In working with binary contracts, traders use specialized tools for trading. These include various technical indicators, graphical constructions, signals, automated programs, techniques and a large number of ways to trade. For profitable and profitable work in trading, only the best strategies for binary options are used. All these systems have been tested by the time and experience of thousands of traders.
Types of Trading Strategies
Any technique with which a speculator works has the required parameters and a check list necessary for its implementation. All the rules in the strategy are integrated into the system. To achieve positive and really good results, it is necessary to strictly comply with all points of the trading method.
In addition, all systems are divided into groups that correspond to certain market conditions.
Types of the best trading strategies for binary options:
- Methods for a calm market (flat systems).
- Strategies for trading during strong movements, impulses and trends.
- Short-term techniques for Turbo options.
- Long term systems.
- Intraday strategies.
Each method is selected and calculated not only for a certain state of the financial market, but also taking into account time parameters.
Factors for choosing trading systems
Each trader, before starting work, conducts an analytical review of the market movement and makes its forecast for further trading. This is a very important parameter in trading, which must be taken into account.
Financial market conditions:
- Flat.
- Strong impulse movements and trends.
For trading to bring profits to the speculator, it is necessary to take into account the state in which the market is located. The movement on it is not always the same. Most of the time, the financial market is in a flat state. At this time, trade is sluggish and occurs in a certain range, which allows you to predict changes in market movement with high probability and accuracy.
When the market revives and impulses begin to appear on it, this indicates that the number of bidders is increasing. Usually for a short period of expiration, during large trend movements, quotes change by several hundred points. In such situations, strong jerks may be present, the movement is unstable and very often unpredictable. In this state, the market is quite difficult to analytically forecast. Therefore, this factor is an indispensable criterion for choosing the best binary options trading strategy in certain market conditions.
It is important to be able to correctly analyze market movements and determine those techniques that meet the necessary parameters. You cannot use systems designed for trading in flat with strong impulse trends, and vice versa.
Time range in the financial market
The next factor to consider is the long-term nature of the deal. There are several types of binary contracts in duration: turbo-contracts, medium-term and long-term.
Turbo options - expiration time can be from several seconds to 5 minutes.
Medium-term contracts - their time range is from 6-7 minutes to one day. Such trading, where options are used with an expiration time of one day, is called intraday trading.
Long-term contracts can reach from one day to several months.
The best strategies for binary options always take into account the time range of the transaction. For example, if a trader wants to trade short-term contracts with an expiration time of one minute, then he chooses Turbo options.
Trading Strategy for Flat
Among traders, it is believed that the best and most profitable binary options strategies work in a calm market, when the number of participants in it is minimal. At this time, it is easy to predict, and transactions bring good income for speculators.
Flat, or lateral movement is characterized as a waiting period. That is, a trend or any impulse was completed in the financial market, and it moved into the consolidation zone. Market participants have not yet decided in which direction they will continue to trade and their number is approximately equivalent.
The essence of the strategy: trading is carried out inside the lateral movement, the range of which was previously predicted by the speculator. All the best strategies for binary options involve trading from the upper to the lower level. They are called financial support and resistance in the financial market. Such a strategy is considered very simple and understandable for traders of any level of knowledge and experience.
Trading Rules:
- Install the Zig-Zag technical indicator on a custom chart. This tool is on almost every trading platform. If it is not available on the broker's platform, you can download it and insert it into the chart yourself.
- Define and mark lines of support and resistance.
- Buying an option to lower the movement - as soon as the candle touches the upper edge of the range, and the next one confirms the downward direction, you need to open a deal. In this case, the first candle will be a signal, and the second a confirmation.
- Buying an option to increase movement - the signal candle should touch the lower limit of the range. Confirmation will be the bullish candle following it. That is, the market movement should be upward and quotes should move up from the support level to resistance.
- The expiration time is one candle.
Depending on the timeframe of the chart on which the trader is trading, each candle will have a certain time. For example, for M-15, the expiration period will be 15 minutes, respectively, M-5 - 5 minutes.
Strategy "Ladder"
Professionals advise beginners to use simple and understandable trading techniques in their work in the financial market. Among the best binary options strategies for MT4 among traders is considered the "Ladder".
The essence of the method:
To work on this technique, you must have a sufficient deposit, since it basically has a system of doubling bets or Martingale. Trading using this strategy will only be profitable in a volatile market during the American or European session. This method is completely unsuitable for trading during flat. The strategy has worked well and belongs to the category of the best non-indicator strategies for binary options.
Trading Rules:
- Timeframe from 1 minute to 1 hour.
- The strategy is used during trends and impulsive movements.
- Expiration time - 1 candle.
- Buying a down option - the appearance of a signal bearish candle on the chart. The next candle confirming it should also go down and completely cover its shadow. Once it is closed, you can open a deal.
- Buying an option to increase - after the appearance of a bullish candle on the chart, and when the next shadow overrides its shadow, you can enter the market. The direction of the market should be upward, that is, quotes should move up.
Additional Information:
A bullish movement, or a candle, forms during an uptrend. Bear candle and direction - in a downtrend.
In case of unsuccessfully open positions, it is necessary to use the Martingale principle. To do this, after the appearance of a signal to enter the market, you need to open a deal, but with a double rate. Professionals, in order to avoid loss of deposit, do not recommend doubling rates more than two to three times. It should be understood that an increase in cash leads to a load on the overall balance of the trading account, and there may come a moment when it simply can not stand and will be reset to zero.
The Third Candle Strategy
All the best strategies for binary options mean simplicity. The less technical indicators or any graphical constructions in it, the more it is considered clearer for traders, mainly for beginners.
Trade Features: The Third Candle strategy is based on just two tools. To work on it, it is enough to conduct an analytical forecast of only two candles.
Trading Rules:
- Set two technical indicators on the chart - Var Mov Avg3 and b-clock.
- Timeframe - M-5, M-15.
- Expiration time - 1 candle.
- Buying an option to increase - after the formation of two bullish candles on the chart. The Var Mov Avg3 indicator should show two green dots.
- Buying a down option - as soon as two red dots appear on the chart, quotes will have a downward movement, and two red candles appear on the chart, you can open a deal.
Important: it is imperative to wait until the second candle closes completely.
The Five Minute Strategy
The best and most profitable strategies for binary options always allow beginners to quickly master the patterns and fundamentals of the financial market and begin to make a profit in the shortest possible time. The Pyatiminutka technique, which many traders use, is also great for them.
Strategy features: in trading, only one indicator and Japanese candles are used.
Work Rules:
- Set the technical indicator “Moving Average” on the chart with a period of 13.
- Expiration time - 1 candle.
- Timeframe from 1 minute to 1 hour.
- Opening a deal to increase the price - the signal will be the intersection of the candle from bottom to top and the moving average. The trend should be upward. Confirmation should be the second bullish candle and after its close, you can immediately open a deal.
- Opening a deal to go down - after the intersection of the “Moving Average” and the bearish candle from top to bottom, as well as confirmation by closing with a second candle, which has a downward direction. Quotes should go down.
- Entrance to the market on the third candle.
That is, the system works according to the principle: signal, confirmation, transaction opening. This method is used by so many traders. They consider it one of the best binary options strategies for 5 minutes.
Double Stochastic Strategy
In trading, a lot of the most diverse tools are used. Stochastic is a classic indicator that is used at the basis of many trading methods. In working with binary contracts, a system of doubling bets is very often used. However, the Double Stochastic trading strategy is considered in trading the best binary options strategy without Martingale.
Features of the trade: the use of one type of indicator in different time ranges. As well as the use of two chart windows for operation.
Trading Rules:
- Set two technical indicators on the chart - stochastic. To do this, use different windows. Suppose, in the first, the M-5 timeframe should be reflected, and in the second - M-15.
- Expiration time - 1 candle.
- Time frame from 1 minute to 4 hours.
- Analysis and preparation for trading - on a chart with a large timeframe, it is necessary to determine the direction of the financial market. Stochastic should be either in the overbought or oversold zone. Then, on the chart with a lower timeframe, repeat all the actions. To open a transaction, the direction in both windows must match.
- Buying an option to increase - both stochastics should have an uptrend and be in the oversold zone, that is, their indicators should have values from 0 to 30. Trading takes place on the higher timeframe, which determines the general direction. The lower time range shows the entry points to the market.
- Opening a deal to reduce - both indicators should be directed downward, that is, be in the overbought zone and have values from 70 to 100. They must coincide.
Trading Method "Three Screen Elder"
This system is considered universal in trading and is used as the basis with the best strategies for binary options.
Features: work occurs simultaneously in three graph windows.
Rules for trading on Elder screens:
- You can use any trading system.
- On the chart you need to install three windows with different time frames. For example, M-1, M-5, M-30, where the first screen will display possible points for opening deals, the second is the work area, the third will show the general direction of the trend.
Important: opening of transactions occurs when the values of indicators on all screens coincide.
This method is suitable for different time ranges. It can be used with the best binary options tick strategies or for trading in long-term trades.
Tips and tricks for traders
To make money in the financial market, each beginner must study its rules and patterns. Particular attention should be paid to the analysis of forecasting quotes. The exact and correct analytics will determine the correctness of entering the market, opening deals and the income of the trader.
The best binary options strategies for 60 seconds or with an expiration time of one hour always suggest that the speculator will conduct an analytical market forecast or use ready-made analytics before starting work.
Professionals advise beginners not to rush and at first not to use Turbo options, but to choose the time for expiration from 1 hour and trade on H1. The larger the time range, the easier it is to forecast the market, as there will be less noise and various interference that creates false signals.