Conservative, semi-conservative and aggressive - 3 strategies

In the following article we present a strategy that is suitable for conservative trading with binary options as well as for the aggressive.

There are several ways to trade binary options. Which strategy you ultimately pursue depends on your own preferences. Traders can be content with a conservative strategy or aggressively execute trades several times a day.

Below we present a strategy that is suitable for both conservative trading and aggressive trading. This strategy is based on three technical indicators, the ZigZag lines, the Fibonacci retracement and the RSI indicator.

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Conservative long-term strategy

The conservative strategy is suitable for those new to binary options trading. The focus is on reducing risk and finding the perfect setup for the trade. For this purpose, the first two points in a trend are identified in the chart using the ZigZag indicator, which connects the lows and highs.

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The Fibonacci indicator should project the trend into the future. To do this, set the indicator from point 2 to point 1. The 161.8 level of the Fibonacci indicator is the goal. To get a buy signal, a correction should either trigger the 50.00 or 61.8 retracement and ideally the RSI indicator should indicate an oversold situation.

If you still use moving averages, the breakthrough of the 20s moving average would be an advantage. That means, the following rules should be given for the entry:

  1. The price forms a trend
  2. Price corrected between 50-60 Fibonacci level
  3. RSI shows oversold situation at

The time for the option to run should be between five and twenty minutes. The money management rules can be staggered. The stake can be increased by a certain amount each day. With only two trades per day, there should be a good risk-reward ratio.

Conservative, semi-conservative and aggressive - 3 strategies

Semi-conservative strategy

The semi-conservative strategy includes around four to six trades per day, Basically, the same rules can be drawn up as with the conservative strategy. Entries are placed on both the 50s Fibonacci level and the 100s Fibonacci level. The maturities should not exceed 6 minutes.

The strategy is suitable for somewhat experienced traders who, based on their market knowledge, can better assess whether the retracement is relevant or not. The somewhat inexperienced traders can use the filter indicators mentioned above. Again, it would be advantageous if the RSI indicator shows an overbought area and held the 20 moving average as resistance.

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Aggressive Day -Trading strategy

Based on the strategies presented above, experienced traders of binary options can expand the whole thing a bit further. The conservative and semi-conservative strategies were drawn up on the basis of 5-minute charts. The aggressive strategy can be traded on the basis of the 1-minute chart.

The same rules can also be set up here. It should be noted that a reversal on the historical chart is always easy, but extremely difficult to recognize in the future. Therefore, the goal should always be the 161.8 Fibonacci level.

Binary options strategies: 5 steps to the first trade

What needs to be considered when trading? What is really important? Traders are often faced with a flood of information and only get to a suitable broker via detours. So that traders can implement the strategies presented for binary options trading as quickly as possible, we have briefly and clearly presented the most important information in the following slideshow. Now in just five steps to the first trade:

Conservative, semi-conservative and aggressive - 3 strategies

Conclusion

The three strategies presented can be traded very well with short-term options. However, it is not only the analysis and the right entry point that are important, but also the choice of the right money and risk management.

Beginners should therefore not make more than two trades per day and the stakes are slightly staggered increase. Somewhat experienced traders can try four to six trades on the same bets and also slightly increase per day.

The professionals among the traders, or those who are attracted to the aggressive trading style, should check their 1-minute chart Try luck, but always stick to the same bets. The increased trading frequency can easily lead to overstimulation and wrong decisions.

It is therefore definitely a matter of executing the strategy as planned or at least taking a break after a few wrong trades.

The Broker StockPair is a binary options broker that offers a wide range of maturities. Runtimes between 60 seconds and 60 days are available. For some, this broker might be the right choice. "Less is more", the broker probably thought and therefore only focuses on two types of options, namely binary and pairs. The selection of the terms is impressive.

Good luck!

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Conservative, semi-conservative and aggressive - 3 strategies

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