Tag Archives: binary options strategy

How to create your own binary options trading strategy?

This is the prime question for every enthusiast. How do I create my own strategy? Well, each trader usually comes up with a unique trading strategy, but they all follow the same steps along the way. First, you’ll need a software to provide live data feed. There are many free softwares with MT4 being the most popular. Once you’ve installed your Mt4, then you can start the process.

First step, you’ll need to load onto the charts the various native indicators of platform, from trend indicators to the oscilators. If you are a novice, I know this will be confusing and overwhelming. Load each and every indicator on your chart and just watch them for a while.

What are we looking? We are looking for buy and sell opportunities. The tricky part is to learn how to read these indicators properly. To create a trading strategy, you’ll first need to understand that there are basically 3main kinds of strategies; the trend, reversal and a combination of both.

How To Trade Binary Options

To become a successful trader, it is important to know how to trade. This is a question every trader has asked, at one point in his/her career.

Learning the basics: It is important to become familiar with binary options trading terms. Some of this include; Call, Put, In the Money, Out of Money, Expiries etc. After mastering these terms, you’ll be able to navigate binary options platform and know exactly what you are looking for.
Picking a Data source: Each trader should have an external source of data and not rely solely on the one provided on the trading website. It could be online charts or other trading softwares like Ninja trader, e-charts or the most popular one, Meta trader.
The next thing to do is to find a strategy that gives a profitable win-loss ratio. This is the most important, having a strategy that works. For novice traders, you could use charting softwares to create strategies using inbuilt indicators like Moving averages, Stochastics, Bollinger bands etc. Once you have a strategy that has an edge, you are ready to start trading.
The following step is obvious, you’ll need to create and fund an account in order to start trading. You can check out this page to see some of our recommended brokers. Before funding an account, it is important to look at the platform and see if it meets your requirements. For example the minimum and maximum per trade, minimum per deposit, and also to do some research and find out if the site is reliable. All this matters when you want to invest your money in a binary options broker

What are binary options?

Binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined quantity or units of some asset) or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff). The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security.

In Binary Options, you only need to predict either with a “Call” or “Put”. Binary Option trading has only two investment possibilities, either you win or you lose. After you select an asset, you will then predict whether you think that asset will go up or down in price. After the chosen expiry closes, if your prediction was correct, you will usually earn up to 85% on your original investments. If your prediction was wrong, you’ll lose all the money invested. Some Binary Options brokers usually refund 3% when your prediction was wrong, but this is not so common anymore.
Choosing an asset is the first step of your investment. Most Binary Options brokers offer a wide variety of tradable assets, from indicies to stocks, currencies and commodities. After choosing the asset, you’ll then choose an expiry in which you’ll predict if your chosen asset will appreciate or depreciate in value. After this step, you’ll then determine how much you want to invest. It is advisable to only trade or riskabout 5% of your account. This will help minimizes loses if they occur.

To trade binary options, you need to create an account with a binary options broker. You can create a Real account or a Demo account. After this step, you will need a profitable nd consistent strategy. This is the most important part. You need to be able to make proper market analysis in order to place and make profitable trades with Binary Options. Trading strategies determine your success in the markets. From Price action, to Fibonacci, Gann, Pivots, Custom indicators etc, you’ll need to find a profitable trading strategy and master it. Once this part is figured out, you can then trade without limits.

Williams %R Forex and Binary Options Strategy

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Developed by Larry Williams, the Williams %R is a momentum indicator that works much like the Commodity Channel Indicator or the CCI. It is especially popular for measuring overbought and oversold levels.

The scale ranges from 0 to -100 with readings from 0 to -20 considered overbought and readings from -80 to -100 considered oversold.

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The William %R shows the relationship of the close relative to the high-low range over a set period of time. The nearer the close is to the top of the range, the nearer to zero(higher) the indicator will be. The nearer the close is to the bottom of the range, the nearer to -100(lower) the indicator will be. If the close equals the high of the high – low range, then the indicator will show 0 (the highest reading). If the close equals the low of the high-low range, then the result will be -100 (the lowest reading).

The most common uses of Williams %R in Forex and Binary Options:

One method of using Williams %R might be to identify the underlying trend and then look for trading opportunities in the direction of the trend. In an up trend, traders may look to oversold readings to establish long positions. In a downtrend, traders may look to overbought readings to establish short positions.

Also, the Divergence between Williams %R and the price indicates that an up or down move is weakening. Bearish Divergence occurs when prices are making higher highs but the Wiliams %R is making lower highs. This is a sign that the up move is weakening. Bullish Divergence occurs when prices are making lower lows but the Williams %R is making higher lows. This is a sign that the down move is weakening.

Price Action System

With this strategy, we use support and resistance to predict the direction of price. This strategy uses new methods of synthesis in the financial markets, and it gives alerts in areas of pivots coupled with the speed of volume.

30 Minutes Strategy

For 30 minutes trades, you just need to sit and wait for a signal. The strategy for 30 minute trades is a simple and easy one to follow. It is a very effective trend following indicator. You can use the Trade Filter, to follow the trend.

15 Minute Strategy

The Grail collection also includes a very powerful strategy for 15minute trades. This strategy is precise and consistent. It is an MT4 indicator which also gives Buy or Sell Alerts. It is a great tool in predicting the direction of the market.

5 Minute Strategy

For 5 Minutes trades, we can trade with more serenity. This is the reason why some traders prefer 5 Minute trades to 60 seconds trades. The Grail Indicators for 5 Minute trades has made it simple. You only enter a trade depending on the trading signal received.