Binary options strategy for the hour

There are undoubtedly traders who like to trade turbo options with a 60-second expiration, but this type of trading is not for everyone, as it is more likely to incur losses than with any other approach. The 1 hour binary options strategy called Schaff Trend allows you to make trades with a 3 hour expiration on a 1 hour chart.

The binary options strategy with a time frame of 1 hour uses simple indicators , some of which are based on Moving Averages , and simple rules, which we will discuss later

Characteristics of the binary options strategy

• Terminal: MetaTrader 4 .
• Time frame: H1.
• Expiration: 3 candles (3 hours).
• Types of options: Call/Put.
• Indicators: MA_Cross_OC, ForexprofitsupremeFilter, SchaffTrendCycle, TrendSqueezer06.
• Trading instruments: any.
• Trading hours: 8:00-20:00.
• Recommended brokers: Quotex , PocketOption , Binarium .

Installing hourly binary options strategy indicators in MT4

Indicators are installed as standard in the MetaTrader 4 terminal.

MetaTrader 4 instructions for installing indicators:

The easiest way to set up a strategy is to use a template that can be downloaded at the end of the article. In it, all the indicators for the binary options strategy for the hour are already configured for trading.

The essence of the binary options strategy

The hourly binary options strategy contains four indicators that can only be used using the MetaTrader 4 terminal, since all indicators are proprietary. The strategy itself can be called a signal strategy, since it contains signals in the form of arrows, which are confirmed by filters in the “basement”.

Each of the indicators can be customized if desired, and you can start with a signal indicator for binary options called MA Cross OC. In the indicator, you can configure the signals themselves and the frequency of their appearance. To do this, you need to set the period of the fast and slow Moving Average, as well as the method:

Initially, the settings of these signals for the fast MA are “5” and for the slow MA – “8”, but such signals appear very often, and if a flat begins in the market, then there will be a lot of false signals even with filters that will indicate that a transaction is necessary do:

To avoid this, you can change the settings of the MA Cross OC indicator to higher ones (for example, the fast “moving average” is “17” and the slow one is “34”), which will ultimately give the following result:

In the same section of the chart, you can see much fewer signals, and most importantly, in this way you can weed out potential false signals that often occur when using Moving Averages with crossovers.

The next indicator is one of the binary options strategy filters for the hour, which is called Schaff Trend Cycle (STC) and it also works on the Moving Average algorithm, but it is built using cycles, so it is not just “moving averages in the basement”.

The indicator settings can be changed, but this is not necessary, since the standard settings work well:

In trading, this indicator is used as a filter and will be important when the indicator is in overbought or oversold zones (above the level of “75” and below the level of “25”):

The next filter for signals is the Forex Profit Supreme Filter indicator, which has several types of settings, as well as alerts:

The indicator signals can be identified by colors, of which there are only two, which makes working with it very simple:

The last indicator, called Trend Squeezer, visually looks exactly the same, but has no settings:

Several indicators in this strategy for hourly binary options are based on Moving Averages, as you can see, and therefore you should not use the same settings for different indicators, as this will make all the signals from these indicators inoperative and mixed due to a very similar operating algorithm "moving averages".

Trading rules for binary options strategy

Before moving on to the full rules of trading according to the strategy for binary options for 1 hour, it makes sense to mention the trend and trend trading , as this is important when trading on both small and high time frames. Ideally, every binary options trader should know what a flat is and how to determine it , what a bullish and bearish trend is and what the phases of a trend are . Understanding the trend helps make any strategy more effective and makes it possible to filter out potentially false signals, since those signals that appear against the trend should always be ignored.

Returning to the rules of trading according to the binary options strategy for the hour, it is necessary that all conditions match, and to purchase Call options you need to:

1. A white arrow appeared, pointing upward;
2. The Schaff Trend Cycle indicator was below the “25” level (in the oversold zone);
3. The Forex Profit Supreme Filter indicator was white;
4. The Trend Squeezer indicator was white.

Put options are purchased when:

1. A red arrow appeared, pointing down;
2. The Schaff Trend Cycle indicator is above the “75” level (in the overbought zone);
3. The Forex Profit Supreme Filter indicator has become red;
4. The Trend Squeezer indicator has turned red.

Timeframe, expiration, trading assets

Since this strategy is designed for binary options for 1 hour, the H1 timeframe should be used and the expiration with both types of options is 3 candles (3 hours).

You can use any trading assets in trading, but it is better to focus on the main currency pairs, since they are more understandable and calm trading instruments, unlike gold or silver, the movements of which are much more difficult to predict. Simple examples of the best currency pairs for a 1 hour binary options strategy would be EUR/USD, GBP/USD, AUD/USD and USD/JPY.

Signals for binary options strategy for the hour

Now let's look at examples of trading using strategy signals for hourly binary options on the EUR/USD currency pair. We will use an hourly timeframe and an expiration of three hours (three candles).

Call option

Please note that the trend locally (that is, at that very moment on the H1 chart) became upward, which means signals that meet all conditions can be used. And as a result, a white arrow appeared pointing upward, the Schaff Trend Cycle indicator was below the level of “25” and the other Forex Profit Supreme Filter and Trend Squeezer indicators became white:

You can also note the next signal (after the signal in the image) that could be used, but the risk was slightly higher, since one of the indicators had already changed its color to red.

Put option

In the case of the Put option, the trend changed a little and became downward, so we could safely use this signal:

And as a result, we also had an arrow pointing down, the Schaff Trend Cycle indicator was above the “75” level, and the Forex Profit Supreme Filter and Trend Squeezer indicators turned red.

And notice how signals against the trend are completely false and would only bring a loss.

Profitability of strategy for binary options for an hour

Experienced traders who have mastered trend trading will be able to “squeeze” at least 80% profitability out of this strategy, since in addition to following the rules, they have extensive trading experience and see in advance where to enter a trade and where not.

Beginners should count on 65-70% profitability, and therefore in trading they should definitely use options with a profitability of at least 85%, so that even if the strategy’s profitability is not the fastest, you will still remain in the black.

You should also definitely adhere to the rules of money management and risk management , as they allow you to correctly distribute funds during transactions. And this applies to both professionals and beginners.

Conclusion

In conclusion, I would like to say that, if desired, any strategy can be modified to fit the desired time frame, and after you have more experience, you can easily use any strategy for binary options on any time frame, or you can even create your own.

If any strategy was originally created for the Forex market, then it can be adapted for binary options , since many strategies are taken from there. This makes it possible to choose from a variety of effective and completely different trading systems, which can also be used in trading binary options for 1 hour.

Do not forget that profitable trading also depends on a trusted broker, which can be found on our website in the rating of binary options brokers .

Download the strategy for binary options for an hour

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Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.

See also:

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