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Effective binary trading strategy: Four Line using different expiration and yield up to 80% on option trades!
The simplest and at the same time effective way for market analysis of financial instruments that allow you to get high trading results is to use indicator-type trading tactics in stock trading.
In this material, we will analyze the trading method: Four Line, which is able to create a multi trading signal for binary options using different expiration dates for the execution of transactions.
According to statistics, such a system allows you to receive 80 percent of profitable trades.
Technical Requirements of Trading Tactics
To apply the Four Line trading tactics in practice, you need to use special technical tools and services of a financial company with optimal conditions for trading binary options.
Now let's outline the main requirements of the trading methodology:
- High level of liquidity of binary options;
- Fast execution of trading positions;
- Reliable quotes of the financial asset;
- Technical indicators are built into the trading terminal of the company;
- Options with a one-minute trade opening period.
For example, consider this company. This exchange platform offers such trading conditions for trading that you can enter the market with $10 and place bets from $1, and this is the best solution for a beginner. The profitability of options reaches 87 percent.
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In addition, the broker's trading software has a high speed of making deals and has the most important technical means for applying trading tactics.
How to set up technical indicators correctly?
To receive trading signals for this trading tactic, you need to install such technical means for stock trading on the price chart of a pre-selected financial instrument, such as:
- Indicator MA 5, type Simple (requires black coloring);
- Technical analysis indicator MA 55, Simple type (blue color);
- Indicator MA 21, type Simple (color it red);
- Technical analysis indicator MA 89, Simple type (color it yellow).
As a result, the following bunch of lines of technical indicators should appear on the quote chart:
The different periodicity of building technical indicators contributes to the receipt of trading signals with different durations, as a result of which it is possible to use options for trading with a completion time of transactions from 1 minute to 15 minutes.
This mode allows you to simultaneously apply different rates of trading - scalping with turbo options on corrections and on a fast trend + trading with ordinary standard binary options.
Strategy trading signals
For the “turbo” option with a short-term forecast for the quotation growth of a financial asset, the trading signal looks like this:
1. The direction of the lines of technical indicators MA with blue and yellow colors is up;
2. Crossing the red line by the black line of the MA technical indicator in the upward direction:
When using a regular standard option UP with a trade expiration period of up to 15 minutes, you must use a long trading signal in the following form:
Short-term moving averages with red, black and blue colors cross the yellow line of the technical indicator MA 89 in the upward direction:
For TURBO options with a short-term forecast for a decrease in the value of a financial asset, the signal to trade looks like this:
1. The direction of the lines of the average moving with blue and yellow colors down;
2. Crossing the red line by the black moving average line in the downward direction:
When using a regular standard option WAY DOWN with a trade expiration period of up to 15 minutes, you must use a long trading signal in the following form:
Short-term moving averages with red, black and blue colors cross the line of the technical indicator MA 89 yellow in the downward direction:
The use of options with different expiration dates contributes both to an increase in the efficiency of trading tactics up to 85 percent, and an increase in the daily statistics of option trading.
As practice shows, on average, you can get 180-200 percent of the increase in the trading account.
With this mode of binary trading, even the minimum deposit in this company, equal to 100 dollars, to increase ten times in a week.
Trading account management
When using short period turbo options, it is important to execute trades at a rate of $5, since this is the only way to minimize financial risks.
When trading an option with an option expiration time of up to 15 minutes, it is important to take up to three percent of the total amount of funds under management for a bet.