Options Strategy 5 Minutes “Topping”

Published:4 September 2017 Updated:4 January 2024

Trade mode binary tradingwhich applies to contracts with 5 min. redemption is optimal in terms of the dynamics of capital increase and the rate of contract execution. Many investors use this particular trading mode for intraday trading on the options market. However, this approach to trading requires an investor to use highly accurate and most effective techniques of technical analysis. This is the approach we would like to offer you today. Topping” trading system is indicative strategy to evaluate trade quotes and execute contracts in a relatively safe financial mode. Our options trading technique gives a stable performance of 86% of profitable trading contracts.

 

Topping” trading system – platform selection

To get the declared indicators of strategy efficiency, comfortable and effective trading requires a platform of the highest professional level. The main parameters for selecting trading terminal in this case are the following technical and financial indicators:

  • Access to indicator services
  • Minimum possible start-up capital and cost of options
  • A set of high-yield assets
  • Options expiry period – 5 minutes
  • High payout rates
  • Accurate trade quotes
  • Maximum order processing speed

As an example of such a technological terminal, we suggest using the service from of INTRADE.BAR. This professional terminal fully meets the necessary requirements and has such performance indicators:

  • Set of 5 professional analysis indicators
  • The ability to trade with a start-up capital of 10 USD and contracts from 1 USD
  • More 80 assets
  • A wide range of option expirations
  • Payments on contracts from 97%
  • Highly accurate charts with market liquidity
  • Order processing speed 1.7 ms

Also pay attention to other reliable market platforms: PocketOption, Binomo or Binarium.

 

Technical toolkit of the system

In order to form a technical markup of the strategy template on the working chart, switch it to the timeframe of 30 seconds and apply the following list of algorithms of indicator analysis to the quotations:

The application of a large set of indicators and combined technical settings of the analysis tools open up the possibility to assess a large technical range of market indicators and allow you to increase the effectiveness of the trading strategy.

After installing the analysis tools of the trading system, a template of the following format will be formed on the chart:

Options Strategy 5 Minutes "Topping"

 

Rules of the system

For trading UP contracts it is necessary to use such a set of signals of technical means of the system:

  • WMA indicator lines followed the quotations of the trading asset crossed the average moving average of the Bollinger Bands indicator upwards
  • On the MACD indicator there was a break up the median of the scale by the oscillator lines

Rules of the system

For trading DOWN contracts it is necessary to use such a set of signals of technical means of the system:

  • WMA indicator lines followed the quotations of the trading asset crossed the average moving average of the Bollinger Bands indicator downwards
  • On the MACD indicator there was a breakdown of the median of the scale by the oscillator lines

Topping" trading system

 

Expiration

At the above settings of the technical means of analysis and quotations chart, the optimal trading mode of the strategy is the use of contracts with the maturity of 5 minutes. However, the versatility of the system allows to use it in other timeframe settings, where the options expiry range can vary significantly – from 5 to 30 minutes.

 

Money Management

Financial risks in the work of the strategy have a relatively low indicator, but it is not possible to completely avoid losses. To reduce losses and steadily increase capital funds it is necessary to use in trading bets with a risk level of 5% of the total amount of available funds. If the investor’s capital does not allow to use the specified rule of risk management, apply bets with the volume of value – 1 USD.

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