At one time , Bill Williams' book "Trading Chaos" was very popular. The author argued that there is no point in conducting technical or fundamental analysis because they do not work in the long term, and all processes in the market are completely random.

We do not agree with this statement, since we have a real example of a binary options strategy that is based on technical analysis. You can check it yourself.

If we talk about the success of traders using the “Trading Chaos” strategy, then opinions and results vary. Some use it successfully, while others fail. After reading the article to the end, you will understand what was missing for those who were unable to successfully apply this strategy.

The essence of the “Trading Chaos” strategy

Complete chaos Let's return to "Trading Chaos". The author, among other things, argued that it is important to understand the structure of the market. And this is a very true statement.

Every trader wants to know when a new trend will begin so that the maximum profit potential can be extracted from the trade. This strategy allows you to see the emergence of a new trend.

This strategy was originally used for the stock and forex markets, but it can easily be adapted for binary options trading.

Characteristics of the “Trading Chaos” strategy

  • Terminal: MetaTrader 4 .
  • Time frame: M1-M5.
  • Expiration: M5 and higher.
  • Types of options: Call/Put.
  • Indicators: Awesome Oscillator, Alligator, Fractals.
  • Trading instruments: Any.
  • Trading hours: 9:00-17:00.
  • Recommended brokers: Quotex , PocketOption , Binarium .

Characteristics of indicators of the “Trading Chaos” strategy

Awesome Oscillator. This oscillator is a modified MACD, but the calculation is not based on closing prices, but on median prices.

Alligator. This indicator is also based on moving averages, but only smoothed and forward-shifted.

Fractals. Fractals are formed after a combination of five consecutive candles. If each candle is higher than the previous one, the fractal will be on the last of the five. There may be such a situation:

Fractals up and down

Five candles is not necessarily a meaning. There may be fewer of them. The following combinations are possible:

different fractals

Installing indicators for the “Trading Chaos” strategy

indicators for trading chaos strategy All the indicators we need are available in every MetaTrader4 terminal. To add them to the chart, open the Insert tab -> Indicators -> Bill Williams and select the indicators we need from the list or simply go to the terminal navigator and add them from there. We leave the indicator settings as standard.

Also in the MetaTrader4 terminal there is a standard template for this strategy, or you can download our template at the end of the article.

You can also use the live chart on our website. All the necessary indicators are there, as are any trading tools.

By adding all the indicators to the chart or using a template, we should end up with a chart like this:

Strategy Trading Chaos on the chart

Rules for trading using the Trading Chaos strategy

This strategy is good because it can be used for both quick transactions and longer ones. If you like to open trades with an expiration time of about five minutes, then you should use the M1 TF on the chart, but if you hold trades for an hour or more, use the M5-15 TF, but no less.

Everyone knows that trend movements occur during the European and American trading sessions . Therefore, it is important to trade at this time, namely from 9:00 to 18:00 Moscow time.

If the trend is determined, then we need to wait until the Alligator lines intersect in the direction we need, and the ideal confirmation for the Alligator would be the price updating the previous Fractal and the oscillator being below or above the zero line, depending on the trend.

Examples of trading using the “Trading Chaos” strategy

Let's look at everything using specific examples. We will use M5 expiration and the EUR/USD currency pair.

Opening a Put option

In the figure below we see a downward trend on M1. The Alligator lines crossed down, the oscillator is preparing to cross the zero line, and later the previous Fractal was updated.

In this example, it can be seen that a 5-minute expiration would give a profit, and since the trade is on a trend, longer trades would also give a profit.

We ignored the signal against the trend.

Put option

Opening a Call Option

In the figure below we see an upward trend on M1. The Alligator lines have crossed upward, the oscillator is above the zero line, and the previous Fractal has been updated.

As in the previous example, here we also see that a 5-minute expiration would give a profit, and since the transaction follows a trend, longer transactions would also give a profit.

We ignored the signal against the trend.

Call option

Why did most traders lose money with the Trading Chaos strategy?

So why have some traders failed to implement this strategy successfully? Looking at the chart, you can see that a lot of false signals appear during the day. But the strategy itself does not show anything of its own, it simply follows the price. Therefore, the main rule that many people ignore is to always look for entries only according to the trend. No matter how banal it may sound, this is the whole secret. All those who did not succeed were simply playing against the trend.

Conclusion

As you can now see, with this binary options strategy it is still possible to curb the “trading chaos”. Its versatility is confirmed by the fact that it can be used on any instrument and on almost any time frame. And the rules will be clear even to beginners.

But do not forget that a certain strategy for binary options will show different results for different people. Always keep a level head while trading, control your emotions, and you will definitely achieve success!

Download strategy template "Trading Chaos"

Download

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.

PO

See also:

Free robot advisor for binary options

How to make money on binary options

The best momentum indicators

Free binary options robot

Estimate:
(5 / 5)
Your vote has been counted
Comments

To leave a comment, you must register or log in to your account.

Геннадий
Геннадий
Книгу наверное точно все знаю, ей уже сто лет, но как по мне, система себя изживает...
не понятно, с чего такие выводы. Как по мне, система еще актуальная на все 100
13 February 2020
Answer
Даниил
Даниил
Книгу наверное точно все знаю, ей уже сто лет, но как по мне, система себя изживает...
19 January 2020
Answer
Кирилл
палите секреты ахахаха я когда-то пользовался аллигатором, потом перестал, потому что и так стал видеть, когда тренд меняется. но описали классно, не так как везде ни о чем, одни термины.
07 November 2019
Answer
Кеша
Кеша
Открыли просто ГЛАЗА мне, спасибо! попробовал ее сейчас с ценными указаниями вашими и начало получаться в разы лучше!
07 November 2019
Answer
Алексей
Торговый хаос вильямса я наверное изучал в самом начале еще, т.к. эта книга была распостранена в интернете. Но тогда я по ней терял, прочитал стать и только сейчас дошло, в чем была проблема. я тупо против тренда играл
07 November 2019
Answer
Our website uses cookies and similar technologies to ensure that you get the best experience by providing personalized information, remembering marketing and product preferences, and helping you get the right information.
Quick registration!

Thank you for registering on our website. Now you have access to free distribution of signals, strategies and indicators from our website, and you can also leave a comment under any article on our website

An email has been sent to you with a link to confirm your registration and activate your account.

* If you use GMAIL mail for registration, then the letter will most likely end up in spam , check the spam folder and click the NOT SPAM button to receive notifications in the future or use another mail for registration.

** if within 5 minutes the letter has not arrived at your other email address, also check your spam folder or write to us in support support@winoptionsignals.com

If you have any questions, you can contact our support team:

You can also read our FAQ

Happy trading with us!