Binary Options Strategies 2015
60 Second Strategies & Ultra Short-Term Trading Binary options 60 second strategies have become very popular since their introduction a few years ago. Many of you may be aware that a certain Gordon Pape who has written an article on Forbes entitled ‘‘ suggests that the shorter the term of a financial instrument the more of a gamble it becomes: “.no one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame.” How ignorant! I have stood in futures pits and watched ‘scalpers’, with in-out time frames of less than a few seconds, consistently outperform hedge funds, investment trusts, pension funds.you name it. They were capable of an almost subliminal sense of determining which way the market was going in an extremely short time frame; in effect these guys were trading ‘noise’. I would have loved to have seen Mr Pape trying it.he would have failed. The advent of electronic trading has now brought in a new animal that trades ultra short-term and these new market entrants are known as High Frequency Traders (HFT) and are currently contributing to the greatest proportion of volume in the more liquid markets. They would not be achieving these levels of volumes if they were not consistently profitable and this is in spite of the increased costs of trading that they incur.
In a word Mr Pape, wrong! Just because you cannot successfully trade with an ultra short time horizon does not mean that others can’t. The following provides a few pointers as to how short-term binary options trading can be developed. Just remember, the scalpers did not obtain their nose for sniffing out ultra short-term movements overnight. Here are a few strategies you can use to trade it. Support and Resistance Strategy We surmise that the price of assets possess a tendency to advance in a sequence of waves with each wave possessing a top and a bottom. These constraints are assessed to be major reversal levels which can be readily identified by key.
UPDATE 2 - February 2015: I've decided to describe yet another beginner binary options strategy that I believe works perhaps even better than the initial Bollinger band strategy that this article was about. Nov 25, 2015 Binary options strategy for successful trading requires a cool head and a lot of planning. The market will test your determination and composure, so no matter what the outcome of your initial trades may be, stick to your binary option strategy. In this strategy tutorial I'm going to teach you two of the simplest and most efficient binary options strategies. UPDATE 2 - February 2015. Beginner Binary Options Winning Strategy.
A favorite 60 seconds strategy is to identify those times when an asset price clearly rebounds from these resistance and support levels. New binary options could then be opened in the opposite direction to that in which price was progressing before the rebound.
For instance, the next GBP/USD 60 seconds presents good examples about when to execute both CALL and PUT binary options. Essentially, whenever price rebounds against resistance, you should activate a PUT option. Binary options platform regulated. Similarly, if price bounces higher after striking support, then you should open a CALL binary option.
The first step in instigating such a strategy would be to detect a currency pair that has been range-trading for some time and then identify the resistance and support levels by either using or simply connecting the highest points for resistances and the lowest values for supports, as shown on the chart below. Execute some price testing of these levels then wait until the present candlestick confirms a true bounce by cleanly closing below resistance or above support. This action will provide you with some protection against false signals. For example, if a successful confirmation is attained, then open a new PUT binary option using the GBP/USD as its underlying asset with the 1 minute expiry time if price bounds against resistance, as displayed on the chart above.
By wagering $100 with a payout of 75%, you would have collected $75 for both the PUT options shown above. In fact, your initial wager of $100 would have exponentially increased to $937 for the four trades displayed above within 5 hours if you had reinvested your returns in each case. Follow Trend Strategy Another of the 60 second strategies that has gained in popularity recently is based on tracking trends. This is because such strategies allows the binary options trader to exploit the advantage of trading with the trend and, as such, comply with the well-known maxim which states that the ‘trend is your friend’.
The basic idea is to trail a trend and execute a ‘CALL’ binary option if price ricochets higher from the lower trendline when the underlying security is climbing within a well-established bullish passage. In contrast, you should activate PUT binary options whenever price rebounds downwards after hitting the upper trendline in a well-defined bearish channel. For example, the above 1 minute trading chart for the USD/CHF currency pair clearly displays a strong bearish trend. As you can confirm from studying this diagram, four opportunities for opening PUT options arose after price rebounded lower against the upper trendline. To instigate a trending strategy, you must first locate an asset that has been trading either a bullish or bearish trend for some time. You then need to draw the trendlines by connecting the series of lower highs for the upper trendline and the lower lows for the lower trendline in the case of a bearish channel, as illustrated on the above chart.