Trade strategy "Scalping on RSI"
Scalping or high-frequency trading on minimal price fluctuations is one of the fastest ways to increase your trading capital in a short period of time. But it is necessary to understand that when scalping on binary optionsThe risks of losing funds increase significantly. There are several simple approaches to optimize the overall result. One of them is a highly effective strategy with high speed of signal generation and high accuracy. So, we offer you the "RSI Scalping" strategy for trading.
Scalping on RSI - setting up the indicator
From the name of the system it can be understood that the strategy as a means of generating trading signals uses the indicator RSI. However, previously, to apply it to the trading chart, it was necessary to refer to an auxiliary service (terminals for binary trading do not support the work of this indicator). But everything has changed. The Company INTRADE.BAR continues to expand the potential of its platform and has integrated this, indispensable in trading, indicator. So, for scalping on RSI we will use the new platform Intrade.Bar (this strategy can also be tried in the terminals of other proven Binary options brokers: Binarium, PocketOption or Stars Binary). This will not only give us the opportunity to analyze our trading chart, but also allow us to manage trading capital and financial risks with a high degree of efficiency.
For scalping on RSI we need to configure the indicator correctly. To do this, when installing it on the chart, change its settings to the following:
As you can see, we have changed only the parameters for displaying levels, which determine the oversold and overbought zones. The thing is that during the price fluctuations on tick charts, the price reacts very strongly to such zones and if we leave the default settings, we may not get the full information about the price behavior in the extreme zones. The quotes will simply push back and constantly return to their levels and trend reversals will be difficult to detect. By changing the positions of the levels, we get wider overbought and oversold zones and can track the price behavior directly in such zones, which will be very useful for scalping.
A signal with a high probability of a profitable position on the up option is the reversal of the asset quotations in the oversold area.
A signal with a high probability of a profitable position on the DOWN option is the reversal of the asset quotations in the overbought zone.
Such reversal patterns of the RSI indicator are a highly effective signal for short-term options trading. This indicator reacts very accurately to short-term changes in the direction of quotations and is indispensable for high-frequency binary options trading. Applying this approach to trading is able to bring the trader good statistics, on average 80% trading contracts will close with a positive result.
Money management and expiry
RSI scalping, as we said before, is an approach to binary options trading with high risks. Applying the indicator on the new INTRADE.BAR platform (Go to the broker's website) directly to the trading chart, we have already been able to reduce trading risks, but we have not yet fully optimized them. In order that losses have minimal values and do not affect the state of the trading account, it is necessary to use the smallest amount of funds for the contracts. The optimal risk level for scalping is 2% of the capital amount, but this value of contracts should be used only with large enough volumes of trading funds. If you are engaged in high-frequency trading on a minimum deposit of 10 USD, then you should execute contracts only with the minimum value of 1USD. When scalping on RSI we use options with an expiration range of 60 and 120 seconds.
More strategies based on the RSI indicator: