«Zeus» long-term trading strategy for binary options
Medium-term and long-term trading systems are almost always used by professional asset market players. All periods of expiration less than 24 hours are chosen by novice traders. What is the difference? Professional traders give preference to strategies, the signals of which will almost certainly be worked out, and do not chase quick results. At the same time, the amounts they trade allow them to wait for a few days for almost guaranteed result. At the same time, young traders chase profits by choosing shorter expiration times driven by feelings of greed and gluttony.
Now we will consider a trading system that proves that sometimes it is better to wait than to chase the local minor trends.
We will be using D1 timeframe and EURUSD currency pair to identify trading signals.
We are also using a trading terminal and a couple of indicators in the system. System template and necessary indicators are available for download here. You can download the platform here. You can select the binary options broker providing the long-term options trading opportunity with the help of our binary options brokers’ rating.
As soon as you install the indicators to your terminal and apply our preset template to the quotes chart you will get the following asset market view.
So, we use two indicators for this strategy:
- Stochastic Oscillator, which will act as a filter to enter the trade;
- MA2 signal Indicator - an indicator showing the intersection of two moving averages with different periods.
In order to identify a buy signal the following conditions should be fulfilled on the chart:
- the up arrow pointing the intersection of moving averages to the upside has appeared on the chart, which means that the trend is changing to the upward direction;
- Stochastic Oscillator Indicator shows the intersection of the main and signal lines to the upside.
Selling rules for «Zeus» long-term binary options trading strategy
In order to identify a sell signal the following conditions should be fulfilled on the chart:
- the down arrow pointing the intersection of moving averages to the downside has appeared on the chart, that means the trend is changing to the downward direction;
- Stochastic Oscillator Indicator shows the intersection of the main and signal lines to the downside.
The classic binary options as well as One-Touch and Below options are appropriate for the given strategy trading. All of these options types will perfectly suit this trading approach as a quite sustainable move is initiated after the signals to enter the market appear on the assets chart.
You do not know where to find a broker with these types of options available? You need to use our broker ratings that have all the trading terms described.
We are here dealing with a synthesis of middle and long-term trading. It is important to set expiration times of 23-24 hours after receiving the signal to enter the market for classic binary options. In this case, we are going to profit both from quantity and quality of the trade.
When trading One-Touch options we are having an opportunity to take additional profit due to the fact that the named options have a quite high payout reaching 400%. Expiration times for these options will be no less than 12 days.
When trading classic binary options profitability has a ratio of 3:1, which means 3 profitable trades for just 1 losing trade, which allows the deposit to grow despite the fact that the payout for this type of option is 70% -80%.
When trading One-Touch, Below options statistics of profitability is 2:1. However, due to the fact that the profitability of these options is 400% or more, it allows us to trade very profitably, since with the trade amount of 100USD, we get a loss of only 100USD, but the profit of 400USD. This fact would have allowed us to trade with a positive profit even having the larger number of losing trades. In this sense, the advantage of binary options trading is not comparable to other exchange-traded products.
Of course, we should not forget about proper money management when trading with the given trading system. That is why we should have the size of trades no more than 3% -5% of the deposit. Only in this way we will be able to protect our "wealth" from the mischief of the financial assets market that can bring 3-4 losing trades in a row, even when the overall trade statistics is profitable.
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