Bollinger + MACD: a working and simple strategy for binary options

A working and simple strategy for binary options using two indicators: Bollinger and MACD is the best solution for those who do not like complex trading systems.

Having been practicing binary trading for many years, I have tried many different strategies, and I myself have created several successful tactics. Basically, I came across strategies based on indicators and the classic rules for their use.

However, I often had to deal with the fact that even the most accurate indicators stopped working normally and gave conflicting signals.

Once again, faced with the wrong signals, it was decided to create a tactic based on two indicators that would give really accurate signals for binary options.

The tactic I created using the Bollinger indicator and MACD is a simple strategy for binary options and now we will describe its trading rules.

Here is the standard way for traders to generate income in binary trading:

But now look how often it turns out:

The price is not always completely predictable. Therefore, if you trade according to the usual Bollinger strategy, that is, draw up contracts on touching the price of the indicator's channel frames (in this regard, with a downward forecast), then you will inevitably face losses.

And if you manage to conclude a series of transactions at once, then you can go broke altogether. Moreover, the described situation is repeated quite often.

However, the beauty of binary trading with indicators is that it can also use various combinations of technical means to analyze the market, which means that many risks can be avoided.

To do this, you just need to add the MACD indicator to the Bollinger indicator already working on the chart. It is the joint work of these indicators that gives accurate signals for binary options:

In general, this is a kind of trading pattern. Also, such a template can be used not directly in the broker platform, but for example on live chart.

Trading signals by strategy

Now back to the Bollinger + MACD tactics. So, watching the indicators working on the chart, you need to track trading signals, which should look like this:

Option buy signal CALL (up)

1. Continuous price movement along the lower Bollinger channel wall with its constant touches.

2. The crossing of its dynamic lines on the MACD indicator, which occurs upwards under the zero line of the histogram.

3. There has been a reversal upwards of the MACD histogram.

This situation is a signal that you need to trade for an increase in the value of the asset, so you need to immediately purchase the CALL option:

Option buy signal PUT (way down)

1. Continuous price movement along the upper Bollinger channel wall with its constant touches.

2. Crossing of its dynamic lines on the MACD indicator, which occurs down above the zero line of the histogram.

3. There was a downward reversal of the MACD histogram.

This situation is a signal that you need to trade for an increase in the value of the asset, so you need to immediately purchase the PUT option:

The nuances of the strategy

You probably noticed that in this tactic, the Bollinger indicator is used in its classical form, and with the help of the MACD indicator, its signals are simply filtered.

Moreover, the MACD indicator, in this regard, perfectly fulfills its function, which is why we get accurate signals for binary options from these indicators!

Profitability of the strategy

Regarding the profitability of trading results, I will say right away that its potential can reach 150% of weekly capital gains. I have been getting this profitability indicator for the 7th month of using this tactic.

Choice of expiration

I recommend setting the expiration of transactions for a period of no more than 5 minutes. Well, do not forget about the rules of money management - use only 3% of your capital for each option trade, unless of course you trade on break even strategy.

Money management

In general, at the stage of testing this strategy, I recommend trading with the smallest lots of 5 USD, especially if you still have a small amount on your trading account, for example, 100 USD, as a starting capital for FinMax.

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