LeConfort” Trading Strategy

Published:6 December 2017 Updated:4 January 2024

The strategy is based on the use of two indicators, the classic CCI oscillator and Bollinger Bands. Two-level filtration allows to obtain high-precision trading signals. The entry into the market is carried out at the moment of the greatest deviation of the price from the “standard” value. The formation of such a situation precedes the onset of a short-term correction period. The price rollback is observed approximately in 70% cases. At the expense of it it is possible to receive quite good profit. The trading strategy “LeConfort” will help us in this.

 

Preliminary preparation

Trading will be done on PocketOption platformBut the technical analysis must be done in a special service. Live Chart from TradingView (go online). Basic functionality is available to everyone without the need to purchase a paid subscription, just register on the site. So, a step-by-step instruction on setting up everything you need to trade the strategy.

1. It is necessary to find the currency to be used. The standard choice is EUR/USD. It should be set on the Live Chart and in the trading platform.

2. Add the CCI (Commodity Channel Index) indicator to the chart. The settings should be as follows: Length – “40”, Upper Band – “180”, Lower Band – “-180”.

3. Add the Bollinger Bands indicator to the chart. There is no need to change the standard parameters.

4. Set the timeframe to 3 minutes. This is the optimal choice. There are too many false signals on M1.

Increasing the time interval of the chart upwards is inexpedient, because the trading platform Poket Options (go online) is focused on trading using turbo optionsThe main difference between the two is that they have short expiry times.

 

The signal to buy the option “Down”

To open a trade in the direction “Down” should be at the moment when the three criteria are met:

  • the line of the Commodity Channel Index (CCI) should go beyond the upper boundary (180);
  • The ascending (green) candle should go beyond the upper limit of the Bollinger Band;
  • The closing point of the candle is above the Bollinger Bands, the option is bought immediately after that.

Trading strategy for binary options "LeConfort"

In the picture above, there are 4 signals, only one of which is false. But even it could have been profitable if the expiration time of the option was 5-6 minutes.

On the trading platform it is impossible to set a time interval of 3 minutes, so you should choose 5M. For illustration, here is a snapshot of possible trading on the signals in a combination of the Live Chart and the Pocket Option terminal. The expiry time of the options is 10 minutes.

The signal to buy the option "Down"

 

The signal to buy the option “Up”

The conditions for entering the market are similar, but we should focus on the breakdown of the lower level of CCI (-180) and the Bollinger Bands. So, the onset of a short-term correction period is preceded by the following indicator signals:

  • the CCI line breaks the lower boundary and goes beyond it;
  • on the chart, the descending candle leaves the borders of the lower Bollinger Band;
  • entry into the market is carried out at the time of the opening of the candle outside the Wave.

The signal to buy the option "Up"

In the picture above, the green markers indicate two signals preceding the rise in prices. In addition, the CCI line has twice exceeded the upper limit of the channel. This indicates that 4 trades could have been opened in the time interval indicated on the chart, all of which would have been closed with profit.

 

Expiration and money management

Options duration should be chosen so that they are equal to approximately three Japanese candles in the TradingView window. In the standard case with a 3 minute timeframe, the optimal choice would be to set the duration in the Poket Options platform to 10 minutes.

Possible combinations of time intervals:

  • on the Live chart 3 minutes, in the trading terminal 9-10 minutes (the optimal choice);
  • on the graph 5 minutes, in the terminal – 10 – 15 minutes;
  • on the schedule 15 minutes, in the terminal – 45 – 60 minutes.

Capital Management rules state that in a single trade it is allowed to engage a maximum of 5% of the balance. The recommended investment in one option must be less than 1% of the deposit. The minimum investment in a trade on the PocketOption platform (go online) equals $1, from which we can conclude that it is recommended to trade with an account of more than 100 dollars, but not less than 20.

 

Conclusion

The considered strategy “LeConfort” is very simple in its rules. With its help, it is possible to receive about 1-4 signals per hour. It is recommended to trade during the American-European trading session, when the volatility of EUR/USD and other similar pairs is the highest.

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