The Cluster Trader System strategy was originally created for the Forex market, but the indicator that it includes is easily suitable for binary options trading.
The Cluster Trader System strategy is based on the levels of supply and demand (support and resistance) that the indicator marks on the chart. The TTS indicator also marks trend/flat phases and generates signals on the chart, which makes the strategy universal and suitable for trading in both trends and flats.
Please note that this strategy is sold online for 50,000 rubles, but you can download it for free from our website for review.
Characteristics of the strategy for binary options Cluster Trader System
- Terminal: MetaTrader 4.
- Time frame: M1-H4.
- Expiration: 1 candle or 10 candles.
- Types of options: Call/Put.
- Indicators: Trend Trader System.
- Trading instruments: any.
- Trading hours: 8:00-18:00.
- Recommended brokers: Quotex , PocketOption , Binarium .
Installing Cluster Trader System indicators in MT4
The indicator is installed as standard in the MetaTrader 4 terminal.
Instructions for installing indicators in MetaTrader 4:
Initially, it may seem that the strategy has several indicators , but all the readings on the chart are generated by just one indicator, the settings of which mostly relate to visual display and turning on/off alerts:
Therefore, if you wish, you can change the colors of the levels, arrows and text, and for those who do not want to customize the chart and indicator themselves, you can download a template at the end of the article.
The essence and rules of trading using the Cluster Trader System strategy
Since the strategy provides for trading with and against the trend, it will be useful to know what a trend is and how to determine it .
Although there is only one indicator in the Cluster Trader System strategy, it is divided into components (indicators “built into” the main indicator) that perform certain functions:
- Momentum Trend Trader (MTT) is a “basement” histogram that determines the phases of the market, or rather shows which trend is prevailing in the market at the moment.
- Reverse Point Indicator (RPI) is an indicator of levels on the chart that do not redraw and work on any time frame from M1 (1 minute) to W1 (1 week).
- Trend Change Correction (TCC) is a signal indicator (indicated by an arrow and the text TCC), which indicates with arrows points for buying options on a correction and is suitable for trading with and against the current movement.
- Trend Change (TC) is a signal indicator (indicated by an arrow and the text TC), which indicates with arrows the main points for buying options along the trend or during a reversal.
Corrective signals can most often be seen in the middle of a movement:
The trading rules for this strategy imply similarity of signals from all indicators, and therefore to purchase a Call option it is necessary that:
- (Optional) The MTT indicator was green, which would indicate an uptrend.
- The level to which the price will approach should be blue (support/demand).
- A green arrow with the text TC Buy should appear.
To purchase a Put option you must:
- (Optional) The MTT indicator was red, which would indicate a downward trend.
- The level to which the price will approach should be red (resistance/supply).
- A red arrow with the text TC Sell should appear.
In addition to the standard trading rules, which are made as simple as possible due to the signal indicator, the Cluster Trader System strategy also contains simple recommendations for trading:
- If the MTT indicator turns yellow, then a flat prevails in the market and in this case you can only trade from levels. The strongest levels are considered to be levels that have not yet been broken.
- When trading against the trend, it is not necessary to trade from the level, but a prerequisite is the appearance of the signal arrow of the TCC indicator (correction). Expiration in this case should not be more than 3 candles.
- Scalping transactions are also allowed, although this carries an increased risk. With this approach, you can make trades with an expiration of 60 seconds, but you should understand that the strategy is designed for trading with a trend and the probability of making a loss with such an expiration is quite high.
The strategy also provides alerts for arrows and a trend indicator:
Examples of trading using the Cluster Trader System
For examples, let's take the EUR/USD currency pair and the M1 time frame.
Opening a Call Option
At the previously formed level, the first signal and text appeared - TC Buy, which does not mean a correction, but the main signal. The same signal appeared later also at the level. Therefore, it was possible to purchase Call options with an expiration of ten candles:
Opening a Put option
The image below shows that the main signals are reinforced by levels, while corrections appear in the middle of the movement. Therefore, when receiving the main signals, it was possible to buy Put options:
Conclusion
It's difficult to say whether this strategy is worth the price, but there is no doubt that it can generate accurate signals for buying options. Despite this, it is worth testing it on a demo account , and also setting up the correct money management and risk management for it.
Don't forget about trusted brokers. If you haven’t found one yet, you can check out our rating of binary options brokers . Happy trading!
Download the indicator and template for the Cluster Trader System strategy
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.
See also:
Trading Strategies for Binary Options
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