Binary Options Drake Delay Strategy
The stochastic technique Drake Delay stems from the renovated stochastic strategy, which is justified by its naming. With the help of the stochastic Drake Delay indicator, a line of pricing movements is created, which stimulates the development of signals that encourage an option purchase.
There is a wide range of assets, which may be traded upon. Thus, the simple binary options trading strategy can be equally applied to valuable metals and to currencies.
Concerning the timing of trading, we recommend applying this, technique during European & American sessions.
The timeframes restrictions prioritize trading on M5 & M15, although the usage of M1 is possible as well. Sustaining trades on the basis of H4 & H1 timeframes is not recommended. The reasons for that will be provided later. The characteristics like short expiration or narrow timeframes, which may seem disadvantageous initially, serve a good purpose – they help to earn in a shorter period.
The Usage of Call Options in Drake Delay Metholodgy
- The lower border of the line is reached by pricing, which, therefore, enters the zones colored in red & blue.
- A yellow point is drawn under an acting candlestick.
- The Drake Delay indicator is situated in an oversold area – lower than 20.
- Before the following candlestick is opened, you must purchase a “call” option, which means being in a long position at the market entering.
The critical thing is that the time of expiration has to coincide with 3 candlesticks, which are in action at the moment. It means that M1 trading predetermine a 3-minute expiry, M5 – 15-minute expiry, and M15 – 45-minute expiry.
Thus, it comes as logical that such timeframes as H1 or H4 are not employed since the example shows how the same profits may be earned in a short period.
Put options in the Stochastic Drake Delay trading
- The value touches the blue/red area above the bottom border of the line.
- There is a yellow point above the functioning candlestick.
- The overbought area (above 80) is entered by a Drake Delay indicator.
- Prior to opening the next candlestick, we have to purchase a “buy” option, which brings us in a short position.
There has to be a 3 times higher expiration than the price of the applied candlestick.
The following recommendations help to reach success:
- The prerequisite for a successful position start is catching the trend on the basis of a long timeframe. Thus, if one trades on M5, then the act on M15 timeframe brings considerably more profits. Due to that, “call” options have to taken up. The same pattern is functioning for the opposite trending.
- One must monitor the stochastic lines’ overcrossing since this moment has to be the signal for market entering. The trend also signifies the reversal of the movement. In this way, a variety of indicators is involved: stochastic lines’ crossing, overbuying, the appearance of a yellow point, red/blue area entering.
- In case the signals are correctly perceived by you, you have an opportunity to purchase many options and, therefore, open diverse positions.
- The employment of Martingale technique should be evaded if the trade turns out to be unsuccessful. Although the staking may be increased, there must be a specific restriction.
The principal recommendation for the efficient indicator installation is the following: if the indicator represents one red line, a trader must modify the parameters. Specifically, the value of a slwsignal must be changed from 1 to 2 or 3.
With the Drake Delay technique, successful binaries’ trading may be sustained. You also have the chance to test it on a demo account prior to using it on practice.