Best 15 Minute Binary Options Strategy
In this article, we dwell on the candlestick strategy as one of the highly efficient trading approaches.
The usage of candlesticks is launched by Steve Nison as the tool for pricing action analysis. Today, the tools already serve as the default instruments on trading platforms. It may be demonstrated on the basis of the provided chart.
The differentiation between the charting levels is made uncomplicated with the help of coloring bull/bear lines in different colors. There is a contrastive difference between wicks, which show the distance in the frames high-low, and a real body – in the space opened-closed.
The Usage of Candlestick Charting in Automated Acting
Trading with candlesticks serves two critical purposes. Primarily, it assists in market analysis and price action identification. Secondly, candlesticks may be easily applied in automated systems. The functioning of automated operations relates to making the screen steps’ replication and their practical realization.
Building candle charting involves the usage of diverse sets of data (open-close, high-low). There are many tendencies that target only specific data lines. Such patterns are easier to employ in comparison to multi-bar schemes.
Trading on Binaries with Candlesticks
With the application of options, traders get a chance to hedge loss risks. If an investor gets the option, it means that he may trade the specific asset until the set expiration and at a specific value. Thus, traders treat binaries as insurance for a portfolio.
The task of traders is putting options on trade in order to receive financial benefits from the financial trends and volatile markets. Thanks to binaries, one can trade on margined levels, which allows embracing the wider diapason of winning resources of the underlined asset.
The scheme of functioning, which works for binaries, is almost the same as for common bets. Thus, a subject of trading puts a specific sum of money on risk and receives a certain benefit in return. For instance, if you risk $100 on the trade, provided the payout percentage equals $80, the return profit, subsequently, is $80.
One of the most optimal trade categories is the one called higher-lower. The key of success in binary trading is making a correct prediction concerning the future price of the underlying asset, which is going to be set in the specific period. Typically, such trades predefine the payout rate of 80%. It means that a trader stays in profit in case he makes accurate predictions in more than 55.5% cases.
While reaching the 55.5% accuracy is not a complicated task if you take up simple betting. In binaries, however, the task is much harder, due to the critical role of expiry in the process. Consequently, the aspect of timing must be minded in every trade act.
However, putting the factor of expiration under a good control may be sustained with the help of a candlestick technique.
The reason for applying the candlestick 5 minute binary options strategy in trading is the timing regulation. The simple technique presupposes trading with the consideration of 1 bar that always comes ahead. Therefore, when the first bar is closing, the action of the technique starts. It finishes, consequently, at the moment of another bar coming to its close.
The provided video, which comes with this article, demonstrates a successful trading example. It relates to the currency pair EUR/USD and proves that the asset was revealing high profitability in the frames of 15 minutes during the previous four years. The strategy that is employed in the case is a reverse technique.
The Rules of Technique
In case of long trading, a trader employs three consecutive low bars.
In contrast, short trading presupposes three high bars’ application. In both cases, small variable bodies are put on trade.
The candle 4 is the candle with the smallest variable body, which is named Doji.
Binary Backtesting Technique with Excel
Due to the employment of Microsoft Excel service, one can successfully backtest the acting trading methodologies. Since the usage of binaries runs according to a simple pattern, such uncomplicated tool as Excel can be perfectly suitable for it. One more advantage is that Microsoft Excel is adapted to large data amounts. In the provided recording, I show the example of checking 100,000 period points, each of which lasts 15 minutes.
By watching the recording, you find out how to align candlestick investing technique with Excel programming. This instance is based on the application of IF regulation.
The next formulas represent long trading:
In case of short trading, the programming formula is:
As a result, the profitability percentage reaches 60.9%. In the course of trading, 296 successful and 190 losing trades were sustained.
The video provides several ideas about the improvement of the analyzed strategy. Since the system may be represented in the Excel system, correcting the setups is made easier.
The trading technique presupposes the employment of two variables. The basic installation correction, which may be made, is the modification of the size of consecutive candles and a Doji candle.
In my example, the number of candles that precede Doji, is three. However, you can also try taking up four of them for long trading and two for short trading.
The body size of Dojis is typically small. Their coloring signifies the candles that have a priority. Specifically, Dojis that are colored in red may be better adjusted to short trades and the green ones could be better suitable for long trades.
The technique does not provide a differentiation between Dojis. However, the wicks shaping offers pattern distinguishing. For instance, such formations as shooting stars or hanging men guarantee higher profitability.
The outcome of the pattern development is generally influenced by the factors that precede its formation. It is up to a trader to decide whether the pattern can be realized in an upper or downtrend.