Turbo options trading- the strategy Waterfall
One of the most mysterious phenomena in a trader’s psychology is a desire to risk. No wonder, one of the most popular forms of trading are the options "Turbo", in which the terms of expiration, on average, are 60 seconds. Brokerages, taken into account their clients’ likes, started to add to their trading terminals the conditions of expiration reduced to 15 seconds. According to experts, this is already a "brute force" because technically to predict the price movement within such a short period of time is almost impossible.
However, options with the terms of 60, 90, 120 and 300 seconds are readily available for short-term analysis, and trade on these trading products can bring traders quite significant results.
In this indicator strategy "Waterfall" several effective indicators are used to help you easily predicts the further short-term price movement. Let’s proceed to considering the very trading strategies.
So, to begin consideration of the trading system for turbo options "Waterfall", we need MT4 terminal, which you can download from this link. After installing the terminal on your personal computer, put there a template with indicators from this archive, open any currency pair or another financial asset with the timeframe M1. If you do not know how to use this platform, it does not matter! Check out the brief instruction for its use.
Once your MT4 has a template strategy, the trading window will look like this.
The system uses a set of indicators:
- modified MACD indicator with two signal lines which clearly shows the short-term changes in the pricing of the asset;
- Gann Hi Low activator – a trend indicator which is very sensitive to all the short-term changes in the direction of price movements of the asset.
- the modified indicator MACD showed intersection of the signal lines in the downward direction;
- price candle closed in the bottom of the lines Gann Hi Low activator, and the red line moved down under the blue one
Purchase signals we get when:
- the modified indicator MACD showed intersection of the signal lines in the upper direction;
- price candle closed on the top of the lines Gann Hi Low activator, and the red line moved up over the blue one.
This trading system operates only during high volatility in the market, which usually coincides with the timing of trading sessions on the stock exchanges in Europe and America. See the schedule of trading sessions, please click here. In addition, you need to select the financial asset for trading that is known with its constant mobility. For example, such assets may be currency pairs GBPUSD, GBPJPY, EURJPY, EURUSD, and USDCAD.
The advantages of this trading system:
- A large number of transactions;
- Trading within the day;
- There is no need for a large deposit for this trade;
Disadvantages of the system:
- Low interest payments on turbo options;
- Dependence on the trend and time of trade.
Turbo options "60 seconds" are suitable to trade this system. However, you can use the template of the system to trade the classic binary options, also known as «Digital». In this case, you need to move the template of the system on not less than M15 timeframe. Signals to trade on the system will become immediately more specific and clearer after this.
TERMS of EXPIRATION
In choosing the expiry dates on turbo options we are limited by the brokerage company that provide only 60 seconds. In rare cases, it is added 90, 120 and 300 seconds to the choice. In this case, it is better to give preference to longer survival of the transactions. Since 60 seconds are not enough for the final exit of the price in the lucrative for the contract area.
PROFITABILITY OF THE SYSTEM
This trading system gives good results. Especially if there is the opportunity to trade on the timing of expiration 120 seconds. In this case, the amount of profitable trades will be in three times higher than the losses. Thus, we get about $ 180 of the net profit from the series of transactions (4 lucrative +1 losing).
If you decide to trade the classic binary options, the profitability of the system will increase slightly. In the result of 4 transactions you can already get about $ 220 of the net profit.
Do not forget about security measures for your deposit. Trade turbo options is the most risky type of binary options trading. According to this, we put the size of transactions not more than 2% of the size of the deposit. That is, at $1000 deposit, the size of your deal should be not more than $ 20.
That's all. Successful trading to you and profits!
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