The Triple Trend binary options strategy generates many reliable signals to open trades along the trend. And, as you know, this is one of the most effective trading methods. According to statistics, traders who trade in the direction of the main trend earn more than those who prefer trading in a flat.
However, simply knowing this fact will not make you a successful trader. To open trades on the trend without fail, you need a reliable strategy. This is the free strategy that we will discuss in our review. And those who read to the end will not only learn the optimal indicator parameters, but also will receive a secret recipe that will allow them to minimize losses and increase profits.
Content:
- Characteristics
- Installation
- Overview and Settings
- Triple Trend Trading Rules
- Specifics of Аpplication
- Conclusion
- Download Triple Trend
Characteristics of the Triple Trend Binary Options Strategy
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 3 candles
- Option Types: Call/Put
- Indicators: Stratman_MiniChart_v12.ex4, THV4 HA mql.ex4, Ts code 2.ex4, Ts scalp8.ex4, MA_in_Color_wAppliedPrice.ex4
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 8:00 - 21:00 Moscow time
- Recommended brokers: Quotex, Pocket Option, Alpari, Binarium
Setting Up the Triple Trend Binary Options Strategy
Triple Trend strategy indicators are installed in the Metatrader 4 platform as standard. 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 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 Strategy for Binary Options Triple Trend
The Triple Trend binary options strategy consists of a signal indicator and a set of auxiliary ones. The first one is designed to generate trading signals in the form of green and red arrows on the chart, while the others perform analytical work, helping the trader make a decision to open a deal.
The picture above shows the work of the custom indicator Ts scalp8. It generates signals in the form of arrows, and also displays an information panel in the lower right corner of the screen. This panel displays the direction of the current signal, the time until the candle closes, and the current time. We should immediately note that the timer until the end of the candle is very useful in trading. Seeing it, the trader understands how much time he has to make a decision about opening a deal. Such an element of the trading system increases comfort and makes trading more predictable.
The next indicator is THV4. It is designed for convenient visualization of the current trend. It has only one parameter - a logical variable responsible for turning on and off the display mode.
As you can see in the picture above, when disabled, the chart has a regular candlestick appearance. If you activate THV4, it will look like the Heiken Ashi indicator, which we discussed in detail in the article “How to Use Heiken Ashi in Binary Options”. In our experience, this visual representation of prices helps a binary options trader better navigate the exchange rate dynamics of the asset being traded.
The next element of the Triple Trend trading strategy is the Stratman MiniChart indicator. It has many settings that allow you to adjust its appearance, position on the screen, and the timeframe displayed on the mini-chart. This component of the trading system will certainly be appreciated by supporters of the multi-timeframe approach to trading. Thanks to the Stratman MiniChart, a trader can see the direction of the trend of a higher period.
To do this, he does not need to switch between different time intervals using the standard capabilities of the MetaTrader 4 trading terminal - just look at the mini-chart from Stratman. We emphasize that in this way, you can simultaneously display several senior and junior timeframes on one screen.
The last element of the Triple Trend binary options strategy is the linearly weighted moving averages MA in Color with a calculation period of 250 candles. Each of these averages uses a certain price to calculate its values: minimum (lower line), opening price (middle line) and maximum (upper line).
Triple Trend Trading Rules
The Triple Trend binary options strategy offers reliable trading signals in the direction of the current trend, taking into account the price behavior of the asset on a higher timeframe. This increases the reliability of trading, but requires the trader to have knowledge and the ability to use technical analysis tools, which we discussed in detail in this collection of articles:
- Technical Analysis of Binary Options
- Technical analysis of cryptocurrencies
- Autochartist: Technical Analysis on Automation
- Book by D. Murphy "Intermarket Technical Analysis"
Trading according to the Triple Trend strategy is very simple: trades are opened in the direction of the current trend. It is determined by the color and direction of the moving average lines MA in Color. If they are green, we buy Call after the green arrow appears, if they are red, we buy Put after the red arrow appears.
The price behavior of an asset on a higher timeframe can be used as a filter: open positions according to the rules described above only when the signal to open a trade coincides with the trend direction of the higher period.
We leave the last rule to our readers. Please share your experience of using higher timeframes as a signal filter in the comments. How much more effective has your trading become after this?
Opening a Call Option
- We make sure that the trend is upward – three green sliding lines
- A green candle and a green arrow appeared
- At the opening of the next candle we buy Call
Opening a Put Option
- We are convinced that the trend is downward – three red moving averages
- A red candle and a red arrow appeared
- 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 Triple Trend Binary Options Strategy
The Triple Trend binary options strategy is an interesting combination of trend trading with a special way of constructing charts – Heiken Ashi. Thanks to them, asset prices are much easier to analyze: green candles indicate the prevalence of purchases, and red ones indicate the prevalence of sales. Note that this system has proven itself especially well during active market hours on volatile instruments.
Pros of the Triple Trend Strategy
The advantage of this strategy is a simple and clear algorithm of work, which even a novice trader can master. This system generates reliable signals without redrawing, which can be easily verified by switching timeframes: all trading signals of the Triple Trend strategy will remain in place. The ability to see trends of other periods in combination with the candle end timer makes this system even more attractive.
Disadvantages of the Triple Trend Strategy
The disadvantages of this strategy include the appearance of false signals in conditions of reduced trading activity. Flat and price consolidation before breaking through an important price level are the sections of the chart that should be avoided when trading using this system. In this case, it is recommended to change the asset for trading and choose one where there is a clear price trend, and the colored moving averages of the MA in Color indicator are directed at an angle.
Conclusion
The Triple Trend binary options strategy is another interesting way to trade on the trend. On long unidirectional price movement sections, this system gives quite a lot of profitable trades in a row, while the ability to follow the trend of older periods enhances its characteristics, acting as an additional filter.
Another important advantage of this trading strategy is that it is free. However, despite all the obvious benefits, before using it in practice, we recommend trying out trading with this strategy on a demo account opened with a broker with a minimum deposit. Trade in compliance with risk and capital management rules. We wish you all successful trading!
Download Triple Trend
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