There is no perfect strategy, it is only strategy that can work for your personality and your style of trading. That is what you need to find. That is why even if the strategy is supposed to be the best, it can not work for you if you are not comfortable with it but it can be great for someone else. That is why it is good that you try and read many strategies and see what can work for you. So let us take at another binary options strategy.
HOW THIS STRATEGY WORKS?
I have to point out it is a simple strategy so it is easy to give it a try and see for yourself if it works for you. Only thing you will need here is to download this aprticular indicator, called Trend Winner:
Although it has this cheesy name it does the job done for this strategy. When you install the indicator, it will show you overall trend of the choosen asset and it will do so by changing the color from red to green and green to red. To put this into binary options trading, when you see green trend, then it is time for call only and when you see red, it is time only for put.
You now have some basic overview on how this works but we also need to determine when to enter the trade exactly. This is what you need to wait for, setp must be two one hour japanese candle bars of the same color as our indicator, trend winner is. The exact entry comes into place at the start of the third candle with the same color. Expiration time to use with this, should be 60minutes but you can also use higher time frames. For a higher win probability, it is suggested that the candles are in a slope motion, meaning there is a strong trend. Therefore it is not recommended to enter a trade when the price is the same height even though it is the same color, so make sure it is in a trend like shown here:
You can see white marked areas, each of them contains candles that are green colors and if you would take a call at each one of them at the begining of third candle, it would have been a successful trade. To make sure, here are entries you need to watch:
- When you see the trend winner indicator is in green color
- Wait for two candle bars turn green, one after another and in a slope
- Enter the trade at the start of third candle with a call
- When you see the trend winner indicator is in red color
- Wait for two candle bars turn red, one after another and in a downwards slope
- Enter the trade at the start of third candle with a put
WHY IS THIS STRATEGY BAD AND WHY GOOD?
As you can see it only works with a strong trend behind, so do not go into a trade if there is no trend since you will be out of your money. Of course you can easily avoid this by following the strategy rules, that is why it is good for you to keep with volatile binary options pairs. It is easy to follow the rules since it only wants you to determine colors and a slope. When you get this in order, you will have more winners then losers and that is the point.
As with every strategy, you have to follow the rules that are meant for it, otherwise it is not the same strategy and you will get frustrated. It also uses higher time frames which means it is even more reliable to use. I think it is great for beginners to try this out but as always, test it first yourself.