One of the most profitable strategy for binary options, “Super MACD”
Nothing stands still on the earth; everything is being developed and improved. This is true for options trading as well. In particular, brokers are rapidly trying to develop the newest platforms for trading to make trading binary options easy and lucrative. The Binomo company is the leader in options trading innovation, and even after developing their own trading software, they did not stop there, improving the trading platform and adding the popular MACD indicator for binary options. We have not ignored this fact, and on the basis of this indicator, we’ve built a simple and incredibly profitable trading tactic, which we will now present to you.
Preparing to trade
The first thing you need to do is register an account with the Binomo broker – it’s easy and very fast, and as a result, you will get to trade on the most advanced trading platform with a set of technical analysis indicators, including the one we need, the MACD.
So, on the platform, we choose the indicator and install it on the asset chart (choose the underlying asset on which options have the highest yield) without changing the basic settings:
A little more on the indicator. As you can see, it consists of two dynamic lines that define the direction of the trend and its reversals, and histograms in the form of columns that indicate the strength of the trend movement over a certain period. If we consider the strategy in a simplified form, trading on the MACD means identifying just three types of signals:
- The intersection of the dynamic lines
- Changes in the direction of histogram building with respect to the zero level
- Divergence (a rather rare signal)
But, we will discuss in more detail the signals of the most profitable strategy for binary options.
The practical application
We acquire options UP when the following occurs:
- The line with a small period (blue) intersects the long period line (red) from the bottom upwards, which happens below the zero line of the histogram (the lower the intersection is on the scale of the indicator, the longer the upward movement may be)
- The direction of column building on the histogram has changed from lower to upper relative to the centerline
When opening a new price candlestick and a new histogram column upward, we register a contract UP:
We acquire options DOWN when the following occurs:
- The line with a small period (blue) intersects the long period line (red) from the top downwards, which happens above the zero line of the histogram (the higher the intersection is on the scale of the indicator, the longer the downward movement may be)
- The direction of column building on the histogram has changed from upper to lower relative to the centerline
When opening a new price candlestick and a new histogram column downward, we register a contract DOWN:
The main issue with trading on the MACD is only the speed of registering contracts. But, on the terminal this is not a problem, because the speed of order processing is only 1.7 ms. Thus, you are armed with a system able to generate signals that are more than 80% profitable. Growth statistics of trading accounts can show more than 150% of profit every week.
Expiration and money management
The Binomo company, before installing this indicator in its set, conducted a lot of testing on the MACD indicator and configured its settings to default in the most universal format. Therefore, you can safely trade options on the MACD with any term of expiration. The highest system results were seen from options with expiries from 1 minute to 5 minutes. When using these quick options, do not forget about the security of your capital and properly calculate the trading risks for each transaction. So that you don’t make mistakes in this process, just use the smallest lots from the Binomo broker, which cost $1.