Strategy for Binary Options “Parabolic MA”

The trading system that we offer for consideration belongs to the list of highly accurate and efficient systems trading binary contracts. The strategy “Parabolic + MA” is very easy to understand, even for traders with minimal experience in stock trading. Its average efficiency is 85% of profitable positions, which is able to maximize stable and rapid growth of investment capital. We describe the full algorithm of the strategy and the methods of its application in binary trading in our material.

Parabolic MA strategy – conditions of use

Before making adjustments to the technical template of the trading system, let’s determine the optimal conditions for using the system, which will undoubtedly increase the level of its effectiveness. To get the maximum level of profitability from the system and maximize the safety of investment capital, we need the trading service to provide an opportunity to trade contracts with a minimum volume. In addition, the system is used for operations with short-term positions, so we need a range of terms Expirations from 1 minuteand a platform that will provide access to the necessary technical analysis tools. It is very difficult to find such a trading service. In fact, the majority of companies use outdated trading terminalsThe trading conditions are designed for traders with a large amount of trading capital. At the same time, their trading conditions are designed for traders with a large amount of trading capital. But, of course, there are also companies on the market with client-oriented trading conditions and professional terminals. For example, INTRADE.BAR company or reliable brokers PocketOption, Stars Binary. According to its trading conditions, access to the market already opens with a trading capital of 10$ on the account, and the minimum contract volume for trading binary options is 1$. As for the terminal, Intrade.Bar (Open a demo account) provides the highest quality trading software of the latest generation, on which you can get everything you need for efficient trading.

Strategy Template

To create a strategy template, you need to open the terminal of Intrade.bar and install a standard technical analysis indicator on the chart of an asset you want to trade Parabolic SAR – it will be the main service for generating trading signals. Then we set a filter on the chart field in the form of a trend service Moving Average. At the same time, in the settings sliding set the period to 10 and change the calculation format to Exponential. Thus, we will get such a technical markup mode on the trading chart field:

The trading chart has acquired a working outline, let’s move the chart period to M1 and begin to study the signals of the “Parabolic МА” strategy

Signals for binary trading

We open a position on the falling price of a financial asset when:

• Parabolic SAR indicator changed the mode of drawing of point muwings from a position below the quotes to a position above the price of the asset
• The liquidity chart confirmed the market tendency to fall by breakdown of the MA level by downward price quotations

Open a position on the rise in the price of a financial asset when:

• Parabolic SAR indicator changed the mode of drawing of point muwings from a position above the quotes to a position below the price of the asset
• The liquidity chart confirmed the upward trend of the market by the breakdown of the MA level by upward price quotations

Thus, we get simple and highly accurate signals for binary contracts. The price of the asset after the identification of such signals begins to move intensively in the direction of the forecast in 85% cases. The “Parabolic МА” system generates incorrect signals only in moments of volatility surges that occur during the reaction of the asset market to the release of macroeconomic statistics. But adherents of indicator strategies know very well that at such moments it is better to refrain from trading until the formalized technical trading signals.

Risks and expirations

Binary trading on this system should be carried out with the use of trading positions, expiry date which ranges from 60 seconds to 5 minutes. In this case, the quotes of the asset will move far enough away from the level of the transaction and, as a result, the contract will bring profit. For trade we use only the minimum trading lots, which the company intrade.bar (go online) are 1$, for large size deposits the risks should not exceed 5% of the amount of capital.