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By concluding a trade with a binary option, any exchange trader wishes to gain profit. But it is not enough just to open the terminal of a broker company, it is necessary to choose a trading strategy. It should provide reliable signals about changes in the financial market. A 10 out of 10 binary options strategy allows us to make a chart of any financial instrument predictable and allows making the most of transactions profitable. Such a strategy works with basic financial instruments, which are highly volatile. Even a beginner trader can notice and understand the signal.
Construction of this TC is possible with the participation of a brokerage company, which provides a trading platform with a variety of technical analysis indicators. They also work in binary options trading as a standard. This strategy includes the use of the following indicators:
- Exponential MA with a recommended period of 100;
- An Alligator indicator with default settings;
- Moving Average Convergence/Divergence trend indicator with parameters 24/52/9.
Binary options of the 10 of 10 strategy mainly focus on the Alligator indicator values. They show the state of the market for the current period and signal about the right moment to open a position. Besides, an exponential moving average with a period of 100 works at the same time, which allows seeing in the long run how market events develop.
An uptrend is possible as a result of the Alligator indicator lines breaking through the moving exponential average in a certain direction. The Moving Average Convergence/Divergence oscillator in this TC filters out trading signals, excluding false impulses that indicate market entry. The Moving Average Convergence/Divergence signal completes combinations of indicators.
How do positions open?
Such signals of the indicator testify to the fact that the trend has turned around and going to growth:
- at crossing and subsequent breakthrough of the indicator lines the blue EMA Alligator line moves in the direction from bottom to top;
- when the MACD indicator confirms the nascent long trend of breaking the zero line by its moving averages lines from bottom to top.
- The deal, which predicts the growth of the asset value, is performed after the signal is confirmed by the Moving Average Convergence/Divergence oscillator.
When the indicator signals that the price has turned towards a downtrend, the following happens:
- Alligator lines are crossed and the blue MA line is broken through in the top-down direction;
- when the MACD indicator confirms the nascent long trend by breaking the zero line with its moving averages lines from top to bottom.
- A deal that predicts a decline in the asset value is executed after the signal is confirmed by the Moving Average Convergence/Divergence oscillator.
Suitable Options and Expiration
This strategy is perfect for trading with standard binary options, and the expiration period of open trades should be set to 10 minutes, allowing the value of the asset to move in the forecasted direction for a fairly long time to be in the profit zone during the expiry of contracts. Using this strategy is optimal only when there is a strong trend.
Knowledge of the basic rules of money management will help to minimize the risks of a binary option strategy. This rule is as follows: the amount of the opened trade should not exceed 5% of the trading capital freely available to the trader. Having a rather modest operating capital, trading should be done through rates that have a smaller volume. This method of risk management helps to prevent a drawdown in case of obtaining several loss-making options, as well as sustainable growth of capital due to stable profit-making.