«Popular» classic long-term binary options trading system
How can one predict the asset price behavior if the quotes change every moment and in a couple of minutes the chart will draw a new even more confusing twist? Just one minute ago we were absolutely sure that the price would go up and now we start to doubt and in a moment we are grow confident in the downside movement.
This is the problem of minimal timeframes charts. When you execute a buy trade - the price starts to move down, and vice versa, as soon as you sell, the quotes turn to the upside. There are some traders who after noticing such a bad tendency get in the market in reverse. That is, when a signal is to buy - they sell, and at a signal to sell - they buy. However, this is not a way out of the situation.
What can be done? We switch to the long-term trading styles with more predictable and informative quotes charts. There has been the “Popular” trading system for such trading style for more than a decade already.
We are switching to the daily charts at the MT4 trading terminal. In case you still do not have such a handy software at your disposal it can be downloaded here. If you do not know how to use the terminal, then you should read this article.
So we are at the D1 timeframe to which a “Popular” system template should be applied. It can be found in the provided archive. Afterwards your quote chart will look like this.
This is the «Popular» system worktable in which the standard set of MT4 platform indicators is used, namely:
- MACD histogram, which serves as a filter for trades’ execution. That is, if the histogram is above its signal line, we only buy. If it is below the signal line, then we sell only;
- Stochastic Oscillator is an oscillator that will show us the local directions of the trend, and the overbought to oversold levels transitions;
- two period RSI, which is used to determine the strength of the trend and its immediate direction;
- MACD histogram is above its own signal line;
- Stochastic Oscillator - showed the upside intersection;
- two period RSI showed the upside intersection.
The signals to sell in the «Popular» classic long-term binary options trading system occur when:
- MACD histogram is below its own signal line;
- Stochastic Oscillator showed the downside intersection;
- two period RSI showed the downside intersection.
Based on the above examples, one can see that there is practically nothing unpredictable occurring on the chart, which allows you to trade with comfort and without any nervous tension. Thus, to trade according to this system, you need to select up to 4-5 financial assets, arrange them in the MT4 trading terminal and evaluate the traded instrument chart situation daily at the open of D1 candle. At the same time, the system being long-term and the usage of high profitability options allow the trader to always be deposit positive.
If during processing of a trading signal, after the trade is executed with Range, One-touch and Below options conditions for the opposite direction trade are established, we can consider opening another hedging position. However, there are too few of such cases on the quotes chart. For that reason, before starting to trade with the given system, you will need to carry out its testing for suitable financial assets, types of options and expiration dates for the D1 time interval.
Trading strategy advantages:
- trading comfort and the lack of fluent price changes, which makes trading more predictable;
- large deposit is not needed;
Trading strategy disadvantages:
- a relatively small amount of trades during one trading week (1 – 2 executions for each financial asset).
You can use classic binary options, Below options that need to cover the price level, One-touch options that need to touch the predetermined level and Range options that need to break out of the pre-set range of the asset price when trading with the “Popular” system.
We select expiration times of not less than 2-3 days for classic binary options. Below, One-touch and Range options need longer-term expiration times as more time is needed for them to reach the predetermined strike levels (6-12 days).
We can use classic binary options within this system that rarely reach the 85% profitability on long-term expiration as well as Below, One-touch and Range options with more attractive profitability of minimum 200% to 400% (depending on the brokerage company). Does your broker have low payout for this type of options? Please use our binary options brokers' rating and select the most interesting broker for you, payout considered.
With the payout of 400% and positive profitable signals processing statistics not less than 65%, you will be getting just 100$ of loss for each 1000$ of profit out of the series of trades for every 100$ invested.
To trade the “Popular” system we choose the trade size of not more than 4% of the deposit and not more than 5 financial assets for simultaneous trading. That said, your deposit will be steadily growing and the losing trades series will not be able to blow your deposit in a short period of time.
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