Professional scalping: binary options - «RSG»
This trading strategy for binary options is among the most professional ones. Effectiveness of the trade with RSG surpasses all expectations. RSG is best used for the classical options. We also note that this type of scalping is focused on getting clear signals that do not have a double interpretation. RSG system is 100% effective and formalized in the trade.
This tactics for trading is suitable with any financial asset. We will examine the examples of trade on the EURUSD currency pair using the MetaTrader4 trading platform (demo account) from the company Instaforex, which can be downloaded here.
Of course, you can make you trade on your own web terminal in your brokerage firm. If you are not registered in any of the brokers and are just thinking about it, then you can look at the detailed rating of brokers and evaluate their trading conditions if you click here.
This trading strategy involves a simple monitoring of the two timeframes M1 - M5 on the currency pair EURUSD. At the same time, in the trade, we will use the usual technical indicators that are supplied with the terminal MT4, namely EMA and MACD. And the sources for our trading signals will serve highly-periodical graphs of the timeframes M1 - M5. RSG is a complete professional and efficient scalping strategy.
Setting of the trade template
In the time interval M1 we will use the indicators with the following setting parameters:
- MACD histogram should have the settings (13,21 SMA 1) – we apply the color red;
- Histogram MACD indicator with the settings (21,34 SMA 1) – we set the color orange;
- Histogram MACD indicator with the settings (34,144 SMA 1) – we make it green.
- Exponential MA indicator (period 21) - painted in red;
- Exponential MA indicator (period 34) - painted in orange;
- Exponential MA indicator (period 144) - painted in green.
After installing of all the indicators on the EURUSD chart, we get a commercial space on the M1 timeframe.
After the setting of M1 timeframe, i.e., the installation of all the above indicators, we must adjust the timeframe M5, which should contain the following indicators with the following parameters:
MACD trend indicator should be set with these settings (21,34, SMA 1) – it is necessary to color the histogram of the indicator in green.
In addition, on the chart EURUSD of M1 timeframe it is necessary to mark exponential moving with the following commands:
- exponential MA indicator (period 21) - painted in red;
- exponential MA indicator (period 34) - painted in orange;
- exponential MA indicator (period 144) - painted in green.
For the convenience of monitoring the situation on the market, we need to put two graphs M1 - M5 in the terminal nearby. This will allow us to consider objectively the received signals at two terminal windows. Your web terminal should also be ready, since you will often get the signals on this system.
Professional scalping - binary options. The principle of RSG work.
With a strict adherence to the system rules, you will get good and efficient trading signals that will always make a profit. However, we must receive signals directly from the 10 indicators. Thus, the signal on one indicator must be confirmed by all the others, namely:
- by the three MACD histograms with different periods on the timeframe M1;
- by the three Exponential MA with different periods on the timeframe M1;
- by the three Exponential MA with different periods on the timeframe M5;
- by one MACD on the timeframe M5.
The entire sales cycle will include three phases:
- Stage 1: analysis of the chart EURUSD on the timeframe M1;
- Stage 2: analysis of the chart EURUSD on M5 timeframe;
- The making of the transaction by classical options.
This stage begins from the receipt of the original signal - the intersection by the histogram MACD (parameters 13,21 SMA 1) the zero level on its scale. If the MACD histogram has broken the zero mark on the direction from the top - down, we should be ready to open a deal on Put-option. In the reverse intersection of the level - from the bottom - up, make a deal on Call-option (i.e., buy). Note that this intersection is quite an unstable signal and we need to confirm the signal with all the above indicators, since this intersection is just a 'beacon' that prepares for further assessment of all indicators.
Thus, under the M1 a number of events confirmed by all the above indicators should happen, so that you can consider them a clear signal to enter into binary options trades:
- It is necessary that the orange histogram of the indicator MACD (with the settings 21, 34 SMA 1), green MACD (with the settings 34,144 SMA 1), red MACD (with the settings 13, 21 SMA 1) break through their zero marks in one and the same direction;
- the price must break through all three exponential moving averages.
This illustration shows a formalized process for the deal of purchase a Call-option. At the same time, trading signal for Put-option must be diametrically opposite the signal to purchase.
Step Two: Analysis of the chart EURUSD on M5 timeframe
If we receive a confirmed signal to trade on the M1, we need to consider the timeframe M5 to make sure that our deal will not conflict with the rules of the system. So, on the M1 we get trading signals, and on the M5 we confirm them. At the same time, on M5 we should follow the same requirements as on M1.
That is, the MACD histogram must pass a zero level in the desired direction, and the price should be closed after three control movings of the indicator (EMA). It does not matter when the signal at M5 we got a little earlier than on M1. The main thing is that thanks to M5 we can see that we make the transaction in the desired direction.
Step Three: Transactions by classical binary options
In order to open a deal on Call-option (buy), it is necessary that the quote prices on M1 - M5 break through three lines of exponential MA. At the same time, the histogram of four MACD must be higher than its own zero marks.
For the deal on Put-option we need that the price breaks through three movings of MA Exponential down, and histograms on four control MACD are placed below zero.
Important! You can trade only during the European and American trading sessions when the market of the currency pair EURUSD is most volatile. Otherwise, we get losses because the system requires activity and mobility from a financial asset.
Outlined above scalping - binary options RSG, is a professional approach to trade binary options.
Before you start trading, you need to set a date for the expiration of the classical binary option, which is needed to trade. For this purpose it is better to evaluate the history of quotes and determine the temporal distance that the price goes after receiving the signal on the indicator. If the classical option doesn’t have the required dates of expiration, use the option "Designer" and put the necessary for your trade deadline expiry.
This trading system did not pass on other types of binary options. However, everyone can test it on the history with MT4 terminal on the older timeframes of trading signals’ identification; this system of trade should be suitable for the options ONE-TOUCH.
TERMS of EXPIRATION
As it was mentioned earlier, the term of options expiration must be at least 45 minutes. However, when identifying the trading signals on other timeframes, the expiry time should be replaced by an older one. For example, if you consider the signals not on M1 and M5, but on the graphs H1 and H4, the expiry dates must be put at least 6 hours.
This trading system is recommended by a successful trader who is trading binary options for the past 4 years. According to his words, this system is capable of bringing 5 profitable trades. At the same time, the ratio of the profitable and unprofitable trades is always in a positive side. However, if you change the classical binary options on the options ONE-TOUCH with older expiration dates, the profitability of the system will grow at least in twice.
Never forget the basic rule of money management which states that in any case your transaction may not exceed 2% -5% of the size of the deposit. This trading strategy is no exception. Thus, if your deposit is 1000 USD, then the maximum lot can only be 20-50 USD.
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