The “Baedeker” effective options trading system

When analyzing professional recommendations and the operating principles of the main strategies, you can notice the following pattern – everyone without exception mentions the ineffectiveness of analyzing the smallest chart time frames, while many specialists suggest options scalping on a minimal expiration range. Two incompatible things – analysis of an extended market period and trading contracts with very small expirations from 1 to 5 minutes! In our material, we will suggest breaking these templates and we’ll present the effective Baedeker strategy for assessing and analyzing minimal market periods with forecast efficiency of 85% for profitable contracts. This technical approach is based on standard indicators and allows you to earn on the market movements of any trading asset.

Operating principle of the system

The technical operating algorithm of the strategy is based on a combination of highly professional indicators. In principle, it uses quite standard analytical tools with clear and proven settings. For this reason, you can use the system on any options trading platform that offers a set of trend indicators. We recommend the platform from our rating as the main trading service for efficient trading on this system. You will get all the tools necessary for forming the system template and you will be able to carry out your trading under the best financial and technical conditions.

You will need to make the following adjustments to the operating chart in order to work effectively on the system: set the quote time frame to S15 (in this mode, one price candle is formed on the chart after 15 seconds), then apply the following analysis tools to the liquidity of the asset:

 

• The Bollinger Bands with the minimum channel building range of 10/1. In this mode, we will immediately get 3 moving averages capable of displaying market trends for the current time period in several projections.

• The SMA with a market evaluation duration of 120. Such a moving average period is necessary in order to obtain information for a wide range of market fluctuations. In addition, in conjunction with the channel indicator, this service will generate signals for the direct registration of trades

• The RSI – set the period to 75 so that we can track the overall medium-term trend of quote fluctuations and adjust the strategy for different market conditions

After completing the configuration of the trading chart, we get the following form of technical markup:

 

System signals

 

CALL trades are registered upon receiving system signals of the following type:

 

• On the trend RSI, the moving indicates a steady upward trend in market movement

• The narrow-band price channel intersects the level of the medium-term SMA with upward dynamics

 

The trade is opened when the combination of strategy signals is fully formed:

 

 

 

 

PUT trades are registered upon receiving system signals of the following type:

• On the trend RSI, the moving indicates a steady downward trend in market movement

• The narrow-band price channel intersects the level of the medium-term SMA with downward dynamics

 

The trade is opened when the combination of strategy signals is fully formed:

 

 

As you can see, the system signals have a very simple format. But at the same time, it is possible to effectively evaluate the minimal time frames of the asset chart and get great trading results in the process of trading.

 

Expiration

 

In order to obtain a high level of effectiveness when using the strategy, and to steadily increase your profits, use contracts for trading on this strategy with expirations from 180 to 300 seconds. Thus, you will be able to effectively work out trading forecasts on the strategy under dynamic trading conditions.

 

Money management

 

Frequency trading of contracts with minimal expirations is characterized by a high risk level. Therefore, in order to ensure that losses do not destroy your investment capital, and profit growth is dynamic and stable, use contracts for your trading operations with a cost level of no more than 3% of the amount of available trading funds.

 

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