The binary options strategy Renegade Trading System stands out visually from other systems and indicators. Linear chart display, multiple moving averages , channels, arrow signals, oscillator readings - all this looks like a very impressive universal trading system.
Renegade Trading System costs $98. Its external attractiveness in itself is a good driver for sales, but is it really possible to make money on the financial markets using Renegade indicators? We will look into it in detail in the review. You can familiarize yourself with and test Renegade for free by downloading it from our website for informational purposes.
Content:
- Characteristics of Renegade Trading System;
- Installation of Renegade Trading System;
- Review and settings of Renegade Trading System;
- Trading rules for Renegade Trading System;
- Opening a Call option;
- Opening a Put option;
- Conclusion;
- Download Renegade Trading System.
Characteristics of the strategy for binary options Renegade Trading System
- Terminal: MetaTrader 4 ;
- Timeframe: M1-H4;
- Expiration: 3 candles;
- Option types: Call/Put;
- Indicators: RENEGADE V.1.ex4, RENEGADE V.2.ex4;
- Trading instruments: currency pairs , commodities, cryptocurrencies , stocks;
- Trading time: 8:00-20:00 Moscow time;
- Recommended brokers: Quotex , Pocket Option , Deriv , Binarium .
Setting up a strategy for binary options Renegade Trading System
Renegade Trading System strategy indicators 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 the same way, but are placed in the “Templates” folder. More detailed instructions for installing indicators can be viewed in our video:
Review and settings of Renegade Trading System strategy indicators for binary options
The trading strategy for binary options Renegade Trading System uses two indicators:
- RENEGADE V.1
- RENEGADE V.2
The first one displays channels and moving averages on the chart, gives arrow signals and visualizes additional information for making trading decisions. The second is a histogram oscillator with two moving lines, based on MACD indicators.
Renegade V.1 is responsible for visualizing the following elements of the trading system on the chart:
- arrow signals;
- multi-level channel;
- accumulation of moving averages;
- bar chart.
Please note that the chart itself is displayed here as a line by default, rather than candles or bars, which are more familiar to most traders. It is noteworthy that even this graph line blends into the background color by default. To make the price chart visible, click on F8 and in the pop-up menu, select the desired color for it in the “Line” parameter.
Unfortunately, the indicator does not have any significant settings, and here you can only change the colors of individual elements of the Renegade system:
It is impossible to reliably know what the Renegade Trading System arrow signals are based on without access to the source code of the indicator. Arrow trading signals to buy Call and Put alternate and appear with some delay behind price reversals. This is typical for trend trading systems based on moving average crossovers .
The actual appearance of the arrows does not correlate 100% with any of the other indicators of the trading system. Crossovers of moving averages displayed in Renegade, oscillator readings, price location relative to the channel - none of this is directly related to arrow signals.
The blue smoothed lines of the Renegade multi-level channel are very late behind the price. The channel is built according to the principle of the Envelopes indicator based on some of the highly smoothed modifications of the moving average with a very long period. The channel lines diverge above and below its center. The distance of each line to the central axis of the channel is 100%, 200% or 61.8%, 161.8%, where the last two values are Fibonacci ratios.
Clusters of intersecting lines in the Renegade trading system are ordinary exponential moving averages with a period of 12-18 for red EMAs, and 20-26 for green EMAs. This can be detected by adding simple EMAs with periods of 12 and 26 to the chart:
The final data visualization element in the Renegade Trading System is a histogram of green vertical lines. It appears exclusively in conditions of a growing local trend and reflects the distance from the EMA with a period of 12 to the price:
If you know a way to practically use such a histogram in binary options trading, be sure to write about it in the comments. The scope of application of such a tool is unknown to us.
RENEGADE V.2 is the second indicator of the trading system for binary options Renegade Trading System. Essentially this is a simple oscillator with two intersecting moving averages and a histogram:
It appears that RENEGADE V.2 is a specific modification of the standard MACD oscillator. Their readings are noticeably correlated and, perhaps, even completely coincide with more precisely selected MACD settings:
The settings of RENEGADE V2, like the first indicator, do not allow optimizing the operation of the oscillator. It only provides for changing the color scheme and changing significant levels on the oscillator scale, which are marked there with yellow horizontal lines.
Trading rules using the Renegade Trading System strategy for binary options
Absolutely all elements of the Renegade binary options trading system are based on moving averages. Even the arrow signals and oscillator are based on them, or similar trend tools. Each of the Renegade indicators uses its own modification of the MA and a unique period, so they all indicate a change in trend at different times and with different frequencies.
The effectiveness of a trading strategy built with this approach is highly questionable. The system does not track any other price indicator other than previous price values for certain periods in the past. Volume, volatility, levels, patterns - everything that could help in predicting the future direction of the price requires either the installation of additional indicators to the Renegade Trading System, or in-depth knowledge in manual technical and graphical analysis .
Trading with the Renegade Trading System is also made more difficult by the fact that the indicators are not customizable, so it will not be possible to adapt them to a specific instrument, time frame or trading approach.
We tested the Renegade system's arrow signals both separately from its other indicators and in various combinations with them. In any use case, the win rate of trading signals of this system barely reaches 55%. This is an extremely low profitability ratio, therefore, despite the abundance of lines, channels and histograms, the trader will have to manually determine the direction of the main trend. This is the easiest way to filter out a significant number of losing Renegade signals and significantly improve the system's win rate.
If you are just starting to learn binary options trading and are having difficulty determining trends and changing market phases, our materials will help you in mastering these important skills:
- How does a trend work in markets?
- Identifying and using bullish and bearish trends.
- Market phase changes .
- How to determine a flat in the market?
According to our observations, the following rules bring the best results in binary options trading using the Renegade system:
To buy a Call option:
- The trend is upward.
- A yellow up arrow appears.
- The color of the oscillator histogram changed from red to green.
As soon as the color of the histogram has changed, you can buy a Call option with an expiration of 3 candles. Any time frame is suitable.
If within one unit of time of the timeframe selected for trading the expected change in the color of the histogram does not occur, the transaction is cancelled. For example, if you are trading on the M5 timeframe, the waiting time for a confirmation signal is also 5 minutes.
To buy a Put option:
- The trend is downward.
- A yellow down arrow appears.
- The color of the oscillator histogram changed from green to red.
When the color of the basement histogram changes, you should immediately buy a Put option. The trade is canceled if the basement histogram does not change color from green to red within one unit of the timeframe period.
Opening a Call Option
In this example, on the M1 timeframe, the trend was upward when the yellow up arrow appeared. When the arrow signal appeared, the basement histogram was red, but soon changed to green. Immediately after such a confirmation signal, you can buy a Call option. If the color of the histogram remained red within one minute after the appearance of the arrow signal, the trade should have been canceled.
Opening a Put option
In this example, a downward trend was observed on the M5 timeframe. A yellow down arrow appears. The basement histogram went from green to red in less than 5 minutes. At this moment, you should immediately buy a Put option. If the histogram color had remained green for more than 5 minutes after the arrow signal appeared, the trade should have been cancelled.
Conclusion
Trading binary options using the Renegade Trading System strategy cannot be confidently recommended for traders with any level of experience. All elements displayed by the system on the chart and in the footer panel are connected by the same principle of using moving averages to receive trading signals. Logically combining a set of such indicators into a profitable strategy is extremely difficult, if not impossible, without additional adjustment of individual parameters.
The purchase of the Renegade Trading System can only be recommended to those who are looking for a beautiful picture on the MT4 screen, and not profitable signals for trading binary options. It seems that most of the elements of this strategy serve only to effectively visualize useless parameters.
Perhaps by testing the Renegade system yourself on a demo account, you can find a more profitable way to use its tools and their indicators, but it is unlikely that this will bring you much closer to creating a trading grail for binary options . Instead, we propose to pay attention to truly working and simple methods for improving any trading strategies, which lie in the area of correct application of risk management and money management .
We remind you that you can always find a reliable platform for trading binary options in our rating of brokers .
Download the Renegade Trading System strategy for free
See also:
Psychology in trading - what does a beginner need to know?
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