closing price lower than the opening price, the body color is black and the candlestick is bearish. Sometimes the body colors are replaced by red and green, grey tones, or other colors. These color schemes work the same way. Candlesticks create patterns and formations. These formations can consist of one single candlestick with a special form or more candlesticks that create a certain pattern. A skilled trader can use these formations to predict future price movements.
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74 – Big-black-candle - The Big Candle is an example of a formation created by a
single candlestick. The Big Candle is characterized by an unusually large body that opens and closes very near the maximum high and low of the time period. If the candlestick is white, this likely indicates the beginning of a longer bullish movement. If the candlestick is black, this likely indicates the beginning of a longer bearish movement. You can use this information to purchase options in the direction of the candle and predict further price movements in this direction. In a smaller timescale you should use options with a shorter expiration time, for example 30 seconds or 60 seconds options if your timescale is one minute or less. The larger your timescale is, the more option types you can use. Double Up Strategy - The double up strategy is a strategy which any binary options
traders are using to maximize their profits. This strategy does not require any chart study or complex analysis and is very easy to understand and implement. It is used when a trader is in a strong positing and the investment is looking very good to make profit. Using this strategy the traders can double up their initial invested amount while the parameters will stay the same as when the original investment was made. There are some downsides of this strategy. It is useless if you losing or you are not in a very strong position. This is also important to understand that the double up strategy is basically a feature and all the binary options brokers do not offer it.
Strategies for Boundary Opons Boundary options are binary options with a higher payout than High/Low options that do not require you to predict the future market direction exactly. They take away the hardest part of trading while rewarding traders with a higher payout. Boundary options provide you with the unique advantage of not having to predict in which direction the market will move in the future. You can win your option by simply predicting that the market will move far enough in either direction. To win your binary option, you only have to estimate how far the market can move over a given period of time. 10
To know how far the market can move in the three periods until your binary option expires, you can use momentum indicators such as The Average True Range. The ATR calculates how far the market has moved with each single period in the recent past. By multiplying the ATR’s value with the number of periods until your boundary option will expire, you get the maximum market movement in this time. To use this kind of strategy, you do not need to generate a trading signal.
Strategies for Short Time Frames Short time frames feature a very unique market environment that requires special strategies. To become a successful binary options trader, you should not try to predict what you cannot predict. You have to change your approach to trading. Instead of trying to predict whether an asset will rise or fall, you should use a more gambling type strategy. With this kind of strategy, you are not trying to predict what will happen. Boundary options are the ideal asset for short time frames, because they do not require you to predict which direction the market will move in. All you need to predict is whether the market will move far enough. That is perfect, because that is what volatility indicators are for. Volatility indicators such as the ATR tell you how far the market has moved on average over the last few periods. You can use this knowledge to predict how far the market can move until the boundary option your broker offers you will expire.
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Strategies for Currencies Currencies are one of the most popular and most used asset types to invest in a boundary option. Currencies are not only influenced by the supply and demand created on a stock exchange, but also by supply and demand created by fundamental influences such as imports, exports, and people exchanging currencies privately. You can use both factors to create the perfect trading strategies for currencies: Trading long term trend lines
Binary option are short term investments. Therefore, you cannot profit from the typical long term trends in currencies directly. You can, however, profit from them indirectly. Long term trends have a significant influence on the market. This influence translates to shorter time frames: When a long term trend line dictates the market to turn around, you can trade this reversal on a shorter time frame. Trading the news
Currencies are heavily influenced by fundamental factors. News about a change in an important fundamental factor will have an immediate, significant impact on a currency pair. When a central bank increase or decrease its base rate or prints new money, for example, the market will react strongly. As a trader you can use these events to win a binary option. Since you do not know which way the market will react but know for sure that the market will react strongly, scheduled news can also be a great opportunity to invest in a boundary option.
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Strategies for High / Low Opons High/Low options are the binary options type that can generate the highest winning percentage. These options require you to predict whether the market will rise or fall over a given period of time. You will win your binary option if the market has moved by only one pip in the right direction. Here are a few strategies you can use to successfully High/Low options trade: Trading the breakout is one of the most commonly used strategies with binary
options. Breakouts are significant events that occur whenever the market completes a chart pattern, such as a continuation pattern, a reversal pattern, or any significant event in a trend. Many conventional traders have placed stop orders or limit orders at these points, which all point in the same direction. When the market triggers the price level, it triggers these orders and creates a sudden surge in supply or demand. This surge will create a strong movement called the breakout. You can use the breakout to win a binary option. Trading moving average crossovers - For this strategy, simply use two moving aver-
ages: One with a higher number of periods and one with a lower number of periods. The moving average with the lower number of periods will follow market movements more closely, while the moving average with the higher number of periods will be slower to react. Swing trading - In a trend, swing traders try to benefit from each movement from
high to low and vice versa. This type of trading approach is perfect for High/Low options. When you recognize a weakening swing, invest in a High/Low option in the opposite direction of the swing. Use a medium to long expiration time of around five periods. The movement should have enough time to develop. While swing trading takes some time to master, it is a great strategy that generates many trading signals. Therefore, it is perfect for any trader trying to make money fast.
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Strategies for Touch Opons Touch options are a binary options type that provides the highest payouts of all binary options. A successful trader of touch options can make higher profits than with any other option type. Since the ATR predicts that the market should reach the target price in two periods, you know that you have a good chance to win this touch option. Should you find a touch option with an expiration time shorter than the predicted duration of the movement, you should not invest in a touch option. In that case, you can trade the breakout with a High/Low option. To trade this strategy successfully, there are a couple of signs you should know: 1) Future market movements are uncertain
When you are trading touch options, you are trying to estimate the volatility of future market movements. That is a hard task, since even that change the market environment could occur at any time. Therefore, the longer the expected movement has to last for the market to reach the target price, the riskier is the investment. New events could make the market turn around or delay the movement past the expiration time of your touch option. 2) Using a second indicator makes sense
To trade the strategy outlined in this article effectively, you could use a second indicator that generates the trading signal. With the ATR you can then evaluate whether it makes sense to invest in a touch option.
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Strategies for High Risk Traders a) Trading swings in a trend with touch options
If you diagnosed a trend, you can estimate how far each single movement from point 3 to point 2 and vice versa will move. This enables you to invest in a touch option and make a nice profit with each swing. The touch option will generate a high payout, and since you are trading every single swing of a trend, you will have plenty of investment opportunities. b) Trading breakouts with touch options
There are plenty of opportunities to trade breakouts: Continuation and reversal patterns, Point 2s, Resistance and support levels etc. If you want to generate many signals, you have to trade most of these opportunities. If you trade them with touch options, you will also be able to generate the high payout you need to make a lot of money in a short period of time. c) Trading gaps with touch options
If you are able to distinguish the different gap types, investing in gaps that are likely to close with touch options is a strategy that can help you generate high returns. Since the size of the gap lets you predict the range of the movement relatively exactly, you can win a binary option with a high payout almost every time you found a closing gap.
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In order to start trading binary options each trader is required to open an account with broker. The minimum deposit may vary according to the broker’s policy but it is usually around $250. We have tested more than 367 platforms and we have chosen for you only the best ones based on accuracy, withdrawal process, features, speed and customers’ feedback. You can open a FREE account – just choose one from the table below:
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