How to earn on binary options: the Violinist trading scheme

Trading binary options should be not only interesting, but profitable, otherwise the whole meaning of using this financial instrument is lost. If you want optional trading to bring you a considerable profit, we suggest using the trading method called Violinist — it allows closing over 85% of contracts with a profit.

How to earn on binary options, the Violinist tactics: parameters

This trading strategy is based on the most famous stock trading indicator — the Moving Average, which is applied to the chart in combination with the MACD indicator that filters it. That is, the strategy is based on a popular combination of tools that most approaches to market analysis include. But the focus of this approach is that the Moving Average, the main indicator determining the trend, is applied for 7 different periods of movings at once, which makes its trading signal even more accurate. The MACDs’ role in the strategy is traditional — it determines the dynamics and direction of the movement, as well as the market turns. The two indicators generate a complex trading signal, following which you can conclude a deal on an emerging short-term trend.

Building the trading pattern Template

If you have access to a professional trading terminal equipped with a set of technical indicators that can be applied to a quotations chart with the change of settings, then building a template would be easy. In order to show you how the strategy works, we chose the terminal developed by Binomo brokerage company and equipped with all the necessary functions.

The first thing we do is choose a high-volatility asset with a strong trend on the broker’s terminal for daytime trading. We set the quotes chart to M1 interval to trade at a moderate pace. Then we add the MA and MACD indicators to the chart with the following configurations:

– MA, Exponential; line periods of 3, 5, 7, 9, 11 and 13, all blue;

– MA, Exponential; period of moving 55; the line is red;

– MACD, settings left unchanged.

Violinist trading pattern/strategy/system for binary options

Profitable system of binary options Violinist: the trading rules

Create a technical template on the price chart of the asset. What’s left now is to monitor the work of technical tools and wait for a signal of the indicator to form. It has an easily identifiable form and shows that the market made a turn and the trader can enter the trade with a CALL/PUT option (quotes growing/declining). The signal itself will be displayed as an intercrossing of the blue beam of EMAs and a red moving, with MACD simultaneously crossing the 0 level.

A trader should buy a CALL option (predicting an increase in the asset’s value) when:

– Blue EMAs cross the red moving average in the upward direction;

– The movings in the MACD indicator window cross the 0 level of the graph upward.

Conclude a deal only after the signal is confirmed by the MACD indicator:

Violinist binary options trading system

A trader should buy a PUT option (predicting a decline in the asset’s value) when:

– Blue EMAs cross the red moving average in the downward direction;

– The movings in the MACD indicator window cross the 0 level of the graph upward.

Conclude a deal only after the signal is confirmed by the MACD indicator:

Violonist MACD indicator strategy

The indicators can also form an additional trading signal displayed as a consolidating the blue shifts above/below the red moving and the intercrossing of the MACD lines. The signal of this type indicates a continuation of the trend and allows to conclude an additional deal:

Violinist trading strategy using MACD indicator

Choosing the expiration time

This strategy is used on the M1 timeframe, however you can apply it to other intervals with similar efficiency. In this case, you should set expiration for a formation of at least 5 price candles. Taking into account the duration of the trading signal, the expiration time on a M1 timeframe can be within 5-10 minutes.

Money Management

When trading with this system, it is best to follow the classical rules of risk management, limiting the amount of the option to 5% of the trading capital. If you have a small trading deposit, trade the minimum possible options before you increase. For instance, the minimum contract for Binomo is only 1 dollar

OPEN DEMO ACCOUNT

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

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