Home / Best binary trading options strategies / A strategy for the 5-second Hill chart

A strategy for the 5-second Hill chart

Short-term trading is not available on all trading platforms. Basically, it is the prerogative of those companies that are geared towards beginners. One of the most popular platforms for trading on financial markets is Binomo. It dates back to 2014, and since then has managed to win top spots in the ratings and acquire a good reputation. In this article we will conduct a detailed review of a strategy suitable for trading on a 5-second chart with transaction expirations from 30 to 90 seconds. Trading in such small intervals enables you to spend less time trading, while still earning a good profit.

An overview of the indicators and strategies

Despite the fact that there are only 14 indicators currently on Binomo, the technical analysis capabilities of the platform are quite broad. This is due to the fact that you can combine different tools. From a purely mathematical standpoint, many thousands of various combinations are available. The Hill strategy is based on two indicators: the Stochastic Oscillator and Moving Averages. Moreover, this combination of these tools is not typical. The thing is that the Moving Average curve is not added to the candlestick chart, as is usually done, but to the oscillator window instead.

  • Stochastic. This is an oscillator that enables you to determine the current pricing phase on the market – the balance of power. If an uptrend is active, the tool’s curves will be directed upwards. In this case, the white line (fast) will be above the red one (slow). The presence of a downtrend is signaled by the mirror reverse situation of line building.
  • Moving Average. The “King” of all indicators. It is a curved line that is plotted according to a formula that averages price bars.

There are many calculation formulas, including simple, exponential, weighted, triangular, and many others. Binomo offers 11 types of Moving Averages. However, the Hill strategy uses the simplest one, the Simple Moving Average.

The trading system we’re considering is based on the fact that the Stochastic has a higher reaction rate than the Moving Average we’ve added. Thus, there are discrepancies – an increase in the distance between the curves of the two indicators. The moment the lines intersect is a trading signal. The direction in which to open a trade depends on where the intersection occurs and whether the Moving Average is crossed by the Stochastic from below or above.

Setting up the trading terminal Binomo

From a purely technical standpoint, this strategy can be used on any trading terminal, on any company’s platform. However, it’s easiest to do on Binomo as it has second time frames. So, let’s look at the step-by-step instructions.

Setting up the trading terminal

  1. Open the Binomo platform. Choose a high-yield asset. CRYPTO IDX works best. This asset enables you to get a full-fledged candlestick chart on a 5-second time frame, which is not the case with ordinary currency pairs. But this is not a strict requirement.
  1. Set up the chart. Select the candlestick mode and set the interval to 5 seconds. This is the minimum time frame for candlesticks.
  1. Set up the indicators. We first add the Stochastic, leaving the default settings. Then we add a simple Moving Average (type “Simple”) with a standard period of 50. It is recommended that you change the default red color to yellow. This is because the Stochastic also has a red curve, so it may be visually difficult to detect the signals.
  1. Set up the trade. Trading on second intervals requires a quick response to signals. That’s why we set up the conditions for entering the market in advance. We indicate the amount of investment – no more than 5% of the balance, but even better if it’s less than 1%. Set the minimum expiration time if it has not already been selected by default.

There is an important thing to keep in mind. When adding the Simple Moving Average, you should select the field %D stochastic (14,y). That’s why it’s important to do this in order – first the Stochastic and then the SMA.

Trading signals for the strategy

Signal for a decrease. The intersection of a beam of Stochastic curves with the SMA. The Moving Average looks like it’s being crossed by the oscillator from above.

Trading signals for the strategy

Signal for an increase. The market entry point for an “Up” trade reveals itself as a breakdown of the Moving Average by the Stochastic from below. You can see the signals on the screenshots from the Binomo terminal.

Signal for an increase

It is recommended that you manually adjust the scale in such a way that each grid cell in the horizontal plane is 60 seconds. In this case, the duration of the transaction will be immediately visible. If market entry is made before there are 30 seconds left until the end of the minute, then the expiration will go until the end of the current period. Otherwise, the closing of the trade will be postponed to the end of the next minute, i.e. the actual duration of the contract will be from 60 to 90 seconds.

Start trading




A strategy for the 5-second Hill chart updated: November 7, 2018 author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *



Check Also

strategy Gateway

5-minute options strategy Gateway

In online options trading, investors use several trading ranges that provide optimal performance and dynamics ...