Strategy for turbo options «Stylus»
Trading turbo options, this is an approach to trade, from which the jacket’s cuffs are wrapped and the nerves are compressed into one small point, and then break with a nuclear explosion, because you can make the transaction with a frequency of 45 times per hour or more (do not forget there are options with terms expiration of 45 seconds, 30 seconds or 15 seconds). Yes, this trade is not for the faint hearted.
However, this type of trading has a lot of fans, who do not like to wait and enter the market at the slightest hint of movement in one direction or another, and due to the large number of entries and systematic approach they always have profits.
Let's look at one way to trade high-speed "60 seconds" binary options which has a symbolic name «Stylus» («Needle"). Quotations chart to trade specified options sews a signal moving like the needle pointing the future direction of prices.
For trade on «Stylus» you need the MT4 trading terminal, in which you need to put the template of the system from this archive. Do not have the trading terminal Meta Trader 4? Then download it from here. Do not know how to use this platform? Read the Quick Start Guide.
Once you have put on your MT4 platform on your personal computer and applied the template of the system to the graph of the traded asset, you'll get a trading space «Stylus».
In the trade such indicators are used:
- MACD - that will give signals for the entry through its own signal line;
- LED Moving Average which will show the change in trend in the graph of the asset;
- Momentum - an indicator that will show the short-term trends and kickbacks on the chart of a financial asset you have chosen to trade turbo options.
- signal red line MACD is below its histogram;
- quotations candle closed above the Moving Average line;
- Momentum line pierced its level 100 from the bottom up.
We identify Sell signals when:
- signal red line MACD is above its histogram;
- quotations candle closed below the Moving Average line;
- Momentum line pierced its level 100 from top to bottom.
Taking into account the fact that the system requires a trend on the market, it is better to trade with this system during European and American trading sessions.
Let’s note the pluses of the trading system:
- a large number of transactions;
- the system works with many financial assets;
- the trade is conducted in the afternoon.
Let’s note the cons:
- low interest payments on turbo options that rarely exceed 70%.
This strategy is only suitable for turbo options. However, if you like this approach to trading, you may well be able to move the template on the chart with the timeframe M15 or H1 and trade classical binary options, which are the analogues of turbo options, only they have higher expiry dates.
TERMS of EXPIRATION
Expiry dates of transactions in this system can be 45, 60, 120 and 300 seconds. That is, these are the terms that are most commonly offered by brokerage companies for specified types of options.
If you decided to trade on the system with the classical binary options on other timeframes, then the expiry dates you will need to identify yourself using the tactics of testing trading strategies described in the article here.
The profitability of this strategy results in a ratio 3 to 1, i.e., for every three lucrative deals, on average, comes one loss-making. Thus, when the average profitability of turbo options is 70%, you will receive $ 180 net profit from a series of four trades (at a rate of $ 100).
If you use the strategy for classical options with the payout percentage 80% or more, then from 4 transactions the net income is $ 220. At the same time, the number of transactions at higher timeframes will be much less than on options turbo.
Such high-frequency trading involves the use of the minimum amount of the transactions. The maximum trade size shall not exceed 2% of the size of the deposit.
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