The Butterfly strategy is a strategy for buying binary options in the direction of the main price movement based on a signal from the indicator. Entry into the market is carried out when the indicator gives a signal of a price increase or decrease, and an additional indicator confirms it. The strategy can be used on any timeframe and is recommended for all beginners, regardless of their level of understanding of the market.

Binary options strategy Butterfly

Characteristics of the Butterfly strategy for binary options

  • Terminal: MetaTrader 4 .
  • Timeframes: from M5 and above.
  • Expiration: 1-5 candles.
  • Types of options: Call/Put.
  • Indicators: Butterfly Forex Signal.ex4, Butterfly Forex Trend.ex4.
  • Trading instruments: currency pairs , stocks, cryptocurrencies , commodities.
  • Trading hours: 12:00-20:00 Moscow time.
  • Recommended brokers: Quotex , PocketOption , Deriv .

Installing strategy indicators for Butterfly binary options in MT4

Indicators are installed as standard in the MetaTrader 4 terminal.

MetaTrader 4 instructions for installing indicators:

A template for setting up the Butterfly strategy can be downloaded for free at the end of the article.

Review of Butterfly strategy indicators for binary options

The strategy uses two indicators: Butterfly Forex Signal and Butterfly Forex Trend.

strategy indicators for binary options Butterfly

Butterfly Forex Signal is the main indicator that signals a rise or fall in price. Signals on the chart in the form of green or red squares, according to the author, are not redrawn or disappear in real time.

Butterfly Forex Signal Indicator

The indicator settings are not of particular interest and only allow you to enable or disable notifications (alerts). All alerts are enabled by default.

Setting up the Butterfly Forex Signal indicator

The Butterfly Forex Trend indicator is located in the lower right corner of the chart, its information panel shows: the direction of the main price movement - trend , trend strength (Trend Strength), current price (Current Price), time until the opening of a new candle (Next candle in...).

Butterfly Forex Trend Indicator

The most important data of the indicator is the direction of the trend: up – green triangle; down – red triangle; sideways price movement ( flat ) – gray square. This data is used to filter the signals of the Butterfly Forex Signal indicator; they will show the main direction of the trend, or, in the case of sideways price movement, its absence.

Up trend signalNo trend signalDown trend signal

Geometric shapes are easily perceived visually and can be useful to traders who simultaneously consider a large number of financial assets, for example, currency pairs .

The indicator input parameters allow you to change the location of the information panel, color, font, as well as enable or disable notifications (alerts):

Setting up the Butterfly Forex Trend indicator

Trading rules for the Butterfly binary options strategy

The rules of the strategy recommend waiting for a signal following the main market movement. Options are purchased only in the direction of the trend, which allows you to reduce the number of losing trades to a minimum. Entry points are formed solely by the indicator, and built-in alerts simplify the trading process.

Buy Call (“Higher”) : the information panel shows the direction of the trend up (green triangle), a green square of the Butterfly Forex Signal indicator has formed.

Buying Call Options Using the Butterfly Strategy

Buy Put ("Below") : the information panel shows the direction of the trend down (red triangle), a red square of the Butterfly Forex Signal indicator has formed.

Buying Put options using the Butterfly strategy

In all other cases, it is recommended to refrain from opening a transaction and wait for the next signal.

The choice of timeframe is limited only by the activity of the trader himself: according to the indicator signals, you can work both on fast M5 timeframes and on medium-term timeframes from H1 and higher.

For successful trading, it is recommended to choose the most volatile time, which is usually observed at the intersection of the American and European trading sessions .

Trades according to the rules of the strategy for binary options Butterfly

The expiration time is very flexible, and depends primarily on the trading style: if you prefer quick profits, an expiration of one minute or less is recommended; if we consider longer transactions, the expiration time is from three to five candles.

Conclusion

There are a huge number of strategies for buying binary options, the rules of which will be clear even to a beginner. Due to its simplicity, trading using indicator signals is becoming more and more popular even among experienced traders. The reasons are obvious: trading using signals is much simpler, better and faster, and in some cases even more profitable.

The effectiveness of the strategy has not been tested in real time. The described rules for opening transactions are for informational purposes only. Before using this strategy, we recommend testing its effectiveness on a demo account , and only after that move on to choosing a good broker and trading on a real account.

Download the Butterfly strategy for free

Download

Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.

Broker

See also:

Binary options trading platforms

What novice traders need to know about binary options

Psychology in trading - what does a beginner need to know?

Current bonuses and promotional codes for this year

Estimate:
(5 / 5)
Your vote has been counted
Comments

To leave a comment, you must register or log in to your account.

Юлия Р
8966 Сигналы действительно не исчезают, но некоторые из них хотелось бы отфильтровать. Посоветуйте самый простой вариант, я новичок)
27 August 2021
Answer
Богдан
Богдан
8965 Жаль что на часовиках и выше очень мало сигналов, можно ждать входа и неделю. В общем, стратегия, выглядит довольно-таки неплохо.
27 August 2021
Answer
Дмитрий
Дмитрий
8964 Трендовые стратегии для бинарных опционов – долго и надежно, но я бы сюда еще добавил хотя бы один индикатор из классического набора "трендовых", к примеру Parabolic.
27 August 2021
Answer
Our website uses cookies and similar technologies to ensure that you get the best experience by providing personalized information, remembering marketing and product preferences, and helping you get the right information.
Quick registration!

Thank you for registering on our website. Now you have access to free distribution of signals, strategies and indicators from our website, and you can also leave a comment under any article on our website

An email has been sent to you with a link to confirm your registration and activate your account.

* If you use GMAIL mail for registration, then the letter will most likely end up in spam , check the spam folder and click the NOT SPAM button to receive notifications in the future or use another mail for registration.

** if within 5 minutes the letter has not arrived at your other email address, also check your spam folder or write to us in support support@winoptionsignals.com

If you have any questions, you can contact our support team:

You can also read our FAQ

Happy trading with us!