Strategies for binary options for 5 minutes
bot for binary options
Binary trading is potentially one of the most profitable tools for short-term trading. Without leverage, it can generate more than 80% of the profit. But without the system, it is impossible to achieve results. Therefore, the following are the best 5-minute strategies for binary options that are suitable for novice traders.
Trading logic
Short - term trading is a priori riskier than medium-and long-term trading. Therefore, no system can guarantee profit. In addition, a ready-made strategy is a template that you need to adapt to yourself. Having learned to understand the market, the trader increases the chances of successful trading.
Here are five trading options::
1. " 5v5 " - a system using SMA and RSI;
2. indicator-free system based on the absorption model;
3. Using the Bollinger Bands;
4. With Alligator indicator;
5. with the Williams percentage range indicator;
6. Using the MACD and Parabolic Sar.
5v5 system
The system works on the basis of two technical indicators: SMA and RSI with a period of 5. This method of analysis helps you find pullbacks and short-term reversals in the market.
Entry conditions. A promotion deal is opened if the following conditions are met:
- the price broke the SMA from the bottom up and closed above the line;
- The RSI is above 50;
- after the signal candle closed, the price went up another 10 pips.
Conditions for a downgrade transaction:
- the price broke the SMA from top to bottom and closed above the line;
- RSI below 50;
- the price went down after the signal candle closed.
Indicator-free strategy
The strategy for a five-minute binary options chart without using indicators is based on the analysis of Japanese candlesticks, which form simple figures from several candlesticks and complex patterns.
Candle analysis is less effective on minute timeframes. Therefore, the quality of signals will be worse than on the hourly and daily charts.
The absorption model is one of the simplest and most effective figures. It is considered formed when the body of the first candle completely overlaps the body of the second. The model is effective for trend trading: it shows the completion of a correction.
Entry conditions. For a raise option:
- there is a bullish trend and a downside correction in the market;
- after closing the descending candle, the next one closed with growth, while its body overlapped the body of the previous bar.
Terms of the downgrade option:
- a bearish trend and an upward correction have formed;
- the bearish candle overlapped the bullish one.
The deal opens immediately after the takeover pattern is formed.
Bollinger Bands
Bollinger Bands is one of the few tools that allows you to find entry points in a flat. Deals are made on the rebound of the price from the extreme lines to the center of the Bollinger band corridor.
Entry conditions. For a Call contract:
- there is no pronounced trend in the market;
- the candle closes outside the lower border;
- the next candle started moving up.
For a Put contract:
- on the flat market;
- the candle closes outside the upper border;
- the next bar showed a downward movement.
Bounce Entry
Points of opening contracts on the rebound line
Alligator Strategy
A 5-minute binary options trading strategy with the Alligator indicator helps you notice a change in market sentiment in time.
Entry conditions. Trades are opened at the beginning of the trend movement after exiting the flat. To confirm the end of the flat, all three lines of the Alligator must turn in the same direction. A short option is opened when the lines turn downwards. An option to raise is opened when you turn up.
Alligator Trading
Williams percent range
The Williams indicator shows the level of overbought and oversold assets. Unlike trend indicators, the oscillator is ahead of the market and indicates a possible reversal in advance.
Usually, the Williams percentage range is used with standard settings, but the period may change depending on the trader's trading principles.
Entry conditions. The main type of signal is an exit from the overbought and oversold zones. A deal for an increase is made when the level of -80 is broken up. A short trade is made when the -20 level is broken down.
Trading on Williams % range
Signal up by Williams percent range
MACD Parabolic Sar
The system is based on a combination of two indicators: the MACD and the Parabolic Sar. A parabolic pattern indicates a possible reversal of the asset's price, while the MACD is used to confirm the main signal.
Entry conditions. For a Call contract:
- Parabolic Sar draws points below the graph;
- the MACD histogram is above the zero level.
Conditions for a Put contract:
- Parabolic draws points above the graph;
- the MACD histogram is below the zero level.
Trading on the MACD and Parabolic chart
Boost signal
You can open a trade immediately, or you can wait for the formation of two or three parabolic points.
Results
Each of the systems is able to make a profit and close 6-7 trades out of 10 with a profit. But for better efficiency, you need to:
- follow the rules of risk management and invest no more than 2-3% of the capital in the transaction;
- learn to understand the market and chart to better identify possible false signals;
- adjust each system to suit your trading style: experiment with expiration, setting up indicators.