Simple strategy «Follow the Money»

• VFX Blog
• Strategies

Beginners, thinking about how to make money on binary options, set a lot of indicators, arrows and alerts on the chart. Much information does not improve results. Simple tools are enough for stable profit as in the «Follow the Money» strategy.

Strategy characteristics

Type: Trend

Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal increases.

Trading asset: Any options trading signals. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time: All Forex trading sessions.

Percentage premium option: Not less than 70-75%.

The strategy uses three technical indicators:

• Parabolic SAR. Determine the direction of the short and medium-term trend. Indicator points are below the price and directed up - an uptrend. Higher prices and directed downward - a downtrend. 

• Donchian Channel (DC) − the horizontal direction of the DC lines confirms the presence of a flat, the breakdown of center lines will be the binary signal of its end. If the range is wide enough, you can open options to roll back from the borders. This method is recommended only for experienced traders!

• Vortex. The indicator consists of two lines showing the direction and strength of the trend. By default, the uptrend (viPlus) line is green, for the downtrend (viMinus) it is red. The line at the top shows which trend is currently on the market. The beginning of the flat will be the intertwining of lines as in "Alligator" followed by a horizontal movement.

The Donchian Channel and Vortex indicator are not included in the basic set of binary trading platforms. But it can easily be found for free on the Internet. In our case, this is the PocketOption broker.

After installing the tools, the terminal's working window looks like this:

Options trading signals:

• CALL (UP) - option. The price is above the P-SAR and the Donchian middle line. On Vortex, the viPlus line is higher than the viMinus line - there are more uptrend buyers on the market.

• PUT (Down) - option. Opposite auto binary signals: The price is below the Parabolic and Donchian Channels middle line. Vortex shows dominance of buyers - viMinus are higher than viPlus.

Open a trade on the next candle after binary options free signals. The time of expiration of options has to be not less than 15-20 minutes even if as a working timeframe it is chosen of 5 minutes, as in our video.

Recommendations about use …

• Scalping on the strategy on the cryptocurrency market requires preliminary testing. Here, market trends on exchanges may vary in duration. Switch to a timeframe of 30 minutes, where crypto binary signals are more reliable.

• The «narrower» the Donchian Channels, the higher the likelihood of strong movement after flat completion. The opposite situation is necessary for trading on the edge of borders: the corridor must be at least 30-40 points, otherwise, the options will be unprofitable, even if binary options software show the right direction;

• Time of expiration can be increased up to 7-10 minutes if the steady trend is observed. Also during such periods, it is possible to open several options with different validity periods to take away a maximum of the movement at minimal risk. If the broker gives the chance to close the option until expiration, then surely we fix the transaction (even if is in profit!) at the emergence of an opposite options trading signal!

• We do not trade on the output of strong fundamental news and statistics. The technical analysis stops working, the binary options copy trading signals are false.

Let`s summarize. Intraday strategy «Follow the Money» represents a rather reliable system of conservative scalping for trade in the stable market. Parameters of trade tools can be changed according to the current volatility. Once again, we remind you that most profitable binary options signals will only be on trend areas, during the flat periods we remain out of the market!