A strategy for binary options with accurate signals is one of the most effective tools that allows you to get stable profits from trading. Stable capital gains can only be achieved when the best binary options strategies are available and all other rules laid down in the trading system are followed. It is important not to depend on any emotions, have a sober approach and understand that binary options trading is not a casino, but a serious business. And serious business implies a serious approach, which is only possible if a profitable binary options strategy is used.
All strategies and indicators on the site are for informational purposes only and do not constitute a call to action. You must make all decisions yourself and take into account all possible risks.
That is why the best strategies for binary options are not always based on indicators alone, as it may initially seem, and a professional trader uses other knowledge and skills, which may include completely different approaches and methods of trading binary options.
What is a profitable strategy and what should it be?
Profit is translated from English as “profit”. This is a system that will allow a trader to trade profitably. You can select it according to the following criteria:
- The percentage of profitable trades after testing is at least 60%-65%.
- Simplicity and a minimum number of tools for analysis.
- Accurate signals without redrawing.
Beginners are often looking for an effective, break-even system and are even willing to pay for it. Advertisements in which a supposedly successful trader says: “I’ll sell an ironclad strategy” are often found on the Internet. But buying such a “grail” is risky. You can run into a scammer, lose the money that was paid for the author’s vehicle and your deposit. Draining strategies under the guise of being profitable are very often sold on the Internet.
You don’t have to give money to get the guru’s secret; you can learn market analysis for free.
Protective collar
An out-of-the-money put is bought, but at the same time an out-of-the-money call is sold.
Be sure to use the same asset. For the most part, traders prefer stocks as the highest quality securities option. The use of alternative solutions is permitted.
Interesting information: demanded by those who are in a long position. If you have earned enough money, but want to improve your current result, use a protective collar.
Trading with a period of 5 minutes
Taking trades for 4-5 minutes is the second most popular trading approach used by novice traders. Our website contains a description of new working schemes and vip strategies for trading binary options with a five-minute expiration.
Genesis Matrix
The strategy is based on a complex template that is used for Meta Trader 4. After installing the template, the chart will look like the screenshot below:
Genesis Matrix input
A downward signal occurs under the following conditions:
- The Genesis indicator showed 4 red dots.
- Both Stochastics are leaving the overbought zone.
- The candle closed below the moving average.
The template also has a dial indicator that emits a sound signal and draws an arrow when a signal occurs. Often it is delayed by 1-3 candles; if you trust only it, the effectiveness of the strategy may deteriorate.
You need to open a bullish trade provided that:
- Genesis showed 4 white dots.
- Stochastics are leaving the oversold zone.
- The candle closed above the moving average.
"Three Candles"
A simple approach based on candlestick analysis is to look for two patterns - Three Soldiers and Three Crows.
For a Call trade, the following situation is observed on the chart: during a downward trend, 3 bullish candles of approximately the same size appear, the “Three Soldiers” figure. This indicates a reversal and that you can enter into a trade, because a growing trend is likely to appear.
Three soldiers
For a Put trade, the opposite situation arises. The Three Crows pattern looks like 3 bearish candles that occurred during an uptrend. Their appearance indicates a downward trend reversal.
Figure in a bear market
Candles on the Three Soldiers and Three Crows patterns must comply with the following rules:
- The third candle, which comes last, should be slightly shorter than the previous ones.
- If all three formations of the pattern are too large, then this means that the price is moving very quickly, so strong pullbacks are possible. In this case, it is better to wait and not enter into a deal.
- The shorter the shadows of the candles, the stronger the signal.
- If the shadows are too long and follow the body of the formation, then this means that the patterns are not Three Soldiers or Ravens.
This strategy is best combined with additional indicator systems. To confirm the signal, you can use MACD, RSI and other indicators. The expiration period of transactions is 5-10 minutes.
Binary Gambit
This technique involves opening two opposite trades on the same trading asset and closing a losing position early.
If a trader bought an option and sees that the trend line is going in the opposite direction, he needs to open a trade in the other direction and complete the previous one.
Some of the money bet will be lost, but the second option will cover the losses.
Other free trading strategies for beginners on binary options that will allow you to open trades for 5 minutes are presented in this article.
A little about promotions
For some reason, many people believe that trading stock options will bring more profit than, for example, foreign exchange assets. But stocks are often low-volatility assets. However, newbies exposed to advertising often choose them for options trading. Shares are one of the types of assets that are very weakly susceptible to indicator analysis. They are best analyzed using news reports.
One of the ways to trade stocks without indicators is reporting trading. To do this, you need to carefully study all the nuances of the selected asset. The main thing is to find out with what frequency and at what time the company releases data on its profitability, sales level or traffic (for example, social networks). Such reports are published once every six months, quarter or year. It is on this data that you can make money by making decisions on transactions according to a positive or negative report on the stock.
Another way is to trade on the release of new products, services or business expansion. Sometimes this is a merger of two companies. It is necessary to follow the news of the company whose shares are selected for trading. On the day the news is published, the market is guaranteed to react to it with an increase.
There is a downside to good news. Often company news is not entirely happy. The reason for this may be fires in enterprises or factories, or equipment crashes (for example, in the case of Boeing). Both stocks and currencies and raw materials are affected by natural disasters, local wars and unrest in production or production areas (the war in Syria has repeatedly affected oil prices). Even the dismissal of some employees, the death of company owners or the dismissal of top managers has an impact.
All this needs to be taken into account and analyzed in detail not only what the company produces or what services it provides, but also in which country or countries its industrial facilities are located. It happens that companies receive their main income seasonally. This applies to airline shares or companies in tourist countries.
How to open a trade for 1 hour
One of the rules of binary trading is that the older the timeframe, the fewer errors there are. Therefore, trading with an expiration time of 30-60 minutes is very effective. You can download popular binary options strategies that traders actually use to make money on our website.
"Puriya Method"
According to this strategy, the following indicators need to be superimposed on the chart:
- MA (Mooving Average) with a period of 85, Linear Weighted method. Must be applied to Low.
- MA 75, method - Linear Weighted, to Low.
- MA 5, method - Exponential, apply to Close.
- MACD with the following parameters: fast exponential moving average with a period of 15, Slow EMA 26 and SMA 1.
It is better to highlight moving averages with periods of 75 and 85 in one color, and a fast moving average with a period of 5 in another.
A bullish trade is opened when the following conditions are met:
- A fast moving average crosses 2 slow moving ones from bottom to top.
- The MACD histogram has broken through the zero level from bottom to top.
You need to buy a PUT option if:
- A fast moving average crosses 2 slow ones from top to bottom.
- The MACD histogram has broken through the zero level from top to bottom.
The Puriya Method brings an average of 70% successful transactions. The chart timeframe should be M5 or M15, the expiration date should be 4-6 candles, that is, 30-60 minutes.
Advice for Newbies
For a convenient and well-perceived display, it is recommended to download the MetaTrader terminal; most of the necessary indicators are already in the download version, it is easy to use for analysis and is quite ergonomic. If this is not ultra-urgent trading for 15 seconds, then there should be enough time to switch between the terminal and the trading platform with options; the best option is if the size of the monitor allows - both terminals are in front of your eyes. In addition, this will eliminate any possible fraud with the chart and indicators on the part of the options broker.
As a reliable broker who doesn’t play tricks with quotes and excludes any manipulations with charts, I can recommend ]Intrade Bar[/anchor]. The broker has been operating honestly since 2021. Known as the fastest paying broker. The administration withdraws money on average in 10-15 minutes after submitting an application - these are the highest withdrawal speeds among competitors.
Long-term strategies
Long-term transactions are preferred by professionals, since such trading requires a large deposit.
“Breakout of the morning flat”
During the Asian session, market volatility drops significantly, and in the last working hours, when the opening of European exchanges is approaching, assets are in flat. To make money in such conditions, you must:
- Set the candlestick chart to the H1 timeframe.
- In the morning, determine the support and resistance levels on the asset in the flat.
- As soon as the first candle closes outside one of the levels, enter into a trade in the direction of its movement.
Sometimes there are false signals when, after opening, the next candle breaks the opposite level. In this case, you can reduce the loss and make a second deal with the same investment in the other direction, or double the second bet and count on profit.
Starfall
This is a strategy for trading company shares. Stock quotes, like currencies, are affected by news. Only here it is not world events that are more important, but those published by the company itself.
Unlike currency trading, when speculating on stocks, short-term transactions are ineffective. The impact of news on a corporation's image can last up to 30 days until the next one comes out. Therefore, the optimal expiration period is 5-12 days.
To conclude trades using the Starfall strategy, you first need to decide which stocks the trader will work with. It is better to choose securities of European and American companies, since they are characterized by increased liquidity.
After this, you need to wait for the report to be released. If its results turned out to be worse than the forecast, then a downward trade is opened. If it's better, get a promotion.
Forex intervention
The main advantage of Forex trading is the ability to hold a trade for as long as possible. Another advantage of Forex is hidden in the ability to set stop losses and take profits to minimize the risk of an open transaction. There are no such opportunities when trading options. However, there are movements in the Forex market that also occur in the options market. But when opening an option trade, we cannot protect ourselves with a stop loss.
Often, when reaching important levels, the price falsely breaks through them; the price also falsely breaks through the impulse of trend lines, lines of channels and volumetric accumulation channels. Why is this happening? This happens because below support levels, above resistance levels, above and below important temporary levels, Forex traders place their stop orders or pending orders. The market sees these orders, but even more so it sees their volumes. Therefore, one party, which is dominant on the current trading day, knocks out the other party's stop orders. Thereby increasing its dominance in the market.
Such short-term impulses are very clearly visible in volumetric accumulation. By accumulating volume, for example, with bears going down, some of the bulls open up in this corridor. They place stop orders on open orders below the support level or place pending buy orders on the resistance line. Next, an impulse breakdown occurs first of the support, then the price immediately returns to the borders of the corridor. But some of the bulls are no longer there. Their stop orders were triggered and they were knocked out of the market. There is also a sharp upward impulse followed by a return to the borders of the corridor. The price broke out, opening transactions on pending orders and returning back, closing all stop orders on these orders. Knocking the bulls out of the market again. After a couple of such impulses, some of the bulls are not in the market, thereby giving the bears the opportunity to accumulate more volume to continue the downward trend.
Such points need to be known and taken into account when deciding to open a transaction when trend lines touch or reach important levels. We highly recommend tracing such situations in history.
Author's systems for trading
The author's ones include unusual strategies for binary options that allow both beginners and professionals to earn money. They are available for free on our website. The methods are not necessarily complex, but they require non-standard indicators that are not available on the broker’s platform.
Orange - for any expiration
To implement this method, you will need a Meta Trader 4 trading terminal, as well as installed indicators and a template. After installation, the graph window will look like this:
Example of how the indicator works
We buy a Call option when:
- Histogram lines of the lower indicator Day Expl. painted white and located above the moving average.
- Day look drew a histogram up (white).
- The slow moving average on the chart (indicated by dots) is colored white.
- The fast moving average crossed the slow moving one from bottom to top.
Time to open a CALL option
We buy a Put option if:
- Day Expl is colored orange and the histogram is above the moving average.
- Day look draws the histogram down.
- The slow sliding one is colored orange.
- The fast moving one broke through the slow moving one from top to bottom.
Example of how the template works
Orange is suitable for almost any time frame, and the accuracy of the signals fluctuates around 70-80%. The disadvantage of this approach is that signals may appear infrequently, but this can be compensated for by tracking several assets at once.
WASP
The author's method, which can only be implemented in the MetaTrader 4 terminal, using non-standard indicators.
This is what the chart should look like after installing the template:
Moving averages and histogram in the terminal
The following indicators are used to determine the signal:
- 2 moving averages. They give the first signal to enter.
- Flettr - shows the presence of flat.
- AOAC Alert - indicates the emergence of a new trend.
- Semaphortrue - shows support and resistance levels (horizontal yellow line, not visible in the screenshot).
You can buy a bullish option when:
- The fast moving average crosses the slow moving average from bottom to top.
- The resistance line drawn by the indicator is far away.
- AOAC showed the emergence of an uptrend.
- Flettr has been redrawn blue.
A Put option opens when the following conditions are met:
- The fast moving average crosses the slow one from top to bottom.
- The level of support is far enough.
- AOAC says a downtrend is beginning.
- Flettr turned red.
The screenshot below shows when to place trades.
Example of how the template works
The minimum expiration period is 5 minutes. But the system can be adapted for any timeframe.
Trading from support and resistance levels
Support and resistance lines are a basic tool of technical analysis. The support level is based on an upward trend based on local lows. The resistance line is established by speculators in a downward market at the highs.
Support and resistance levels
If the candle touches or breaks through one of the levels, then the trade is opened for a rebound. This is a simple binary options strategy for beginner traders. It can help a speculator make a profit. However, it cannot guarantee the result. The price does not always bounce off the level or does not do so immediately.
Married put
Another way to go through options trading with a competent trader. The meaning is simple: the owner of the asset must simultaneously become the owner of the put option. In this case, the number of put options must be equal to the number of shares the player has.
The strategy is in demand by bulls. They are purchased if a “bullish” market reaction is expected. Buying protects against minor or short-term price declines.
Interesting information: some traders consider the strategy as a kind of fuse that protects against additional losses and can provide a guarantee of profit.
