Simple scalping strategy «Neptune»
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- Strategies
With a small deposit, it is unprofitable to open transactions lasting several hours or days in order to get a couple of tens of dollars in profits. We will do this much faster: we will need a «Neptune» scalping strategy and binary options signals.
Strategy characteristics
Type: | Trend |
Timeframe: | Any in the range M1-M15. In our case, M1 is used, but with increasing period of analysis, the accuracy of the signal increases. |
Trading asset: | Any currency pair. 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%. |
Used indicators
The strategy uses three standard indicators.
• Bollinger Bands (BB). The indicator reports the direction and volatility of the current trend, and the horizontal movement of the lines will show flat − in this case it is better to stay out of the market, especially if the price moves in a narrow channel. When the range dramatically expands (see screen), you can use longer 10-15 minute binary signals and increase the transaction volume by 10-15%.
• Exponential Moving Average (EMA). The intersection of the Bollinger Bands midline or breakdown (rollback) from its borders will be a signal to open or close a deal. Open the option on the next candle!
• Awesome Oscillator (AO). The oscillator should finally confirm the signals of the previous indicators. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.
Binary options signals:
• CALL option. Price and Moving Average bounces off the lower border of the Bollinger Bands or cross its middle line from bottom to top. The Awesome Oscillator histogram is green, above or as close to zero as possible.
• PUT option.Opposite conditions: the price and the moving average cross the middle line of the Bollinger Bands from the top down, or fighting off its upper limit. Awesome Oscillator histogram of red colour, below or near the zero level
Time of expiration of options has to be not less than 3-54 minutes even if as a working timeframe it is chosen minute or 30-second, as in our video.
Recommendations about use
Novice traders should trade only binary signals at the zero crossings of the Awesome Oscillator. As you gain experience, you can use the histogram reversals up for CALL and down for PUT options;
• The longer the sideways movement of the Bollinger Bands continues, the higher the likelihood of a strong trend after its completion. In such cases, you can open trades at the first signs of a Moving Average reversal and strong binary option trading signals from vfxAlert;
• During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
• Time of expiration can be increased up to 5-7 minutes if the steady trend is observed. Also during such periods, it is possible to open several options with different validity period 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 it in profit!) at the emergence of an opposite signal!
Automatic trading according to the «Neptune» strategy is possible: several versions of binary option bot can be found on the network, but, like on any scalping system, it is better to trade manually using this scheme. This will allow you to more effectively tune the system to market changes, and the multicurrency properties of the strategy guarantee you a stable arrival every day.