A working and simple strategy for binary options using two indicators: Bollinger and MACD is the best solution for those who do not like complex trading systems.
Practicing binary trading for many years, I have tried many different strategies, and he created several successful tactics. Overall, I’ve seen the strategy based on the indicators, and the classic rules for their use.
However, I often had to deal with the fact that even the most accurate indicators stopped working normally and gave conflicting signals.
Once again, faced with the wrong signals, it was decided to create a tactic based on two indicators, which would give a really accurate signals for binary options.
I created a tactic using the Bollinger and MACD indicator, it is a simple strategy for binary options and now we will describe its trading rules.
Here is a standard way for traders to generate income in binary trading:
But now look how often it turns out:
The price is not always completely predictable. Therefore, if you trade according to the usual Bollinger strategy, that is, to execute contracts on the touches of the price of the channel framework of the indicator (in this plan with the forecast down), then you will inevitably have to wait for losses.
And if you manage to conclude a series of transactions at once, then you can go bankrupt. With that, the described situation is repeated quite often.
However, the beauty of binary trading with indicators is that it can be used for market analysis as well as various combinations of technical means, which means that many risks can be avoided.
To do this, you just need to add the MACD indicator to the Bollinger indicator already running on the chart. It is the joint work of these indicators that gives accurate signals for binary options:
In General, this is a kind of trading template. Also, this template can be used not directly in the broker’s platform, but for example on a live chart.
Trading signals by strategy
Now back to the Bollinger + MACD tactics. So, watching the indicators working on the chart, it is necessary to monitor the trading signals, which should look like this:
The signal to buy a CALL option (up)
- Long price movement along the lower channel wall of the Bollinger with its constant touches.
- The intersection of its dynamic lines on the MACD indicator, which occurs under the zero line of the histogram upwards.
- There was a reversal up the MACD histogram.
This situation is a signal that you need to trade to increase the value of the asset, so you need to immediately purchase the call option:
The signal to buy the PUT option (down)
- Long price movement along the upper channel wall of the Bollinger with its constant touches.
- The intersection of its dynamic lines on the MACD indicator, which occurs above the zero line of the histogram downwards.
- Took a turn down of the MACD histogram.
This situation is a signal that you need to trade to increase the value of the asset, so you need to immediately purchase the PUT option.
Nuances of strategy
You may have noticed that in this tactic, the Bollinger indicator is used in its classic form, and with the help of the MACD indicator, its signals are simply filtered.
Moreover, the MACD indicator, in this regard, perfectly performs its function, so we get from these indicators accurate signals for binary options!
Profitability of the strategy
Regarding the profitability of trading results, I must say that its potential can reach 150% of the weekly capital growth. This indicator of profitability I get for the 7th month of using this tactic.
I recommend to set the expiration of transactions for a period of not more than 5 minutes. Well, do not forget about the rules of money management – use for each option transaction only 3% of the amount of your capital, unless of course you are trading on a break-even strategy.
In General, at the testing stage of this strategy, I recommend to trade the minimum lots of 5 USD, especially if you have a small amount on your trading account, for example 100 USD, as the starting capital of FinMax .