Full Review of Milos One Hour Strategy For Binary Options Trading
When I began to write this strategy I wanted to give answers to the following questions in order to help everyone use it better. What motivated the trade? How was the trade managed? Was it successful? Why? Did you lose? Why? I ask these questions with every trade and answer them before moving on to the next one. This helps me to improve my trading and it is a practice recommend to newbies and experts alike.
What is the Milos One Hour Strategy
This is a strategy that I primarily use on the U.S. markets, or I should say, when the U.S. sessions are open. This is because that is the time when the most participants are in the market. It can be used during the European session as well but stick with the more heavily trades pairs. This strategy focuses on one hour charts and is almost purely technical in nature. I use the Relative Strength Index, moving averages and candlesticks to make my analysis (See links at the bottom of this page). RSI should be set to (20,80) and use two moving averages. The best signals will occur when the RSI moves out of overbought/oversold while the shorter moving average makes a corresponding signal. This strategy is based one hour charts with one hour time expiry binary options.
At the one hour chart, MACD is in oversold phase while RSI is a growing trend. Price is between the middle and upper Bollinger tape so that it is possible further increase in prices. My recommendation would be call option EUR/USD at 1.35400.
At the one hour chart MACD is oversold and rising and the RSI is also rising while price has broken through the upper Bollinger tape, indicating market strength. My recommendation would be call option GBP/USD at 1.64050
MACD has crossed into overbought phase while RSI is trending lower in overbought phase. Price has touched the lower Bollinger bands so it is possible a further drop in prices could follow. My recommendation would be put option crude oil at 94.00
Why Milos 1 Hour Strategy Might Suck
This strategy might suck because it is extremely susceptible to news events. I do not recommend using it on a day when economic data is being released, a central bank is meeting or expected news announcements are on the schedule. When I tested it the first day a lot of mixed data was being released and the strategy did not work as expected. Mixed data gives traders a reason to pause, so analysis may not always be correct. In any case mixed and/or unexpected news can have a negative impact.
Why This Strategy doesn’t Suck
This strategy doesn’t suck because it works really well with forex binary options. I achieved +75% success rates trading currency pairs. So far, it has produced similar results across the entire list of commonly traded forex binary options. It uses a blend of indicators that seeks to weed out market fluctuations in favor of the underlying trend. The RSI, MACD and Bollinger bands are used together to pick only trades that follow the trend and to confirm each other. When the indicators do not agree and being to diverge a trader needs to find a balance. MACD can be used to predict reversal of the trend. For example, if the MACD indicator rises as prices continue to fall, it could be an exit point and signal a possible reverse trade. Bollinger Bands allows traders to compare volatility and relative price levels, a good way to target the shorter term movements. It consists of three bands in such a way that it includes most of the cost of the asset. Prices will often trend in the direction of a recently touched band, giving traders a chance to profit. When the indicators agree then the strongest signals occur.
My Final Thoughts – Milos Conquerors America!
From my trading experience I have discovered that all traders –winners and losers –share common experiences. At the beginning of testing this strategy I was confused and felt the pain of failure but I persevered in order to come out on top. Writing this strategy I want to explain how to trade successfully on a consistent basis. I wanted to share what I know about the market and its behavior. I wrote this strategy in order to improve binary options trading in the U.S. markets. This strategy is good and it is dedicated for chartists and technical traders. They study charts and historical data to find trends and predict trend changes. This strategy has disadvantages and can be complicated. It is uses a lot of tools such as RSI, moving averages, candlestick and Bollinger bands.
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