# Kenox Binary Options System Review

One thing you can’t complain about: the lack of binary options strategies to choose from. You have tens of strategies on our site alone and if you start looking in other places, you will find hundreds. That’s what I was doing this morning… the whole morning: looking for a strategy to review. And believe me, it was harder than I expected. All I could find was strategies with a gazillion indicators or unclear rules and doubtful results. Am I saying that this one is better? Nope, I will let you be the judge of that but I will try to explain it as well as I can.

## What is Kenox System and How to Use It?

The main indicator of this strategy is of course, Kenox. According to the website where I originally found this strategy (forexstrategiesresources.com), Kenox is based on the ADX indicator with a period of 13. However, on your chart it will appear as an arrow so I am sure you won’t have any trouble reading its signals. Besides this Kenox thing, we will use Bollinger Bands with default settings (period 20 and deviation 2), an Exponential Moving Average with period 11 and another Exponential Moving Average with period 3. As an optional filter we will use Parabolic SAR with settings 0.01 for “Step” and 0.1 for “Maximum”. Once you’ve finished setting up your chart (don’t worry, a template will be available), it will look like this:

Ok, we have a bunch of indicators but now it’s time to see we can make some good trades with them. For a Put we need a Red Kenox arrow, EMA 3 (Red line) to be below EMA 11 (Light Blue line), below EMA 20 (dotted Red line) and as an optional rule, Parabolic SAR has to be above price. For a Call we need a Green Kenox arrow, EMA 3 has to be above EMA 11 and above EMA 20. Again as an optional rule, the Parabolic SAR has to be below price. I know it may still sound a bit complicated so let’s see if we can strip it down:

### Rules Summary:

• Green (Up) Kenox Arrow
• EMA 3 is above EMA 11
• EMA 3 is above EMA 20
• Parabolic SAR is below price (optional rule)

• Red (Down) Kenox Arrow
• EMA 3 is below EMA 11
• EMA 3 is below EMA 20
• Parabolic SAR is above price (optional rule)

Time Frame: 1 minute

Financial assets: any

Trading sessions: London and New York

Expiry time: 2-3 candles

Kenox Binary System Indicator File

### Why Does The Kenox System Suck?

It is not clear to me what the role of the Bollinger Bands is. Why are we using this indicator? Maybe because its middle line is a 20 period moving average? Ok, but the strategy states that we need to use Exponential Moving Average with a period of 20 and the Bollinger Bands use a Simple Moving Average with a period of 20, so I really don’t understand the thought process behind it. Furthermore, the original author advises to trade only in the direction of the trend – which is good advice – but he doesn’t say anything about how to identify that trend. This means that determining the trend is entirely up to the user, so the skill level of the said user will play a paramount role in the success or failure of this strategy.

### Why The Kenox System Doesn’t Suck?

Well, the Kenox indicator is based on the ADX, which is a well known and well respected indicator that measures trend strength. If you want to know more about it, you can read our article: Average Directional Movement Index – The Money Maker? However, this is all we know: it is somehow derived from ADX but not a lot more and this actually makes me doubt it. I am not saying it’s bad, but I cannot completely trust something if I don’t know what it is. Oh, almost forgot this is the “Doesn’t Suck” section. Meh, what can I say, I don’t like it much. Sure, it looks great on a cherry picked picture, but once you pick it up and test it a bit I am sure you will find a lot of bad signals. Anyway, that may be a good thing because seeing the bad side of a strategy can help you improve it.

### Final Impression On The Kleenex Strategy. Sorry, Kenox

This system definitely needs some practice because its creator says you need to trade only in the direction of the trend, but as I said earlier, this means that the trader’s skill will play a major role in the accuracy of the Kenox strategy. The basic rules of the strategy are easy to follow – this line below that line, etc. – but a moving average below or above another, doesn’t mean that price will go in a certain direction. In a ranging market moving averages will cross and uncross several times and Kenox arrows will probably alternate up and down; if you can identify that kind of market and stay away, trading only in strong trends, then the success rate of the strategy will go up, but then again, this is the same for all trend following strategies.