The format of this trading system is built on the application of a combination of different types of technical indicators for analysis. The use of a filter for false entries in the binary options market allows you to maximize the efficiency of trading strategy forecasts, and results in the best possible trading outcome in a low trading risk regime.
The «MA with MACD filter» trading system — a platform for trading and constructing templates
Efficient operation of the strategy depends not only on its proper use on the market, but also on the opportunities and operating conditions of the trading terminal.
It is worth drawing your attention to the following requirements when choosing a platform:
- An indicator set with the list of necessary tools
- Trading condition parameters — minimum conditions necessary
- A range of contract maturities
- A choice of assets
- Terminal stability
- Speed of processing contracts
Practical testing of the trading strategy revealed the optimal trading platform for performance — Binomo.
The Binomo broker offers a range of services and trading conditions on its terminal:
- An integrated set of analysis resources with the necessary tools
- The minimum possible trading conditions — accounts from 10 USD, minimum trading position costs of 1 USD
- Expiry contracts in the range of 60 seconds to a day
- More than 80 assets for effective trading
- A terminal that is very stable without slips or freezes
- Contracts opened in 1.7 ms
So, to apply the «MA with MACD filter» trading strategy, you first need to build a system template on the trading chart. To do this, we configure the following technical means on the asset quotes using the set of indicators on the Binomo broker’s dedicated terminal for binary trading:
- The MA 7 Weighted indicator (standard coloring of the MA)
- The MA 21 Exponential indicator (blue coloration of the MA)
In addition, we set the filter, which will be the MACD indicator in the standard configuration setting. As a result of the installation of indicators on the trading chart, you get the following format of the trading strategy template:
Entering the market with an option UP is carried out upon the following combination from the trading system indicators:
- The MA Weighted indicator line (a red line on the quote chart) crosses the line of the MA Exponential indicator going upwards
- In a separate technical window, the white MACD filter line intersects the scale level of 0 going upwards
Entering the market with an option DOWN is carried out upon the following combination from the trading system indicators:
- The MA Weighted indicator line (a red line on the quote chart) crosses the line of the MA Exponential indicator going downwards
- In a separate technical window, the white MACD filter line intersects the scale level of 0 going downwards
Expiration and money management
The optimal period of maturity for contracts in which the trading system shows the highest trading results is the range of 60-240 seconds. By increasing the frequency of the indicators two times, contracts with maturity intervals of up to 15 minutes can be used. You can increase the effectiveness of the trading strategy through the use of contract packages, in which positions with different expiration times will be combined. Moreover, that is excellent for risk diversification
This trading strategy with a filter demonstrates efficiency at a high level — up to 85%. However, in difficult conditions, the system may result in a certain amount of losing trades. So that your trading account does not suffer large losses in such circumstances, you need to clearly define the maximum level of possible risks. The optimal level for cost of contracts can be set to 5% of the operating funds in your account. The lowest level of risk can be achieved using the Binomo broker’s contracts with the initial value.