Optimal Trading Time for Binary Options
The question of choosing the optimal time period for work on the binary market is of concern to most traders. Here, of course, it is worth noting that the efficiency and comfort of conducting trading operations by a market participant depends on his personal preferences and choice, but there are technical parameters of trading, which contribute to an increase in the result at a particular time interval of operation of stock exchanges. In our material we will analyze how the markets work and form optimal conditions for night and day trading, as well as provide recommendations for trading at the moments of maximum activity of financial markets.
So, given the round-the-clock operation of the world financial market and the possibility of using binary bets as a trading tool, the time of binary options trading can be divided into such periods:
- Day trading - the period of trading on the American and European trading sessions
- Night trading - trading on the Asian markets
- Trading at the moments of macroeconomic statistics publication - this is the period of maximum volatility of the underlying markets - is determined by the number and importance of market news during the day
So, what is the best time to trade binary options - this question should be considered through the prism of the effectiveness of the conditions of application of a particular trading strategiesas there are no complete universal forecasting systems. Some strategies work better during the day, others require optimal market conditions for effective trading, which are present at night. Let's consider optimal trading strategies for different time periods of binary trading.
Trading by day
At this time interval of the financial market, there are the maximum number of players who use a huge amount of trading funds. For this reason, during the day the quotes of the asset carry out active fluctuations and trend building. For effective prediction of such fluctuations the most suitable strategy, the algorithm of which is based on the use of automatic analysis tools indicators. This format of analysis is characterized by a high reaction to changes in market situations and the accuracy of trading signals, which leads to fairly stable results of trading operations. For example, applying a simple and accessible combination of technical means, you can get up to 90% profitable forecasts and significantly increase the profit funds in your trading account during the day:
This system uses indicators RSI, Alligator and MACDand also the principle of mutual filtering of technical indicators, which form the signal for placing a trade bet.
Optimal indicators for day trading:
- Using the most accurate and effective indicator strategies for forecasting
- Use of basic currency assets with increased liquidity of contracts
- Betting expiration range - from one minute to one hour
- Risk management with tight constraints
Under such conditions, the work on the day sessions of the financial market gives the best possible results.
Trading at night
This time of binary options trading is often ignored by the bulk of players. This is due not only to the physiological needs of traders, but also to the low activity of quotations of underlying assets. Asian sessions of the financial market are not so popular among the players, so here the minimum volumes of trading funds are used, which are not able to actively move the market. However, the low volatility of the underlying assets with the right approach is an advantage for traders rather than a disadvantage. The point is in the high degree of passive price movements forecasting. As an optimal forecasting approach here, we can offer graphical channel strategies based on price reactions when trend levels are reached:
Quotes at night move in narrow channels, which have either a horizontal direction or a minimum slope angle. In this case the quotes touching the borders of the channel in 90% cases turn around, which is the optimal mode for working with binary contacts. Thus, at a calm and measured pace it is possible to get maximum trading results.
Optimal conditions for night trading
- Using simple graphical or inductor trading strategies in channels
- Using assets with the highest possible rate of return
- Range of expiry of trading positions from 3 to 15 minutes
- Risk management rules with liberal indicators
Trading on volatility spikes
This trading mode is quite exclusive, but it has a very high efficiency. Among professionals it has the name "Trading on the news". Why we separately consider this time of realization of binary trading. The reason is that macroeconomic news and statistics which is often published at the moment of opening of the American session leads to a volatility surge which complicates the work of basic forecasting techniques and strategies. This is the reason in most cases to refuse from trading. But the right strategy used by professionals for many years leads to good results with low trading risks.
So, trading on the news is built on a very simple principle - bad news moves the market down and good news moves it up. Thus, by quickly assessing the data at the time of the publication of statistics, it is possible to make a trade bet with the maximum probability of profit. Optimal conditions for trading on the news:
- Time of release of the main macroeconomic statistics
- Use of currency and stock assets
- Expiry time of the bets from 1 to 3 hours
- Classic Risk Management
Thus, by creating a set of optimal binary options trading strategies for yourself, you can get high results around the clock. This is probably the main advantage of financial trading over other ways of earning income.