Turbo options trading for 1 minute is very popular, especially with beginner traders. However, this approach involves high risks. Small timeframes have a significant disadvantage, because they are somewhat reduced inertia factor. Here is best 60 second binary options strategy – Review.
Trends do not have time to gain sufficient strength, quickly ending. This leads to an increase in the percentage of false signals on strategies, which in normal conditions show good efficiency. Scalpers (traders trading on short periods) use special indicators and trading systems.
In this article we will take a look the system, which, if not the best strategy for 1 minute for binary options in 2018, is one of the most effective. It is based on an indicator of the arrow type. We will also use two additional filters, which are legendary – Bollinger Waves and Relative Strength Index.
Sixty seconds strategy for binary options
The main indicator of this system is the indicator called “Binary Options Arrows”. It is easy to guess by the name that this instrument is designed specifically for contract trading. It is among the most popular custom oscillators added to the TradingView platform. Therefore, for technical analysis we need a Live chart in this online service.
Features of the strategy:
- Options types: “higher/lower” with an expiry time of 60 seconds;
- Chart timeframe for analysis: 1 minute;
- Profitability: over 65%;
- Trading assets: any, preferably, pairs with USD and EUR;
- time to trade: preferably an American-European trading session;
- Investment: according to the principles of Capital Management.
To increase the accuracy of signals, a two-level filtering should be applied. First, use the Bollinger Wave Oscillator. This instrument consists of three moving parts with different intervals. With its help it is easy to determine the current state of the market.
When the price approaches the lower boundary of the channel formed on the chart, it means that at least a short-term upward correction or a full-fledged upward trend is about to begin. However, in about 30% of cases there is a breakthrough of the border with the continuation of the active downward movement. Therefore, an additional filter – RSI – is required here.
Getting the signal line in one of the areas indicates that in the near future the active trend in the market will stop, there will be a reversal and the beginning of the movement in the opposite direction. If the RSI is at the top of the window – the active uptrend is at its peak and the trend is already weakening, if at the bottom – the same situation, but for downward price movements.
Indicator overview
Binary Options Arrows is a minute indicator for binary options, a script from one of the TradingView portal users. It is very simple. The algorithm recognizes reversal candlestick patterns. This is when the second candlestick is formed in the opposite direction and its body length is less than that of the previous price formation.
Such pattern in most cases is formed just before the beginning of the growth trend, which lasts at least 2-3 candlesticks. But it is most effective to trade per one candle. If the analysis is carried out on the M1 chart, the deals should be opened with an exposure of 60 seconds. The oscillator consists of several elements of visual display:
- green up arrow located under the candle – a recommendation to open a deal “Up”;
- red downward arrow located under the candlestick – recommendation to open a “Down” position;
- red vertical stripe – false signals are marked, trading on which would not bring profit;
- green vertical hair – notes reliable signals, which would allow to get income.
Color indication is based on the analysis of market behavior immediately after the formation of a signal candle. If the type of price formation corresponds to the type of signal, this pattern is marked with a green mark. Otherwise, if the forecast was wrong, a red band marks it.
A clear color indication will be useful when testing working strategies for binary options on historical data. However, in real trading conditions it can only interfere. Therefore, you can disable this feature in the settings by setting “Color 0” and “Color 1” as white.
