The system for binary options “Puria method”
Considering strategy is related to indicators strategies for binary options and shows brilliantly that technical indicators are able to become the best signal for entry the positions. More than that, the system gives about 80% of profitable signals and lets earn every day more and more.
Our system for binary options is called “Puria method” and it got its name thanks to its creator. The method itself has been being used for many years by many professional traders and combines the simplicity and profitability.
The matter is that in strategy only two indicators are used, Moving Average and MACD. As for Moving Average, this indicator is legendary, because with the help of it trader earned more than with all other indicators. At the same time MACD takes the second place, because it can show exactly the start of changing the tendency in asset market.
So, let’s come back to the strategy. Taking into account that our system suggests the building of the chart using indicators, it is necessary to prepare working field. To do it, we need the terminal MetaTrader4, which can be downloaded here or online charts, which are here. With the help of given software it is possible to build our indicators system.
So, we chose terminal ÌÒ4 to locate indicators and use it to timeframe chart Ì15 on financial asset EURUSD.
Open the chart of this instrument and use indicators with following parameters:
- MovingAverage with period 85, building method Linear Weighted, and applied to Low, of red color;
- MovingAverage with period 75, method of building Linear Weighted, and applied to Low, of red color;
- MovingAverage with period 5, method of building Exponential, applied to Close, of yellow color.
Alos, we locate on our chart the indicator MACD, where we put our parameters: Fast ExpotencialMA with period 15, Slow ExpotencialMA with period 26, and SimpleMA with period 1.
After we have located indicators on the chart, we will have such pattern for trading.
As you see, it is easy, however on the chart we can see perfect moments for entries the sale and purchase.
So, the system for binary options “Puria method” gives signals for sale when:
- yellow moving crosses two red moving from up to down;
- bar chart of indicator MACD crosses the level of its scale from up to down.
The system for binary options “Puria method” gives signals for purchase, when:
- yellow moving crosses two red moving from down to up;
- bar chart of indicator MACD crosses zero level of its scale form down to up.
As you see, the system gives rather clear signals for entry the position. But, it is not necessary, that signal MovingAverage and MACD coincide. It happens that the signal in moving appears later that on MACD. In this case, we can enter the deal. However, if yellow moving has crossed red one, and on MACD there isn’t crossing, we should wait until bar chart of indicator crosses its zero level and then we must enter.
As a rule, this strategy is used for trading classical options. However, there is practice of profitable using of got signals in system and for option trading «Range» and «One-Touch».
Getting a signal about breakdown of yellow moving red down or up, we get the signal that one side moving started, which will last for a certain period of time. Thus, signals are worked well trading by options «Range» as a signal that the price will go out the price corridor, and also tells us that price quotations will easily reach strike-level in option «One-Touch».
However, we warn you against unreliable actions. To start using this strategy in trading with the given kinds of options, at first you should test it on the quotation history in terminal ÌÒ4. Look at first what distance are put by your broker in options «Range» and «One-Touch» from current price to strike-levels and the time of expiration of deals.
After that, look through the history of financial instrument quotations to understand how often the price, after the signal to enter according to “Puria method”, reached such price levels and how much time it was necessary to reach them. Count the statistics of profitability. If everything is alright, you can start trading, because believe us positive results will be soon.
The choice of financial instrument for trading
For trading with this strategy for binary options, you need to choose volatile (moving) financial assets. At first, the strategy was used for trading on currency pairs. For it EURJPY, GBPJPY, GBPUSD, EURUSD and other moving instruments are very suitable. However, “Puria method” is used by other assets, like – shares, indices and goods. But before to start trading, test the strategy on tester strategies of terminal ÌÒ4 or on quotation history, chosen by you trading instrument.
The choice of working instrument
The system for binary options is suitable not only for trading on Ì15. A trader can change working time interval. For longer in-day trading you can install working pattern of the strategy on Í1. But in this case you must the expiration time for 4 hours. If you don’t have such expiration time, use the option “Constructor”.
Taking into account that we consider entries the positions on 15 minutes chart, where one price candle is equal to 15 minutes. Expiration time must be put for 1 hour, to let 4 candles appear on the chart, and let the price to decline from the spot of entry on enough distance.
Tests of this strategy and its real trading tell us that there is one loss for three profitable deals, that is 3:1. Thus, with this positive tendency, we can apply to this strategy multiplication of lot, if you have loss, you can double the size of lot of the next deal. Thus you can exclude losses from your own trading, because, the loss in previous deal can be corrected by double profit of the next deal.
For example, if you take the entry lot 50$, having the profitability of option 75%, during one week on one financial asset you will close 4 deals, where 1 will be loss and 3 will be profitable, but it is 100$ of clear profit, however if you trade, using “Martingale”, it will be 150$ of clear profit, because losses are corrected very easily and don’t take the profit. If you use 4 financial assets, that is available for free trading without overloading the deposit, you will earn 600$ a week.
Ideally, the size of lot in trading must be from 2% to 5% from the size of the whole deposit. That is if you have deposit 2000 USD your starting lot must be 20-50 USD. However, if you trade with multiplication, that is using Martingale method, then starting lot must be minimally possible, to let you have reserve to double the size of a deal, getting losses.
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