Channel Strategy for Binary Options “Roller”
The technical algorithm itself binary option makes channel trading fluctuations of quotations in the most optimal mode. This technical method of betting makes it possible to conduct market operations in a narrow time range and in two directions of market movement at once, which significantly increases the performance of investor trading. However, classic trading signals in channels do not always provide a guarantee of profit, so there is a need to use auxiliary means. It was as a result of experimenting with auxiliary services that the trading strategy “Roller”, which uses two levels of signal filtering with through the use of indicators. This approach to market forecasting makes it possible to obtain up to 89% productive contracts in a stable mode.
Conditions for the strategy to work
As for any other system for the successful work of the “Roller” strategy requires optimal conditions. In this case, attention should be paid to the access to analysis services, financial terms of trade, technical characteristics of the trading platform. We will need a terminal with this set of services:
- Graphic tool for building the price channel
- Standard indicators
- Functionality of setting the asset chart timeframes
- Fast technical mode of order processing
- Non-stop trading mode
- Maximum profitability level of contracts
- Low financial threshold of access to trading
As an optimal variant of the necessary trading service we propose to use the platform Binomo (bonus 100% to deposit by promo code REVIEWEEK100 – Activate), a broker with a good professional reputation. The resource of this operator offers partners such technical services and conditions of access to the market:
- A set of graphical tools for analysis
- Indicator kitintegrated into the terminal
- Trading chart timeframes in the range of 5 seconds-5 minutes
- Technical mode of order processing in 1.7 ms
- Non-stop trading format
- The level of profitability of bets – 87%
- The conditions for access to the market: the capital – $ 10, the amount of the minimum bet – $1
Strategy forecasting services
So, in order to generate highly accurate trading forecasts for trading, it is necessary to create a technical markup of the working chart. To do this, select the “Channel” service from the set of graphical tools and use it to form the current range of price movements of the market. Next, as an auxiliary means of generating signals, install the following set of tools:
- 3 SMA indicators with technical periods of lines 2/4/6
- Standard MACD Oscillator
After these settings, the following technical markup should be formed on the chart:
Trading rules of the strategy
Trading forecast for options UP is generated using the following system of strategy services indicators:
- The prices after reaching the lower level of the price channel turned up
- Movings of the technical indicator SMA crossed near the level of the channel up
- MACD indicator formed a reversal of the oscillator lines up
Trading forecast for DOWN options is generated using the following system of strategy services indicators:
- The prices after reaching the lower level of the price channel turned down
- Technical indicator’s SMAs crossed near the downward channel level
- MACD indicator has formed a reversal of the oscillator lines down
Expiration
The technical period of the option is set depending on the timeframe used to analyze the quotes. For demonstration purposes, we used the one-minute period of the chart, and in this mode, the optimal timeframe in terms of performance will be the following 5 minutes range. If you increase or decrease the timeframe of the working chart to calculate the expiration of the options use the rule of 5 candles.
Money Management
The optimal range of financial risks when using the strategy is trading contracts worth no more than 5% of the investor’s total funds. If such trading mode is not available due to lack of trading funds, use bets worth $1.
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