On the Internet you can find many indicators and strategies for binary options , which were created by different traders. Not all of them are workable, so in this article we will look at how to create an effective strategy for binary options and what is needed for this.

Content:

PO

What you need to create a binary options strategy

Creating a strategy involves conducting analysis and collecting all kinds of data that will help you understand what should be included in your system. First, you will need to decide on the type of trading strategy to be created. She may be:

  • signal;
  • trending;
  • based on levels;
  • mixed;
  • without indicators.

When creating, you should also pay attention to:

  • Indicators . The more indicators you can analyze, the higher the chances that you will find ones that are right for you. The strategy can be based on trend indicators or indicators of support and resistance levels ;
  • Strategies . Looking through ready-made strategies, you can choose indicators that are not available separately, or take something as an idea;
  • Trading methods . By studying different approaches to trading, you can supplement your system with effective techniques that will be used when making transactions;
  • Trading screenshots . Screenshots from traders can also help with ideas for implementing your strategy.

To create your own strategy for binary options, you should also decide which instruments are suitable for your specific trading style. That is, it is important to understand which signals will be effective for short- or long-term binary options trading.

Stage 1: choosing a binary options strategy style

As mentioned earlier, the strategy can be:

  • signal;
  • trending;
  • based on levels;
  • mixed;
  • without indicators.

Beginners may immediately discard strategies without indicators and based on levels, since they require experience in binary options trading and can cause difficulties. Signal, mixed and trend strategies can be very simple and therefore suitable for all traders. It is worth noting that most often all systems are mixed and only in some can indicators of the same type predominate.

Signal strategies consist mainly of signal indicators, which can appear in the form of arrows, dots and other symbols. An example of such a system would be Flash-FX Scalper :

Flash FX Scalper Strategy

Trend strategies are based on a trend and all transactions are made only if there is a directed movement in any direction. During a flat, trading using such systems is not carried out. An example of a trend strategy is FX Dart :

indicators in dart strategy

Speaking of mixed strategies, they can use trend, information and signal indicators, as well as levels. An example of such a system is DJ Market PRO :

DJ Market PRO levels

Trading systems without indicators may involve trading on a blank chart or trading based on levels that the trader builds independently. Price action , graphical analysis and candlestick analysis can also be used. Pattern trading can be effective, but it requires learning each pattern, which takes time and experience, so beginners are better off starting with simpler approaches and building their systems from there.

Stage 2: selecting indicators for a binary options strategy

It is possible to select effective indicators only after many of their types have been reviewed. For a complete understanding, it will be necessary to study the technical characteristics (settings) and, if possible, understand the algorithm of their operation.

Specifications

Using the Stochastic Oscillator as an example, let's look at its settings. The main ones in this case are the %K period, the %D period and deceleration:

stochastic settings

We will compare different variables to understand how trading signals will differ. For example, let's take the basic settings (5-3-3) and our own (15-3-9). Basic settings are more “sensitive” to quotes and react to all price fluctuations, while our settings are lagging and their signals are not as accurate. As signals, we took the usual intersection of overbought and oversold levels:

stochastic signals

In exactly the same way, it is worth checking other indicators, comparing their settings and selecting the best ones. An exception may be indicators in which the settings cannot be changed.

Exactly the same example, but with a signal indicator. In one image, the first variable is "10" and the second is "30". Thanks to this, you can immediately see the difference in the number and accuracy of signals. This once again shows why it is necessary to carefully study any of the selected tools:

setting up signals with parameter 10 setting up signals with parameter 30

Work algorithm

I would also like to note the second point, since very often you can find indicators that, for example, are based on moving averages , but at the same time they look different. The Trend Lock System v1 strategy is exactly that. It disguises the usual SMA under the guise of accurate signals:

Comparison of the second indicator of the Trend Lock System v1 strategy

Stage 3: selecting technical components for the trading system

Let's assume that you have studied everything you need and selected the tools that you will use in your new strategy. Regardless of what it consists of, you will need:

  • Select an asset for trading;
  • Choose a timeframe ;
  • Select expiration ;
  • Check the correlation of indicator signals.

Asset selection

You should trade a small number of assets. Otherwise, attention is “sprayed,” which reduces the effectiveness of any technique. It is optimal if a trader chooses a small number of assets, or even better, choose one that can be studied thoroughly.

Honest binary options brokers offer a variety of financial instruments. Some assets are characterized by increased volatility , others are more “sluggish”. But in each case, with the right approach, you can make money. However, by selecting a small number of assets, a person over time begins to understand how quotes are formed and what influences prices. This makes it easier to predict what will positively impact your bottom line in the future.

Beginners should pay attention to currency pairs , as their behavior is the easiest to predict. Another advantage of currencies is that there are quite a lot of them and everyone will choose the right one for themselves:

currency pairs

Time frame selection

Before choosing a time frame, you need to answer the following questions:

  1. what type of trading suits you - short-, medium- or long-term;
  2. how much time are you willing to spend waiting for a signal (the higher the timeframe, the fewer signals).

Depending on the responses received, appropriate time frames are selected. When working with short-term contracts, M5 and M15 charts are used. But please note that at such time intervals you can often observe “market noise”, which you should be prepared for.

For medium-term contracts, time intervals M30 or H1 are suitable. In this case, the effectiveness of indicators increases and provides more accurate signals.

Long-term binary options trading is carried out on timeframes from H4 and higher, but it is worth noting that not all brokers allow trading with expirations longer than 4 hours. Also, such trading is not suitable for beginners, since it is more difficult to predict price behavior for such a long period than for a shorter period.

The most common timeframes for binary options brokers are:

types of timeframes

Selection of expiration date

Expiration dates are selected based on:

  • volatility;
  • the nature of market behavior;
  • presence/absence of strong news and other factors.
  • timeframe.

That is, the order execution time is selected separately for each specific case. You cannot “blindly” set the same expiration every day, without paying attention to the market situation.

The types of expirations most often found with brokers are:

types of expirations

Signal correlation

Once you have chosen the instruments that you are going to use in the strategy you have created, you should check how correlated the signals are with each other. To make it clearer, let’s take an example of the rules of the Cluster Trader System strategy . The rules for trading on it are as follows:

Call Options:

  1. (Optional) The MTT indicator was green, which would indicate an uptrend.
  2. The level to which the price will approach should be blue (support/demand).
  3. A green arrow with the text TC Buy should appear.

Put options:

  1. (Optional) The MTT indicator was red, which would indicate a downward trend.
  2. The level to which the price will approach should be red (resistance/supply).
  3. A red arrow with the text TC Sell should appear.

In the example below, there is a situation for buying Call options, where you can see how the signal appears exactly at the level, which means the correlation of the signals is high:

CALL signals from Cluster Trader System

An opposite example is the situation with Stochastics, shown earlier, where different parameters gave completely different signals and did not correlate with each other.

Stage 4: Testing the Binary Options Strategy

You can understand how effective a strategy is only after testing it on a demo account . In this case, traders gain experience in binary options trading, which will also be useful for improving their trading system. By testing strategies and indicators on a demo account, you will be able to:

  • understand how much profit the strategy can bring;
  • better understand the rules for buying options;
  • study the principles of operation of your signals;
  • find flaws in the trading system;
  • improve strategy.

In this regard, you should first trade on a demo account with a broker, with which you can find out all the factors described without risking your own funds.

Conclusion

After going through all four stages, you will be able to create a working version of the strategy for binary options, which can be used in trading on a real account. Most likely, over time you will still refine and improve it, but the basis itself most likely will not change.

The above recommendations will help you create an effective trading strategy. But after this, you should test the chosen approach on a demo account, and then on a small deposit and small investments. This method helps determine the amount of profit and loss when using a specific tactic with minimal losses.

PO

See also:

How to choose a binary options broker

Binary options trading platforms

Current bonuses and promotional codes for 2022

How to trade on weekends. What are OTC quotes?

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

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

Трейдер БО
Трейдер БО
Для того что бы стратегию создать нужна голова. А когда она хромает как у меня... ))) Пользуюсь чужими.
Богдан, Так надо тренироваться что бы не хромала.))) Другое дело - времени нет.
26 February 2024
Answer
Артур
Артур
Для того что бы создавать стратегии надо быть стратегом.))))
26 February 2024
Answer
Богдан
Богдан
Для того что бы стратегию создать нужна голова. А когда она хромает как у меня... ))) Пользуюсь чужими.
26 February 2024
Answer
ЗАНУДА я
ЗАНУДА я
Кстати, там за 2023 год хороший и подробный разбор глянь на канале
Тимофей, О...) А за такой конкретный совет.... спасибо! Обязательно гляну!
26 February 2024
Answer
Тимофей
Тимофей
НО для этого же нужно торговать.... )) а время на обучение??? это же нужно всё забросить и только этим заниматься?
ЗАНУДА я, ну КОНЕЧНО ахах) всему нужно уделить время) хочешь научиться и зарабатывать нужно уделать время и внимание. А лучше возьми и рейтинга 3а 2023 год любую стратегию и изучи её досконально и пользуйся и походу начнёшь вникать как работает и быстрее пойдёт обучение. Кстати, там за 2023 год хороший и подробный разбор глянь на канале
26 February 2024
Answer
ЗАНУДА я
ЗАНУДА я
создавать свою стратегию можно уже через 3-4 месяца стабильной и постоянной торговли и на демо и на реальном счету. Уверен, что такого временного опыта будет достаточно
Владимир, ну спасибо.... обнадежили))) а я сначала испугался)) НО для этого же нужно торговать.... )) а время на обучение??? это же нужно всё забросить и только этим заниматься?
26 February 2024
Answer
Владимир
Владимир
Какой нужно иметь опыт в БО, чтобы создать собственную стратегию?
Option Bull, примерно хотя бы 1-2 года
Руслан, это уже для ленивых, думаю, что создавать свою стратегию можно уже через 3-4 месяца стабильной и постоянной торговли и на демо и на реальном счету. Уверен, что такого временного опыта будет достаточно
26 February 2024
Answer
ЗАНУДА я
ЗАНУДА я
Блин)) это очень сложно для новичков... лучше бы что-то попроще) Тут сама тема бинарки сложная... а ещё и свою стратегию создавать )) шутите
26 February 2024
Answer
Option Bull
Option Bull
Я считаю что тема не до конца раскрыта. Если вдуматься, то создание стратегии может подразумевать как подбор удачной комбинации индикаторов с нужными характеристиками и т.д. так и разработку своей собственной стратегии с нуля, с помощью программирования встроенных индикаторов для нее. В данном случае в статье описывается только первый случай.
23 November 2023
Answer
Руслан
Руслан
Какой нужно иметь опыт в БО, чтобы создать собственную стратегию?
Option Bull, примерно хотя бы 1-2 года
08 November 2022
Answer
Option Bull
Option Bull
Какой нужно иметь опыт в БО, чтобы создать собственную стратегию?
08 November 2022
Answer
Григорий Туманов
Григорий Туманов
я свою стратегию для бинарных опционов создавал вообще без нчиего, уровни и свечные формации разные это для меня самое рабочее получилось. а индюки пробовал разные, бесполезно все...
05 March 2022
Answer
Игорь
я свою стратегию для бинарных опционов создавал вообще без нчиего, уровни и свечные формации разные это для меня самое рабочее получилось. а индюки пробовал разные, бесполезно все...
а я наоборот не понимаю, как эти уровни использовать без ничего, и самое смешное что я торгую вообще по стоху и нормально получается, просто если кучу графиков и сигналво пересмотреть ты начинаешь понимать что использовать что нет и когда
05 March 2022
Answer
Арсен
если перелопатить кучу индюков и стратегий, то свою создать будет несложно, ты просто уже будешь знать какой индюк тебе подходит какой нет
05 March 2022
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!