Binary Options Trading Strategy “TonyUX”

Published:2 July 2018 Updated:4 January 2024

Traders classify a separate category of indicators – arrow indicators. They are distinguished by a clear representation of trading signals. When the pointer is up, you should trade up, when it is down, you should trade down. The maximum simplicity makes these tools popular among beginners. In this article we will consider the strategy “TonyUX”. It is based on the indicator with the same name and an auxiliary filter in the form of a custom modification MACD.

 

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“TonyUX. EMA Scalper – Buy / Sell” – The key element of the strategy, which gives the main trading signal. The tool was created by Forex traderwhich is a member of the TradingView community (go online). According to the author it is optimal for scalpers who trade on the minimum intervals with with an expiration time of 1 minute. The tool was tested by the developer on Forex. However, for the trading PocketOption platforms It is even more suitable, because here the specific price difference is not important, only the direction plays a role. We also recommend to pay attention to such brokers as Binarium and Stars Binary.

The indicator consists of three EMAs, forming a divided into two parts price channel. At the moment the middle curve is crossed, an arrow pointer appears on the chart automatically in the direction of the breakout. This is the trading signal. The two outermost lines represent the smoothed Support and Resistance Levels. Their position is calculated by calculating the highest and lowest value of the last 8 candles.

“AK MACD BB INDICATOR” – An auxiliary filter in the “TonyUX” strategy. The indicator is a hybrid of the classic MACD and Bollinger Waves. The developer’s goal was to combine these two powerful tools into one. The experiment was a success. This solution was received positively by the TradingView community – the indicator was included in the TOP of the best custom solutions.

The AK MACD BB window displays a point histogram and a dynamic channel. Several types of signals are given. Firstly, the position of points relative to the channel and the midpoint level. Secondly, the color of the histogram and width of the price corridor. Its narrowing indicates a decrease in volatility. It is recommended to trade when the BB band is sufficiently wide.

 

Site Setup

TradingView is an ideal platform for technical analysis. It works in any browser, and the functionality is as good as the now obsolete Meta Trader terminal. The live chart is used for tehanalysis, while trading should be done on the platform of the Pocket Option (Open a demo account).

Any asset from the platform’s range is suitable for trading, with the exception of CRYPTO IDX. It is possible to choose the currency by the criterion of current profitability. The live chart must be set up in the candlestick mode with a timeframe of 1 minute. Two indicators must be added to trade on the strategy – “AK MACD BB INDICATOR V 1.00” and “TonyUX EMA Scalper – Buy / Sell”. It is necessary to copy the quotes from the name and paste them into the search line of the tool adding window. Standard parameters of moving averages duration should not be changed. They are adapted by default for scalping.

The PocketOption terminal should be set up in the same way. The candlestick chart with an interval of 1 min. It is necessary to determine the size of investment in advance, because scalping requires a quick reaction to the appearance of signals. The optimal investment size is less than 1%. The upper limit is 5%. These rules are dictated by the system of risk management, money management.

 

Trading signals for the strategy

The appearance of the green arrow on the TonyUX EMA Scalper indicator is a signal to open a deal to increase the rate. However, before entering the market, one should check whether there is a confirmation from the AK MACD. The points of the indicator should necessarily be below the level of 0.0000.

The above picture shows a false TonyUX EMA Scalper downwards in addition to the correct signals to the upside, because the MACD is below the dividing line.

The down signal according to the “TonyUX” strategy has a similar appearance. At the moment the blue curve is broken, a downward pointing arrow appears on the chart. However, before opening a deal, the trader must make sure that the AK MACD points are above the neutral line that divides the indicator window into two equal parts.

You cannot trade down if the MACD is below zero, and you cannot trade up if it is above zero. It is necessary to enter the market at the beginning of the price movement. And this position of the indicators signals that most of the trend is behind and a reversal is expected soon. Traders call it overbought and oversold.

The duration of the transaction should be equal to 1 candle. Therefore on the platform of the broker pocketoption.com it is necessary to choose the minimum expiration time from possible. It is set by default. In this case the actual duration of the transaction will be 30, 60 or 90 seconds. This is a feature of the terminal. The strategy is also suitable for 5-minute charts. However, it will significantly reduce the number of signals.

 

An example of trading according to “TonyUX” strategy

Strategies based on arrow indicators are convenient for trading on platforms like Poket Options, which allow trading fixed “Above/Lower” contracts. Therefore, in conclusion, let’s test the effectiveness of the strategy considered in practice.

A Buy arrow appeared on the Live Chart of TradingView. The point histogram AK MACD is below the dividing level. Therefore, we open a trade to increase with the minimum expiry.

The above picture was taken half a minute before the deal was closed. Immediately after entering the market there was a brief pullback of the price, but growth resumed with the opening of a new candle.

The deal was successfully closed with profit. The scalping strategy “TonyUX” is perfect for short-term trading on the Pocket Option (open an account). However, in the example we considered, the market was in a horizontal trend. And the accuracy of signals in an uptrend or downtrend reversal condition will be higher.

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