The “Corrections trapper” trading system
Without exception, all traders involved in options trading were long waiting for a platform that could be used to trade binary options with indicators. And, finally, it happened - the Binomo broker launched a terminal with a set of indicators. Not taking advantage of this would be unwise, so we decided to develop a trading system that would use the indicators available on this options platform. Our system of "Corrections trapper" uses the popular and accurate Alligator indicator and moving average to generate signals. Keep reading to learn all the principles of this system.
Let's start directly with the options trading terminal from the Binomo company. We will not dwell on all of its functions and services, but focus only on the main ones. The following are available on the platform: candlestick charts, a set of indicators (4 items, which is enough for the development of a large number of strategies), a large chart window with the ability to view the history of quotes, and high-yield options (up to 87%). Even this small list tells us that the Binomo terminal is the best platform for binary options that can be found in Runet.
Let's start the installation of the “Corrections trapper” system template. This tactic requires the use of accurate indicators for binary options! On the platform, we choose the Alligator indicator and, without changing the settings, configure it on the chart of the trading asset. Then, we select the moving average indicator and also configure it on the chart, after setting its building period to 100 in the settings window. We should get the following picture:
Given that the moving average shows the average price for a certain period of time of fluctuation, we will always know the price level of the asset to which quotes will strive. Simply put, if there is any rebounding of a quote from the moving average line, it will always come back to it. In turn, the Alligator indicator will show the point where such movement is born and, as a result, we get a clear formalized signal for a lucrative transaction. Let’s consider the practical application of this strategy in more detail.
Signals to buy options UP:
⦁ Asset quotes fall below the red line of the moving average (the direction of the indicator does not matter)
⦁ Alligator lines intersect upwards
⦁ A growing candle forms on the chart
Having identified the following set of signals on the Binomo platform chart, we acquire options UP:
Signals to buy options DOWN:
⦁ Asset quotes grow above the red line of the moving average (the direction of the indicator does not matter)
⦁ Alligator lines intersect downwards
⦁ A declining candle forms on the chart
Having identified the following set of signals on the Binomo platform chart, we acquire options DOWN:
As you can see, the price after the intersection of the moving averages of the Alligator always comes back to the average. In a situation when the price produces chaotic fluctuations and, as a result, there are no clear lines of intersection on the Alligator, you must refrain from registering contracts. This simple sequence of actions when trading on this system will bring you 150-200% of account growth in a week.
Contracts on this tactic should be registered with expirations of up to 5 minutes. As we are analyzing a tick chart with a small period, signals will be generated very quickly. Therefore, to preserve your trading capital and reduce trading risks, we use the minimum amount of funds. The Binomo company has a minimum cost of lots of $1. So, that’s how trading binary options with indicators is easy and convenient!