How to make money on binary options. «Binary hibernate» strategy
From recent times, more and more traders are switching their attention to the origins of stock trading when choosing a decent binary options trading strategy, which contain simple truths and make it possible to build a profitable tactic for any type of option and time interval. The market remains the same, its essence does not change, changed are just trading styles. In this case, all traders are absolutely right, and we will consider a trading strategy that has worked before, works now and will work in the future, even if everyone starts trading "quad - options".
It is a long-term strategy and works for One-Touch options, which in terms of payout is up to 500% or even 600%, allowing to make trading mistakes and making it available even for beginners, since the loss of 100USD is followed by the 500-600USD profit. This means that we can get 4 losses in a row, and one profitable trade will reimburse all trading costs. But this is not the way this strategy is traded, because there are several times more profitable enters than the losing ones. So let us begin.
We will be using MT4 trade terminal to receive trading signals, indicators can be downloaded here. You may learn the procedure of indicators and trading template applying here. The chart will take the following shape as soon as you apply the required template to the traded asset.
We will consider trading signals on D1 timeframe and for the EURUSD currency pair.
Following indicators are used in trading:
- MA crossover signal, displaying the informative arrow on the chart that points the intersection of moving averages and accompanies the signal with sound alert and pop-up window;
- multiple period Moving Averages whose intersection coincides with the above indicator;
- Super WoodieCCI – an oscillator designed by the renowned trader "Woody" on the basis of the CCI indicator;
- RSI - an oscillator that shows the transitions from overbought levels to oversold levels on charts.
How do we make money with binary options? Search for the signals to buy!
Such signals occur when:
- MA crossover signal displays the up-pointing blue arrow;
- multiple period Moving Averages show intersection to the upside;
- Super WoodieCCI is in the zone above the zero line;
- RSI has crossed the 50-level yellow line to the upside.
Searching for the signals to sell
Such signals appear when:
- MA crossover signal displays the down-pointing red arrow;
- multiple period Moving Averages show intersection to the downside;
- Super WoodieCCI is in the zone below the zero line;
- RSI has crossed the 50-level yellow line to the downside.
Appropriate for trading with the given «Binary hibernate» strategy options are classic binary options as well as One-Touch and Below options, those requiring the long-term trend development guaranteed by our strategy.
We should choose expiration times of not less than 12 days. However, all trading assets that you want to use in this trading system need to be tested by you. In case you do not know how to do it, please read a quick guide on strategies testing.
For One-Touch and Below options, you must also select the above mentioned expiration times and do not forget about self-testing.
Back-testing the system on historical data as well as real time trading showed consistent and profitable results. One-Touch and Below options were in the money only approaching the zero profit level when classic binary options were already generating loss.
Classic options have the payout of only 75%-85% while the other two – not less than 500%. That said, we can make 4 losing trades in a row and have one profitable trade cover all the loss.
At the same time it is statistically proven that there are twice more profitable trades than losing ones. That means that trading a size of 100USD for 2 profitable trades generating 1000$ we get the 100$ loss, which just seems to be incommensurable with the received profits. Thus, this strategy shows how to make money on binary options without any risks in relation to the very real profits.
We set the lot size to 5% of the deposit because otherwise we would expose our deposit to the unjustified risk that would take long time to be made up.
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