The most winning binary options strategy. Profitable binary options trading strategy. Characteristics of the Best Binary Options Strategy

In the TradingView public library, having previously opened a chart of any currency pair with a working timeframe M1-M5, we are looking for the following instruments:

1. MACD_VXI indicator - the name speaks for itself. The well-known MACD, but with minor changes made by an experienced trader
2. The DeMarker indicator is a trend indicator that will help determine the strength and extent of a trend, showing whether it is worth opening a position

The indicator settings can be left as default. After plotting on the chart, it should take next view:

Next, you can proceed to the search for entry points. In fact, to enter a trade, you need to wait for a double signal from the lower indicator (modernized MACD) and its confirmation by a trend instrument. In practice, it looks like this:

1. We buy Higher options when:
   • Both MACD_VXI lines crossed the conditional zero upwards
   • MACD_VXI histogram is in the positive area
   • The DeMarker chart shows a positive trend, and it should be within the boundaries of the shaded area. Be sure to pay attention to this point, because it is fundamental.

   An example of a situation suitable for opening a trade is shown in the figure below:

   
   

   A few more important points:

   • The red MACD_VXI line always crosses the median before the blue line and gives the trader a signal to get ready. After that, you need to wait for the control crossing of the level by the second line
   • Signal candle - the one on which you need to open a position is formed at the moment of crossing the conditional zero by the blue MACD_VXI line. Do not enter a position prematurely, even if there is a long time between crossings
2. For down options, the situation is reversed. We buy options of the “Lower” type when:
   • Both MACD_VXI lines crossed the zero mark from top to bottom
   • The histogram is also located below the zero level
   • DeMarker values ​​decrease but are within the shaded area

An example is in the figure:

Please note that the blue line highlights situations when MACD_VXI indicated the possibility of opening a deal, but at the time of the signal candle, the DeMarker chart was far outside the colored zone, which indicates an imminent market reversal. This means that it is impossible to enter a position in such cases.

For greater reliability, the strategy under consideration can be supplemented with one more indicator, which will be plotted directly on the chart. As such, any type of moving is suitable, or a more complex indicator at your discretion.

It is often added by those traders who find it inconvenient to focus on instruments that do not directly interact with the chart. The main thing is that the additional indicator does not conflict with the others. The expiration period of binary options should be 3-4 candles. You can trade on any major currency pair, and change the timeframe in the range from one to five minutes.

Trading digital contracts is associated with high risk. This axiom is familiar to traders, but beginners continue to look for tactics that would help close 100% of transactions in a plus. But are there win-win strategies in binary options? How to increase the percentage of profitable contracts? These questions will be answered below.

Tactics without losing: what is it?

Beginners think that win-win trading in binary options means making a profit in 100% of cases. However, in fact, such a term is applied to tactics with a ratio of profitable and unsuccessful orders of 3:1. The trader receives income in 75% of cases, that is, he remains in the black, does not lose money.

There are no tactics in binary options without losing. When searching for entry points, archived data is used. Indicators do not have time to react to price changes, so they give incorrect signals. There are ways to reduce the number of trades buried in the red, but it is not possible to reduce them to zero.

The network has videos for beginners with win-win strategies for binary options. The Olymp Trade website offers several similar tactics. However, there is no talk of 100% effectiveness. The broker provides statistics on the ratio of orders closed in plus and minus. According to the information, there will be unsuccessful transactions, but with competent trading, the profit under the contract will cover the losses, so the trader will earn some money.

Effective Tactics

The strategies described below will help you improve your trading performance. Systems allow you to earn income in 75% of cases. This means that it will be possible to cover the costs and earn if the trader fulfills the entry conditions.

Tactics "Flight"

Requires the use of indicators and ADX, which are available in the Metatrader terminal. The settings of the first one remain unchanged, the second period is set to 12. The timeframe of the chart is H1, transactions are opened for 4-5 hours (4-5 candles).

The "Call" option is activated when:

• The MACD histogram has gone beyond the 0 level upwards;
• The main ADX line is above 25, which indicates high market volatility;
• the green +DI curve is located above the red –DI.

A Put order is opened when:

• MACD histogram breaks through 0 from top to bottom;
• The main ADX line is above 25;
• The +DI line is located above the –DI curve.

The tactic is suitable for High/Low option types. 1-2% of the deposit is invested in the deal. Before trading, it is recommended that you familiarize yourself with the Economic Calendar. Trading is not carried out during the release of important news, as the indicators do not have time to react to price fluctuations.

Absorption model

Graphical analysis will help you make a profit. You will need to select Japanese candlesticks as the chart display, analyze the price curve and find patterns that indicate the market situation.

Often there is an engulfing pattern on the chart when one candlestick overlaps another. Finding it is easy, even for beginners. However, entering the market after the formation of each model is not recommended. The percentage of profit will be insignificant.

To earn income, you need to trade with the trend. With a downward trend, "Put" orders are opened, while an upward trend - "Call".

The strategy is suitable for trading turbo options and High/Low orders. The timeframe is selected from M1 and above. 1-3% of the balance is invested in the deal. Trading is not conducted during the release of important news. As an asset, it is recommended to choose highly volatile currency pairs.

Keltner channels

• Dotted (main curve, signal element);
• Upper red, located above the dotted line;
• The lower red one is below the blue dotted one.

The instrument takes the price into the corridor, the curve leaves it, but for a short time. Trades are opened at this point as there is activity in the market. You will need to wait until the candles leave the channel boundaries and buy the option. If the upper line is broken, the “Call” trade is activated, the lower one is “Put”.

For the Keltner Channels tactic, the classic type of options is suitable. During the period of a strong trend, trading of the "Border" and "Touch" types of orders is allowed. The minimum chart timeframe is 15 minutes, the expiration time is half an hour.

During the release of important publications, trading is not conducted. Up to 3% of the account amount is invested in the transaction. Profitability is up to 80%.

Dodge Trading

The candlestick chart is considered the most informative, so experienced traders find entry points without using technical analysis indicators. The bars have a variety of shapes that indicate the state of the market.

The doji pattern is a small body and a long shadow. He talks about the equality of bulls and bears in the market, but soon one of the parties will take the lead. When a Doji pattern is found, you will need to wait for the next candle, and then, based on its color, open an order.

When a green doji appears on the chart, you need to wait for the moment when a bar of the same color appears next, and then activate the “Call” option. When a red doji appears on the chart, you should wait for the formation of a column of a similar shade and enter into a “Put” contract.

The timeframe is selected from M1 and above. Orders are concluded for at least 1 minute. The bet amount is 1-2% of the deposit, the option type is “Higher/Lower”. Trading is not conducted when important publications are scheduled, so you need to check the calendar.

"Light in the Clouds"

The strategy helps to close up to 80% of orders in profit, based on candlestick patterns. A “gap in the clouds” is a model consisting of two diverse columns with long bodies, but the latter closes below the middle of the body of the previous one. The pattern indicates a sharp change in trend, is considered a strong reversal signal.

When a red candle is seen on the chart and then a green candle is formed, this indicates that an aggressive seller has entered the market. However, there is also a serious buyer. One of them will give way.

To activate the Call option, you will need to wait:

• a prolonged downward trend;
• the ascending candle will close above the previous one;
• 2 more columns will form on the chart, after the third one closes, the market is entered.

To open a Put order, you should wait:

• a long upward trend;
• the outgoing candle will close below the previous one;
• 2 more bars will form on the chart, after the third one closes, you can enter the market.

Strategy RSI_MA60

It is based on 2 indicators that are available in Metatrader 4. The settings for the instruments are as follows:

• MA with period 60, display type - Simple.
• RSI with a period of 14.

The timeframe of the chart is M15, but the tactics are also used in the intervals on H1, M1, M5. The expiration time is 5 candles. For trading, currency or commodity pairs are selected.

A Call deal is opened when:

• The price curve is above the MA;
• The RSI line was in the 0-30 range at first, and then moved into the 30-70 area.

The "Put" contract is concluded when:

• Price curve below MA;
• The RSI line was originally located around the 0-30 area, and then moved to 30-70.

The effectiveness of the strategy is 67-86%. Up to 5% of the balance is invested in the order. The classic type of options is suitable for trading. Trading is not conducted during the release of important publications.

SMA200 system

One SMA trend indicator is used to determine the direction of the trend. You will need to set the following settings:

• Period - 200;
• Shift - 0;
• MA method - Simple;
• Closing application.

The Call contract is activated when the price curve is above the SMA line and 3 candles in a row close with growth. The signal is strong, it indicates the continuation of the trend.

The “Put” option is activated when the price is below the indicator's moving average and 3 bars close down. This is a signal of a downtrend that will last for some time.

The recommended chart timeframe is M5, but it can be increased. The expiration time is 6 candles. When trading on small timeframes, the number of signals will be greater, but their quality will be lower. Any asset is suitable for tactics, the efficiency is up to 80%.

Conclusion

The strategies described above are win-win, despite the fact that they do not give 100% accurate signals. However, trading on them, you can close up to 86% of transactions in profit. But before using tactics in trading for money, it is recommended to test them on and understand the conditions for entering the market. If the systems do not show results, and with their help it is not possible to close more than 65% of options in plus, you should re-read the rules of trading or choose other tactics.

Patterns of price movement and much more. But every trading system has losing trades. Is there a strategy that always makes a profit? The one that can rightfully be called a win-win?

The advent of binary options opens up new opportunities for profit. They include both binary options trading itself and position hedging. Binary options hedging is definitely worth considering to hedge your positions against losses. The uniqueness of this is that with a competent approach, it is possible to almost completely eliminate losses, having received a kind of grail.

Over the past two decades, retail trading has evolved a lot, turning from a stupid clumsy animal into a simple and friendly creature. Binary options have done to the market what Forex did in its time - they completely changed the established market paradigm. For ordinary speculative transactions, nothing compares to the ease of use of binary options. Considering that all the parameters of the deal are known to you even before it is opened, financial results easy to predict, regardless of winning or losing. And this, in turn, allows you to control trading risks with accuracy previously unavailable.

In this simplicity, at the same time, lies the main danger of the newfangled instrument - it is very easy to lose a deposit on BO. This is especially true for novice traders. Given that no special trading knowledge is required here, beginners often do not take market risks seriously. The market does not spare weak players, taking full advantage of their inexperience. Only because of this feature, many have a negative attitude towards options, not seeing further development in this instrument.

In fact, not everyone knows that a variety of trading strategies can be used on options, including hedging. The point of hedging is that you get a much better ratio of profit to loss. Hedging cannot be fully called an arbitrage strategy, as some risk still remains. Most often, positions are hedged to reduce overall losses. That is, you kind of buy insurance for your position, which can subsequently save the position from large losses, or can only reduce profits.

You can hedge positions both within the same broker and with different ones. All you need to do is find an arbitrage situation where the outcome of the overall position will have a reduced risk on any outcome. Unlike forex, where two opposite transactions will simply compensate each other, on BO the difference in payments of two directions can be significant.

In fact, there are a lot of risk hedging strategies even on binary options. The fact that binary options have only 2 possible outcomes greatly simplifies the calculation of a hedging position. The key point is the time of entry. When and under what conditions you enter the market, the outcome of your transaction will depend.

In Search of the Binary Grail

Some brokers offer options with a partial return on unprofitable positions. That is, after the expiration of the contract, you get a part of its full value back, even if the contract was lost. Naturally, in this case, you get a reduced payout for profitable positions. The first thing that comes to mind is to use the described difference in payments in your favor.

There are brokers on the market offering earnings up to 100% of the invested amount. Also, for some types of options, in case of loss, a part of the contract value is expected to be returned, usually from 5% to 50%. In theory, if we buy two differently directed contracts at the same time, we get an arbitrage situation in which we remain in profit anyway.

Let's consider a situation on one hypothetical example. Let's say the option payout is 100% of the deposit. The first broker offers regular options with a fixed payout, the second broker offers options with a return on losing trades. That is, on the first option, we either make a 100% profit in the event of a successful transaction, or lose 100%. According to the second, we either get 85% of the profit, or lose 85% of the deposit in case of loss (i.e. we get 15% back). So what do we have:

As you can see, with such parameters, the strategy does not provide an obvious advantage, since the sum of potential loss and profit is zero. That is, in order to receive arbitrage, we need to receive at least 5% return on loss with 100% profit.

Grail research is useful for a reason - "If you look for one thing, you find another." They searched for the "philosopher's stone", discovered porcelain. A trader who sets himself the goal of finding a 100% option payout will discover interesting things: such payouts are possible on volatile options with a relatively long expiration period. Judging by how the interest payments on the contracts vary, there are many intermediaries in the brokerage market, so the search task is complicated by the requirement for the relative reliability of the companies found hypothetically suitable for hedging.

Below, the example will approximately show one of the algorithms for creating a hedged position in binary options of different brokerage companies. For simplicity of the topic, let's consider a simple hedge, collected on the classic binary options "Higher / Lower". As already mentioned at the beginning of the article, multidirectional positions will be opened for one asset at different dealing centers.

On the market in Lately, fortunately for the traders, options of the “0-100” type appeared. So they are called due to the payouts of 100% (all or nothing). What is the feature of such options - a free choice of expiration time. The complexity of finding the sides of the hedge is precisely that the payouts, compensations and expiration times coincide.

Having picked up such an option of the “0-100” type on one side of the hedge, on the one hand, we ensure a zero result of the transaction in case of an unsuccessful scenario, but on the other hand, with the correct prediction of the direction, interest on reimbursement will remain in our pocket.

We choose liquid currency pairs as contracts, the expiration period depends on the “reimbursable option”, and it is quite high - 4 hours. The option 0-100 is set according to this period. At the same time, we open multidirectional positions. After waiting for the expiration date, we get either a zero result or a 5% profit.

In the future, having worked out the tactics, you will be able to apply more complex designs and types of options, increasing profits up to several tens of percent per trade.

How to lose in a win-win combination?

• The profit of the hedging structure is not so great, it is worth thinking about market direction forecasts in order to get away from zero results if possible.
• On one account, funds will melt, on the other they will increase. For replenishment and withdrawal of the deposit, the broker can take their interest. Think over the starting amounts and issues of “transferring” the deposit from the account of one broker to the account of another.

• It is also possible that quotes from different DCs do not match. Consider these points when entering a position at the same time.

• Study thoroughly the calendar of economic events and the opening times of world stock exchanges. Do not open a position during the news release, you may not have time to “open at the same time”, and the price will fly away.

Also, not all binary options brokers are ready to offer such a high payout percentage. However, there are companies in the market that provide high payouts (up to 100%) on some types of options. These include Alpari. Binomo and ExpertOption brokers pay out up to 50% on losing positions.

Strategy modification

However, this is not the only virtually win-win strategy for hedging binary positions. We can also use the time factor to our advantage. Let's say you bought a Call option with a 90% payout, which at some point went into a profitable zone. Two options appear here: leave everything as it is, in which case you will either get a profit of 90% or a loss of 100%; the second option is to open an additional Put option with the same expiration time. In this case, if the outcome is unsuccessful, you will receive a maximum loss of 10%. In the same case, if the trade closes in the space between two positions, you will receive double profit - 180%. That is, the ratio of loss to profit will be 1:18.

Obviously, this way of hedging gives a great advantage over the market, greatly reducing the risk on the position and increasing profits. When repeating such a scheme, at each opening, one of the next positions will definitely come out in profit, covering the accumulated loss. It can be said to be a break-even system.

This strategy works best in a channel. You need to wait for the price to bounce off the channel border and buy the option in the direction of the rebound. Then, buy another option on reverse side, specifying the same expiration time. Trading in the channel greatly increases the probability of closing a trade between two strike lines and increases the number of profitable trades.

conclusions

When hedging binary positions, it is important to pay attention to the trading conditions of the broker and calculate the risks in advance. Also, it is not always possible to hedge a position within one broker. In this case, you need to open contracts in two different companies. The execution time of contracts must always be synchronized, otherwise the entire effect of using the strategy is lost. Position sizes, on the contrary, can be changed at your discretion. For example, if the forecast indicates a predominant move up, you can hedge the position with a smaller Put contract, leaving the possibility of making more profit with a successful forecast.

And do not forget to follow the stocks of brokers - sometimes, albeit temporarily, you can build very profitable schemes by opening positions in different companies.

Sincerely, Alexey Vergunov