Scooter – option strategy for beginner
- VFX Blog
The «Scooter» strategy is a profitable and simple trading technique for binary options. This is good for beginners - reliable binary options signals bring constant profit on short-term intraday trends.
Any in the range M1-M5. In our case, M1 is used, but with increasing period of analysis, the accuracy of the signal an increasing.
Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
All Forex trading sessions.
Percentage premium option:
Not less than 70-75%.
The strategy uses two technical indicators:
- Three exponential (EMA) averages with periods of 10, 20 and 30. Determine the direction of the short and medium-term trend. On a flute with high volatility, you can use the price channel, inside which you can trade (at least 10-15 points wide). A breakdown will become a binary signal of a new trend. This method is recommended only for experienced traders!
EMA(20) and EMA (30) are considered as «long» moving averages by which the direction of a trend is determined, EMA(5) will be «fast» moving average and the first signal for the opening of the option. Long averages on the chart are shown in one color.
- Two MACD (12,26,9) and (50,75,9). This indicator works both as a trend and as an oscillator instrument, so it will be the final signal to open an option.
After installing the tools, the terminal's working window looks like this:
Trade of binary options signals:
- CALL option. The fast-moving average crosses from down up both slow-moving averages with confirmation by two MACD indicators (one or more bars have to be above the zero lines).
- PUT option. The fast-moving average crosses from top to down both slow-moving averages with obligatory confirmation on the histogram of MACD (one or more bars have to be below the central line).
Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.
Recommendations for use:
- In this strategy, «slow» moving averages, except confirmation of signals, work as the trend filter. If the price punches two moving, and fast EMA (10) − only one, the transaction does not open even if on RSI there is a confirmation. Thus, we have additional protection against market «noise» and false turns.
- We monitor the binary trading platform for the release of important fundamental news and statistics. We do not open the option immediately after the publication, and, if possible, close the current transaction 15-20 minutes before publication;
- Expiration term. Look to steer a middle course: too short (1-2 minutes) and too long (10-15 minutes) option life is considered dangerous. In the first case, the price risks «not having time» to go in the right direction - we get a loss. In the second, the market will have time to turn around, which again gives a negative result.
- If the broker makes it possible to close the option before on expiration, we do it (even if it in profit!) at the emergence of an opposite signal - repeated reverse crossing of slow-moving averages at fast or the RSI chart changes direction relative.
After strong trends, RSI, like any other overbought/oversold oscillator, can “trample” for a long time in critical zones or around level 50, without crossing it. At the same time, EMA can give strong signals to open options. To take such signals to work or, not everyone should decide for himself, but still, it is better for beginners to wait for a fully formed entry point, according to which the «Scooter» strategy gives about 70-75% of successful binary options signals.