The features of short-term chart periods and binary contracts used in trading allow this tool to very effectively employ the classic approaches to registering positions in trending market fluctuations. Now, we will have a look at a trend strategy which based on technical signals — price corridor breakdown. This type of strategy will allow the market participant to have statistics of profitable forecasts more than 80%. This is more than enough for profitable trading. There is a special dedicated chart instrument, with the help of which the price corridor is limited to a range of market fluctuations. Asset quotes form multiple pullbacks and corrections during their movement, resulting in the formation of formal fluctuation corridors on the chart, which can be used for delimitate the borders and as a market analysis strategy.
In real market situation, it looks like the following:
As example, we will take the most popular and advanced binary trading terminal — the Binomo broker, where the chart service required to build price channels is available:
Now, we outline the borders of the price corridors that are always present on the chart using short-term market extremes:
You can apply this winning binary options strategy while trading on the binary market at any time. Such conditions are provided by the cyclical formation of price corridors.
But let’s focus more attentively on the trading conditions for the «Channel breakdown» trend strategy. For maximum effect and high stable profits, you need to choose a proper trading platform at which you will find the following:
- Various analysis tools
- Trading conditions with the minimum rates
- A choice from different variants of assets to trade
- Accurate market quotes
- Non-stop trading mode
- The optimal range of contract maturity for the system
- Options with a high level of payouts
The listed conditions above and even more high-perfomance services and features are presented on the the Binomo company’s terminal, where traders can do their best and really achieve good results.
Practical application of the «Channel breakdown» trend strategy
When the contract is registered on the binary market, the system generates a forecast for registration, this occurs in the form of a signal, which looks like a breakdown of the channel borders in a certain direction.
For a contract DOWN, quotes must break through the lower boundary of the price corridor:
For a binary contract UP, the asset price should break through the upper boundary of the channel:
This signal is quite simple to use, even beginner low experienced traders can effectively use this approach on binary market. In addition, the platform can give traders the possibility to make a high constant profit.
With this best trading strategy for binary options you can easily increase your capital and multiple your investments, the only few things that you will need to do are the following: using highly cyclical strategy signals and building channels of market fluctuations.
Expiration and money management
The frequency of the quote chart used in trading and the cyclicality of the trading system signals allows for transactions with a maturity of up to 5 minutes. The optimal range for contracts in which the trend strategy can demonstrate the best results is about 120-240 seconds.
The rules of risk management for the «Channel breakdown» trend strategy are reduced to the classic parameters for limiting the cost of trading positions. So that risks are minimal and losses do not cause damage to our working capital, we set the maximum cost of contracts at 3% of our capital. For minimum trading account balances, we recommend using 1 dollar contracts provided by the Binomo broker.