If you want to increase the amount in your account at an accelerated rate, then scalping is exactly what you need. And for effective scalping of price fluctuations, an accurate trading strategy is needed and this is exactly what we are presenting to you today. The “Gallop” trading method was specially developed in order to provide the trader with the opportunity to make a profit even on the slightest price maneuvers, so you will only need to understand the simple rules on how to use it to rapidly increase your capital.
Scalping on binary options – how the “Gallop” strategy works
The name of this strategy speaks for itself – you will trade at a gallop, entering the market on every short-term quote maneuver. And to find the optimal entry point you will be helped by two technical indicators, the Moving Average and the RSI. The system uses the moving average with type Exponential and with two periods, and the RSI oscillator with the standard parameters and a marked trend level. This format of using two high-precision technical resources will allow you to determine short-term price corrections and conclude up to 10 transactions per hour.
The main condition for the effective use of this strategy will be the availability of a stable trading terminal that executes transactions without quote slippage or freezes. In addition, the terminal must be equipped with a set of technical indicators, otherwise you simply cannot recreate the trading template on the chart. Also, it is highly discouraged to use third-party services for live charts to build the template, because jumping between the technical and trading platforms will make you lose time and points, which will make it difficult later on to close the option with a profit. For our example of the most correct trading format, we have used the platform from Binomo which fully meets the requirements for the “Gallop” strategy.
So, to configure the template, select the underlying asset on which the broker offers the maximum profitability. Switch the chart timeframe to M1 and add the following indicators with these settings:
- Moving Average format Exponential, period 5, moving average red standard
- Moving Average format Exponential, period 10, moving average yellow
- RSI – standard period, overbought and oversold levels 50/50
After all the necessary settings, you will see a trading template like this on the chart:
Signals of the trading strategy for scalping called “Gallop”
You will receive an accurate trading signal to enter the market with a short-term option that will be displayed as the intersection of two moving averages and a change in the location of the RSI dynamic moving average with respect to level 50. The direction of the indicator signals must be the same.
Transactions UP are concluded when the following occurs:
- the lines of the exponential averages intersect with upward directionality
- the moving average in the RSI window moves above the trend level 50
The trade should be made immediately after determining the integrated indicator signal:
Transactions DOWN are concluded when the following occurs:
- the lines of the exponential averages intersect with downward directionality
- the moving average in the RSI window moves below the trend level 50
The trade should be made immediately after determining the integrated indicator signal. This is how it is displayed when trading on a decline on the same segment of the chart:
As a result, you will be able to conclude transactions on each price rebound and mid-term trend change, closing with a profit on 85% of your options. At the same time, the RSI indicator will provide you with accurate entry only when the rebound depth or the duration of the new movement is enough to keep the price in the positive area of the chart at the time of expiration.
The optimal chart interval when using the strategy is M1, where you can conclude transactions with an expiration of 3-5 minutes. If desired, you can reduce the chart interval to 30s or 15s, but this will not affect the cyclicity of the signals at all, so we recommend trading only on a 1-minute timeframe.
Scalping is a high-risk approach, so when trading we strongly recommend following the rules of money management – limit the amount of a lot to 3% of the volume of the account. If you have a modest amount of capital, then the transaction amount should be minimal.