Beginner Binary Options Winning Strategy Full Review
Check out this winning strategy for binary options. The question is who wins when you use it, you or the brokers. It utilizes a combination of moving averages and Bollinger Bands to target 15-30 minute expiry.
At first glance I thought this strategy was nothing more than a scammy affiliate marketing site (www.optionsadvice.com/strategy/beginners/). It is an affiliate site but it also offers much more than the typical one you might find. This website at least offers an actual strategy without the need to first sign up with a certain broker. The website authors joke about how the strategy doesn’t actually have a name although they have given it one themselves. It uses a combination of moving averages along with Bollinger Bands to predict short term price movements. One bonus to the strategy that the authors like to point out is that you don’t have to “understand precisely” what you are doing, just trust them.
How Does It Work
This strategy uses four indicators, three moving averages and Bollinger Bands. The MA’s are a 13 bar exponential moving average, a 20 bar simple moving average and a 26 bar exponential moving average. This is how the trades set up. First, the 13 EMA must cross the 20 SMA. Second, the 26 EMA must cross the 20 SMA and the 13 EMA. Once this happens there is a 90-95% chance that the asset price will move outside the Bollinger Bands in the next 15-20 minutes. This is when you take the signal. If the MA’s and the BB are moving lower then you can expect asset prices to move lower. If the MA’s and the BB are moving higher then you can expect asset prices to move higher as well.
Once the signal is recognized the strategy then comes with two choices. The first is to choose a range or one touch position. Because the signal assumes that asset prices will move in the indicated direction within 30 minutes and because the Bollinger Bands give a price target one touch options could work, provided there is an available strike price appropriate to the trade. The second options is to stick with a regular high/low type of options which has a greater chance of closing in the money.
Why This Strategy Might Suck
Why might this strategy suck, let me count the ways. First, at no time in the write up does it talk about time frame. You are supposed to use options with 15-30 minute expiry, moving averages with set bar length but there is no talk of which chart time frame you are to use. There is a big difference between daily, hourly, 15 minuts and 1 minute charts. Second, it recommends you use boundary or one touch options over the standard high/low position. To me, this is extra risky and not something I would recommend to even advanced traders. Third, when referring to the signal, its strength and using it to trade the authors use the word “definitely”. I have to call serious BS on that, nothing in trading is definite. Finally, this strategy tells you to use the charting packages available on its recommended binary options brokers because they have the indicators you need. I have to call BS on that too. I checked the brokers, for one thing they are not all based on the same platform so to say they have the same features is incorrect. For another, none of them have charts that include technical indicators which is pretty standard for the industry.
Why This Strategy Might Not Suck
This strategy might not suck, once you get past the fact it doesn’t tell a time frame in which to apply the strategy. It is based on sound technical analysis and gives a clearly identifiable signal. Not only that it also discusses a variety of choices each signal presents to binary traders.
My Last Words On The Beginner Binary Options Winning Strategy
This strategy could be a good one but because it leaves some questions unanswered I can not recommend it for newbies. However, it provides an interesting base for more advanced traders to work from. I suggest using the strategy in a couple of different time frames in order to see which works best. Of course, you will have to adjust expiry times per time frame. The recommended 15-30 minute expiry is probably based on charts of 15 minute bars or less, most likely 1 minute or 5 minute. Possible expiries for hourly and daily charts may could be 4 hour/end of the day and end of the day/end of the week respectively.