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Scalping Strategy Steps in binary option OLYMPTRADE

Tuesday, 21 May 2019 | May 21, 2019 WIB | 0 Views Last Updated 2019-05-21T17:08:45Z
Many traders want to implement scalping strategies but don't know where to start. Actually scalping strategies can be started from 3 simple steps, namely: determine the direction of the trend, the entry around the retracement level or breakout and determine the amount of risk.

1. Strategy Trends
we will discuss the trend strategy, price trends always bring invaluable potential. In both the forex spot and binary options, the trend is best rated for entries. So binary options no longer calculate the big price increase to weigh profits, but the option opens when the price of the upward trend remains higher. This is because trends can be used by you to analyze the direction of price movements. If the trend continues, you can more easily take the "call" or "put" option more convincingly.

Because of the advantages above, many trend strategies have been chosen by binary options traders, both those who are beginners and those who are experienced. Popular indicators used in this strategy are MA (Moving Averages) and trend lines. Turning around, traders are following the trend to look for forwarding signals, while those who like to fight the flow are more looking for reversal signals. Discussions about how to trade with binary options trend strategies can be found on this page.

2. Pin Bar Strategy
This strategy relies on a pin bar, which is the formation of a candle with a small body and a long displacement over its body. The pin bar is one of the reversal signals that is quite appreciated by many traders. Good confirmation, the main indicator, emergence pin pins are always considered important.
The longer axis of the pin bar axis can be taken as a guide to estimate where the direction of the price will turn. For example, a pin bar that rotates in length at the bottom of the candle is called a Bullish pin bar. If this pin bar occurs after a bearish candle before, this pattern can be a signal that the price will turn bullish. There are more ways to trade using a pin bar, you can see more details here.

3. Strategy for Protecting Values
Another strategy added in binary trading options is a hedging strategy. In binary options, the use of hedging strategies can be more flexible, because binary options brokers generally take traders to choose the opposite option in each instrument at the same time. Because of this convenience, you can maximize your chances of hedging better.

The main goal of real hedging is to reject losses from options that will end up running out of money. So decide you have the "call" option that will expire in 5 minutes, but the price is still moving in a strong bearish sentiment, you can open a new "put" option to compensate for potential losses from the first position. But before implementing this strategy, there is something you need to learn that challenges previous hedges. Although it looks effective on the outside, the less optimal hedging user can double the risk of loss. To see what are important things to consider when hedging binary option options.

4. Risk Reversal Strategy
Similar to the hedging strategy, risk reversal is also a method that is implemented by opening 2 "call" and "put" options at the same time. The difference, the purpose of the risk reversal here is not only to minimize risk, but also to make new profits. Then, how is it done?

If you have learned how to do hedging, then you will have no trouble trying a risk reversal strategy. There is not much difference in how the two strategies are implemented. For the risk reversal, you only need to place different amounts of capital in the 2 options that you open. Most capital, of course, you place in the option that you most believe will succeed. So, even though one option will end up out-of-the-money, there will still be profits that you win here. You can open this page to see a clearer example of the use of risk reversals. Also, this strategy will be more profitable if your broker has a refund facility for a failed option.

5. Straddle strategy
The straddle strategy is still related to the placement of "call" and "put" options simultaneously. Here, there is an emphasis on price conditions and analytical methods that can help you find potential levels for option entry. Basically, the straddle focuses the focus on support and resistance as a price barrier that sets the "call" and "put" areas. Overbought and oversold levels on the oscillator indicator can also be used as a potential entry area.
In the picture above, it appears that the "call" and "put" open points have been adjusted to the RSI chart which had reached overbought and oversold. You can take advantage of such opportunities by adjusting expiry time so that both options expire at the same time. If you succeed, profits are not only obtained from one option, but the 2 options will both generate profits.

It should be noted that expiry time is key to the straddle strategy. This is because you will not be able to profit if your 2 options are just canceled when the price has broken through one of the support or resistance limits. For this reason, the establishment of a valid price range and market conditions with stable volatility is needed, so you can better ensure that prices will remain within the range when both of your options expire.

The next scalping format for binary options is that it has a minimum expiration period of 1 minute. Here, trend indicators are also used with fine setting parameters, it is permissible to regulate two types of trading contracts for turbo contracts. In this way, we will reach an agreement to request a contract package. So, let's install the following instrument on the trading chart:

• Indicators 5 and 10 secondary schools - we use blue for a five-minute building period, for the second technical tool we use standard coloring.
• MACD indicator - standard

Scalping strategy for futures trading - training

To register for exchange with an expiration of 1 minute, we use the following types of technical indicator signals:

Signal for type 1:

• The technical movement of the MACD indicator intersects upwards
• The blue line of the SMA indicator that moves up

Signal for type 2:

• The MACD oscillator line cuts level 0 and above
• The SMA indicator goes up without a chart

Scalping in 1 minute

Using this signal, you can set up to 40 trades with short-term options in one hour, of which 90% will be closed with profitable results. This factor allows you to earn up to 300% per week for scalping options.

Let's conclude with Futures Trading using the right risk management mode and the combination with an effective trading system is the best way to increase your account balance.

Don't Forget These 2 Things
Apart from all the methods and analysis that can be applied in the five strategies above, your trading will not succeed if you do not pay attention to these two important aspects:

Fundamental Analysis
Paying attention to fundamental releases is an important component that you must always pay attention to, because this can greatly influence your trading decisions. For example, option options with more capital in a risk reversal strategy can also be affected by fundamental data releases. By observing the price driving factors fundamentally, you will be able to anticipate changes in trends, volatility, market sentiment, as well as the best moment of entry.

Risk management
This section is the trading aspect that you need to always include. Although the five strategies above can be called the best, but still no one can bring definite results. In other words, profit figures are only probable, as well as potential losses. Here, risk management can be used to limit losses at a level that matches your tolerance limits. Therefore, regardless of the type of strategy, always complete your trading system with risk management.

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