The AnyOption Strategy for Binary Options Traders

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Strategies for binary options

About Section “Strategies for binary options”

Strategies for binary options – This is a set of specific rules, using which a trader analyzes the movement of an asset and decides to purchase a binary option.

The best strategies for binary options are based on a combination of both standard and proprietary indicators for binary options.

Profitable strategies for binary options determine not only the right moment to purchase an option, but also give the trader the opportunity to correctly determine the time of expiration of the option, its potential income, make it permanent and protect it from losing a deposit.

Strategies for binary options – this is without which it is impossible to obtain a stable profit when trading binary options.

Top Five Successful Strategies For Trading Binary Options

If you are trading without a strategy or a tactic to help you with binary options, you might as well

The article was written by Connor Harrison from Binary Brokers (BBZ). BBZ makes an effort to educate their traders so that they can understand recommendations regarding binary options, international legislation, risk management and other issues related to trading.

Trading in binary options is one of the popular trends in the financial markets today. Both experienced and novice traders are rushing to include them in their investment portfolios. Just like any other trading platform or business, you must have a strategy to use in order to consistently be making money.

If without a strategy or a tactic to help you trade in binary options, you might as well consider yourself gambling. Relying on luck is not very safe in trading binary options as it will eventually not work for you and might end up losing all of your investment. You will need a solid technique that you can use every time, which will help you make the right predictions. Moreover, you need to employ a strategy that you understand well and which consistently increases your chances of winning.

Bet or Trade?

Strategies are generally categorized into two groups. These categories are;

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  • Betting model based strategies – In these strategies, it is assumed that the investor will employ betting strategies, whether they are familiar with financial markets or not. These strategies use several tactics that are designed to increase the probability of winning. Strategies based on the news are the best example in this category.
  • Market behavior strategies – In these strategies, the investor relies almost wholly on technical and statistical data that are readily available or that which they have researched and worked on. While these strategies are a bit harder to understand and master, they are the most reliable ones since they are objective. There are techniques developed to help you understand some of the data, such as charts and which will make it easier for a new trader.

I – Fundamental Analysis Strategy

This strategy is concerned with the analysis of the behavior of the overall performance or attributes of a company. As an investor or trader in binary options, you are interested in knowing about the health of the balance sheet, income statement and the cashflow statement of the company before you consider buying an option. The other factors that you should check out include the employee and the business partners’ satisfaction. In short, this strategy tries to look at the overall picture of the business they want to invest in their stock and at times the overall industry.

II – Technical Analysis Strategy

This is a quite popular strategy in options trading. It is mainly concerned with the study of the past, using different parameters such as charts in order to predict the future price of an asset. This method is not concerned with getting the intrinsic value of an asset. It’s quite useful in options trading because as a trader, you don’t have to delve into the company’s financial statements. Among the tools used in technical analysis include Bollinger bands and Moving Average among others.

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III – Basic Options Strategy

This strategy is quite popular among options traders. It is designed and employed by a trader to safeguard him/herself from incurring total losses on their investments. You will pick an underlying asset or currency that you are interested in and then if the market movement of the strike price is heading towards a good direction, say upwards, you place a call option. At the same time, you will place a put option on the same asset.

Let’s use an example:

The GBP/USD currency option is going at 1:4000. You place the call option of $100 which will expire in 30 minutes. The payout is 70% and 15% if you lose. In the first 15 minutes the asset is at 1:4015 which is good so far. At this specific time, you buy a put option for the same asset at 1:4015 expiring in 15 minutes at $100. The payouts are the same as those of the call option.

At the end of the 30 minutes there will be two outcomes;

  • Your 30 minutes call option wins and the 15 minutes put option losses. You will have earned $185 from the 70% call winnings and the 15% consolation refund from the put option (the opposite can happen, put option wins and call option losses).
  • Both the call and the put options end up in the money. You will get $340 ($170+$170). Since it’s almost impossible to lose on both options, the general risk of loss in this strategy is only $15 in order to win $140.

IV – Algorithmic and signals

There are apps which are sold and which are very good at trading or analyzing the market data. You might find it appropriate to invest in such an app. This app is installed in your computer and gathers data that you want and then analyzes it to come up with the best possible outcomes. Technical and fundamental analysis data are used here.

The computer will then pick a trade for you to trade in. You could even go ahead and design the app to be actually trading for you. You will however need to be regularly updating the raw data that the app picks its analyzing details from.

V – Co-integration Trading Strategy

There could be two stocks in the market that have a high correlation relationship. This could be because they are in the same industry and are traded in the same market, hence affected by many factors the same way. Given the high correlation between such a pair of stocks, you will find that whenever there is a gap between them it will close soon after. The gap can be caused by the weakening of one stock temporarily. The main task here is to identify the gap.

After identifying the gap, you should buy the call option for the stock that is weak or a put option for the asset if the stock higher in price is bound to come down. Eventually, the two assets will come to the correlation path and that should be the ‘point of exit’.

Final Word

Strategies, just like investment options, are many and you could end up with one which gives you consistent winnings. If you are a new trader, research well and identify the one strategy that best suits your trading portfolio and pattern. If you are a bit more experienced, you can create your own strategy or combine two existing ones to form a hybrid.

Binary Options Trading – Free Strategies

Free strategies and indicators that can be used in binary options trading. If you are a binary trader and would like to share your own strategy please email it to info (at) winatbinaryoptions.com including chart snapshots and full description.

Trading Binary Options To Trump’s Twitter Feed

Most institutional traders are now required to watch Trump’s Twitter feed very closely. The reason is that his comments, contained in short and often quite direct tweets, have the power to move the markets as they often do.

How to Trade Binary Options Using Pin Bars

There are numerous strategies that seem to work better than others. Beginner traders will often try many trading strategies before adopting one that works best for them. This is true for Forex, as well as Binary Options.

Trading Binary Options with Price Action and Trendlines

When trading binary options, it is good to have a lot of clarity in order to know how to pick the correct conditions for placing or exiting new trades.

Using price action and following the general trend helps traders profit more often by just keeping things simple and straightforward.

Heiken Ashi Binary Options Strategy

The Heiken Ashi binary options strategy involves the use of the Heiken Ashi candlestick indicator, as well as, the MACD indicator.

Pivot Point-Cloud Strategy for Binary Options

This binary options strategy will use pivot points and the Ichimoku Kinko Hyo (the cloud indicator) as the main indicators for the strategy. The pivot points used are the weekly pivot points, which are plotted by a custom indicator known as the Auto Pivot Plotter Weekly V1-00.

TK Cross Binary Options Strategy Using Ichimoku Hyo Indicator

This is another strategy for trading the Call/Put binary options contract, and involves the use of the Ichimoku Kinko Hyo indicator. As discussed in a previous strategy, this indicator consists of several components, each of which can be used in different ways to create different trade strategies.

Time Zone Breakout Strategy Using MT5 Indicators

The Time Zone Breakout strategy for binary options is traded at the open of the London and New York time zones, which is when trading activity in the financial markets is at its heaviest.

This trade setup can thus be traded twice a day.

Buy/Sell Channel Strategy for Binary Options

As has been described in a previous article, channels are formed when trend lines that are parallel to each other are used to connect the highs and lows of the price action on any asset.

Price Channel Breakout Strategy for Binary Options

A price channel is formed when a trend line connecting the highs and another trend line connecting the lows of candlestick price action can be seen to be parallel to each other. Price will stay within these boundaries until such a time when the price breaks either of the two trend lines as a result of strong market forces.

Trading Binary Options to News Releases and Events

News events are a major factor in determining market direction in any financial market, and binary options trading is no exception.

Trading the 1-2-3 Reversal Pattern Using the Fibonacci Tool

The 1-2-3 pattern is a commonly traded pattern in forex, used to trade market reversals. The truth is that this pattern can be applied to trade other assets as well, and so it will find application in the binary options market in a variety of ways. These will be demonstrated in this article.

Free MT4 Indicators For Trading Binary Options – PART 1

If you trade binary options using Meta Trader 4 terminal, then this article is for you.

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