Trading strategy with binary options “Sidus method”
The strategy for binary options “Sidus method” returns traders to old, time-hardened and financial market-hardened approaches to trading, there is nothing superfluous or ultra modern. But a lot of traders use this strategy for binary options trading and earn, thanks to classical approaches to trading.
This strategy became «Classical» thanks to the indicators Moving Average, which are the legend of exchange trade, because they are average indicators of the price in the interpretation to certain period in history.
So, it is rather simple to prepare the pattern for trading using this system. For that, we need trading terminal MT4 from Instaforex company, which you can download from here or any other technical device, with the possibility to install indicators on the type of real charts for binary options, which are on our Internet resource.
After you have got the platform MT4, we set on the chart of quotations of any chosen assets the indicator Åxponential Moving Average with parameters of the periodñ 18 and 28. These indicators will be for us a tunnel, which will show the beginning and the end of local trend. It is necessary to apply set indicators to the price Close, that is build according to closing. The color for indicators must be the same.
Also, we put on the quotation chart of instrument Åxponential Moving Average with parameters of period 5 and 8, applied to Weighted Close, which will show a spot, where the possibility to close a deal appeared and in what direction. The color of two moving must differ from the previous two indicators.
After you have set all indicators on quotation chart of chosen financial asset, your trading field will look like this one.
As you see on the screen above, two movings of younger periods are leading, but older moving are the line of the start and end of trend. Thus, the start of new trend in this system is the moment of crossing the young moving by two older ones (which are signal), but:
- signal for buying – is crossing of the canal by young moving from down to up, that is the signal for Call-option;
- signal for sale is the crossing of the canal by young moving from down to up, it is the signal for Put-option;
Everything is rather easy and profitable. We can just get profit form usual trading with this system, thanks to approach using Martingale, we can take away loss deals form trading as well. That is if we have a loss in one deal, we will close the next deal with double lot. But the profit we got will completely compensate losses that we got earlier. Why not, if signals according to the strategy have the exactness of working about 67%. Thus, the variant with 3-4 loss deals meets very seldom.
As a rule, they trade with classical binary options with this strategy, there are not strike-levels, and however the percent of paying out the profit is just 70%-85% from the size of a deal. It is not enough for us…We suggest you to do the following: Choose the option ONE-Touch, paying outs here start with minimal size of about 200%. That is, if we got a loss in one deal, we will be able to compensate it thanks to the other. More than that, the strategy shows us spots for entries sales and purchases, after them rather good one side moving starts. Thus, it is more interesting to earn by this kind of options.
But it is necessary to double the size of a deal not after the first loss deal, but after the second one.
With our example of trading, we considered deals on timeframe Í1, that is to let asset price reach strike-level we need about 5-12 hours. It’s the answer to the question: expiration time for binary option One-Touch must be not less than 12 hours. But if you consider deals on timeframe Ì15, expiration time needs to be reduced proportionally. That is, in this case it will be not less than 3 hours.
«Sidus method» was always profitable way to trade in financial market. Earlier it was used only in Forex market. Now, it is actively used for option trading. But because of big profitability of options, it’s using in this market’s element is more effective. But, if you come to trading more carefully, this method can bring you more profit. As it has been mentioned above, if you apply options ONE-TOUCH in trading, the strategy will be more profitable at least in 2 times, because minimal percent of paying out in this option with the expiration time more than 6 hours is 200%.
Not to have unpleasant surprise from the market in the kind of deposit “drain”, we need to control “the level of greediness, that is to use in trading just 5% of own deposit. Thus, if you have the deposit of 2000 USD, it means that maximum size of a deal will be just 100 USD. At the same time, if you decided to apply “Martingale”, put the starting size not more than 25 USD, to save “stability” for deposit.
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