The strategy for binary options Canals trading
Almost in every web-terminal for binary options trading there are binary options for trading «Range» and «One-Touch», with which not many people trade. Of course, the given options are more difficult in comparison to classical option, where there are not strike-levels. However, look at the percent of paying out of profit for options «Range» and «One-Touch», which is on average from 150 % to 700 % (in dependence on the expiration time). That’s why, there is a question – why we miss the real probability to trade more profitably with the given market products. Moreover, there is nice and working method – canal trading.
So, for trading we need any financial asset, and also terminal MT4, for technical analysis of canal moving. Terminal you can download here.
After you have downloaded and installed this software in your PC, we register through the functional of the terminal demo-account and open the quotation chart of any financial asset you like.
For example, we take currency pair EURUSD and open its quotation chart on timeframe H1.
After it, we choose in technical instruments of terminal “equidistant canal”.
and draw it through the spots of local minimums and maximums of quotation chart.
But we try to predict any possible variants of further price moving in canals.
Now, when we have foreseen practically all variants of canal price moving, we need to follow up further moving of price chart to reach by it drawn levels.
Deals with option «RANGE», we will close in dependence on the market situation, that is for break down or release from the canal walls. The same is concerned the option «One-touch», where the strike-level we will identify in dependence on what level the price has released.
On the screen, levels are marked visually by pointers, if to reach them, the price will jump off to the opposite wall of the canal. Our task is to follow the quotation chart to reach by the price of given levels, to close a deal at the time to the side of release by option One-Touch for touching or option Range for the breakdown of local strike-level.
The terminal MT4, in its turn, always gives you the possibility to make equidistant canals in the way the price moves. At the same time, you can use our service of charts for binary options, where you can find all necessary technical instruments.
Additional security measures
In terminal MT4 to confirm the clearing by the price from the walls of equidistant canal, you can use the indicator Stochastic Oscillator. That is, to enter the deals with clearing from the canal in crossing by stochastic in another direction of level rebuying or reselling.
On the screen above the situation is visually depicted, where the indicator Stochastic Oscillator gave the confirming signal for purchase, which coincided with the moment of clearing by the price of canal level. The coincidence of two factors: the clearing from the canal + the confirmation via indicator, give us stronger canal for closing a deal by binary option in comparison to other signals.
For given approach in binary options trading, classical binary options are very suitable, and also options RANGE and ONE-TOUCH.
We considered the examples of work with the system with the example of financial instrument EURUSD on the quotation chart H1, where the price candle is formed during 1 hour. That is, if the clearing of the price from the walls of canal happened to get the strike-level by price of asset, you need about 12 hours. That is the expiration time of the option must be chosen according to given time that is not less than 12 hours. But, if you use other timeframes for technical analysis of instrument quotations, you need to choose other expiration time of instrument.
If you identify all significant levels of supporting-resistance right and putting correct canals, you will have about 70% of profitable deals. Thus, with starting lot in 100 USD, the sum of your week profit will reach 1000 USD.
The size of a deal for trading you should choose at the rate of 2%-5% from the deposit size. That is, if your deposit is 1000 USD, the size of your deal must be no more than 20 – 50 USD. Additional positive factor is that the percent of profit paying out in this type of option is not less than 100%. In case, if you trade with long-term options, paying out reach more than 500%. Thus, if you got the loss in 203 deals one by one, the profit of the next deal will compensate it.
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