Saturday, October 26, 2013

Random Fluctuation Strategy for Binary Options

The random fluctuation strategy is the main strategy I'm currently using when trading binary options. The best times to use it are when the asset is in a range and not extremely active. The strategy is simple yet effective. you wait for price to spike toward a support/resistance line and you enter the trade toward where price was originally. It works best on the 1min chart but use the higher time frame charts to make sure the asset is in a range and not trending. Your winning % will probably be slightly lower, but the number of trades you can take is much higher that I have found it to be more effective than traditional price action. Here's a chart example of the strategy.
EUR/GBP 11-1pm est Fri 10/25/13 1min price chart, from freestockcharts.com
As you can see, over only 2 hours, there was 16 possible trades that could be taken and would have won at least 11 (2 you would lose and 3 could go either way). The trades you enter should have short expiry times. No more than 5mins and should be 2-5mins depending on the setup. Risk low amounts of money on these trades, since you have the opportunity to take a larger number. Set up lines of support and resistance on the previous spikes in price and trade in the opposite direction when price reaches that value again. Make sure the market is in a range and isn't trending. Trade when prices touches a point of support/resistance. Questions?

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