Binary Options Factual Guru Strategy

With all honesty, it’s hard to understand how and why they came up with the name. Probably, their reason is that they simply want to lure people through a unique name. When people usually hear the term online “Expert” and “Guru” they would walk away. However, depending on the reputations, it’s sometimes great to satisfy your curiosity. So giving The Factual Guru Strategy might be sort of an adventure. When you try it, you will notice that it uses ADX (average directional index) which is a plus. It also uses Japanese Candlesticks and Fractals. These details will be explained in the following paragraphs.

FRACTALS – WHAT ARE THEY?

Bill Williams created a very useful trading strategy and his strategy he makes use of Fractals. These are not the same as the fractals in Mathematics. All you need to know about fractals in trading is that it is considered bearish when it is in a five candle formation and formed when the middle candle’s high is higher than the two candle’s high to its left and the two to its right. When you talk about bullish fractals, this means that there is a 5 candle formation wherein the middle candle’s low is below the other candle’s low. This might seem too complicated to imagine, but you will get it when you become too familiar with such concepts. Identifying bullish Fractals might also seem difficult at first but this is actually a quite simple thing because there will be a gray arrow that will automatically appear once a fractal is noted by the indicator. Do not fret because there is actually an indicator that will guide you. Here is how it looks:

fractal example

With the Meta Trader 4, you can benefit from ADX and Fractals indicators. You can simply see them when you click “insert” then “indicators” then “trend” then “ADM index” and then “Insert.” Once you have clicked insert you need to click on “Indicators” then Bill Williams” and finally “Fractals.” This then shows fractals on charts. You just need to take note that the Fractal is that 5 candle formation. The arrow may not show when the candle isn’t closed. On the 3rd candle’s opening after where the Fractal showed is where any trade shall be entered.

USING THE FRACTAL GURU STRATEGY

The Fractal Guru Strategy greatly relies on ADX. Calls are only taken when ADX is going up and the line (green dotted) is on top of a red dotted line. Additionally there is an entire Fractal that appears wherein all the five candles close). Just be careful because you just need to trade if the candle related to the arrow has a wick that is long and is pointing to the Fractal and the shorter wick is on the opposite side.

fractal strategy example

CALL ENTRY:

  • ADX blue line is going up
  • Green line which is dotted has to be above the dotted red line
  • Uprising or bullish fractal has to be established

PUT ENTRY:

  • ADX blue line is going up
  • Green line which is dotted has to be below the dotted red line
  • Downtrending fractal has to be established

WHY IS FRACTAL GURU STRATEGY BAD?

This strategy is too much to handle for any newbie. The ADX lines can be easily confusing. What is more confusing for newbies are the five candles, entry points, openings, and when fractal arrows appear. Basically, this strategy is not advisable for novices. Or, if you are a risk taker and you have a lot of time to analyze it then you can surely use it. Moreover, the strategy comes with an ADX rule and it is quite subjective and it can leave you in doubt or lost. There is some vague stuff noted by the creator. One unclear thing is if the ADX will be on trend if the blue line will steadily rise. This does not seem wrong though but it still sounds vague. You can still ask how long will that steady rise be? And when do you consider values safe? Probably an experienced trader can clearly understand this.

WHY IS FRACTAL GURU STRATEGY GOOD?

Even though it might seem a pretty complex strategy, it is still founded on good principles that can create a promising trade probability. This means that you trade with trend just as long as ADX is going up and the retracement is the Fractal formation. When you want to be involved in a trend then this is the ideal time (after retracement).

FINALE

Strategies that guide you on trend following are always beneficial. They offer good and promising points of entry. However, ADX may not be the most ideal indicator for trend especially when used as the major indicator and in a strategy. The truth is that fractals are really complex for their specific purpose and they can be easily revamped. Generally, the principle behind the Fractal Guru Strategy is great. But tools used for it are quite subjective and can add too much confusion.

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