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5-Minute Strategies for Binary Options
The trading system for binary options with a 5-minute period of expiration is the «golden mean» of those parameters that allow you to minimize the risks of trading and work with excellent profitability. The most important question is what method should be used for stable and highly profitable trading?
Actually, there are many different strategies to trade binary options on the 5-minute time limit expiration. For example, the main focus of the profitability of the «High Range» system are trading signals that, in this strategy, are obtained from technical indicators. They make this process profitable.
Another, important factor affecting the profitability of options trading is a binary options broker, which guarantees your transaction without slipping. What’s wrong with slippage? Slippage is fraught with the loss of precious points, the existence of which is very important at the time of expiry of the transaction. You think the loss of 3-5 points is not significant? Trust me, it’s a lot! Even a few points can you take up to 10% of the trading results! For example, if using the strategies of trading binary options for 5 minutes, you have 70% profit, minus the 10% slippage; you get only 60%, which automatically makes your trade unprofitable, because the growth of the deposit should be at least 65% for the strategy’s profitability. That is why it is important to choose a broker that ensures no slippage in prices.
Upon logging onto the broker’s platform, your quotes chart will look like this. Now you need to set the chart up, so you chose the configuration of its timeframe for 1 minute:
Then you need to add all the necessary indicators to the chart. Therefore, you choose from a Volatility Stop catalog, a Williams% R indicator:
That’s all you need for a simple strategy for binary options that have been prepared for use. Now, the 5-minute binary options strategy will use the trading signals to bring you profit.
Receiving signals in «High Range» 5-minute strategy
For convenient and efficient trading, place next to each other the Binomo platform windows and a chart with technical indicators. That way you can immediately make a deal, having received a signal from the indicators. After this, just follow the result of the indicators, which should show you the best time for the opening the transaction.
The signal for UP deal:
1. The emergence of a green dot will mark the beginning of the trend’s growth.
2. Crossing the upper extreme level by the Williams% R indicator will warn of an increasing growth trend.
3. The appearance of these signals on the chart indicates the right time to make an UP deal, which must be opened from the broker’s terminal:
A DOWN signal for the transaction will be:
1. The appearance of a red point that will mark the beginning of the trend’s fall.
2. Crossing the lower extreme levels by the Williams% R indicator will warn of the increase of incidence trends.
3. The appearance of these signals on the chart indicates the right time to make a DOWN deal, which should be opened with the broker’s terminal:
What is level of profitability of the «High Range» system? We mentioned earlier that the rate of return of this strategy is able to reach 72%. But you must use a reliable broker and a 5-minute strategy. This is the right step for the significant growth of your deposit!
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Trading binary options using a 5-minute strategy is to set for each transaction a 5-minute time expiration. Thus, you will ensure maximum profitability from your transactions!
Another strategy for 5 minutes
Binary options are often very unpredictable, but there is a trading strategy that you can use to outsmart the market and wrap its fluctuations in profit! The name of this strategy is «Crafty Serpent», and it can easily increase your deposit by about 5% per day.
What can binary options offer? The strategy from the professionals, called «Crafty Serpent» will give you 7 profitable transactions out of 10. That is an excellent result, and it is now available to any trader. To trade, place 2 windows near each other (a window with a broker platform and a window with a live chart) and follow the dynamics of the installed display.
The signal for an UP deal would be:
1. Green lines of the «Crafty Serpent» indicator will cross the zero level up.
2. Therefore, if you are looking at the chart to see a situation, immediately press the UP key, because most likely quotes will continue to move in this direction:
The signal for a DOWN deal would be:
1. Green lines of the «Crafty Serpent» will cross the zero level down.
2. Immediately press DOWN, because most likely the quotes will continue moving in this direction:
Expiry dates for trading «Sinister Snake» binary options strategy
Creating a template on a live chart for a quotation chart, we used a 1-minute timeframe. This means that one quotation candle is equal to one minute. Thus, on the graph, you can see that when the lines of the «Crafty Serpent» indicator intersect, the following quotation of 5 candles (which is 5 minutes) continues moving down. This is a standard script that is repeated in 90% of cases when you get a trading signal. That’s why we recommend the broker platform with an expiry period set to 5 minutes. Using this parameter in the «Crafty Serpent» trading binary options strategy will be as efficient as possible.
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Binary Options Strategy
Welcome to our binary options strategy section. Here you will find a beginners guide to strategies, leading on to more advanced information about things like money management, and articles on specific strategies.
Basic Strategy For Successful Trading
Strategy is one of the most important factors in successful binary options trading. It is the framework from which you base your trade decisions, including your money management rules, and how you go about making money from the market. There is no one Holy Grail unfortunately, if there were then we’d all be using it!
The two most very basic categories of strategy are:
Fundamental strategies focus on the underlying health of companies, indices, markets and economies and while important to understand, is not as important to binary options as the technical aspect of trading.
Technical trading, or technical analysis, is the measurement of charts and price action, looking for patterns and making educated guesses, speculations, from those measurements and patterns.
Strategy simplifies your trading, takes guesswork out of choosing entry and reduces overall risk.
The text book definition reads like this; a plan of action designed to achieve a goal or overall aim, the art of planning and directing operations in order to achieve victory. When it comes to trading the goal is to 1) make money and 2) not lose money.
The number one method of achieving this goal is to use a rules based approach to choosing entries that relies on ages old, tried and true technical analysis indicators. There are dozens, possibly hundreds if not thousands, of ways to trade the market, all strategies. They can be categorized in terms of the tools used, the time frames intended, the amount of risk associated with and many other ways, these being the primary.
- Price Action/Scalping Strategies – Price action strategies rely on the movement of the market to time entry. These can be trend following or not, long or short term and utilize bullish or bearish positions.
- Trend Following/Directional Strategies – Trend following strategies target assets that are trending strongly to pinpoint a series of profitable entries with a high rate of success.
- Range Bound/Short Term Strategies – 99% of the time the market, or an individual asset, is not trending but trading in a range within a high and low mark. These strategies focus on support and resistance levels, reversals within the range and short term trends as asset prices move up or down from support to resistance and vice versa.
- Long Term/Momentum Strategies – These are the less risky of the strategies as they target stronger signals and longer term time frames. These signals have a higher chance of success but take longer to develop and longer to unfold than other types of signals.
A technical analysis indicator is, most often, a mathematical formula which converts price action into an easy to read visual format. Common types of indicators include but are not limited to moving averages, trend lines, support and resistance, oscillators and Japanese Candlesticks.
Strategy is 1 of the 2 pillars of risk management, the other is money management. You control risk by targeting only good signals, weeding out obviously bad signals, and never putting so much money on one trade that it will wipe out your account.
Money management is the control of your overall trading fund. It should clarify trade size, and long term financial management – leaving you to focus only on trading. A well thought out money management structure should simplify:
- Trade size
- Risk management
- Future growth
A trader with a clear financial plan should not need to be concerned with whether they can trade tomorrow, or if their trade size is correct or how they might grow investments in line with their progress. All those decisions are controlled by managing their overall capital with a clear plan.
This is the most common method of viewing price charts. The candlesticks give an easy to read view of prices, open high low and close, that jumps off the charts in way that no other charting style can do. They are the basis of most price action strategies and can be used to give signals as well as to confirm other indicators.
Support And Resistance
These are areas of price action on the asset chart that are likely to stop prices when they are reached. Support is found when prices stop falling, this happens when buyers step into the market and are said to be “supporting prices”. Resistance is found when prices stop rising, this happens when sellers enter the market (or buyers disappear) and are said to be “resisting higher prices”. These areas, often represented by horizontal lines, are good targets for entries and possible areas where price action may reverse.
These lines connect highs and lows formed by asset price as it moves up down and sideways. A series of higher lows and higher highs is considered to be an uptrend and a sign that prices are likely to move higher, a series of lower highs and lower lows is considered to be a downtrend and a sign that prices are likely to move lower. The trend line can be used as a target for support and resistance, as well as a an entry point for trend following strategies.
Moving averages take an average of an assets prices over X number of days and then plots those values as a line on the price chart. Moving averages come in many forms and are often used to determine trend, provide targets for support and resistance and to indicate entries. There are dozens of methods of deriving moving averages, the most common include Simple Moving Averages, Exponential Moving Averages, volume weighted moving averages and many more. They can be used in any time frame, and set to any time frame, for multiple time frame analysis and to give crossover signals.
Oscillators may be the single largest division of indicators used for technical analysis. They include tools like MACD, stochastic, RSI and many, many others. These tools, in general, use price action and moving averages in a combination of ways to determine market health. They are displayed as a stand alone tool, usually as a line that ranges between two extremes or above and below a mid point, that can help determine trend, direction, support/resistance, market strength, momentum and entry signals.
With any form of trading, psychology can play a big part. A lack of confidence can mean missed trades, or investing too little capital in winnings trades. At the other end of the spectrum, over-confidence can lead to over trading, or increased risk – either of which could wipe an account very quickly.
So the trading psychology of the trader is very important. It can also be actively controlled or managed (at the very least, acknowledged). It is another often overlooked area of trading skill, but one well worth spending time to consider.
Read more on trading psychology and learning from experience.
A Basic Binary Options Strategy
Here is an example of some basic rules for a binary options strategy.
- The trend is your friend, only take trend following entries.
- In an uptrend only enter when prices are near support, in a downtrend only enter when prices are near resistance.
- When prices are near support/resistance wait for a confirming candlestick signal.
- When the candlestick signal appears wait for stochastic and/or MACD to confirm, a bullish crossover in an uptrend or a bearish crossover in a downtrend.
- When rules 1 through 4 are met, enter the trade, only use 3% of account on each trade.
- When choosing expiry use 2XCandle length. IE, if you are using 1 minute candles then 2 minute expiry, if 1 hour candles then 2 hour expiry.
- If the trade fails examine why it did not work, make adjustment if necessary and move on to the next trade. If the trade works move on to the next trade.
No strategy is going to be profitable if you trade with an unreliable broker. These are our top recommended trading platforms for trying out your strategy.
Most Popular Strategy Articles
Strategies for Different Markets
Choosing a Trading Strategy
Developing a trading strategy for the binary options market requires a key understanding of how the market operates in terms of the trade contracts available, the various expiry times, and the understanding of the behaviour of the individual assets.
Unlike the forex market where the asset has to move in one direction or the other by an appreciable number of pips to the trader’s favour before profits are made, the binary options market is peculiar. Apart from the Up/Down trade which is based on direction and mimics the requirements of the trades in other markets (except the pip movements), other trade types in the binary option market operate in totally different ways. There are different trade contracts for different platforms. Some binary options contracts do not even require the trader to get the direction of the asset correct. For instance, trading the OUT contract will need the asset to hit one price boundary or the other for profit to be made. So it takes the trader being able to identify a suitable trade contract to be able to fashion a suitable strategy. What is used to trade the Up/Down contract is not the same as will be used for the In/Out contract. The contract type will determine the strategy.
For instance, trading the Up/Down contract will require a strategy that can determine if the asset will make a bullish or bearish movement. Trading the In/Out contract will require either a range trading strategy or a breakout trading strategy to identify a time when the asset stays in a range or breaks out of that range. If you are looking to develop a trading strategy for the In/Out trade, this is how your mind should be working.
In developing a strategy based on the binary options trade types to be traded, there are tools that can assist the trader. This is where chart patterns, signals services, candlesticks and technical indicators will come in. A simple tool like the pivot point calculator can be used as part of a TOUCH trade strategy with very effective results. Using tools like these will take us to the next part of choosing a strategy, which is how to understand and set expiry times.
Understanding Expiry Times
Expiry times are very important to binary options, because all trades in this market have time limits. However, not all binary options trades require time limits to be successful. Trades such as the Up/Down trades must reach expiry before the trade outcome is known. In contrast, trades such as the OUT component of the boundary trade or the TOUCH component of the High Yield Touch or Touch/No Touch trade contract must not necessarily reach maturity before the outcome of the trade is known. If a trader bets on a TOUCH outcome and the asset touches the strike price well before expiry, the trade outcome is already known and the trade is terminated as a profitable one.
So if the trader is not very good at setting expiry times/dates (and really, no trader in the market can boast of getting his expiry settings right all the time here), the binary options trading strategy will have to be tailored towards trade contracts which are not totally expiry-dependent.
Now when you identify and separate trades that are not so dependent on expiries from those that are, you can better understand what kind of strategy you would be looking at.
Understanding Asset Behaviour
The binary options market combines assets from different asset classes into one market. These assets do not behave alike. Some assets are very volatile with large intraday movements. A very clear example is gold. Some binary options assets are not traded round the clock but only at specific times e.g. the stock indices. The factors that may trigger a massive move in a stock index would obviously not be the same for a commodity or a currency. Even within the same asset class, no two instruments are exactly the same or behave alike.
An understanding of asset behaviour is therefore key to being able to develop a trading strategy for the market. It is up to the trader to study the behaviour of assets, understand the technical and fundamental indicators that will influence the behaviour and price movement of that asset, and then create a trading strategy that will work for that asset.
In this section, we will demonstrate the application of all the parameters we have mentioned above using a simple but effective trade strategy.
– The strategy we will use determines price bullishness/bearishness, so we will trade a Call/Put contract.
– We will trade the strategy on a one hour chart, so it will be have an expiry of one hour. We do this using our understanding that the effect we want to trade on the hourly chart, will happen in an hour.
– We want to use this on an asset that is liquid and responds to the strategy. So we will use the EURUSD.
The strategy has been used to create a colour-coded indicator, which shows a green arrow on bullish signals and a red arrow for bearish signals. It aims to trade the EURUSD because this currency responds very well to price stimuli during the London/New York overlap in the forex time zone, and the response can be delivered in an hour.
As soon as the red arrow appeared (as shown above), the signal was to trade a PUT option on the Call/Put digital option. Using this signal, the trade was executed on the binary options platform. The price of the asset (EURUSD) fell in one hour from the time the signal was generated to the expiry, producing a trade result in our favour.
This strategy (a custom strategy) fulfilled all our conditions:
a) It was suited to a trade contract on the binary options market.
b) It was a strategy that was suited to help the trader use a suitable expiry.
c) It was suited to the behaviour of the asset and above all, THE STRATEGY WAS A PROFITABLE ONE.
The best Binary Options Strategy – (That works fast)
On this site, I will show you my best Binary Options Strategy. It has a hit rate of over 60%. You can easily use it in every timeframe like 60 seconds or higher expiry time. Also, it is possible to use the Martingale strategy to improve your results. It is called the “False Breakout Strategy”. It works on every asset and in every timeframe. Learn to trade profitably in a few moments. Look at the picture below for the first impressions.
If you only trade this style of trading, it is possible to make a lot of money. Just search in the markets for a high/low or support and resistance and wait for a false breakout. In the next chapters, I will provide you more information to win against the market!
The False Breakout Strategy
Why do you need a Binary Options Strategy?
Binary Options Strategies can be different methods to trade the market. First of all, a Binary Options Strategy does not have to be difficult. It is possible to make money with simple ideas and methods. Therefore it is important to use strict rules for trading the market. The most common mistake is not keeping to your own rules! In addition, a good strategy reduces emotional and irrational trading.
Most traders lose their money because they trade without a proven method and strategy. Advanced traders know how the market work and they practice their own methods a lot. You have to learn and get a higher knowledge of the market. From my experience, it is not easy to learn to trade successfully in a short time horizon. In the following article, I will give you strict rules for trading the markets and I will show you how the strategy is working easy and successful.
4 steps to become a professional trader:
- Get knowledge about the financial product and the market
- Learn a profitable Binary Options Strategy
- Practice in the Demo Account
- Start trading with real money if you trade successfully
False Breakout – The Best Binary Options Strategy
False Breakout is an easy way to trade the markets. To trade breakouts do not work very well. I have tested it many times in the past (I will show you the reason why it does not work good below). After a breakout, the market comes back most of the times.
All you have to do: search for a level (high/low or support/resistance) and wait for the market to break the level. If the market comes back you can go short (put) and long (call).
False Breakout: The market breaks a high/low or support/resistance and comes back to the level and stays under/upper the level. Support/resistance are more than one high/low in a row. You can use this method in any timeframe and with any asset/market. It is universal. See the picture below!
Why does this Binary Options Strategy work so well?
For this question, it is important to have more knowledge. At highs and lows are a lot of stop-losses from other traders in the market. Professional traders use this knowledge to get high liquidity for their own positions. They quit or open a trade where high liquidity is. In most cases they will fake this breakout or the market will turn because of closed positions.
There are a lot of traders who will trade such breakouts. Algorithms are programmed and triggered to make lose them money.
- Stop-losses are triggered with a breakout
- A lot of stop-losses means higher liquidity
- This knowledge is used to open or close big positions
- The market will turn around in most cases
- Sometimes it is a short turn around and sometimes the trend will change completely
Which levels are the best for trading?
New and fresh highs and lows are the best levels for this Binary Options Strategy! With several highs in a row, it is more likely that the market will break through this level. Search for big new and fresh highs. For the best results, the level should be created in the current day. See the picture below.
Different levels for your entries
Furthermore, the best levels got the V-Form. I will show you in the picture below. The V-Form is seen clearly by a lot of other traders in the market. They put their stop-losses on these levels. Also, it is possible to trade the V-form as support and resistance. I rather wait for the false breakout of the V-Form. It works with a high hit-rate and you can easily make money with Binary Options.
The best level V-Form
When choose your entry? – For Dummies
Risky traders open a position directly in the opposite of the breakout. In my opinion, there is a better way to get good results. In the picture below I will show your my exact entries. Select the level in the markets. If the market passes the level back, you can open the trade. It is just so simple as it sounds. Sometimes you will need 2-3 trades to make a profit. That is why I double my invest amount if I lose a trade.
Additional information: You can wait for a candle close below/upper the breakout level to get a better confirmation
Which timeframe can I use for the Binary Options Strategy?
You can use any timeframe for this strategy. The time does not matter for your analysis. Only the price of the asset matters. No professional trader cares about the time. You will see that the small timeframes are more difficult to trade because you have to pay more attention to the market. You have to react much faster than in higher timeframes. In conclusion only the price of the asset matters.
Money Management for the best success
Money Management belongs to every Binary Options Strategy. Without the right money management, you will lose everything. Most traders do this mistake. I personally prefer to risk 1 – 5% of my trading account in one Binary Option. So you can lose some trades without destroying your account completely. The money management depends on the trader, too. Some traders are very aggressive and take a lot of money to invest. In the end, you have to decide for yourself how much money you want to risk.
Some trades use 10% or more of the account balance for trading. For example, if you got 4 losing trades (this happens) in a row, your account balance is minus 40%. In my opinion, it is insane to use this risk. The most professional traders use a risk of 0.5 – 1,5% of their portfolio for one trade. From my experience, you will get hard emotions by losing a huge amount of money in a short time horizon or a few trades.
First of all, it sounds like a hard process to invest only 1% or less of your portfolio, but with a steady and continuous trading strategy, you will earn a lot of money in the future. For example, if you make a profit of 2% every day, the account will grow very high in a few weeks.
Martingale for the False Breakout Binary Options Strategy
For better results, you can use the popular “Martingale Strategy”. If you lose your trade, you can double your investment or use more than 2,3x of the last investment in the next trade. This is very risky, but with a successful strategy, it is a good way to work with. In my opinion, only experienced traders should use “Martingale”.
A martingale can blow up your account in a few trades. I only use it when I feel very safe for the next trade and I recommend that.
- Use sensible money management (I prefer to risk 1-5% per trade)
- Martingale is a good way for experienced Traders (double the trading amount if you lose)
Attention to Market News
Another point of successful trading is the market economic news (picture below). A lot of traders use this economic news to trade the market. In my opinion, it is like gambling, because you do not know the result of the news. In addition, you are to slow to react quickly when the news appears. Orders are triggered in less sen 0,01 seconds. There are automatic trading programs which are faster than you!
In conclusion, it is not a good idea to trade economic news. My advice to you: Stop trading 10 minutes before and after the news. The volatility is very high and in most cases, the market will jump right over your screen. The market does not care about the numbers, because they are priced in already.
I use the economic news of www.investing.com. You will get the right news 0,1 seconds after they are released.
Get started – Use a good Binary Broker for your Strategy
In the table below you will find the best Binary Options Brokers. It is very important to use a broker with good charting software. You have to analyze the candlesticks/chart for the false breakouts. It is useless to trade a successful strategy for a bad broker because maybe they do not pay out your profit. I tested several brokers and recommend them on my website.
You can create a demo account to practice this new method of trading the markets. My recommended brokers offer you a free and unlimited account. The conditions are the same as in the real money mode.
Another relevant point is the trading software for the execution of your trades. You should analyze the chart in the best way you can. Use the candlestick- or line chart. I recommend the candlestick version. The drawing tools are offered by the platform and you can start in a few seconds.
Facts for a good broker:
- Free demo account
- High asset profit
- Flexible trading platform
- Good service and customer support
The brokers below give you the highest yield and the most functional platforms for your trading:
|1. IQ Option||(5 / 5)
|CySEC (EU)||up to 100%+|
High Yield 92%
Conclusion of the Best Binary Options Strategy for beginners
On this site, I have shown you how it exactly works to make a profit with Binary Options. Just use the false breakout strategy. First of all, it is important to practice this strategy. You can use a free demo account to trade with virtual money.
Follow the next steps:
- Find a good level in the market. This can be a big low or high. You can use support and resistance lines, too. These are more highs or lows in a row on the same price. New and fresh highs/lows are working well for this strategy
- Wait for the break of the level. Sometime the market will never break your level. This is no problem because there are enough opportunities in the market every day.
- If the breakout is done and the market comes back to the level you can do a call or put option. (it depends on the breakout direction)
The strategy is very flexible. You can use it with any timeframe, asset or market. You just need a blank chart of candlesticks or line and a horizontal drawing line tool for trade successful trading the markets. On this website, I showed you how the market works on highs and lows. With this knowledge, you know more than 95% of the traders in the world. Good luck and happy trading
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