Every trader, even not very experienced ones, is well aware of the thesis about the benefits of a trend. The catchphrase: “Trend is your friend” has become not just an axiom, but a practical guide to action for many generations of stock speculators. And the Guppy binary options strategy is built precisely on this fundamental principle of following the price.

As soon as the first sign of the beginning of an exchange rate growth or decline according to this system appears, the trader enters into a deal with Call or Put binary options, depending on the type of signal received.

At the same time, Guppy is very simple and effective, it generates fairly accurate and unambiguous signals, no fortune telling or individual interpretations are required from the user. All signals for this strategy are clear and do not get redrawn over time; beginners will definitely appreciate it. The developers are asking $87 for this strategy, but from us you can download it absolutely free for evaluation purposes. Let's find out if it's worth the money or not.

Content:

guppy chart

Characteristics of the Guppy binary options strategy

  • Platform : MetaTrader 4 ;
  • Instruments: currency pairs , oil, metals, indices, cryptocurrencies ;
  • Timeframe: M15;
  • Option types: Call / Put;
  • Indicators: RainbowMMA_01.ex4, RainbowMMA_02.ex4, RainbowMMA_03.ex4, RainbowMMA_04.ex4, RainbowMMA_05.ex4, RainbowMMA_06.ex4, RainbowMMA_07.ex4, RainbowMMA_08.ex4, RainbowMMA_09.ex4, RainbowMMA_10.ex4, RainbowMMA_11.ex4;
  • Expiration: 4 candles;
  • Trading time: 8-20 Moscow time;
  • Recommended brokers: PocketOption , Quotex , Deriv .

Setting up a Guppy binary options strategy

Indicators for the Guppy system are installed as standard in the MetaTrader 4 terminal. To do this, you need to add them to the root folder of the terminal by selecting “File” in MT4 and then “Open data directory”. In the directory that opens, you need to go to the “MQL4” folder and then to “Indicators”, and then drag the indicator files there. Templates are installed in exactly the same way, but are placed in the “templates” folder. For more detailed instructions on installing indicators, see our video:

Review and settings of Guppy indicators

The Guppy binary options strategy consists of 11 RainbowMMA indicators, each of which represents 8 moving averages of different periods. In this case, all indicators are combined into groups of two and painted in the same color. For example, RainbowMMA_10 and RainbowMMA_11 are combined into a group of golden exponential moving averages.

guppy settings

The system uses five groups of moving averages that reflect the direction of the trend on different time frames from short-term to long-term. By looking at them, a trader can visually assess the direction of the exchange rate of a currency pair or any other asset over a different period of time.

trend detection in guppy

The developer of the trading system has closed the indicator parameters, which looks quite strange, because... Before us are classic exponential moving averages, calculated over different periods of time. There is nothing unique about them. All that the user can change in the settings is color. It is possible that the system's indicators were closed to avoid breaking the sequence of moving averages, which may change its logic.

guppy parameters

This system is a logical development of the multiple moving average (GMMA) trading method invented by Australian trader and writer Daryl Guppy. Its purpose is to help traders better understand market trends. By analyzing how moving averages interact with each other, the user better understands the direction and strength of the trend currently prevailing in the market.

The main advantage of multiple moving averages is their ability to more clearly determine trend changes than their classic counterparts. In addition, several averages filter out noise and make the exchange rate dynamics of the analyzed asset more understandable.

Guppy is a universal strategy that can be used not only for binary options, but also when trading stocks, metals, cryptocurrency or the Forex market.

The indicators of this system will help the trader find the answer to three key questions:

  1. What is the strength of the current trend;
  2. How to determine the end and reversal of a price trend ;
  3. How to determine flat .

Let's try to deal with each of them.

How to determine the strength of a trend

The strength of the dominant price trend in a given binary options system is determined by assessing the relationship between the long-term moving averages (purple and gray) and the short-term moving averages (yellow and blue).

At the moment of strong unidirectional impulses, the “fast” short-term moving averages will be located at a significant distance from the “slow” long-term ones. And the wider the distance between the groups, the stronger the exchange rate fluctuations.

trend power in guppy

How to determine a trend reversal

Trading system indicators help determine the reversal in the direction of price movement at the intersection of short-term and long-term groups and moving averages. A price trend reversal from upward to downward occurs when the short-term averages cross the long-term averages from top to bottom.

There is a mirror reversal of the downward price dynamics to the upward one. In this case, a group of short-term moving averages crosses the long-term moving averages from bottom to top.

trend reversal in guppy

How to determine a flat

A sideways market is a real headache for most traders. Considering that the described system belongs to the category of price following, one of the priority tasks of its user is flat filtering (a situation in which the price of an asset does not rise or fall, but is in a range limited by support and resistance levels).

Defining a non-trading situation is very simple. In this case, short-term and long-term groups of moving averages intertwine with each other, stretching into a straight line. As soon as we find ourselves in such a situation, it is categorically not recommended to enter into transactions. It is necessary to look for another financial instrument in which the order of the lines is not disturbed. and there is sufficient distance between the different groups of means.

flat in guppy

Trading rules for the Guppy binary options strategy

The Guppy binary options strategy is a trend system. To increase the percentage of profitable trades made using this strategy, it is necessary to monitor the signs of trend strength, which we discussed in the previous section. To improve the quality of trading, you should look for entry points when the group of yellow averages has diverged to a visually significant distance from the purple lines.

The signal to open a position is the closing of the candle outside the colored averages. This trading strategy offers two main types of signals: a reversal and a continuation of the price movement. You can use both or one of them, depending on the results of backtesting.

Trading for trend continuation

To enter into a trade in the direction of the current trend, you need to wait for the candle to close above or below the group of yellow lines (in order to identify a rollback), and then enter the trade when the price turns again in the direction of the main movement, and the last candle closes behind all the lines (below the indicator multiple moving averages - Put, above - Call).

continuation of the trend in guppy

The chart above shows the trading situation in a bear market. For a bull market, all actions are mirrored.

Reversal trading

To execute a reversal transaction, you must wait for the trading direction to change.

To purchase Call

1. A group of yellow moving averages crossed the others from bottom to top.

2. The candle closed above all colored lines.

3. Buy a Call option at the opening of the next candle.

Recommended expiration 4 candles, timeframe M15.

To buy Put

1. A group of yellow moving averages crossed the others from top to bottom.

2. The candle closed below all colored lines.

3. Buy a Put option at the opening of the next candle.

trend reversal in guppy

Opening a binary option Call:

Here we see a trend reversal: a group of yellow moving averages crossed the purple moving averages from bottom to top. To buy a Call option using the reversal method, you must wait until the previous candle closes above all the colored lines of the indicator. At the opening of a new candle, open a Call.

signal to buy a call option in guppy

Opening a Put binary option:

Here the upward trend has given way to a downward trend, which we see due to the intersection of all other colored moving averages with yellow ones from top to bottom. To purchase a Put option using the reversal method, you must wait until the previous candle closes below all colored lines. At the opening of a new candle, open Put.

signal to buy a put option in guppy

The recommended expiration period is 4 candles.

Conclusion

The Guppy binary options strategy is universal and multifaceted. It is perfect for beginners, because... gives very accurate signals at a trend reversal. The developers based it on a well-known exchange principle: if the price of an asset deviates from its average values ​​by a certain number of points, then there is a very high probability of the exchange rate continuing to move in the same direction. Therefore, after the candle closes above or below the indicator lines, you can expect the movement to continue in this direction. And, as we see from the examples presented above, this approach works. The price of $87 for such high-quality signals is quite justified.

An additional advantage of the strategy is its applicability in the Forex market. In this case, transactions should be concluded in the same places as for binary options. The only difference is that foreign exchange market traders need to take care of setting a protective stop order and take profit. However, no matter what market you trade in, in order not to lose your deposit , before using a new strategy, be sure to test its results on a demo account , using all the principles and approaches of risk management and money management .

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See also:

Best binary options broker

Live chart for binary options

How to make money on binary options

What to do if the broker does not withdraw money

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ЗАНУДА я
ЗАНУДА я
12970 Благодарю за обзор! Очень заманчивый индикатор! Будем тестировать)
14 May 2024
Answer
tirant
tirant
12874
Еще одна трендовая стратегия.
Богдан , За то какая красивая!!!))
24 April 2024
Answer
Артур
Артур
12862 И под крипту пойдет, и под индексы.
22 April 2024
Answer
Option Bull
Option Bull
12861 Мне очень сильно нравится визуальная составляющая стратегии, то как переливаются цветные линии. Они буквально завораживают и чуть ли не гипнотизируют)) Хорошо что автор позаботился о том, чтобы новички не испортили в настройках весь алгоритм работы, копошась в параметрах.
19 April 2024
Answer
Option Bull
Option Bull
12860
Еще одна трендовая стратегия.
Богдан, не просто трендовая, а УЛЬТРА трендовая)) Лично я еще не встречал такой стратегии или индюка, который в котором бы уделялось так много внимания определению тренда, что не может не радовать. Скользящие средние в этом плане очень хороший инструмент, а если их несколько, то тем более))
19 April 2024
Answer
Option Bull
Option Bull
12859
Это в честь аквариумных рыбок назвали?))))
Трейдер БО, ахахах очень оригинально кстати)) Я почему-то до такого не додмуался) Стратегия названа в честь австралийского трейдера и писателя Дэриала Гуппи, который придумал сам принцип, на котором основана данная стратегия)
19 April 2024
Answer
Богдан
Богдан
12858 Еще одна трендовая стратегия.
19 April 2024
Answer
tirant
tirant
12857
Это в честь аквариумных рыбок назвали?))))
Трейдер БО , У меня в детстве был аквариум. Может в честь скалярии назовут стратегию?)))
19 April 2024
Answer
Трейдер БО
Трейдер БО
12856 Это в честь аквариумных рыбок назвали?))))
19 April 2024
Answer
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