Binary options trading system called Neighbor

Binary options tactics called Neighbor

Binary options are able to bring considerable profit to anyone who finds the right approach to them, that is, find an effective trading strategy. Today we would like to offer you one such trading tactics — the “Neighbor”, which will allow even a beginner to make 85% of profitable deals.

 

The principles of the Neighbor trading pattern

The technical foundation of this system consists of lucrative binary options indicators: the Moving Average, Bollinger Bands and RSI. When combined, their signals show market turns and favorable price levels to open deal. The Moving Average indicator identifies the long-term market behavior and is applied with a very long period of moving. Bollinger Bands builds a price channel, which shows the trend and volatility, and the RSI indicator confirms a new trend emerging in the market. This will last long enough for you to open a deal and close it with a profit. Thus, you get a trading system, which will bring you a stable capital growth through a very simple form of determining trading signals of effective indicators.

Creating the trading scheme template

Like all indicator-based trading systems, Neighbor is applied using an indicator template, which you will need to build with the specific technical analysis tools on a quotation chart. This means you need a platform with built-in set of indicators with certain settings that can be set on the chart. When preparing this article, we chose the platform of the Binomo broker as an example. This terminal features all the necessary options for proper and profitable application of the strategy.

To build the template, choose the following tools with specific settings for the chart:

– Bollinger Bands, standard settings;

– The MA, period 100;

– RSI, period 75, trend levels markers 50/50.

It is best to apply 1-minute interval to properly analyse the market. Also, choose a high-volatility trading instrument as the base asset. The properly set chart should have the following layout:

A working strategy of binary options Neighbor: trading signals

Your main goal in trading with this trading system is to wait for the following signal: the Bollinger Bands channel crossed by the moving average and the RSI line moving relative to the trend level. Such a signal will mean that the market has reversed and you need to conclude a deal immediately.

A deal implying a decline of the asset’s price is opened when:

– The BB channel and the price of the asset cross the red moving average in a downward direction;

– RSI moving will start to form below the trend level.

A deal implying a rise of the asset’s price is opened when:

– The BB channel and the price of the asset cross the red moving average in an upward direction;

– RSI moving will start to form above the trend level.

Expiration

This strategy works on a 1-minute timeframe with indicators determining a long-term development of the trend in the asset market. Taking into account the duration of the trading signal, the expiration can be set for 15-20 minutes. We do not recommend applying this strategy to quotation charts with second timeframes, on which this strategy fails.

 

Money Management

For proper risk management, it is best to limit the cost of each option to 5% of one’s trading capital in order to avoid serious drawdowns after making several unprofitable trades in a row. The option size should be reduced to the minimum if the amount of funds on the trading account is modest. Binomo’s trading conditions are optimal in this case: the option price starts from $1.

 

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“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”