«Twin» - exact binary options strategy
- VFX Blog
- Strategies
In technical analysis, there is a rule: the larger the timeframe, the more reliable binary options signals. But you can successfully trade basic indicators and short-term options, as does the strategy "Twin".
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 an increasing. |
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 two technical indicators:
- Alligator. Bill Williams indicator which will determine the current trend or its absence. It is a three Moving Average with a different bias relative to the current price. Lateral movement of all lines indicates the absence of a trend, we remain outside the market.
- RSI with a period of 14 and an additional level of 50. Trend indicators must necessarily be confirmed by at least one oscillator indicating an overbought condition when buyers can no longer move the price up or oversold, where there is almost no one in the market to sell at lower prices.
After installing the tools, the terminal's working window looks like this:
Binary options signals:
- CALL option. All Alligator lines are directed upwards, RSI punches center and level 50 from the bottom up.
- PUT option. Opposite conditions: RSI exits the overbought zone and breaks through the 50 level from top to top. All Alligator lines also go down.
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:
- The longer the sideways movement on the market, the higher the probability of a strong trend after its completion. In such cases, you can open trades at the first sign of an Alligators reversal (as shown in the picture) and a strong binary option trading signals from vfxAlert;
- Even in the minute timeframe, RSI rarely goes into the extreme zones and you can miss a lot of good deals. If Alligator and RSI start moving in one direction − you can open an option!
- 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;
- 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!
Intraday strategy «Twin» represents rather reliable system of a 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!
Automatic trading according to the “Pathfinder” 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.