Best Binary Options Strategies

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Contents

Binary Options Trading Strategy – Best 60-Seconds Strategies

Today we are going to share our binary options trading strategy with you. This strategy is designed to help you identify whether you’ll like trading binaries and teach you how to trade binary options the right way. If you prefer to play it safe over gambling, you’ll need a strategy or tactic to help you master binary options and other trading activities. This is where our TSG team comes to the rescue. We will provide you with the best binary options strategy.

The main reason we’re interested in learning about trade binary options is the fact that binaries simplify what we’re already doing in Forex. At the same time, binary options also allow us to make more money in the process. We are also controlling the risk.

Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.

When we first discovered binaries, the light bulb in our heads turned on. We figured out the same thing that we’ve been doing in Forex can be done. But walk away with 75%, even 95% winning trades because we only needed to get the direction right. No need to worry about how many pips we could grasp in the process.

And that, my friends, is the real beauty of binary options.

What are Binary Options?

Binary options are a form of derivatives that have a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?

Now, let’s start by understanding how binary options work.

Essentially, we can trade binary options for any type of instrument. Whether it be commodities (Gold, Oil or Silver), Forex exchange currencies (EUR/USD, GBP/USD or USD/JPY), or stocks (Amazon, Tesla or Twitter).

So, the first thing you need to decide upon is to select the asset to trade.

Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction. This will determine our success in trading binary options.

The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options.

Third, we need to determine what the most critical aspect of trading binary options is. The expiration time will ultimately determine if you’re making a profit or not.

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Trading binary options require you to correctly forecast two things:

  1. Whether the market will rise or fall.
  2. Your forecast needs to be accurate during a certain time frame – called the expiration time.

If you’re right on the market direction by the time of the expiration time, you earn a profit. Being wrong means you incur a loss. The way binary options works is that if you’re right on the market direction, you’ll get a percentage of what you initially invested in.

Typically between 75% and 95% and in some cases, even 100% of your initial investment, depending on your Binary Options Broker.

Supposing we’re wrong on the trade, then we’re going to lose the whole amount invested in the short term.

We have made a nice infographic that highlights the four steps on how to master binary options trading.

Now we’re going to focus on step two, which is how to predict the price movement. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.

Now, before we’ll outline a method on how to make money trading binary options, we always recommend taking a piece of paper and a pen and take notes on the rules of the best binary options strategy.

In this demonstration, we’re going to look at the buying Calls.

The Best Binary Options Strategy

Our team at Trading Strategy Guides is ready to share with our beloved trading community our 60-second binary options strategy. We don’t just hope this strategy will make you money, we’re certain it will. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator.

Even the RSI indicator is not good enough if it doesn’t have the “right” settings. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably.

Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings. We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold condition, we get more accurate day trading signals.

*Note: Make sure you adjust the RSI settings before you jump into the binary options trading strategy.

By changing the RSI overbought and oversold line, we have eliminated the noise. So now we’re ready to highlight our binary options step-by-step guide:

Step #1: Find an instrument that is showing a low the last 50 candlesticks. Use the 60-second chart (1 Minute TF)

The 1-minute binary options or the 60-seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame.

We recommend highlighting the starting point on your charts. And the ending point of your 50-candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low.

When you count the 50 candle low, you should always start from the current candle. Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low.

Moving forward, it’s time to put the RSI indicator in use and spot if we have extreme oversold reading or not.

Step #2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below

Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse.

In our example below, the 1-minute EUR/USD chart is satisfying the two conditions.

Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.

We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

Step #3: Look for a bullish divergence to develop between the RSI indicator and the price.

When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.

What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction.

If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal.

Now it’s time to highlight how to find the right entry point for the binary options trading strategy.

Step #4: Buy a Call Option after the first candle that closes above the high of the 50 candle low

The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a 60-second Call option.

It’s that simple!

After you decide the amount to invest and pick the 60-seconds as your expiration time, it’s time to sit back and wait 1 minute before hopefully collecting your profits.

Step #5: You collect your profits if the next candle closes higher than your trigger candle

If at the expiration time, the price is higher than the price you opened your Call binary options, you’re lucky because you’re about to check-in a big payout.

For example, if you’ve invested $1,000 and your binary options broker offers you an 85% payout, it means that you accurately predicted the outcome of a trade. You get back your initial investment of $1,000 plus the 85% payout which in our case is $850 in profits.

If you want to buy Put binary options, use the same binary options guide, but in reverse.

Conclusion – Binary Options Trading Strategy

Before learning how to make money trading binary options you need a great Binary Options broker. You can’t start hitting home runs right out the gate without making sure you have a binary options broker who wants you to succeed. Secondly, you need a strategy based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.

We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.

The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. We’re ready to help you with every step of the way.

Thank you for reading!

Also, please give this strategy a 5 star if you enjoyed it!

Don’t forget to read our guide on regular options trading for beginners here.

(58 votes, average: 4.29 out of 5)
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Best Binary Options Strategies

Jay Hawk
Contributor, Benzinga

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Binary options offer financial markets speculators an easy way to trade with limited downside risk. Unlike the underlying assets themselves that have potentially unlimited trading risk, binary purchases generally require a fixed price or premium to perhaps receive a given payout.

A major advantage of using binaries arises from eliminating the risk of order slippage that can occur in especially volatile markets. Not all binary option types suit all market views, so it makes sense to study what each type has to offer.

Before trading binaries, choose a reputable binary option broker and work out a binary strategy that remains a winning strategy on a consistent basis.

Quick Look: The Best Binary Options Strategies

  • Directional or Trend Trading
  • Swing Trading
  • Range and Range Breakout Trading
  • News Trading
  • Candlestick Pattern Trading
Table of contents [ Hide ]

Overview: Binary Options Strategies

The key elements of your binary options trading strategy should include:

  1. The type of binary option used
  2. When to use it
  3. The amount to trade
  4. Your exit plan.

You will also want to determine what the best binary options type will be for your particular trading style and objectives.

For example, many binary option brokers will provide pricing in up/down, one or no touch, boundary and double one or no touch binary options. Each of these types can suit a particular directional view.

What Makes A Great Binary Options Strategy?

As most experienced traders will tell you, the binary option trading strategy you choose paves the way for your eventual success or failure. In general, a great binary option strategy will be one that involves a trading method or which generates a signal that makes your binary option trades consistently profitable.

Some of the best binary option strategies operate in very short time frames suitable for short term expirations of one minute to one hour. Other strategies might focus on forecasting end-of-day or end-of-week levels that correspond to daily or weekly close binary expirations.

Any great trading strategy consists of one that works in practice to generate respectable profits given the time invested. Also, test a strategy in a demo account and have a sound money management strategy to complement your trading signals.

The sections below will discuss some of the more popular trading strategies that binary option traders use. You can also combine some of these strategies or create your own from a combination of technical trading signals.

Strategy 1: Directional or Trend Trading

When an asset’s price or an exchange rate generally moves in one direction or the other within a given time period, a trend exists in the direction of the overall movement.

If the market value moves upward and makes higher highs in the process, it forms an uptrend. Conversely, if the market generally declines and makes a series of lower lows, it creates a downtrend. Trends can show up on charts on any time frame, so binary option traders can usually trade them effectively. The schematic diagram below shows what uptrends and downtrends look like.

Those who trade trends with binary options generally overlook small swings in market valuation. Instead, they put their attention on discerning the overall directional move within a particular time frame using technical analysis techniques and indicators.

Trend trading involves taking fewer positions for bigger gains than most other trading strategies, so commissions usually seem minimal. A trend trading strategy seems appropriate to use with high-commission brokers that offer a wider range of binary products and asset classes.

A popular trend trading method, which virtually all binary options brokers offer, involves the use of the call/put binary option. A call binary option pays off if an asset’s price ends up higher than its strike price after a set period of time. A put binary option pays off if the value finishes lower than its strike price.

Trend traders can also use the riskier, but potentially more profitable, one-touch binary option. This involves predicting a target level that you expect the market will reach within the trend to achieve a payout once that level trades.

Some trend traders even use a combination of both binary option types. This generally costs less than using call/put binaries and helps them increase potential profits if their directional view pans out.

Strategy 2: Swing Trading

Instead of trading the overall trend, you could achieve higher gains by trading each swing in an asset’s value as it moves up and down in a non-linear fashion. Such price swings also tend to occur in predictable patterns and proportions. This can give savvy binary option traders an opportunity to profit.

While trend traders tend to ignore these market fluctuations by focusing on the overall direction, swing traders nimbly switch directions to profit from them. Swing traders tend to trade more often than trend traders, which can increase transaction costs.

Swing trading also involves having a good sense of market momentum. This requires you to reverse positions when market trends wane, while holding positions in the direction of the trend while the trend remains strong.

As a swing trader, you have several chances to use binaries to benefit from a trend and its various corrections, instead of just holding a binary option position in the direction of the trend. Since these swings tend to be of a shorter-term duration than the overall trend, you can often position for them using binary options.

For example, you could buy a call binary when a downswing occurs within an upwards trend in anticipation of a subsequent move higher. In another scenario, you could purchase a put binary when an upswing materializes in a downtrend, since the market might then reverse and continue its overall move lower.

Furthermore, you can buy a put or call binary when the market looks respectively overbought or oversold in anticipation of a counter-trend correction.

Strategy 3: Range and Range Breakout Trading

Range and range breakout traders consist of those who identify trading ranges and attempt to profit from them. Trading ranges occur when a market fluctuates within upper and lower boundaries.

If you plan on employing a range trading or breakout strategy, you will tend to use boundary binary options. In boundary binaries involve setting an upper and lower value that you expect the market will remain between by the time the option expires.

Alternatively, if you wish to trade a breakout of a trading range, you can instead use an out boundary binary option. This lets you set a range with boundary levels that you expect the market to trade outside of at expiration.

Strategy 4: News Trading

Fundamental traders sometimes rely on key news releases to create market volatility they can profit from. When a news outcome improves on the market’s consensus, the result seems favorable for the asset or currency affected. This typically leads to a higher market valuation. Conversely, when the result disappoints the market, a negative effect on valuation tends to occur.

One of the major risks involved in trading such news events consists of stop-loss order slippage. Requotes and/or market order execution delays can also result in a serious unanticipated loss for a trader. These issues seem especially likely to occur even with reputable brokers in the volatile or “fast” markets surrounding a key news release.

Using binary options to trade the news can eliminate this execution risk completely and make a news trading strategy much safer. Still, it pays to keep in mind that news trading outcomes remain quite unpredictable due to significant variation in the size and duration of news-related moves.

Depending on what you expect to occur, these possible binary option alternatives could fit into a news trading strategy:

  • If you expect a large move in either direction by expiration, you can buy an out boundary option. This pays off if the market ends up outside the specified range upon expiry.
  • If you expect a large move in either direction shortly after the news release, you can buy a double one-touch binary that pays off if either trigger level gets breached before expiration. The trigger options used in this strategy will often have a very short time until expiration, such as 60 seconds, to maximize returns and minimize cost.

If you observe a large move shortly after the news release and you expect a retracement to follow, then you can buy a call binary if the market fell after the release or a put binary if the market rose. If the market does indeed snap back, then buy a put binary once the correction higher seems to wane or a call binary if the correction lower starts to fade.

Assuming both options have the same strike price, the goal of this news strategy involves legging into a long binary straddle position that has a 100% chance of paying out no matter whether the market rises, falls or stays the same.

Strategy 5: Candlestick pattern trading

Candlestick charts display some well-defined patterns that technical analysts often consider to have predictive value. While a detailed discussion of how to trade based on candlestick formations seems outside the scope of this article, an excellent book to learn about with the subject in detail is Japanese Candlestick Charting Techniques by Steve Nilson.

An example of a candlestick pattern you can use in binary option trading: if you observe a gap on the candlestick chart under normal trading conditions, then it may indicate a future move in the direction of the gap.

For example, if the market gapped higher, it would suggest purchasing a binary call option. A gap to the downside would indicate buying a put binary.

Final Thoughts

Binary option strategies can only get you so far, since your broker and various other factors can also impact your success. Selecting a suitable trading partner from among the best binary option brokers for your trading style and strategy contributes another key element to a winning binary option trading plan.

Binary Options Strategy – How to make money

Binary options trading is new and attractive way of making money on the Internet. It is defined as fast and simple trades with market assets such as gold, silver or Google stocks.

Simple binary options platform

In order to be profitable with binary trading you just need to predict if the price of selected asset will rise or decline in the next few minutes or even seconds. The accuracy of prediction can be increased using our strategies.

Our trading strategies

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Traders can make thousands of dollars crowns with very low risk in just a few hours. You will find the latest and best binary options strategies trade on our website.

Are you ready to make your computer your only employer and make a living by trading from the comfort of your home?

Our binary options trading systems are categorized by the expiration date.

To pull off our strategies, you will need the services of a forex rates program, and we suggest that you use the well known MT4 platform. You should try out a number of indicators so you can find the one that can offer you the best strength parameters. Once you have tested MT4 and found a broker, you need to follow some basic rules and strategies. Watch out for the strength and performance of your chosen currencies during middle of the US and UK market sessions. Once you have identified the currency pair, cryptocurrency or an asset you wish to trade, you need to can now start a trade. If your pair is GBP and Euro with GBP as the strongest, then you can call for a ‘PUT’ trade for EUR/GBP, and choose long expiry time. One of the most accurate binary options strategy is this one: Binary Options Strategy that Works.

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Binary Options Strategy – The Zig-Zag Indicator

There’s this common thinking that binary options trading is only best for the experienced traders around. Keep in mind that it’s one activity that’s open for everyone, at any skill level. In fact, you can even find specific trading strategies that can work for beginners. The idea here is to predict the movement of the prices, and take advantage of the movements. To take advantage of the best binary options strategy for beginners, we recommend to have a look at this one: A trading strategy for beginners.

Strategy for trading binary options

Binary option trade strategies are usually based on use of indicators. People often do not know how these work, therefore you can find the indicators description on our website.

Trading based on indicators may not be always a good idea. It is recommended to employ also technical analysis. This Binary options website contains lots of useful resources for technical analysis.

Easy binary options strategy

Thank you for visiting our website about binary options strategies that can work for beginners. For a start, you should know that binary options is never a ‘get rich quick scheme’. On the contrary, investing and participating in binary options trading requires patience and time, and can be a test of one’s commitment and skills. But the good news is that it can be a source of decent income on a regular basis and if done right, you can even quit your day job and concentrate on trading. But without the right set of strategies, any investing decisions will end up badly. If you want to be successful in this field, we suggest that you read our guide below and with every single strategy itself. There are surely some easy binary options strategy. One of the easiest ones is the Moving Average Strategy.

Binary options brokers

Not all strategies work with every broker on the market. There’s many, many types of binary options, such as high/low options, touch/no touch trading, boundary and so on. Every broker offers different types of trading, just as it is with expiration times.

Some brokers offer expiration times as short as 30 seconds. Other start with 5 minutes. That’s a reason why not every strategy can be traded with certain brokers. Underneath every strategy on this website, you will find a recommended broker the strategy works with. Good luck!

Binary option trade risk

Binary option trade is not a simple matter! Even if you have the best available strategy some things may go wrong. Therefore do not risk more money than you can afford to lose! However we will always recommend only the best and proven strategies.

Every strategy needs to be tested on a demo account first. It is very wise to use a binary demo account to try, whether the strategy works or not. If it doesn’t work for you, try a different one. There’s many options of getting a demo account, but not all demo accounts are the same. Check our option brokers comparsion table to find a broker who offers free demo practice account.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Binary Options Trading School
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