My FREE Strategy

You might have heard of ‘Trend is your friend’ saying in the world of financial trading. Many Forex systems & Binary Option systems are based on trends. Our binary option strategy too. Our system uses the chart in metatrader4 platform & Price Action..no complex indicator combinations or ‘magical formulas’ to calculate. Just setup the metatrader4 chart as I described in the Chart Setup section of this blog & get ready for the trades..I mean profitable trades because this system is indeed very reliable & profitable. Why..? Just think..How you win in a binary option trade..? Please note that the strategy I explain here is strictly for the High/Low type of trading. So…back to what I was saying.. How you win in a High/Low binary option trade..? When the expiry price is above the price you bought for a Call trade & below the price you bought for a Put trade. My trading system is based on the trend..You will be placing a Call trade only in an uptrend & Put trade only in a downtrend. What that means is the momentum of the price move is WITH YOU & chances of win is now very high when compared to a 50% chance of winning when you randomly put a Call or a Put without caring what the market is currently doing..isn’t it? So trend trading is the BEST strategy we can use to trade Binary Options. We only need to bother about money & emotional management which will be playing a significant role determining success or failure.

So..open the metatrader4 chart & set it up for our system as explained in the Chart Setup section. You are now in the 1 hour timeframe. It’s all about determining what the market is currently doing. It will only be doing any one of the following.

1.      Uptrending,

2.      Downtrending,

3.      Corrective move while Uptrending(which will be a strong or soft downtrend for a small period which happens while some of the traders take profits)

4.      Corrective move while Downtrending(which will be a strong or soft uptrend for a small period which happens while some of the traders take profits)

5.      Trading in a Range OR

6.      Trading with no particular direction (This happens prior to the announcement of any major news & volume is very low during summer holidays etc)

In the case 6 you should avoid trading. Case 5 too we won’t be trading because that’s not a trade setup according to our trading system. This is where the Discipline or Emotional management comes in. You may be tempted to put trades in an urgency to make money particularly if one or two trades have lost, you’ll be desperate to make back the money you lost. You must control such emotions & stay disciplined & wait for our trade setup to form. In the above cases, we can trade cases 1- 4 because those are trends. Once identified what the market is currently doing in the higher timeframe, here 1 hour, switch down to the 15 minute timeframe & you will see the smaller trends clearly. Draw trend line (here I’m assuming you know the basics of trading & are familiar with what trend lines etc. are if not Google it   ). When the price approaches or hits the trend line enter the trade. Call for an Uptrend & Put for a Downtrend.

You can watch the chart here –

Now if we switch down to the 15 minute timeframe(Pic below), you can see the trend more clearly & draw the trend line & enter some trades as indicated by the arrows.

It's a good practice to look for any confirmation before entering a binary option or forex trade. Forex Heat Map is a reliable indicator which shows the current strength and weakness of a currency. So, after doing the analysis as above, you can check this indicator and if it is also pointing in the same direction, you can enter the trade even more confidently.

What about Money Management? We use the most common rule. ie, risk 2 - 3% of the deposit per trade. As we are trading with trend & so the momentum of price movement is with us, the chances of losing a trade is very low. So we can easily afford risking 2 - 3% per trade as if executed correctly the maximum number of losses in a row will never be more than 3 trades.

Now what about Emotional Management. When I started trading Binary Options, I didn’t have a trading system & had no clue what I was doing. After losing some money, I analysed what I did wrong & came to the conclusion that lack of a proper trading system was the reason for my loss. So I started using this system & it made me 200% profit in 12 days. I withdrew the entire money to check how my broker process the withdrawal request & money reached my bank in a few days. I got excited & then funded again…this time a bigger amount. Do you know what happened next.? I started thinking there could be some other system which could pull more profits more easily & instead of trading with my system I started experimenting again with real money & lost it all. Again I analysed & understood that trend trading system is the best & I should stick with it. So here, my greed & desperation for making more money kicked in, forms of emotions, which eventually blew my entire account. So stick with this system..wait patiently for the setups to form, & when they form don’t hesitate to enter with 2 - 3% of your capital. Then sit & relax because you know that you have entered a trade which you have a high possibility to win.

Enjoy your trading & do use the comments section below & let me know how you are benefitting from this system.