This is a binary options
strategy that we’ve received. It’s very simple to use. You might be able
to find this strategy on the web, but not this v2 version.
It’s specifically upgraded to be simpler to use. We recommend only to
trade in the direction of the current trend. If you use M1, go for 5 min
expiration. if M5, 10 or 15 min expiration is better.
How to setup the chart
Timeframe: M1 or M5 Template: HGI v2 (Download the strategy here: Ulozto.net or eDisk)
How does this trading strategy work?
As we said above, it’s good to be used with M1 or M5.
Trading on M1: Go for 5 min (300 sec) expiration times
Trading on M5: Go for 10 min or 15 min expiration times
This strategy contains the following indicators: Stochastic slope,
Binary Comodo (some people can’t see it on the chart, if so, download it
here) and two Casino_HAS_PIN_v3r. Basically, follow the instructions below to open the trades.
When to enter the trade
Buying a CALL option:
Binary comodo green arrow shows up on the previous candle
Stochastic slope is in the lower part and (preferably) pointing upwards
The blue/red line on the chart is blue and pointing upwards
Buying a PUT option:
Binary comodo red arrow shows up on the previous candle
Stochastic slope is in the upper part and (preferably) pointing down
The blue/red line on the chart is red and pointing downwards
What does this strategy look like
None of the indicators in this strategy are made by us, we only think its good to use them together.
This is what this strategy looks like. Only trade when the arrows are in the trend’s direction!
The 5×5 system is a simple forex AND binary options strategy,
which makes use of only two indicators. This reduces the number of
charts and the rules are simpler to keep track of. Once you are
comfortable with the system, you could even look at adding in another
rule or indicator without causing a lot of confusion for yourself. The
5×5 system uses an RSI and an SMA indicators, both of these set to run on period five. This strategy can be altered a little to work with binary trading as well.
How does it work?
Create a chart using the two indicators 5 RSI and 5 SMA (smoothed moving average)
and set a 50 horizontal line on the RSA only. Use it for monitoring a
currency on a daily chart. The candle for the day must cross below or
above the 5 SMA. Once the candle closes, wait for the next candle (on a
daily chart this will be the next day) and wait for the movement to be
10 pips or more above or below the previous day’s high/low. When
looking at calls, you would only enter if the RSI is above the 50 line
or under the 50 line for put options. Simple 5×5 trading strategy
For a call option: Watch the daily candle for a
cross above the indicator 5 SMA and then close. On the following day,
the candle needs to be at least 10 pips or more above the high of the
previous day and the RSI needs to be above 50, then you can enter.
For put option: Watch the daily candle for a cross
below the indicator 5 SMA and then close. On the following day, the
candle needs to be at least 10 pips or more below the low of the
previous day and RSI needs to be below the 50, then you can enter.
To avoid losing trades where possible, it is always better to trade
in the same direction of the trend. If you use resistance and support
lines, you can also get an idea if the price level will hold or if there
may be other factors at work that can affect it. You can also cut out
on losing trades by ignoring the signals that do not follow the current
trend.
Pros and Cons
One of the detriments of this system is the length of time to wait
before being able to trade, up to 2 days or more to check if the trend
is stable before trading. There is also no guarantee that even after the
wait you are not entering just before a retracement. This strategy
does ignore the trends to a degree, but you should ensure that you only
trade with the trends and not against them to avoid losses. This
strategy is easy to understand and use by anyone and it is easy to
follow and remember the rules. Trading with the trend when using this
strategy means you can get some good signals in the trend direction due
to the SMA which is a trend identifying indicator. The RSI helps you
confirm the information you need to trade. This 5×5 strategy is a good
start for a trading template and adding in an indicator of your choice
will help you trade binary options with this system. It is important
when trading to try and keep things as simple and uncomplicated as
possible.
The 5 RSI and 5 SMA that you work with in this strategy are good
enough to start with. If you add in resistance and support lines you can
improve the system and help you find your way to more profitable trades
and fewer losses. Or look at adding in a Stochastic Oscillator to help
find the resistance and support areas easier. Having to wait for days
to obtain a signal with this strategy may be off-putting to some
traders, but there are ways to use this strategy for lower expires. When
trading on less than 4 hour expires, waiting for moves of 10 pips or
more can be a problem before entering so you might not want to wait that
long. Wait on a candle to close in the direction you are trading in,
check the S/R lines and check the RSA is still below 50 for 4 puts and
candles are still below the 5 SMA. Check the S/R lines for confirmation
before trading.
A binary option, or asset-or-nothing option, is type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell the underlying asset.
BREAKING DOWN 'Binary Option'
Investors may find binary options attractive because of their apparent simplicity, especially since the investor must essentially only guess whether something specific will or will not happen. For example, a binary option may be as simple as whether the share price of ABC Company will be above $25 on November 22nd at 10:45 am. If ABC’s share price is $27 at the appointed time, the option automatically exercises and the option holder gets a preset amount of cash. What is a 'Binary Option' A binary option, or asset-or-nothing option, is type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell the underlying asset.
BREAKING DOWN 'Binary Option' Investors may find binary options attractive because of their apparent simplicity, especially since the investor must essentially only guess whether something specific will or will not happen. For example, a binary option may be as simple as whether the share price of ABC Company will be above $25 on November 22nd at 10:45 am. If ABC’s share price is $27 at the appointed time, the option automatically exercises and the option holder gets a preset amount of cash. Difference Between Binary and Plain Vanilla Options Binary options are significantly different from vanilla options. Plain vanilla options are a normal type of option that does not include any special features. A plain vanilla option gives the holder the right to buy or sell an underlying asset at a specified price on the expiration date, which is also known as a plain vanilla European option. While a binary option has special features and conditions, as stated previously.
Binary options are occasionally traded on platforms regulated by the Securities and Exchange Commission (SEC) and other regulatory agencies, but are most likely traded over the Internet on platforms existing outside of regulations. Because these platforms operate outside of regulations, investors are at greater risk of fraud. Conversely, vanilla options are typically regulated and traded on major exchanges.
For example, a binary options trading platform may require the investor to deposit a sum of money to purchase the option. If the option expires out-of-the-money, meaning the investor chose the wrong proposition, the trading platform may take the entire sum of deposited money with no refund provided.
Binary Option Real World Example Assume the futures contracts on the Standard & Poor's 500 Index (S&P 500) is trading at 2,050.50. An investor is bullish and feels that the economic data being released at 8:30 am will push the futures contracts above 2,060 by the close of the current trading day. The binary call options on the S&P 500 Index futures contracts stipulate that the investor would receive $100 if the futures close above 2,060, but nothing if it closes below. The investor purchases one binary call option for $50. Therefore, if the futures close above 2,060, the investor would have a profit of $50, or $100 - $50
Difference Between Binary and Plain Vanilla Options
Binary options are significantly different from vanilla options. Plain vanilla options are a normal type of option that does not include any special features. A plain vanilla option gives the holder the right to buy or sell an underlying asset at a specified price on the expiration date, which is also known as a plain vanilla European option. While a binary option has special features and conditions, as stated previously.
Binary options are occasionally traded on platforms regulated by the Securities and Exchange Commission (SEC) and other regulatory agencies, but are most likely traded over the Internet on platforms existing outside of regulations. Because these platforms operate outside of regulations, investors are at greater risk of fraud. Conversely, vanilla options are typically regulated and traded on major exchanges.
For example, a binary options trading platform may require the investor to deposit a sum of money to purchase the option. If the option expires out-of-the-money, meaning the investor chose the wrong proposition, the trading platform may take the entire sum of deposited money with no refund provided.
Binary Option Real World Example
Assume the futures contracts on the Standard & Poor's 500 Index (S&P 500) is trading at 2,050.50. An investor is bullish and feels that the economic data being released at 8:30 am will push the futures contracts above 2,060 by the close of the current trading day. The binary call options on the S&P 500 Index futures contracts stipulate that the investor would receive $100 if the futures close above 2,060, but nothing if it closes below. The investor purchases one binary call option for $50. Therefore, if the futures close above 2,060, the investor would have a profit of $50, or $100 - $50
IQ Option is a licensed and regulated binary options broker, owned and operation by Iqoption Europe ltd.. They are located at Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus.
Their phone number is +44 20 8068 0760. Their email address is: support@iqoption.com.
IQ Option Platform Review
IQ Option is a unique broker using their own custom built binary options trading platform. The platform offers speed trading in increments up to 5 minutes. Their binary options go out 1 hour in 15 minute increments, and they have expiry times as far out as one month. They have more than 500 underlying assets available for trading, with the only commodity they offer being Gold. IQ has mobile trading apps available for both Android and iOS.
A popular feature at IQOption are their weekly trading competitions. Their minimum deposit is only $10, and they offer a free demo account.
*General Risk Warning: The financial services products offered by the company provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Editor’s Note – Why IQ Option Doesn’t Suck in 50 Words
Finally, after what seems like ages, I find a brokerage that doesn’t look like a carbon copy of every other broker on the market. IQ Option is trying to do something different starting with the website layout, the education and of course the innovative, highly functional, trading platform. They also offer a free Demo and I mean really free, without any of the shenanigans like “Deposit 100 bucks in a real account and we will give you a free demo”. I opened the Demo in about 15 seconds.
Why Does IQ Option Suck in 50 Words
I am sorry to say but their expiration times are too limited and I believe this is one of the main issues I have with this broker. Expiry is pretty dynamic, but all purchased options expire by the end of the day at most, so long term traders will feel left out. However, that being said, this is one of the better platforms for short term intra-day traders. Other reasons it may suck is a relatively short asset list and the fact they only have call/put (high/low) style options.
Should I Open an Account with IQ Option?
Right from the start I can see I am not dealing with the usual Binary Options website that shows me a glamorous girl, a limousine or stacks of money. The first thing you will notice is that the home page is free of cheap marketing tactics and instead show me 3D chart which moves continuously. To be honest that makes me feel like I’ve accessed a trading venue, not an online casino like a lot of the other brokers on the market.
IQ Option entered the marketplace in 2013 and since then they’ve done a great job at differentiating themselves from other brokers. First of all, their platform is proprietary, you won’t find it anywhere else. The biggest advantage is the charts, where Japanese candlestick charts and a a list of many technical indicators like Moving Averages, Bollinger Bands, MACD, RSI, Stochastic an 7 others can be used. This is a big thumbs up because as we know, usually binary options brokers severely suck when it comes to charting and additional technical tools.
IQ Option Withdrawal
There is no minimum withdrawal amount but the minimum deposit is $10. A transaction will be processed in 24 hours. The money must go to the same source they originated in order to prevent money laundering. Also, before being able to withdraw, clients have to provide identification documents, which is another practice required by anti-money-laundering rules. Further, withdrawals can be made by just about any eWallet on the internet which gives the fastest payouts, within hours of processing unlike CC or wires which could take another 7-10 days.
IQ Option Extras
Candlestick charts are considered an extra for binary options brokers even in this day and age. It makes me almost sad to say it, but it’s a fact so they get bonus points for it. Their innovative platform can also be considered an extra feature as are the many tournaments for trading that they offer.
IQ Option Ratings
User Friendly 18/20
The website is available in thirteen languages and that is above average but the platform can be a bit hard to get used to, especially for a new trader; however, I don’t think this will be a big problem because it’s pretty intuitive. Everything else on the website is well structured and easy to find. US traders are not accepted. Check the terms and conditions for the full list of countries that are not accepted such as: Australia, Canada and Belgium.
Number of assets and expiry times 15/20
They offer up to 500 assets to trade. The expiry times are limited to “Turbo options” (60 sec, 120 sec) and short term (3 min, 5 min, 15 min, 30 min, hourly) with the longest being end of month.
Commissions, Support and Effective return 17/20
There are no commissions to use this broker, standard for the industry. There is however a dormant account fee after being inactive for 90 days in a row but the it’s only an annual fee of 50€ but it won’t be higher than your account balance. Support is little iffy, there’s no Live chat, only phone or email which isn’t a problem once you open an account. The effective return for successful trade goes up to 91% which is one of the highest in the industry, and they also have a OTM refund that can be pretty substantial for VIP traders.
Deposit, Payment and Bonus 18/20
The minimum deposit is $10 for a Real account. Deposits can be made via credit cards, wire transfers and e-wallets including WebMoney, Skrill and Neteller. Withdrawals can be made through the same methods. Bonus is not longer available due to CySEC new regulations. Withdrawals are processed within 24 hours.
Extras 15/20
As I mentioned before, their platform is an extra on its own because it is unique. Just a basic form of technical analysis can be conducted but it’s still much better than what others have to offer and there are 12 of the most popular indicators to use as well. The tournaments are another nice extra as they allow for lots of extra income, for the best traders of course. Lacking some features most major platforms includes.
As we said above, it’s good to be used with M1 or M5.
This
strategy is easy to understand and use by anyone and it is easy to
follow and remember the rules. Trading with the trend when using this
strategy means you can get some good signals in the trend direction due
to the SMA which is a trend identifying indicator. The RSI helps you
confirm the information you need to trade. This 5×5 strategy is a good
start for a trading template and adding in an indicator of your choice
will help you trade binary options with this system. It is important
when trading to try and keep things as simple and uncomplicated as
possible.
