Binary Options Strategy 5 Minutes «WASP»
Five-minute binary options are a kind of trading which is related to the scalping, as the period of their expiration is short, there are a lot of entries and profits.
However, the factor of high-frequency trading must discipline the trader even more, because without the clear, stable and profitable trade your deposit will know the devastation within a very short period of time.
Let’s consider a trading strategy that will help you cope with all unexpected situations on the financial assets and start making binary options with expiration dates of 5 minutes.
So, our business strategy is called «WASP».
To trade this strategy, you need a MT4 trading terminal, through which you will carry out the analysis of the charts of the assets. Do not know where to get it? Follow this link to a terminal from the company GrandCapital. Also, open your trading web terminal, through which you will need to open the transactions. You are not registered in any of the brokerage company yet? Then pick up the best broker using our rating of binary options brokers.
In addition, set up the downloaded indicators and template in the MT4 from this archive. For this purpose move the folder «Templates» from the archive to the corresponding folder of the root directory of the terminal, and move the folder «Indicators» from the archive to the folder «MQL4».
Once you applied the strategy template to the quotations chart of the selected asset for trading, the graph will have the following form.
For this system we need to open the minute timeframe, i.e., M1 in the chart of a volatile financial asset. Also, note the fact that scalping, like the vast number of trading strategies is designed for intra-day trading with the trend. Thus, trading on this system can be done only during the European and American trading sessions, when the asset markets are the most volatile and mobile.
Indicators that we use in the binary options strategy 5 minutes «WASP»
In our strategy we use a set of indicators, namely:
- Moving Averages of different periods which will show us the change of short-term trends on the chart;
- Indicator Flettr will show the presence of the flat on the chart;
- Indicator AOACalert will show the emergence of upward or downward trends in the window and will display the alert information indicating the presence of a trend at the market;
- Semaphortrue shows the levels of support-resistance.
- Moving of the younger period crosses the moving of the older period upwards;
- Indicator Flettr shows the presence of a trend upwards;
- AOACalert indicator pointed to the emergence of an ascending trend and gave the information on the chart window with the sound of alerts;
- To the level of resistance, drawn by Semaphortrue, there are still a sufficient number of points and the price has the space to move.
Binary options strategy 5 minutes «WASP». Sell signals
- Moving of the younger period crosses the moving of the older period in a downward direction;
- Indicator Flettr shows the presence of a trend down;
- AOACalert indicator pointed to the emergence of the downward trend and gave information on the chart window with the sound of alerts;
- To the level of support, drawn by Semaphortrue, there are still a sufficient number of points and the price has the space to go.
When properly following the rules on the buying and selling, the indicators give a fairly good ratio of profitable and unprofitable deals.
Testing this system on a real life showed a reasonably good level of profitability. The ratio of profitable trades to unprofitable is 3 to 1. Thus, trading this strategy you will always make money. However, the resulting profits can be increased significantly by increasing the expiry. Thus, those options that give a profit of 70% -80% with the prolonged expiration dates will bring a profit of about 200% -400%.
For this trading system it is more suitable to use classical binary options, for the profit of which it does not matter how many points the price has passed in the planned direction. However, if you select different time intervals to assess the quotes graphs, you can easily adapt this strategy for trading options One-Touch, the condition for profit here is touching of the predetermined strike price level on the chart.
DATE of EXPIRATION
We put 5 minutes as the expiration term in this system. It is this time that is necessary for the quotes graphs to move in a sufficient distance from the point of entry into the transaction.
However, this strategy is not limited to time-bound. That is, we can go to a time interval of H1 in the terminal MT4 and put an expiration term of the contracts 4-5 hours or open dates on H4 and put an expiration period of 12 hours.
Especially, the longer the term of the contract expiration is, the more profit it is for the binary option, as the gains from trade with the five-minute time frame is only 70% -75%, and the profitability with a term expiration 12 hours is not less than 200%.
Money management dictates us clear rules to control our own capital to trade. In this case, the extreme limit of the rate is 3% of the deposit. Thus, with the deposit of 2000 USD, your maximum lot in one transaction will be 60 USD.
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