The system of binary options trading «Pandora Box»
Despite the simplicity of binary options trading, it is very difficult to determine where the price will go in the future, because very often quotes commit deceptive maneuvers twisting in the chart different complex overtures and moves. So, each transaction of the trader is like a "Pandora's box" with unexpected surprises. Many successful traders today use various sets of indicators that are able to clarify the current picture on the financial assets markets and more accurately report on the future plans of price quotations and market makers who build them.
In this article we will focus on the system of binary options trading called «Pandora Box», with which many traders from around the world cope to make a profit in the most intricate of price movements.
Taking into account the fact that the majority of functional trading platforms for binary trading have no possibilities to set the indicators and other technical devices to trade with «Pandora Box» system, we need to download and install MT4 from the broker Instaforex on your personal computer. After that, download this file and extract the folder «indicators» in the same folder of the date directory in the terminal located in «MQL4», and the folder «templates» - into the corresponding folder of the root directory of the terminal MT4.
After that, apply the template «Pandora Box» in a terminal to the chosen trading financial asset (we chose the currency pair EURJPY)
and you will see the following picture.
As you can see, the chart of the prices has become clearer. At the same time, if you follow all the rules of trade, the system for binary options trading «Pandora Box» will help you achieve stable profitable results.
Indicators used in the system
In the trading system the following indicators are used:
- MACD – a histogram trend indicator that shows the short-term and medium-term trend changes in trend directions;
- RSI – an oscillator that shows the transition of quotations from overbought to oversold levels and vice versa. In fact, this indicator shows the changes in trends in the short-term price movements.
- Delta - an indicator that shows the changes in the trend (kickbacks and fractures);
- Heiken Ashi – a candle indicator, which paints the price candles of the trading tool in accordance with a certain algorithm, making them easier to understand in technical analysis;
- Trend magic - a trend indicator, which shows the direction of the trend. Thus, depending on the side where the trend indicator moves, its color is changed;
- MA in color - a trend indicator that shows the direction of the price movement painting its line in the appropriate color;
- RoundPriceNE - a channel filter. When the prices are in a given channel, it indicates the presence of the flat on the market.
Thus, the system of binary options trading gives the signal for the sale when:
- MACD histogram crossed a zero level on its scale. That is, below the zero a column of the histogram originated;
- RSI oscillator crossed the level of 55 on its scale-up;
- The lines on the indicator Delta intersected upwards;
- Heiken Ashi indicator colored the price bar in green;
- Indicator Trend magic colored its line in green;
- Indicator MA in color painted its line in green;
- The price crossed the lower line of the channel RoundPriceNE, and the price bar closed at the bottom outside.
The binary options trading system gives the signal to buy when:
- MACD histogram crossed a zero level on its scale. That is, a column of histogram originated above the zero;
- RSI oscillator crossed the level of 45 on its scale down;
- The lines intersected downwards on the indicator Delta;
- Heiken Ashi indicator colored the price bar in blue;
- Indicator Trend magic painted its line in blue;
- Indicator MA in color painted its line in blue;
- The price crossed the lower line of the channel RoundPriceNE, and the price bar closed up outside.
The system of binary options trading «Pandora Box» is a trading strategy on trend. So, for trading the system the following options are suitable:
- Classical binary option. So as to trade the option it is necessary to establish the template of the system on the graph M5, and the term of the option expiry on the web terminal in transactions should be set for 30-45 minutes;
- Option Range. While making deals in this option, you need to put the template of the system in MT4 on M15 timeframe. Thus, the expiration of the contract term should be at least 2 hours. The condition of the option is to go beyond the channel;
- Option One-Touch. To obtain a profit with this option in the web terminal you should select an option with Strike-level located in the direction of price breakthrough on the template of the channel RoundPriceNE. Thus, the expiration of the contract term should be put at least 2-4 hours.
For trading with this system any volatile (mobile) financial asset that is in your trading terminal is suitable. In this case, we use a pair EURJPY. However, we can take any other (except for EURCHF, EURGBP – these are the least volatile currency pairs at the market) or to trade shares, indices and commodities.
TERMS of EXPIRATION
As it is mentioned above, to trade with this system you need to set expiry dates at least 45-60 minutes. At the same time by arranging the pattern of the trading system on the graph H1, the timing of expiration should be changed in proportion to 6 hours. If you decide to trade using the template to the graph H4, the expiry dates must be set for 3-7 days depending on the financial asset which you are trading.
If you follow all the rules for entry in the purchase and sale, the system gives you good consistent results. The ratio of profitable and unprofitable trades is 3 to 1. This allows using the methods of the outputs from the subsidence through multiplication of the size of lots. That is, if trading on «Pandora Box» you've got a loss, the next deal must be enclosed with the lot that is twice bigger than the previous one.
For this system you need to make deals with lots of 2% -5% of the size of the deposit. If you are going to use in transactions the multiplication item, then the original transaction must be made in the smallest possible size, thus leaving the "margin of safety" for the subsequent doubling of the trading lot.
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