Best Binary Options Strategies: Effective Strategies, Secrets and Tips

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

When working with binary contracts, traders use specialized trading tools. These include various technical indicators, charting, 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 are time-tested and experienced by thousands of traders.

Types of trading strategies

Any technique used by a speculator has mandatory parameters and a checklist necessary for its implementation. All rules in the strategy are combined into a system. To achieve positive and really good results, you must strictly follow all the 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 binaryoptions:

1. Methods for a calm market (flat systems).
2. Strategies for trading during strong moves, momentum and trends.
3. Short term techniques for Turbo options.
4. Long term systems.
5. 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 his forecast for further trading. This is a very important trading parameter that must be taken into account.

Financial market conditions:

1. Flat.
2. Strong impulse movements and trends.

In order for trading to bring profit 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, trading 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 recovers and impulses begin to appear on it, this indicates that the number of bidders is increasing. Usually, during a short period of expiration, during large trend movements, quotes change by several hundred points. In such situations, there may be strong jerks, movementunstable and very often unpredictable. In this state, the market is quite difficult to predict analytically. Therefore, this factor is a mandatory 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 methods that meet the required parameters. You cannot use systems designed for trading in a flat with strong impulsive trends, and vice versa.

Time range in the financial market

The next factor to consider is the longevity of the deal. There are several types of binary contracts by duration: turbo contracts, medium-term and long-term.

Turbo options - expiration time can vary from a few seconds to 5 minutes.

Mid-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 binary options strategies always take into account the time range of the trade. For example, if a trader wants to trade short-term contracts with an expiration time of one minute, then he chooses Turbo Options.

Flat trading strategy

Among traders, it is believed that the best and most profitable strategies for binaryoptions 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, the trend or any impulse was over 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 predicted in advance by the speculator. All the best binary options strategies involve trading from high to low. They are called 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.

Trade Rules:

• Install the Zig-Zag technical indicator on the custom chart. This tool is available 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 with lines support and resistance levels.
• Buying an option to lower the movement - as soon as the candle touches the upper edge of the range, and the next one after it confirms the downward direction, you need to open a deal. In this case, the first candle will be a signal, and the second one will be a confirmation.
• Buying an option to increase the movement - the signal candle should touch the lower limit of the range. Confirmation will be the following bullish candlestick. That is, the market movement should be upward and quotes move up from support to resistance.
• Expiration time - one candle.

Depending on the timeframe of the chart the trader is trading on, each candle will have a specific time. For example, for M-15, the expiration period will be 15 minutes, respectively, for M-5 - 5 minutes.

Ladder strategy

Professionals advise beginners to use simple and understandable trading techniques in their work on the financial market. Among the best binary options strategies for MT4, traders consider the "Ladder".

The essence of the method:

To work with this method, you must have a sufficient deposit, as it basically has a system of doubling rates 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 a flat. The strategy has proven itself well and belongs to the category of the best non-indicator strategies for binary options.

Trade Rules:

• Timeframe from 1 minute to 1 hour.
• The strategy is used during trends and impulse movements.
• Expiration time - 1 candle.
• Buying a short option - the appearance of a signal bearish candle on the chart. The next candle that confirms it should also go down and completelycover her shadow. As soon as 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 one covers its shadow, you can enter the market. The direction of the market must be upward, that is, quotes must move up.

Additional information:

Bullish movement, or a candle formed during an uptrend. Bearish candle and direction - in a downtrend.

In case of unsuccessfully opened 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 doubled rate. Professionals, in order to avoid losing a deposit, do not recommend doubling rates more than two or three times. It should be understood that an increase in the amount of funds leads to a load on the overall balance of the trading account, and there may come a moment when it simply cannot stand it and resets to zero.

Third candlestick strategy

All the best binary options strategies are based on simplicity. The fewer technical indicators or any graphic constructions in it, the more understandable it is for traders, mainly for beginners.

Trading Features: The "Third Candle" strategy is based on only two instruments. To work on it, it is enough to make an analytical forecast of only two candles.

Trade Rules:

• Set two technical indicators on the chart - VarMov Avg3 and b-clock.
• Timeframe - М-5, М-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.
• Purchasing 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: be sure to wait for the second candle to close completely.

Five Minute Strategy

The best and most profitable binary options strategies always allow beginners to quickly master the patterns and fundamentals of the financial market and start making profit in the shortest possible time. For them, the "Five Minute" method, which is used by many traders, is also perfect.

Strategy features: only one indicator and Japanese candlesticks are used in trading.

Operating 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 the bottom up and the "Moving Average". The trend must be up. The second bullish candlestick should serve as confirmation, and after it closes, you can immediately open a deal.
• Opening a deal for a fall - after the intersection of the "Moving Average" and the bearish candle from top to bottom, andalso confirmation by closing the second candle, which has a downward direction. Quotes should go down.
• Enter the market on the third candle.

That is, the system works according to the principle: signal, confirmation, opening a deal. This method is used by many traders. They consider it one of the best 5 minute binary options strategies.

Double Stochastic strategy

Trading uses a lot of different instruments. Stochastic is a classic indicator that is used at the heart of many trading techniques. When working with binary contracts, the system of doubling rates is very often used. However, the "Double Stochastic" trading strategy is considered to be the best non-martingale binary options trading strategy in trading.

Features of trading: the use of one type of indicator in different time ranges. As well as the use of two chart windows for work.

Trade Rules:

• Set two technical indicators on the chart - stochastic. To do this, you need to use different windows. Let's say the first should reflect the M-5 timeframe, and 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. The Stochastic must be either in the overbought or oversold zone. Then, on a chart with a smaller timeframe, repeat all actions. To open a dealdirection in both windows must match.
• Buying an up option - both stochastics must have an uptrend and be in the oversold zone, that is, their indicators must have values from 0 to 30. Trading takes place on a higher timeframe, which determines the general direction. The lower time range shows market entry points.
• Opening a down trade - both indicators must be directed downward, that is, they must be in the overbought zone and have values from 70 to 100. They must match.

Three Elder screen trading method

This system is considered universal in trading and is used as a basis with the best strategies for binary options.

Features: work takes place simultaneously in three chart windows.

Elder screen trading rules:

• You can use any trading system.
• You need to set three windows with different time frames on the chart. For example, M-1, M-5, M-30, where the first screen will reflect the possible points for opening deals, the second - the work area, the third will show the general direction of the trend.

Important: trades are opened when the values of indicators on all screens match.

This method is suitable for different time ranges. It can be used with the best binary options tick strategies or for long-term trading.

Tips and tricks for traders

To make money in the financial market, every beginner must learn its rules and patterns. Particular attention should be paid to the analysis of quotes forecasting. Accurate and correct analytics will determine the correct entry into the market, opening deals and the trader's income.

The best binary options strategies for 60 seconds or with an expiration time of one hour always assume that the speculator will conduct an analytical market forecast or use ready-made analytics before starting work.

Professionals advise beginners not to rush and not to use Turbo options for the first time, but to choose an expiration time of 1 hour and trade on H1. The larger the time range, the easier it is to make a market forecast, as there will be less noise and various interferences that create false signals.