The Best Binary Options Trading Strategy

By | 02/09/2022

There are only 24 hours in a mean solar day, with long job working hours, it is challenging to make time for trading. But there is a fashion to make a turn a profit on your coin in a curt period, equally short as 30 seconds. Binary options trading is an expeditious manner to make a good profit on your coin without having to sit down and check trading charts the whole day.

We bring forth for you some all-time binary option trading strategies to shrink loss and jack upwards profit on your invested money in seconds. However, winning in binary options trading cannot be consistently achieved through guesswork; y’all need skillful strategies and practice to master this prediction game.

What you lot will read in this Post

Fundamentals of a successful Binary Options trading strategy

Before stepping onto the field, you must know two basic parameters of binary option trading strategies – the trade amount and the signal. Let us understand these 2 parameters in detail:

#1 The signal

A signal is basically a movement in the market or an indication near whether the prices will rise or fall. It is more like an instinct after observing the trend going on effectually yous. Signal helps you in identifying the next stride more. Conspicuously, it helps you in predicting whether the prices volition become high or fall.

At that place are certain means by which you can identify a point. Following are some ways:

  • Stay updated

Trading is related to business and the market place. So, to be good at trading, yous must have a decent knowledge near the share or stock market, industry news, and information provided to the public by the CEO. All this can help yous predict whether the resources’ price will go up or down.

  • Technical survey

This is a method where yous continue the market news bated and look closely at the trading graph. It is a more centralized approach. You carefully read the graph and analyze events of the by to predict the future.

Information technology is complicated only more reliable. You don’t have to become all-in; in that location are many demo trading apps available online where you can practise and enhance your predicting skills. Once your brain gets used to the trading pattern, it will exist easy to sympathize the trend of prices going upwardly or down.

#two Investment amount

It is crucial to decide the amount of money you will merchandise. Beingness impulsive or mismanagement of money will only event in loss. Develop a strategy for managing your money to reduce risks. Here are ii nigh used and reliable money management strategies – approach based on percentage and martingale.

  • Per centum based approach

In this method, yous decide what per centum of your capital letter you want to trade. For beginners, we recommend starting with ane% or 2%. For example, you have INR fifty,000 in your bank business relationship. And then, yous make up one’s mind to merchandise 1% of information technology, that is INR 500. This is a secure way of managing your money and scaling downward potential risks.

  • Martingale approach

This approach is a bit catchy and holds risk if you aren’t experienced. But it is proficient to exist familiar with all possible approaches. Here you double the trading amount later on a loss to recover the previous loss and proceeds profit simultaneously.

5 Best Binary Option Trading Strategies:

  1. Follow the Trend Strategy
  2. The Rainbow Strategy
  3. The Candlestick Strategy
  4. The Money Period Index Strategy
  5. The Turtle Strategy

One wrong prediction tin make you lose a handsome amount of money. Therefore, information technology is essential to plant sure strategies to manage take a chance and money. Mentioned below are some top trading strategies:

one. Follow the tendency strategy

This is ane of the best binary trading strategies for beginners. This strategy can be applied everywhere regardless of trading amount or marketplace. Commencement, you must study the trading graph and pattern of lines. You must accept observed that they usually become in a zigzag style. This might seem similar an easy chore, but it requires practise.

First, it is better to get familiar with trading graphs and their trend on demo trading apps before trading your coin in a real-fourth dimension marketplace.

Once you lot learn to read the blueprint, it will be piece of cake to predict whether the asset’southward cost will go high or low. Nevertheless, this strategy isn’t very reliable for short trades. To apply this strategy, you must study the chart and see the movement of lines.

If the line is going up, the prices are increasing and vice-versa. If the line is horizontally direct, then find some other option to merchandise your money.

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It is essential to have applied knowledge, practice on the demo trading sites and get a clear-cutting thought.

2. The rainbow strategy

The use of this strategy
must be done in combination with the news strategy.
First, you lot must know the nature of the market yous are trading in. Then, after knowing about the ongoing trend, you can start using this strategy. This is a strong strategy that increases the chances of right predictions and winning.

This strategy uses bones signals to brand reliable predictions most the asset’s price.

The rainbow strategy is a pattern that includes the usage of various averages in actions with varied periods. Each of these periods is identified with a different colour.

The moving averages are used to recognize the toll changes. Moving averages with many periods react slowly to price changes and moving averages with few periods react rapidly.

If you detect a strong movement in the asset chart,
the moving averages
are near likely to move from tiresome to fast direction in real-time trends.

The average that moves the fastest will be placed closest to the nugget price, the second closest volition be the second fastest, and the third closest to the price will be the third-fastest moving average, and and so on.

When you observe that the numerous moving averages are placed in the pattern every bit discussed above, y’all can say a durable movement in price in a adamant direction. Therefore, when you see such a pattern and trend, trade your money right abroad every bit this is a favorable time.

Y’all can choose how many averages you would like to use. Most good traders use 3 moving averages.

If the moving averages are positioned and then that the shortest line is higher up the medium moving average and the longest is below the medium line or moving boilerplate. You must trade on the nugget prices falling.

It depends on you to determine the number of moving averages in a period. Therefore, information technology is recommended to apply a duplex of periods you used previously in each moving average.

This change in the numbers of periods used in different moving averages will requite you reliable ratios, which will, in turn, provide you with precise signals.

For beginners, it is advised to use the ratio of 5, 10, fifteen, and 20, and so on.

Steps that you can accept on achieving the correct gild:

  • Merchandise correct abroad – once you achieve a desired or familiar pattern after the last moving boilerplate gets positioned, it is the correct time to invest your money.
  • Practice patience – if y’all want to test the rainbow strategy and avoid going all-in, then await for a period. This way, you can cheque if the signal helped y’all in making the right prediction or not.
  • Look for two-3 periods – this step gives you a sense of security, peculiarly when you are trading a large corporeality of money and don’t want to take a chance relying on but 1 period. You wait for ii to three periods or even more as per your wish.
  • Take your time to understand the trend of the nugget nautical chart and so brand a move. However, wait no more than 3 periods. Later 3 periods, the market place may start to change, and new trends might prepare in.

3. The candlestick strategy

Steve Nison introduced the candlestick formation strategy in ane of his books in the yr 1991. A good trader must know how to read the asset charts.

Once you understand its patterns and movements, it volition be like shooting fish in a barrel for you to predict the next move of the nugget in the charts. For example, there is a design formation in the asset charts called the candlestick formation. The patterns formed past the lines going up and downwards appear similar a candlestick.

The height line is the highest cost called the mount, and the bottom line is the lowest, called a valley. At that place is no ane specific germination in this strategy, but there are a few that you lot must learn to identify and read to trade amend.

To employ this strategy, y’all must observe the chart and pattern of prices for a while.
Yous will notice some repeated blueprint germination. And then you tin can use your knowledge and experience to predict whether the line will get upwardly or autumn.

4. The Money Period Index strategy


This strategy is beneficial if yous are planning to play it quickly, let’due south say 5 minutes. Yes, this strategy works that speedily. Information technology is fast and constructive.

Being a trader of binary options trading, y’all must be aware that the trading market is not random in the brusque term. One more do good of this strategy is that it saves you a good amount of time. If you play in five minutes, you can brand more trades per day.

However, such short-term binary option trading
strategies are required take chances management and technical analysis.
You must know that the stock prices don’t change in 5 minutes regardless of the visitor is working well or bad in the market. So, the money menses index strategy is time-saving only also includes lots of risks.

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The only thing that changes the asset’s price in a short period is the need and the supply. These 2 factors determine whether the asset’southward price will go up or autumn in a concise period.

To master this strategy and make money every 5 minutes, you must learn technical analysis. This volition help you in understanding whether the other traders are selling or buying. In one case yous understand this, information technology volition exist effortless to employ the MFI strategy with the money flow index indicator.

MFI index indicator – the indicator tells you the ratio of the nugget sold to the number of the asset purchased. The value is by and large betwixt 0-100.

Let us at present understand how the money flow alphabetize indicator works:

  • The number 0 – indicates that many agile trader’s plan on selling the asset.
  • The number l – indicates that an equal number of active traders desire to purchase and sell the nugget.
  • The number 100 – indicates that all the traders active on the platform desire to purchase the asset.

At present that yous empathize the relationship between the ratio of the MFI indicator and the traders planning on buying or selling the asset, information technology will exist easy for you to choose i option and secure your money. In addition, you can easily estimate the asset cost motility after agreement the demand and the supply.

In simpler words, if the number of traders ownership an asset is much greater than the number of traders selling the same nugget. There will be fewer traders to force the price of assets upwards. As a outcome, the demand and price will both go down.

In the same way, if the number of traders selling an asset is greater than the number of traders buying it, the supply will diminish, and prices will increase.

Mentioned below are the ways you lot can use the MFL index for your next accurate prediction:

  • If the coin flow index is more than than 80. Information technology means that many traders buy the asset, and the prices may fall.
  • If the money period index is less than 20. It means that many traders sell the nugget, and the prices are probable to rise.

This strategy works best for a brusque flow. Traders usually use this strategy to play 5 minutes bets. In the long run, it is tough to predict the procedure through this strategy as information technology goes to the extremes. And then, avoid using this strategy for your long-term trades.

5. The Turtle Strategy

This is a pop strategy among binary options traders. As the name suggests, this strategy uses the movement of asset prices in the last xx days. Then use this data to predict the next hit; information technology might be high or a low. This strategy provides you two signals:

  • The buy point – when the electric current toll motility is higher than the bars/lines of the last 20 days.
  • The sell signal – when the current price motility is lower than the bars/lines of the by 20 days.

This strategy can be used easily past beginners. Notwithstanding, the consequence of the turtle strategy has been mixed. Trading strategies assist a trader in identifying signals; none of them promises to be 100% accurate.

Reasons to use a trading strategy

  • Implementing actions without proper planning or strategies are subjected to failure. Therefore, it is crucial to brand a strategy before trading your coin on any platform.
  • It is real coin you lot are dealing with. To be a successful trader, you lot must know the place you lot are putting your money into.
  • Never treat trade as mere gambling if you strive to be a good trader. Do non rely on guesswork. This way y’all volition only lose your money.
  • Using strategies gives y’all strong signals most the movement of nugget prices. However, you can only use the state of affairs to brand a huge turn a profit if you lot understand the trend and predict correctly.
  • It saves you from making impulsive, emotional decisions.
  • Once you develop a strategy that works best for you. You can principal and alter it to make a long-term profit.
  • Using money management strategies to determine how much money yous are going to invest in trading tin can salvage you from irresponsibly losing your money. Since greed and guilt tin easily manipulate you into taking spontaneous deportment.

Testing if a Binary trading strategy works for you

There are a wide number of strategies that you volition encounter on the cyberspace. Each of them volition seem workable until you examination it. Different traders perceive signals differently. Identifying which strategy works all-time for you lot will help y’all make money in the long run.

No app or person can tell you which strategy volition piece of work best for you. It is the piece of work of a trader to exam different trading strategies and mold them in his way to make the most out of them. Binary trading requires accurate predictions. It demands mastery over strategies to win. Incorrect utilise of any strategy or mixed signals will somewhen lead you to lose coin.

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Avoid using real money to examination new strategies. In improver to that, make sure to establish limits and have a strategy to manage your coin.

Notice the right timeframes for the binary option strategies:

Which timeframe is the best for trading Binary Options with strategies? – Brokers offer you to trade 30 seconds, 60 seconds, 5 minutes, or even 24 hours expiration times on binary trading. From our feel, you lot can use the discussed strategies in every timeframe yous want. It is ever the same, the timeframe does not affair.

Binary Options timeframes for strategies

Simply we tin can recommend staying away from 30 seconds or sixty seconds timeframes if you are a beginner. Because y’all need a very high skill to do fast trade executions.

Frequently asked questions:

What is the all-time Binary Options trading strategy?

There is no specific strategy that tin prove to be the best for all the traders out there. Different strategies work for different traders. Therefore, you must try and test varied strategies to find out what works for you. Withal, having a skilful cognition of the market and learning technical analysis will help you succeed.

What is the minimum amount required to trade Binary Options?

The minimum trading amount differs from broker to broker. Some might ask you lot to kickoff with $10, while for others, it might be equally low equally $1. For case, the minimum trading amount for the IQ Selection or is $10.

Where does the turn a profit money come from?

There is no external source of money in the binary trading platforms. The money is existence rotated. For example, 2 traders invested an amount of $100. One trader won while the other loses.

The money lost past that trader will get transferred to the 1 that won, depending on the profit percentage given by the broker to its traders. Some percentage of the money lost will get to the broker.

What is the maximum corporeality that trading Binary Options tin earn?

The answer to this question depends on the corporeality of money existence traded. For instance, a trader invested $1000, and the turn a profit percent provided by the banker is lx%. In this case, winning would get you lot an additional $600.

In full, y’all will take $1600. All the same, if you fail, you volition lose all your money, i.due east., $1000. There is no stock-still maximum amount that can be earned through trading options. It depends on the amount of money traded and the number of wins.

Do Binary Options trading strategies work?

The binary trading strategies cannot promise you lot 100% success. Since the trading strategies merely give you a signal to predict your next move. Trading strategies don’t exactly tell you whether the asset price will become high or autumn. Nonetheless, practiced practice and knowledge of the asset volition increment your chances to win.

Determination of the best Binary Options Strategies

To succeed in binary option trading, in the long run, you must exercise the strategies repeatedly. Along with using the strategies, you must have patience and avert taking impulsive deportment. Using whatsoever strategy for one time will not bring you profits. Testing, trying, and repeating are the only style to master the trading tactics.

Exercise not quit a strategy and opt for a new one every time you experience a loss. This will simply confuse you, and yous will never be able to brand the best out of ane strategy.

Instead, stick to ane strategy and larn the correct time to utilize it. It is too important to figure out the time where you lot must avert using certain strategies. Yet, if your strategy is not working, you must reconsider it and brand a new one. It is skilful to take an adept’due south advice while making a strategy.

Now that you lot have read some of the best binary option trading strategies, find the i you lot accept understood well and test it today. And so, go into action and showtime making money today!

See my other trading strategies here:

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  • Next candle prediction
  • Keltner channel
  • CCI indicator
  • Bollinger bands
  • MACD
  • Multiple timeframes
  • Open range breakout trading strategy
  • Range trading strategy
  • Back up and resistance
  • Trend reversal
  • Trend line strategy
  • EUR/USD strategy
  • Fibonacci retracement
  • The all-time strategy
  • Coin management strategy
  • Breakout strategy
  • ATR
  • 5 minutes
  • Double upward strategy
  • Candlestick patterns
  • Hedging strategy
  • Compounding strategy
  • Reverse pyramid strategy
  • Marketplace pull strategy
  • Purlieus strategy
  • Long shot strategy
  • Ladder trading strategy
  • Correlation coefficient
  • Uppercase depict down
  • Strategy for commodities
  • 60-second strategies