Auto trade: take profit from the trend
- VFX Blog
- Strategies
Binary options on the current trend will always be the most profitable strategy on any asset. You can trade manually, but it's better to use auto trade from vfxAlert.
Connect to auto trade
Options will be opened without the participation of the trader, so for testing select demo account.
Trend (MA) signal from vfxAlert
The signal vfxAlert is determined in two steps. The first one determines the direction of the current trend. The classic strategy of crossing Fast and Slow Average is used:
On the second, we are looking for the conditions for opening an option according to the trend. The strongest signal will be the crossing of the Moving Average. You can open an option at the very beginning a new trend.
The next option is signals for the continuation of the trend. They give good results on expiration from 5 minutes.
The third option is a Fast reversal to a Slow Average or a breakdown of two Averages by one candle. The Fast Average reversal may be a leading signal of the start of a new trend before confirmation from the Average intersection.
The breakdown of two Moving Averages indicates both a reversal and a continuation of the trend. We look at the situation on the price chart.
Read more about Moving Average indicator in vfxAlert blog.
Auto option settings
The first step is to create a new trading preset with the following settings:
Disable minute signals and “weak” POWER values. Otherwise, you will get "auto scalping" instead of "auto trade" with false signals from the Moving Average and a quick loss of the deposit.
After the preset, go to the auto trade settings:
To confirm the vfxAlert signal, select the Trends indicator in the auto trade settings. For the M1 timeframe, past data on the Moving Average and Parabolic SAR are not used, this is another argument against minute signals. Read more blog about Trends.
Indicator settings for CALL and PUT option. For auto trade, always take only strong signals.
Auto option for 5 or 15 minutes opens only when the direction (up or down) of the vfxAlert and Trends signals is the same.
Auto trade example
An example from the video. The Moving Average on the chart shows why vfxAlert gave trend signal. In real trading they are not needed.
- UP option. Fast MA above Slow MA and big candle rebound from the support level (Slow MA) – continuation of the uptrend on EUR/GBP. Confirmation from Trends, auto trade opens an option.
- DOWN option. The reversal of Fast MA with fast breakout of Slow MA. Start downtrend after short flat at the end an uptrend. Trends indicator confirms the reversal and the opening of the auto option.
See more options in the video:
Recommendations about use …
- Always check the economic calendar before starting trading, especially automatic trading. Use auto trade only when there is no important news (-/+ 30 minutes of release).
- Remember that auto trade is only a robot and should not work as a "plug and play". Options are opened on indicators that are always delayed. Especially the Moving Average. The statistics of the Trends indicator filters out false signals, but they will always be there.
Keep auto trade under control, if necessary; change the parameters of the indicators.
- Auto+Manual trade. If you want to combine manual and automated trading, leave one asset in the preset. Then only one auto option will open and you can continue binary online trading according to your strategy without a big loss.
Summarize.
Trending auto trade is a good tool for stable profit on any asset and Forex trading session. The main thing is to remember about the delay of the Moving Average, to choose the strongest signals.
Money management is also important. There is no need to "take" the entire market, it is better to calmly receive 2-3% of the deposit every day.