Binary TRX 50 Minute Strategy

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Have you ever paid attention on how Japanese Candlestick is built? How its body is formed? Such observations may lead to finding interesting patterns.

Binary TRX 50 Minute Strategy is a representative of the simple, but at the same time, effective TS for binary options. The system does not require constant monitoring of the charts, enough to check for signal once an hour, or even more simply, follow the built-in indicator notifications.

Strategy characteristics

Platform: any;
Currency pairs: any
Timeframe: M5
Option Length: 30 minutes
Trading time: round the clock
Recommended Broker: IQ Options

Installation

TS description

The trading strategy was developed taking into account changes of Intra-hour activity. It is known that traders like smooth figures due to which, for example, trends often change on the round levels. That is why entries are carried out at exactly at 00 minutes of new hours. But the decision to enter into a deal is taken 10 minutes before the actual entry. Thus, the market has still enough time to move out of inertia, followed by a depletion, and then a natural reverse. In fact, we trade H1 candles shadow, but on a smaller timeframe.

The strategy is based on the TRX moving average indicator. In this case, we use two MA’s on candles high and lows. On the chart, it looks like a horizontal channel, similar to the Bollinger Bands. You need to enter when the price breaks the upper or the lower channel line.

So, in 50 minutes of the current hour check where is the price. If the candle is outside the upper line of the TRX channel, be ready to buy a Put option. If the price, on the contrary, is at the lower channel line, be ready to buy a Call option. After 10 minutes enter the market with the expiration of 30 minutes.

 

The strategy was developed primarily for to the flat market. Accordingly, it is better to trade in the period of least activity of players. For most currencies, this period is in Asian session. Also, the best results can be obtained with quiet pairs like EURUSD, USDCHF, AUDNZD and EURCAD.

For obvious reasons, the author recommends refraining from trading in times of major news releases. During the news, major market inefficiencies disappear, and suddenly a lot of traffic can ruin a good entry. So, it is better not to make exemptions here, if in the next hour important report will be released don‘t enter the market. To avoid errors, always keep at hand an updating economic calendar, for example, this one.

You can also trade in the opposite direction to make extra money. In this case, we are entering into the market immediately after receiving the signal in the direction opposite to the main rule. It is best to choose a short expiration time, from 1 to 10 minutes. That is all we are opening two deals: the first at the breakdown with a short expiration time, the second on the rebound from the expiration of half an hour.

Examples of entries

A good example of why it is not necessary to trade in a trending market. High-amplitude trends on GBPJPY greatly complicate trade on rollbacks, which is why both Put options were closed at OTM. That is why you need to trade in the period of low market activity.

An example of night trading on Euro. The first two deals have passed almost perfect, but the third did not have 5 minutes to close in profit. It happens that the deal closes with a loss if the return potential has already been exhausted, that we observe in the picture below.

Here, on the first deal, you can clearly see why it is necessary to wait 10 minutes before entering. If we entered a little earlier, the deal would be closed at OTM. However, according to the rules of the system, both Call options went to profit.

Conclusion

If you are looking for a simple but working strategy for binary options trading, the strategy of “50 minutes” will be a good companion in your daily trading. The only thing important to remember is that the strategy should be used for its intended purpose, namely, to the trading flat on the market. Trading on the trend movements can ruin a final result and your impression of the work of the TS.

The strategy uses time-dependent ineffectiveness. You are free to experiment with a different expiry time of entry and to achieve other results. The main thing is to understand the basic principle of the trading system, and how the “memory” of the market works.

Download Binary TRX 50 Minute Strategy files

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