The binary options strategy Binary Option System is a very simple signal strategy that can be used for scalping binary options and turbo options trading, as well as for trend trading.
This strategy is aimed at beginners, as it has the simplest rules thanks to the signal indicator, Bollinger bands and levels.
Characteristics of the strategy for binary options Binary Option System
- Terminal: MetaTrader 4 .
- Time frame: M1-D1.
- Expiration: 60 seconds for turbo options and 3 candles for trend trading.
- Types of options: Call/Put.
- Indicators: BOSTS_2.ex4, BOSTS_3.ex4, BOSTS_6.ex4.
- Trading instruments: any.
- Trading hours: 8:00-18:00.
- Recommended brokers: Quotex , PocketOption , Binarium .
Installing strategy indicators for binary options Binary Option System in MT4
Indicators are installed as standard in the MetaTrader 4 terminal.
MetaTrader 4 instructions for installing indicators:
The Binary Option System strategy uses three indicators and all of them are configured in a template that can be downloaded at the end of the article.
The essence and rules of trading strategy for binary options Binary Option System
Trading using the binary options strategy Binary Option System can be done in two ways, as mentioned earlier. The first method is scalping or trading turbo options, and the second is trend trading. Next, we will consider each of the approaches in more detail.
Turbo options
Turbo options are almost always purchased with an expiration of 60 seconds. With this approach, the global trend is absolutely not important, since market noise does not depend on it and many transactions can be made both during corrections and in flats.
Note: it is worth knowing that trading turbo options is high-risk and can lead to not only quick profits, but also quick losses, so it is important to practice on a demo account before starting such trading.
When trading turbo options, purchasing Call options (above) occurs when:
- The price is near or at the lower border of the Bollinger Bands;
- A blue arrow appears, pointing upward.
Put options (below) are purchased when:
- The price is near or at the upper limit of the Bollinger Bands;
- A red arrow appeared, pointing down.
In the image below you can see how the signal appears at the edge of the Bolinger Bands and against the trend, but if traded with an expiration of 60 seconds, it could still be profitable:
Also, more experienced traders can open trades not at the borders, but when the price touches the central line of the indicator or when it breaks through, but other factors should be taken into account and beginners should better avoid this approach when trading turbo options.
In addition, when trading turbo options, it is possible to use the Martingale system , but maximum up to the second “knee”. A prerequisite in this case is to open transactions only from the boundaries of the Bolinger Bands.
Trading with the trend
The second way to trade according to the strategy for binary options Binary Option System is to buy options only according to the trend, and binary options timeframes of 15 minutes and above are used for this. When trading this way, you should definitely know how the trend works in the markets and what the phases of the trend are. Expiration in this case is equal to three candles.
To put it simply, a trend can be determined by rising or falling extremes. And if the market highs are updated, then the trend is up, and when the lows are updated, the trend is considered downward.
Trading rules in this case imply the use of not only Bollinger bands and signals, but also levels, but levels in this case are considered only an additional signal.
When trading with a trend, to purchase Call options (above), you must:
- There was an upward trend;
- A blue arrow appeared, pointing upward;
- The price was at the lower border of the Bolinger Bands (not necessary, but desirable);
- There was a level (not necessary).
To purchase Put options (below), you must:
- There was a downward trend;
- A red arrow appeared, pointing down;
- The price was at the upper limit of the Bolinger Bands (not necessary, but desirable);
- There was a level (not necessary).
In the image below you can see the signals that appear along the trend, and in the case of the first signal there is also a level that confirms the signal:
Examples of trading strategies for binary options Binary Option System
Next, we will consider one of the possible transactions for scalping on the M1 timeframe with an expiration of 60 seconds and one transaction for trend trading on the H1 timeframe with an expiration of 3 candles with all the rules on the EUR/USD currency pair.
Opening a Call option following the trend on H1
In this case, an upward trend is visible on the hourly chart, since the extreme points have been updated. Therefore, any signals that satisfy all the conditions described above can be used. And as soon as the up arrow appears, you can buy the Call option:
Opening a Put option with an expiration time of 60 seconds
In the case of turbo options, just one signal in the image below appeared on the border of the Bolinger Bands, and after that it was possible to buy a Put option after the signal candle closed:
Please note that all other downward arrows appeared quite far from the indicator boundaries, which means they should not be used in trading.
Conclusion
As a result, you can see that both methods of trading using the Binary Option System strategy can bring profit, but the trend method is considered more effective and less risky, since there are many fewer transactions, but at the same time they have a higher probability of a positive outcome.
In any case, before using any of the approaches, you should definitely test it on a demo account through a trusted broker, which can be found in our rating of binary options brokers . And when switching to a real account, you should definitely use the rules of money management and risk management . We wish you successful trading!
Download strategy for binary options Binary Option System
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See also:
Technical analysis in binary options trading
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