«Infinity» long-term trading strategy
Why do most traders keep away from the long-term trading strategies? That is because these strategies are lacking extreme excitement and gambling thrill that tend to be the main market participants’ enemies. At the same time, long-term trading strategies have been used for a long time already for profitable binary options trading by those who are able to control emotions and have decided to devote their lives to trading.
«Infinity» trading strategy is an eloquent evidence of the fact that it is quite simple to profit from binary options trading having correct approach and choosing a longer trading term.
So, to trade with the mentioned system we need the Meta Trader 4 terminal, which can be downloaded from this link. It is also necessary to add indicators from this archive to the MT4 installed to your personal computer and to apply the system template to the chosen trading asset quotes chart.
After the above actions are finished you will receive the following price chart.
There is a modified regression channel, which is optimized for constant market price changes and is, in its own way, the center of gravity, as well as two supporting filters that will filter out almost all the wrong entries into the market.
The following indicators are used in the trading system:
- Centre of Gravity - a modified regression channel;
- RSI - oscillator, which shows the prices being at the overbought-oversold levels;
- Candle average – it is indicating a trend reversal in the direction of prices.
- the price of financial asset has touched the lowest or second-last level of Centre of Gravity indicator (estimated according to each trader’s amount of greed);
- RSI oscillator is located in the oversold zone, that is, beyond the 30 level;
- Candle average – «launched» the candle on its chart that touched the low level of indicator scale meaning that the price has reached the oversold critical level.
Selling signal occurs when:
- the price of a financial asset has touched the top or the second-last level of the Centre of Gravity indicator (evaluated according to trader’s amount of greed);
- RSI oscillator is in the overbought zone, that is, beyond the level of 30;
- Candle average - «launched» the candle on its chart, which has touched the top of the indicator scale, pointing that the price has reached an overbought critical level. The task of the trader is to notice the moment when the price touches the edge of the regression channel on the chart, to verify the requirements of the filter indicators and, without waiting for the closing of the signal candle, to enter the market at channel’s edge line touch inward the center of gravity.
With that said we will work all the points of instrument’s price touches of the extreme levels of regression channel and will enter at the bounce to the inside.
Appropriate options for this type of trading are Digital options (classic options), to make a profit with which it does not matter where the price of the asset will be at expiration as long as it was at least 1 point better than the price of the trade. In addition, we can use the One-touch, Range and Below options with this trading system for which the asset price’s achieving the target level specified in the terms of the contract is important.
If you have applied the system template to the H4 timeframe chart then the expiration times must be not less than 12 hours as the price of an asset is required not less than 3 candles to reach the center of gravity (the center of regression channel).
If the template is set to D1 timeframe in ÌÒ4, then we need to select the expiration times from 3 to 7 days, which should be enough for the asset price to reach the regression channel’s center of gravity.
Not only that the system has sufficiently large number of profitable enters, but also the trading is carried out with the most profitable options, which are Touch, Range and Below, the pay-out for which is up to 500% -600%.
With good profitability statistics and options’ increased payout, we just have to apply Martingale technique to trading, namely, after taking the loss in the previous trade, to increase the volume for the next one in two times.
Thus, the loss will automatically disappear from our strategy, and the profit is the permanent 500%, that will eventually bring the USD 500 profit for each trade using primary lot of 100 USD.
We use 2% of the deposit for this strategy, especially if we are going to eliminate the drawdowns using Martingale strategy. Since, for this you need to create the optimal deposit margin for lot multiplication. That means, in this case, it is better to use the minimal of possible lots.
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