Extreme Binary Options Trading Strategy For MT4.
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Extreme Binary Options Trading Strategy For MT4 is specially developed to calculate signals on the M5 time frame and to trade the M5 expiry binary options. Basically with this strategy you want to predict the color of the next M5 candle. If you enter a buy trade (call trade in binary options) then you expect that the next M5 candle closes as a bullish candle. The goal is that after 5 minutes the actual price should be higher than the price level when you opened the trade 5 minutes before.
The system comes with 4 indicators that will help you to spot such strong moving market conditions. The indicators will also give you entry signals within these strong trends. With the help of the indicators and with some practice you might be able to spot the good trade signals in the complex market. Now let’s check the key indicator used in this system.
Key indicators used in this system.
Xtreme Binary Bot Xtreme binary robot channel EMA cross SES Bdv.8 WA Explosion.
Chart setup with the Extreme Binary Options Trading Strategy For MT4.
Functions of the indicators.
The binary trading strategy is extremely sensitive to the time factor. A slight delay in the trade execution or closing of the trades can result in big losses. And to ensure such high accuracy, it is better to know about the essential functions of the above-mentioned indicators. Let’s get into the details.
Xtreme Binary Bot.
The function of the Xtreme Binary bot indicator is very simple. It will analyze the momentum of the market and create red and green dots above and below the candles respectively. A red dot suggests the bullish trend has lost its momentum. On the contrary, the green dot suggests, the bearish trend has lost its momentum and the market is ready to move up.
Xtreme binary robot channel indicator.
This indicator is responsible for the identification process of buying and selling zone. The red zone act as the put option zone and the lower red zone act as the call option zone.
Identifying the call and put option zone.
The space between the top and bottom red zone act as the trend riding zone. Usually, the price oscillators inside the channel and provides a general idea about the potential movement of future price.
EMA cross SES Bdv.8.
The EMA cross SES Bdv.8 indicator used in the Extreme Binary Options Trading Strategy For MT4 works more like a confirmation tool. At the put option zone, it should create a red arrow mark. On the contrary, a blue arrow is created below the candle when the potential chance of experiencing a bullish rally is high.
WA Explosion.
The functions of the WA explosion indicator are a bit tricky. It creates a colored bar and defines the market momentum for a certain period. To take the reading, you need to compare the current bar with the previous bar. If you intend to take the call the trade, the current bar green bar should be bigger than the previous green bar. However, if the current bar is red and it smaller than the previous red bar, you still have the option to take the long trade.
Analyzing the bars of WA explosion indicator.
So, when you use the WA explosion indicator, always relate the current bars with the previous bars. Note that green bars tell us about the bulls and red bars tell us about the bears. So, analyze its size to get an idea about the strength of the bulls and bears.
The call option setup sequence.
To execute the call or long trade, you need to follow some strategic sequence. Since this is a binary options trading strategy, it better to analyze the data in the 5 minute or 15-minute time frame. Now let’s see the prime parameters for the call option.
Conditions to execute the call option.
The price of the asset should be trading in the lower band formed by the Xtreme binary robot channel indicator. Wait for the bullish bounce in the price as it reflects the bulls are trying to dominate over the bears. For the confirmation, you may wait till you have the candle closing above the bottom red zone of the channel. A small green dot should appear below the candle which indicates we have a temporary bottom formation at the red zone of the channel. Within the next 3-4 candles, you should see a blue color arrow mark below the candle. The blue color arrow gives us confirmation that the buyers are ready to push the price higher. At times, the bullish trade setup might take place inside the bottom red zone. You may still consider it as a valid signal but in that case, the slope of the channel should have an ascending pattern. After checking all these conditions, you do have the option to take the call option.
Execution of call option.
Trade management.
Trade management is very critical to your options trading career. You should only take the call option provided that the payout is high enough to cover up to two or more losing trades. If the payout is significantly low, avoid taking the trades even though the trade setup has a high chance to win.
The put option setup sequence.
To take the put option, it is better to look for a bearish trend in the major asset. While analyzing the market, pick an asset based on the active trading session. Since the 5-minute time frame will be analyzed, you should not take any trade during the inactive trading session as it will make the overall trading process difficult. Now let’s check the essential steps to take the put option.
Conditions to execute the put option.
The channel should have a descending slope, indicating the existing trend is bearish for that certain instrument You should be picking the asset based on the active trading hours. Stop looking at the asset during the inactive trading session as the market volatility will be extremely low. Look for the rejection of the price at the top portion of the channel. The price should form a rejection pattern or start losing its bullish steam after entering into the top red zone. A small red dot should appear above the candlestick which is the indication of bearish reversal. After identifying the red dot, you should be looking for a red downward arrow mark. The downward arrow confirms the establishment of bearish momentum Check the payout condition for the put option and it should have a decent payout so that you can cover up at least two losing trades. After checking all these conditions, you may take the put option with low risk.
Execution of put option.
Trade management.
We have already highlighted that trade management is very crucial to your success. As an options trader, you should continuously analyze the risk to reward ratio and aim for a higher one. If you trade with a low risk to reward ratio, you will soon struggle to recover the losses.
Extreme Binary Options Trading Strategy For MT4 – Useful advice.
The Extreme Binary Options Trading Strategy For MT4 is designed to trade in the lower time frame but still, you do have the option to switch to the higher time frame. We recommend the rookie traders learn the use of each indicator in a higher time frame. During the learning stage, the trader should use the paper trading account as the chances of making mistakes will be higher.
Once you become comfortable with the sequence to execute the trade, you may switch to the lower time frame. If you manage to make a consistent profit in the paper trading account in the lower time frame, start trading with real money.
Extreme Binary Options Trading Strategy For MT4 – Conclusion.
Mastering the core techniques of the Extreme Binary Options Trading Strategy For MT4 is not that tough provided that you follow the given advice precisely in this article. However, you should always remain cautious about losing orders. No matter how skilled you are, losing trades are inevitable. So, keep your risk exposure low and try to execute the trades with confidence. Last but not the least, be a disciplined trader since you are dealing with the lower time frame data.