The long history of option trading shows that one does not need to master a super complicated trading system to obtain stable profit — simple trading systems based on several technical indicators are perfectly enough to reach the desired level of profit. This approach allows to steadily increase the amount of the deposit in a secure mode.
How to Trade
First you will need to build a template for the trading system on the Binomo broker platform by adding the following set of indicators:
- SMA — moving averages with periods of 10 and 5, type Simple
- RSI with standard settings
Timeframe of the graphics should be M1 (moderate trading dynamics). The optimal time to use the strategy is daytime with high volatility on asset markets. The resulting trading template displayed on the graph will look the following:
The trading signals to conclude a transaction are displayed as follows:
For asset prices with a DOWNward forecast:
- The moving averages intersect in a descending direction
- RSI moving makes a turn at 80 and heads down
The UP transactions should be concluded when the trading signals have an opposite display:
The expiration time for the M1 timeframe is 10 minutes — within this time interval the asset’s price will be making impulsive movements, remaining in the positive area of the graph by the time the contract expires. This strategy can also be applied to other timeframes: the main thing to take into account when calculating expiration time is that 10 price candles should form while the transaction is open.
The amount of transaction should never exceed 5% of the deposit — this way trader can increase his capital with minimal risk.