2 Minute Binary Option Strategy

On Monday, I broke from my normal routine of trading 15-minute expiries from the 5-infinitesimal chart in favor of “threescore-second” binary options. For i, I but felt like breaking things upward a bit for my own enjoyment. And two, I know that many traders are into this fast-paced alternative, as it’s now offered by many offshore brokers. Therefore, introducing some 60-second trades into my blog can serve to lend some advice on how I would approach these.

Brokers with 60 Second Options

Usually, I do not trade 1-minute options first and foremost considering the payout is relatively poor (70%). Too, it is more difficult to be equally authentic with these trades as the 15-minute trades, due to the inherent level of noise on the 1-minute chart, in my stance.

In other words, when trading lx-second options from the 1-infinitesimal chart, you’re dealing with a very small corporeality of toll data encapsulated in each candlestick, and one minute of price activeness is relatively inconsequential in the grand scheme of things. That said, I believe that it’s fully possible to make audio trading decisions regarding what may happen to the price movement in the adjacent minute.

Basic 60 Second Strategy

My basic strategy toward lx-second options goes as follows:

1. Find support and resistance levels in the market where curt-term bounces can exist had. Pivots points and Fibonacci retracement levels can be particularly useful, just as they are on other timeframes while trading longer-term instruments.

two. Take trade set-ups on the first bear upon of the level. When yous’re trading instruments that have a high level of noise inherent in the eventual trade result (like “threescore-2d” options), I believe that taking a higher book of trades tin can actually play to your advantage.

For those who are non familiar with the way I unremarkably trade the fifteen-minute expiries from the 5-minute chart, I commonly look for an initial refuse of a price level I already accept marked off ahead of time. If information technology does reject the level, this helps to further validate the robustness of the toll level and I will look to go in on the subsequent touch. Expectedly, this leads to a lower volume of trades taken in exchange for higher accuracy ready-ups.

60 2d Trades Lead To College Trade Volume

Merely since the inherent dissonance in each 60-second trade is so big to begin with, I believe trading in college volume tin actually work to one’due south benefit in that information technology helps to even out the accurateness fluctuations that come when trading such short-term instruments.

To provide a baseball analogy, a hitter who unremarkably maintains a batting average of .300 (i.e., he makes information technology on base with a hit on three out of every 10 at-bats) may go through a ten-game stretch where he only bats .100. On the other mitt, in that same span, he might hit .450. But over the grade of a 100+-game season, it’south expected that with enough at-bats, his true skill level with regard to striking will be accurately revealed. Information technology’s a “regression to the mean” blazon of concept.

As such, if you’re trading 60-second options and only taking 1-2 trades in a 4+-hour session (i.eastward., beingness super conservative), it’s likely that you’re going to be waiting a very long fourth dimension before your truthful skill level at this grade of trading is revealed to your attention.

Y’all may not even have an effective strategic approach to 1-minute options, and it would be unfortunate if you went over a calendar month of trading this instrument before y’all begin to realize that that’southward the example in one case your turn a profit curve (or ITM percentage) starts to take its appropriate shape. That said, don’t overtrade by taking fix-ups that aren’t actually there. That’s far worse than even choosing to trade at all.

3. Don’t blindly trade all touches of support and resistance. Proceed to consider price activity (east.g., candlestick types and formations), trend management, momentum, and things of that nature that come with personal exposure to how markets of your interest bear and furthering your trading education to continually get better.

But without further ado, I will show y’all all of my 60-second trades from Mon and I how I put all of the higher up into practice. To avert confusion, I volition briefly describe each trade according to the number assigned to it in the beneath screenshots.

Merchandise History Using 1 Infinitesimal Expiry

#1: one.32817 had been the high for the morning and formed an area of resistance. On the commencement re-impact of one.32817 I took a put selection on the 1:54 candle. This merchandise won.

#2: Similar to the first trade I took a put choice on the re-touch of ane.32817. This trade also won.

#3: A third put options at one.32817. This merchandise lost, as price went in a higher place my level and formed a new daily high.

#4: Toll formed a newer low at one.32715, retraced up to ane.32761, before coming back down. I took a telephone call option on the re-touch of 1.32715 and this trade won.

#5: Basically the same trade equally the previous 1. Price was property pretty well at one.32715 so I took a subsequent telephone call option and won this trade.

On the 2:26 candle, price made its move dorsum upwards to the 1.32761 resistance level. On a normal motility, I would take a put option at that place, just momentum was stiff on the 2:26 candle (almost six pips) and so I avoided the trade.

#6: Several put options virtually set up up on the 1.32761 level, but none materialized at the level. So my next trade was yet some other call option down most where I had taken call options during my previous two trades. However, since 1.32715 had been slightly breached before, I decided to instead have a call option at 1.32710 instead. I felt this was a safer motion as just one-half-a-pip can be crucial in determining whether a sixty-second trade is won or lost. This trade won.

#7: Put pick dorsum up at the 1.32761 resistance level. This trade won.

#8: Telephone call option downwards at i.32710 (where #6 was taken). This trade won. Notwithstanding, the minute after this trade expired in-the-coin, the market broke beneath 1.32710 and formed a newer low at 1.32655.

#ix: This trade was a put option at 1.32710, using the concept that former support can turn into new resistance. Nevertheless, this trade did not win as price connected to climb back into its previous trading range.

#x: I decided to take a put option at the touch of 1.32817, which was the level at which I took my first trades of the day. This trade might seem a bit puzzling at start given a new high for the day had been established and that momentum was upward. Just by simply watching the candle it seemed that price was apt to fall a bit. It was also heading into an surface area of recent resistance and then once it hit 1.32817, I took the put selection and the trade worked out.

#11: Another put option at 1.32817. This trade won.

#12: For this merchandise, the high of day initially made on the two:xiii candle came into play – 1.32839. I had intended to take a put option at this level on the 3:22 candle, merely price went through it speedily and closed. So for perhaps ten-15 seconds, my cost feed was delayed and by the time it the connexion was recovered it was over a pip above my intended entry. So I’m glad I missed that merchandise, as it’south one that would have lost.

I did stop up using the i.32839 level on a phone call option, though, given that previous resistance tin can turn into new back up. This merchandise won.

#13: 1.32892 was at present currently the loftier for the day and had formed a recent resistance level. I took a put option on the bear on of the level. This trade won.

#14: Like to #12, I used i.32839 as support once once again, and it produced a winning trade.

#15: Once again, I used the electric current daily high of ane.32892 equally a resistance level off which to have a put selection. But toll busted through and this trade lost.

#xvi: Another fifteen minutes passed by before I was able to take some other trade set up-up. This time, I used one.32892 every bit a back up level (one-time resistance turning into new back up) to take a phone call choice. This trade was probably my favorite set-up of the 24-hour interval and was aided by the fact that the trend was up. It turned out to be a winner.

#17: For put options at this point, I had an eye toward 1.32983 (the new high for the twenty-four hours), but price consolidated twice at the 1.32971 level forming a line of resistance. And so I decided to have a put option at the touch on of one.32971 on the 4:28 candle. This merchandise turned out to be a nice four-pip winner.

#18: My final merchandise of the twenty-four hour period was a call choice back down at ane.32839, where I took the same set-ups for #12 and #14. This was another good four-pip winner.

After that I was waiting for price to come up and run into if 1.32892 would act as resistance, but it never touched. Too, I was feeling a bit fatigued by this point and decided to phone call it quits for the day.

Conclusions On This Strategy

Overall, I did pretty well for my outset day trading 60-second options, going 14/eighteen ITM. Only, in general, I have faith in my strategy to predict time to come market place management with a reasonable level of accuracy, and my ability to use it to any market or timeframe. I also enjoyed toying around with the ane-minute options, as it was a new feel, and I would definitely consider calculation more sixty-2nd pick days into my regimen in the hereafter.

Where Do I merchandise?

Fast withdrawals and decent payout %south proceed me happy there.

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