The Palex System binary options strategy is quite simple and certainly suitable even for beginners. It is based on a trend approach to opening trades, which involves maintaining the current price movement direction. If the trend is up, traders can hold their position and expect the asset to rise in value. If the trend is down, they can decide to sell it.
These fundamental principles form the basis of the Palex System binary options trading strategy. It is free, but effective. In this review, we will consider all its features and provide practical advice on its use, paying attention to key points. Therefore, we recommend reading to the end.
Content:
- Characteristics
- Installation
- Overview and settings
- Trading rules for Palex System
- Specifics of application
- Conclusion
- Download Palex System
Characteristics of the indicator for binary options Palex System
- Terminal: MetaTrader 4
- Timeframe: M15
- Expiration: 3 candles
- Option Types: Call/Put
- Indicators: 2MACross.ex4, Advanced_ADX.ex4, Awesome.ex4, FGM.ex4
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 8:00 - 21:00 Moscow time
- Recommended brokers: Quotex, Pocket Option, Deriv, Binarium
Installing the indicator for binary options Palex System
The Palex System strategy indicators are installed in the MetaTrader 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 indicator for binary options Palex System
The Palex System strategy includes four custom indicators and two standard ones installed by default in the MT4 trading platform. Custom indicators additionally installed in the Metatrader 4 terminal include:
- 2MACross – signals the intersection of moving averages, the period of which is specified in its settings.
- Advanced_ADX – displays the ADX indicator in an alternative format: buying is recommended on green bars, and selling on red bars. You can change the calculation period in the settings.
- Awesome (AO) is a well-known market momentum analysis tool created by American financial analyst Bill Williams. It is presented as a histogram based on the average of two simple moving averages (SMA).
- FGM is a moving average with a calculation period of 21. It is characterized by a minimal delay in relation to the prices of the analyzed financial instrument.
As mentioned earlier, in the Palex System binary options strategy, in addition to the described custom indicators, two standard exponential moving averages with periods of 7 and 14 are also used.
Trading Rules for Palex System
Now let's look at how to apply this system in practice. Since the Palex strategy involves following the trend, it is important for beginners to understand this concept. To do this, it is worth reading several articles on this topic:
- How does a trend work in the markets?
- Identifying and using bullish and bearish trends.
- Market phase changes.
- How to identify a flat market?
The scheme of work according to this method is quite simple. Positions are opened in accordance with the signals of the 2MACross indicator, which, using green and red arrows, indicates the intersection of two exponential moving averages EMA(7) and EMA(14). The other indicators of the strategy act as filters.
For example, to buy a Call option, both "basement" oscillators Advanced ADX and Awesome must be colored dark green. And vice versa, to buy a Put option, both oscillators must be red. An additional filter is the moving average FGM(21). Opening a Call option is possible if the bar on which the green arrow appeared closed above the FGM, and to open a Put option, the red arrow must appear on the bar that closed below the FGM.
Opening a Call Option
- We are convinced that the trend is upward – the candle closed above FGM(21)
- A green arrow appeared
- Advanced ADX and Awesome are colored dark green
- At the opening of the next candle we buy Call
Opening a Put Option
- We are convinced that the trend is downward – the candle closed below FGM(21)
- A red arrow appeared
- Advanced ADX and Awesome are colored red
- 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 Palex System
Palex System is a simple trading strategy for binary options. However, to successfully apply it in practice, you should follow a few simple rules:
- Trading in a Steady Trend: The Palex System can perform well when the market is in a long-term, steady trend because prices continue to move in one direction for a significant amount of time.
- Volume with confirmation: High trading volume and additional confirming indicators (such as oscillators or candlestick patterns) can enhance the effectiveness of this system.
- No Strong Counter-Trend Moves: When there are no sharp moves in the direction opposite to the main trend, this strategy can show excellent results.
- Volatility: Moderate market volatility is the best companion for this strategy. However, too much price fluctuation can increase the risk of quick reversals and lead to a large number of false signals.
Advantages of the Palex System strategy
The advantages of this strategy include its simplicity and clear signals, easy to read even for a beginner. It is based on the principle of trend following, which makes it accessible to a wide range of traders. This approach helps to avoid the influence of short-term price fluctuations and market noise, as it is focused on the main trend. Using the Palex System, trading becomes more comfortable, since all transactions are formed in accordance with the main market direction and are not subject to emotional reactions to short-term price changes. This strategy can be successfully applied to various financial assets, such as currency pairs, stocks, commodities and cryptocurrencies, which makes it a useful tool for a trader.
Disadvantages of the Palex System strategy
During periods of sideways market movement, trend systems may generate false signals, which entails potential losses. The effectiveness of such systems may be low during periods of low volatility or during abrupt changes in market conditions. In addition, trend strategies are based on the analysis of past data, which can sometimes cause a delay in issuing a signal to open a position. Using such systems leads to missing a part of the trend due to the influence of filtering methods for false trades. In addition, sudden changes in price behavior can lead to losses.
Conclusion
The Palex System binary options strategy is a simple and effective trading method, accessible even to beginners. Based on a trend approach, it provides comfort and clear signals without requiring special skills. This free strategy offers entry points for successful trading in various markets. At the same time, the Palex System helps traders avoid emotional decisions during short-term price changes and focus on the main market trend.
However, like any strategy, it has its limitations. During periods of sideways movement or low volatility, as well as during sharp changes in market conditions, it can give false signals, which requires caution and additional analysis. However, if used correctly and following the rules of risk and capital management, it can become a good assistant for successful trading with a reliable broker. We wish everyone a favorable trend!
Download Palex System
See also:
How to make money on binary options
Pros and Cons of Binary Options Trading
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