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Ray strategy using classic market cycles!
The cyclical nature of the market and the clear patterns of fluctuations in quotes are indispensable tools for a trader that allow you to make a profit in a stable mode.
We present you a trading strategy: Ray, which basically uses classical trading approaches based on the technical analysis of the market.
Using the time-tested patterns of market fluctuations, you can get up to 85% binary options contracts with a profitable result, while not bothering with complex calculations.
So, let's proceed to the direct study of the strategy. To begin with, let's place a chart of quotes of the underlying asset using a graphical tool: Beam. We select the necessary instrument in the set of graphic services (example of trading with this broker):
- With its help, we determine the local levels of support and resistance.
In practice, this happens as follows: on a downtrend, using a beam, we connect the nearest local lows of quotes and get support; on an uptrend, we connect the local highs of quotes with a beam and get resistance to the trend.
You should not use long-term trend movements, as this strategy is used for trading short-term options.
Read also - Accurate Color Snake Trading Strategy
Signals for buying options
We buy the UP option when the local trend resistance level is broken. At the same time, it is necessary to set the expiration time for the transaction to 60 seconds:
We also buy the DOWN option when the trend support level is broken:
Using this technical approach to form quote fluctuation forecasts, we get, as already mentioned, up to 85% profitable options.
At the same time, given that we are analyzing a tick chart with a high plotting speed, it is necessary to note the high cyclicity of the trading signals of the strategy.
The Ray trading strategy is able to generate up to 20 accurate signals within one hour, which ultimately leads to a high dynamics of trading capital growth, on average, up to 150% per week!
Choice of expiration
The expiration time of the option will depend on the duration of the trend on which the market is being analyzed.
If no more than 30 candles form between the nearest local lows or highs of the trend, then the minimum expiration period of 60 seconds should be used in trading.
We increase the contract lifetime by 1 minute if quotes form more than 30 price candles between market extremes.
Management of risks
With such a high-speed trading regime, it is necessary to clearly consider trading risks. There is a simple rule for this - we use only the minimum amount of funds in trading.
For trading deposits with more than 1000 USD, the maximum risk level is set at 3% of the total volume of trading capital. With the minimum possible values of trading capital, we use contracts with an initial value of $ 1, which are offered to us by Binomo broker.