The Simple Scalper binary options strategy is an aggressive approach to working with trends in financial markets. The method is based on identifying a price impulse at the moment of its inception. Since trades using this strategy are carried out at the very beginning of price trends, it is especially attractive for traders who prefer active trading of binary options.
In general, the system is distinguished by the clarity and unambiguity of the signals supplied. Beginning binary options traders will not have any difficulties applying it in practice. At the same time, the indicators that this system uses do not cancel or redraw their own readings.
The developers are asking $87 for this simple scalping strategy. In this review, we will analyze all the nuances of its use, understand how effective it is, and whether it is actually worth the money. At the end of this article there will be a link where you can download this system for free for evaluation purposes.
Content:
- Characteristics
- Installation
- Simple Scalper overview and settings
- Trading rules using Simple Scalper
- Buying a Call Option
- Buying a Put option
- Conclusion
- Download Simple Scalper
Characteristics of the strategy for binary options Simple Scalper
- Terminal: MetaTrader 4;
- Timeframe: M15;
- Expiration: 6 candles;
- Option types: Call/Put;
- Indicators: Direction.ex4, Moving average.ex4;
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks;
- Trading hours: 1PM - 10PM UTC
- Recommended brokers: Quotex, Pocket Option, Deriv.
Setting Up a Strategy for Binary Options Simple Scalper
Indicators of the Simple Scalper strategy are installed as standard in the MetaTrader 4 platform. To do so, you need to add them to the root folder 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 all the trading system files there. Templates are installed in the same way, but are placed in the “templates” folder. You can view the installation instructions in more detail in our video:
Review and Configuration of Strategy Indicators
The Simple Scalper binary options strategy consists of two indicators: Direction and a Simple Moving Average with a period of 100 (SMA100).
The first is a proprietary indicator that combines the values of the standard Parabolic SAR, Zig-Zag and arrow pointer. As you can see in the screenshot, this trader assistant does not have many settings to configure. The most important and sensitive ones are “Signal Period” (responsible for dividing the chart into swings) and “Arrow Period” - the interval for calculating the “signalman” arrows. Next comes the value of the initial stop loss and alert settings.
The second indicator does not need any special introduction. Moving Average is a standard tool built into the Meta Trader 4 trading terminal. In this system, it functions as a trend filter and serves as a safety net for opening trades against the dominant trend.
To successfully trade using this method, we recommend choosing volatile assets. This approach will provide sufficient “power reserve” for profitable closing of option contracts after receiving a signal to open a transaction.
Testing this system on historical data showed good results when holding open positions of 6 or more candles. This is a lot for scalping, but trend reversal signals take time to develop into full force. You can experiment with the expiration time and choose the one that will be more suitable for your financial instrument. Be sure to first practice on a demo account opened with a reliable binary options broker.
In turn, Forex market traders will be able to use this strategy not only to determine reliable entry points, but also to identify price levels for which it is advisable to set protective stop orders to minimize losses.
Trading Rules for the Simple Scalper Strategy
The Simple Scalper binary options strategy belongs to the classic trend trading systems. Taking into account the many trading approaches based on trend detection, we have compiled a selected collection of articles detailing the mechanics of this process:
- 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?
Why is this point given so much attention? It's simple - carrying out trading operations in the direction of the main trend of a financial instrument increases the percentage of profitable transactions and, therefore, reduces overall losses (reduces the likelihood of a drawdown on the deposit). An additional advantage of trading using Signal Scalper signals is the trader’s confidence in his own actions, which, of course, also has a positive effect on the final results.
An important element of any trend trading system are filters, with the help of which it is possible to reduce the number of false transactions against the main trend. In the system we are describing, such a filter is a moving average with a calculation period of 100 candles. If prices are below SMA(100), we will look only for sales transactions (Put), and vice versa - while prices are above SMA(100), we will pay attention only to purchases (Call).
On the slide above, the dotted line represents the 100-period moving average. As you can see, the filtering rule saved us from false purchases three times. While prices are below the moving average indicated by the dotted line, the trader should focus on finding the optimal point of selling or buying a Put binary option. While a downward trend is in effect, any price surges against it are very fleeting and are clearly not worth participating in.
Each financial instrument will have its own optimal filter period. For more volatile currency pairs this figure will be higher, while for some commodity market instruments it will be lower. Select it based on the historical data of your instrument and the timeframe for analysis. In any case, the trader must understand for himself which option suits him best and how he is more comfortable trading.
Buying Call
To buy a Call option, you need to make sure that the prices of the analyzed asset are above the SMA (100). Then wait until the candle closes above the red dots of the Direction indicator and the green arrow appears. At the opening of a new candle, we buy a Call.
Buying Put
To buy a Put option, you need to make sure that the prices of the asset being analyzed are below the SMA (100). Then wait until the candle closes below the blue dots of the Direction indicator and the red arrow appears. At the opening of a new candle, we buy Put.
The recommended expiration period is 6 candles.
Conclusion
The Simple Scalper binary options strategy is based on the classic exchange trading principle - opening a position for a breakout of a trend level. To determine the dominant trend in the market, the system uses a simple moving average with a calculation period of 100 candles. As long as the exchange rate of the currency pair is below this filter, the trader buys exclusively Put options and, accordingly, while prices are above the trend filter, he buys exclusively Call options.
This technique is very simple, but at the same time effective and definitely worth the little money. Like any other trend binary options system, this strategy can easily be transformed from medium-term to short-term and vice versa. In this case, you don’t even need to revise the rules for opening transactions. The only adjustments that will need to be made are to change the calculation periods of the Direction indicator and, possibly, the trend filter. Before using it in real trading, we recommend that you definitely practice on a demo account, applying all the principles and approaches of risk management and money management.
Download the Simple Scalper binary options strategy
See also:
How to make money on binary options
Pros and cons of trading binary options
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