Trading indicators and their settings
HELIX strategy uses the following indicators:
- Bollinger Bands – a technical indicator that shows an average value of an asset, as well as the amplitude of the asset price fluctuations for a specified period of time.
- Moving Average – a technical indicator that shows the average price of an asset for a specified period of time.
The application of this strategy is based on the principle of wave-like motion of quotations, the beginning and the end of which can be detected by technical indicators to determine the best time to enter the market (purchase a binary option).
To use the above mentioned indicators within the strategy, apply them to the quotes chart after making certain changes to the default settings.
- Click on the button in the left corner of the Binomo platform, select “Bollinger Bands” indicator and apply it to the price chart under default settings:
- In a similar way, choose the “Moving Average” indicator:
- In the MA indicator settings choose period “1” and type”Weighted”:
Now let’s go into the rules of making deals.
Purchasing a call option:
- Wait for the Moving Average line to move below the lower line of the Bollinger Bands channel and return.
- Once the MA returns into the BB channel, a growing green candle will appear:
- Once all three conditions are met, buy a call option.
Purchasing a put option:
- Wait for the Moving Average line to move above the upper boundary of the Bollinger Bands channel and return.
- Once the MA returns into the BB channel, a falling red candle will appear:
- Once all three conditions are met, buy a put option.
These rules apply to all deals made on the price moving outside the channel that is formed by the upper and lower lines of the Bollinger Bands indicator.
When using a standard period for Bollinger Bands indicator (set by default on the Binomo platform), choose an expiry period of around 1 minute if you trade Turbo options, and 1 to 3 minutes if you trade Binary.
When trading with the HELIX strategy use the traditional risk management rules: spend not more than 3% of funds on your account to complete one deal.
You should stop trading 5 minutes before the release of major economic news. It is best to choose quotes charts with least definite trends.