The Max Payne binary options strategy offers many trading signals, but not all of them are worth your attention. Our experts have carefully analyzed and highlighted only those that really give profitable deals. Read the review to find out what these signals are and how to trade binary options correctly using this system.
Content:
- Characteristics
- Installation
- Overview and settings
- Trading Rules by Max Payne
- Specifics of application
- Conclusion
Characteristics of the Max Payne binary options strategy
- Terminal: MetaTrader 4
- Timeframe: M15
- Expiration: 3 candles
- Option Types: Call/Put
- Indicators: Max Payne exit.ex4, Max Payne GOLDEN ARROW.ex4, Payne Trend.ex4
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 8:00 - 21:00 Moscow time
- Recommended brokers: Quotex, Pocket Option, Deriv, Binarium
Setting up a strategy for binary options Max Payne
The Max Payne strategy indicators are installed in the MetaTgader 4 platform as standard. To do this, you need to add it to the root folder of the terminal by selecting “File” in MT4 and then “Open data directory”. In the opened directory, you need to go to the "MQL4" folder and then to “Indicators”, then move all the files there. Templates are installed in the same way, but are placed in the “templates” folder. You can read the installation instructions in more detail in our video:
Review and settings of the strategy for binary options Max Payne
The strategy for binary options Max Payne generates signals in the direction of the trend after a rollback. Transactions should be opened at the moment of simultaneous appearance of the arrow and the point on the chart. In this case, the direction of trading is determined by the color of the Payne Trend indicator: red - we buy only Put options, blue - Call options.
Thanks to this simple color coding, it is impossible to confuse the direction of the trend, and, as we know, the ability to trade on the trend is already half the success.
The Max Payne binary options strategy consists of three custom indicators:
- Max Payne GOLDEN ARROW – arrow indicator
- Max Payne Exit – a point on the chart showing the moment the deal is closed
- Payne Trend – a trend indicator, trading is carried out only in its direction
Now let's look at the settings of each indicator. The "arrow" Max Payne GOLDEN ARROW has only a few:
- Signal – calculation period of the signal indicator
- Filter – the period of the moving average that smooths the values of the signal indicator
- Distance – distance from the price chart
- Countbars – the number of bars for which the Max Payne GOLDEN ARROW calculation is made
The next technical analysis tool used in the Max Payne strategy is
Reverse indicator Max Payne Exit. It can be used to confirm the opening of a deal when trading binary options and as a signal to close a position when trading Forex. This universal tool has settings similar to the previous indicator, with the only difference being that it is supplemented with standard alerts.
The last indicator of the strategy is Payne Trend. As its name suggests, it is designed to determine the current trend. Experienced traders know that for long-term success it is important to trade in the direction of the dominant trend. That is why this indicator is so important. Without it, the system would be incomplete, and we would have to add a trend filter ourselves.
Like the previous tool, it has alert settings that will not allow the trader to miss a trend change.
Trading Rules by Max Payne
The rules of trading according to the Max Payne strategy are very simple and are based on following the trend. We have discussed this trading concept in detail in a series of articles on our website:
- How does a trend work in the markets?
- Identifying and using bullish and bearish trends.
- Market phase changes.
- How to identify a flat market?
All that is needed to open a Call option is to wait for a bullish trend, which will be indicated by the blue color of the Payne Trend indicator. After that, you need to wait for the simultaneous appearance of the green arrow Max Payne GOLDEN ARROW with confirmation in the form of a white dot from Max Payne Exit. To buy a Put option, the rules will be mirrored: we make sure that there is a bearish trend by the red color of Payne Trend. Then we wait for the appearance of an orange arrow Max Payne GOLDEN ARROW with a white dot Max Payne Exit on one bar. At the opening of the next candle, we buy the Put option.
Opening a Call Option
- We are convinced of the presence of a bullish trend: Payne Trend in blue
- A green arrow and a white dot appeared at the same time
- At the opening of the next candle we buy Call
Opening a Put Option
- We are convinced of the presence of a bearish trend: Payne Trend in red
- An orange arrow and a white dot appeared at the same time
- At the opening of the next candle we buy Put
It is recommended to select the expiration time of 3 candles. Select the holding period of positions depending on the financial instrument and the results of testing on historical data.
Specifics of using the strategy for binary options Max Payne
To improve the results of trading using the Max Payne strategy, we recommend making trades only during active market hours. In addition, do not open trades before the publication of important macroeconomic indicators and speeches by Central Bank chairmen. In this case, the likelihood of running into unpredictable price movement will be minimal.
Pros of the Max Payne strategy
The advantage of the Max Payne trading system is its indicators, which do not redraw their readings over time. Many “arrowheads” are guilty of this, but the tools of this system are free of this drawback. Therefore, traders should not worry: after receiving a trading signal, it will remain in place, even after you switch the time frame of your charts several times.
Cons of the Max Payne strategy
Considering that this is a trend system, its disadvantages include all the weaknesses of similar methods: the appearance of false signals in a flat and relatively infrequent transactions. In addition, it may not be suitable for some assets with short trends and a tendency to sharply change the direction of trading.
Conclusion
The Max Payne binary options strategy is another interesting option for trend trading. This system has all the necessary components for successful profit extraction: an indicator that tells you where the market is moving, as well as two reliable assistants that will help you determine the right moment to open deals using arrows.
We recommend that you start mastering the new trading method on a demo account opened with a reliable broker. And only after you get the hang of it, move on to trading with real money, following the rules of risk and capital management. We wish everyone great deals and a favorable trend!
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