The accuracy of forecasts for registering options on the market is a fundamental factor in the overall performance of the trader, so the necessity of using a strategy for trading futures contracts is undeniable. But there are a number of problems in this respect, the main one of which is related to the search for really effective systems of analysis. Yes, the internet is overloaded with various systems, but not all of them can provide the desired result. Against this backdrop, we offer an approach that is extremely versatile in terms of selecting assets for trading, has a performance figure of at least 87%, and is truly easy to use. When working on the “Vibrancy” system, any trader can achieve high and stable trading results.
The technical principle of the system
So, the clear operating principle of this system relies on the use classic indicators. These tools use a very accurate algorithm for assessing the technical parameters of the market and are able to automatically generate the necessary signals to register futures trades. This approach to trading significantly simplifies the process for the trader and makes it possible to achieve stable results of trading profitability. To enable the chart to generate signals according to the rules of the “Vibrancy” strategy, set up the following tools for forecasting movement of the asset market:
- Fractal Chaos Bands — this service generates fractals on the chart of the underlying asset. They are dynamic levels of market extremes from which the price is likely to reverse. This allows you to get a clear signal to register a futures trade in the most favorable conditions
- Momentum — this is a trend indicator based on assessment of market volumes and trend momentum. It gives you a complete picture of medium-term trend development, and it has additional functionality in the form of technical levels of the scale, which makes it possible to obtain clear information about a possible change in quote trend movement
- Stochastic — this classic trend indicator is an excellent service for filtering technical signals from the main tools used in the strategy. Stochastic gives us the opportunity to register trades on a clear and accurate signal system
This list of analysis services should be configured on the M1 time frame of your trading chart so that you will get the most optimal conditions for technical analysis.
Please note that this set of technical analysis resources is available today on a limited number of trading platforms for options trading.
With that in mind, we recommend that you use the system on the resource from the Binomo operator on the futures market. This terminal offers all the tools necessary to build the system template, very favorable financial trading conditions, as well as a high level of investment security.
After configuring all the trading system tools on the asset chart, the following type of markup will be formed:
The strategy’s signal system
For contracts with a forecast direction of UP, use this set of technical signals from the system:
- The Fractal Chaos Bands service has formed on the price chart a dynamic level of support, from which the quotes have rebounded upwards
- The Momentum technical moving intersects the level of its scale upwards
- The Stochastic oscillator service has reversed from the level of oversold upwards
For contracts with a forecast direction of DOWN, use this set of technical signals from the system:
- The Fractal Chaos Bands service has formed on the price chart a dynamic level of resistance, from which the quotes have rebounded downwards
- The Momentum technical moving intersects the level of its scale downwards
- The Stochastic oscillator service has reversed from the level of oversold downwards
The duration of contracts
An additional factor influencing the effectiveness of trading and the efficiency of the strategy is choosing the right range of trade expiration. If you set the minimum expiration period, you might get a forecast for a contract that will not work effectively for the asset quotes. If you set the option’s expiration range too high, you could also get a losing trade, since in that period of time the quotes have the opportunity to change their trend direction several times. Given these facts, we recommend using options with an expiration period of 10-15 minutes.
In order to obtain minimum losses and achieve the optimal trading regime in terms of risk level, we recommend using options trades, the value of which does not exceed 5% of the total capital level.