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Free Binary Options Strategy

  • #1
  • First Post: Edited Mar 15, 2016 2:25pm Apr 2, 2014 11:19pm | Edited Mar 15, 2016 2:25pm
This is my Binary Options Strategy that I've been using for the past 2 weeks. Use it at your own discretion.

The Setup:

Using your MT4 trading platform add the following indicators to a M15 chart

  1. RSI - Relative Strength Index ( 7 )
  2. ADX - Average Directional Movement Index ( 20 )
  3. Volume

The Entry:



Place a CALL/BUY Option when, at the close of the candle, the RSI is below 30, the ADX is below 20 and the Volume Bar is lower than the previous volume bar. Ideally you want the volume bar to appear right after a high volume bar and not 2 or 3 bars later. Expiry is 15 Minutes.

Place a PUT/SELL Option when, at the close of the candle, the RSI is above 70, the ADX is below 20 and the Volume Bar is lower then the previous volume bar. Ideally you want the volume bar to appear right after a high volume bar and not 2 or 3 bars later. Expiry is 15 Minutes.

Very Important:

This is where the 20% Price Action comes into play. Always check for clear Support and Resistance, ie: If the entry criteria for a CALL/BUY Option is met and the price is above an identified support zone then place the trade. If the price has moved through the support zone then do not enter the trade. The same goes for PUT/SELL Options.

Attached Image (click to enlarge)
Click to Enlarge Name: 15minute_entry2.png Size: 8 KB
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  • #2
  • Apr 2, 2014 11:30pm Apr 2, 2014 11:30pm
This was a nice signal on GBPUSD on 1 April - see the nice drop in Volume yet the candle closed lower ( full body candle ), rsi was oversold and adx below 20. Please a call option at the close of this red candle for 15 minutes expiry.
Attached Image
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  • #3
  • Apr 3, 2014 4:45pm Apr 3, 2014 4:45pm
Not much happening today as far as my strategy goes. EURGBP had two signals of which one was a winner and the other a loser. The 1st signal as per my chart could have been avoided if you've noticed the previous candle's body. I normally prefer a steady climb or drop into the zone where the indi's align followed by a nice drop in Volume. Well, let's see what tomorrow holds....
Attached Image (click to enlarge)
Click to Enlarge Name: eurgbp-m15-hf-markets-ltd-3.png Size: 46 KB
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  • #4
  • Edited Mar 15, 2016 10:38am Mar 14, 2016 11:40pm | Edited Mar 15, 2016 10:38am
Good Day,
A few questions:
1. What is the implication if the ADX is above 20? Does this imply that the strength of the Trend is strengthening?
2. For a Call / Buy option, should "The Volume Bar is lower than the previous volume bar" not read "The Volume Bar is higher than the previous volume bar", as you are wanting the price bar to increase?
3. Do you trade this strategy using the Martingale method?
Look forward to your reply.
Regards, Stephen
  • #5
  • Mar 15, 2016 2:19pm Mar 15, 2016 2:19pm
Quoting StephenGray
Good Day, A few questions: 1. What is the implication if the ADX is above 20? Does this imply that the strength of the Trend is strengthening? 2. For a Call / Buy option, should "The Volume Bar is lower than the previous volume bar" not read "The Volume Bar is higher than the previous volume bar", as you are wanting the price bar to increase? 3. Do you trade this strategy using the Martingale method? Look forward to your reply. Regards, Stephen
Hi Stephen,

Quote
1. What is the implication if the ADX is above 20?
Although the ADX is lagging I found best reversals to be below 20 during ranging conditions and not so much trending

Quote
2. For a Call / Buy option, should "The Volume Bar is lower than the previous volume bar" not read "The Volume Bar is higher than the previous volume bar", as you are wanting the price bar to increase?
No, you want the Volume Bar to be lower even though the last bar continued with the trend to indicate less interest in pushing further into the trend and/or reversal orders held back for now - that is how I read it, but others might have different opinions.

Quote
3. Do you trade this strategy using the Martingale method?
You can I suppose, but I did not purely because of risk/reward already against you from the first trade. I'm actually currently more involved with forex trading and my forex robots so I don't spend much time with Binary Options.

I have created an Indicator showing an arrow at the beginning of the entry candle - if you like I can send it to you - drop me an email if you are interested.

___________________________
Skype: fxinvestfund03
Email: fxinvestfund[at]gmail.com
Attached Image (click to enlarge)
Click to Enlarge Name: SwingEasy.png Size: 28 KB
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  • #6
  • Mar 16, 2016 4:05pm Mar 16, 2016 4:05pm
Great. Thank you and will do. Appreciated.
  • #7
  • Mar 23, 2016 4:39am Mar 23, 2016 4:39am
Thanks a lot for sharing that strategy here. I tried it on my Broker FreshForex. It works pretty well. Kindly, can you explain how the volume works with the price action. Thank you
  • #8
  • Jul 21, 2016 10:00pm Jul 21, 2016 10:00pm
Thx fxinvestfund for your sharing,
can you tell me where I can do BO with a MT4? any Platform reccommendation?
  • #9
  • Last Post: Jun 13, 2025 5:29am Jun 13, 2025 5:29am
Quoting fxinvestfund
This is my Binary Options Strategy that I've been using for the past 2 weeks. Use it at your own discretion. The Setup: Using your MT4 trading platform add the following indicators to a M15 chart RSI - Relative Strength Index ( 7 ) ADX - Average Directional Movement Index ( 20 ) Volume The Entry: Place a CALL/BUY Option when, at the close of the candle, the RSI is below 30, the ADX is below 20 and the Volume Bar is lower than the previous volume bar. Ideally you want the volume bar to appear right after a high volume bar and not 2 or 3 bars later....
I liked the logic of this strategy! How has it behaved over time?
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