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In the recent weeks, I have been working with my friends on a new 5 minute binary strategy. The strategy works in both trending and ranging markets; in my experience, it is best to trade retracements. The truth is you can find similar 5 minute strategies for binary options, and I am not pretending to be the inventor of the bands, but eventually we all profit from the original creator, John Bollinger.
I have seen the strategy in very complex versions with dozens of different indicators and 7 or 8 rules that need to match in order to place a trade. After all, it is all about price action, and if you follow the indicators blindly, you will be lost.
For beginners, I would recommend first learning to identify trending and ranging markets, reversals and retracements. The MBFX bands are extremely helpful in visualizing the price patterns, and adding EMA indicators will show you the direction of a trend. When you are a more experienced trader, you can use the strategy with 60 second binary trades, but to lower the risk, you should stick to 5 minute expiries. I am using 1 minute candles on the chart and placing five minute binary options.
If you are using 5 minute candles, you can try 15 minute trades. It is up to you to make the strategy suit your style. As I mentioned, I prefer using the strategy in trending markets and placing trades on retracements.
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To identify the trend, I am using an EAM indicator. Some of you may prefer using two periods and waiting for crossings. You can also put Fibonacci levels into action to spot retracements. In trending markets, you are buying with the trend: In fact, usually prices are ranging, and if you want to use the strategy during all trading sessions, you need to learn how to trade in a ranging environment. For beginners, it might seem more confusing with the price constantly moving up and down, but like in every other process, it takes practice.
In ranging markets, the price bounces between the support and resistance levels. Your aim is to place trades when the price is in the overbought and oversold zones.
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I have used many different indicators, including alarms and arrows popping all over the chart, and the truth is that if you focus on the indicators only, you will be lost.
You should focus on the price action and learn to identify retracements, then you have a better chance to be on the winning side.
It is not necessary to follow my signals precisely. You can remove indicators, or add new ones; simply make your own strategy, and make it work for you. Of course, the outcome for everyone will be different, and it all depends on your skills, knowledge and experience.
Knowing the nature of binary traders, I would suggest you start paying attention to the news because, for every trend, there is a reason behind it. Please feel free to share your results with this strategy in the comments below. Should you have any suggestions how to improve the strategy, we are happy to discuss them.
5 Minute strategy - MBFX trading system | Binary Options Post
Skip to main content. Trading Brokers Signals Strategies Education Demo Bonus Robots Apps Blog News Forum. You can try the strategy first on a demo account, and post your results in the comments below.
Trending markets As I mentioned, I prefer using the strategy in trending markets and placing trades on retracements. Ranging markets In fact, usually prices are ranging, and if you want to use the strategy during all trading sessions, you need to learn how to trade in a ranging environment. Call Signals EMA is showing Up trend Price is closing below the band Wait one green candle for confirmation Place 5 min Call trade Put Signals EAM is showing Down trend Price is closing above the band Wait one white candle for confirmation Place 5 min Put trade.
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And where you can download indicators please? Thu, 23 Mar Log in or register to post comments. Fri, 12 May The data exhibited in this website is not necessarily always real-time or completely accurate. Readers should not treat any opinion expressed by the authors of BinaryOptionsPost. The views expressed in the forum are expressed by forum members and do not necessarily reflect the views of BinaryOptionsPost.
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