Three Ducks Trading Strategy
The Three Ducks Trading Strategy is a basic, trend following strategy that can be employed by traders of any skill level. It uses many of my favorite types of analysis and comes pre-approved by Hammish Raw. Learn how you can profit with binary options by getting your ducks to line up in a row.
Get Your Ducks In A Row!
If you don’t know who Hammish Raw is by now you should. He literally wrote the book on binary options. He has been a successful binary trader since even before the wide spread use of international online binary options trading. His web site is full of binary information like this great strategy, Three Ducks Trading Strategy. This strategy is a basic following strategy that can be used by traders of any level.
What Is The Three Ducks Trading Strategy
When I first saw the title of this strategy I assumed it was talking about the candle strategy, three black crows/three white soldiers. I am glad I didn’t skip over it because I was wrong. This is a basic trend following strategy that utilizes multiple time frame analysis for short term trading. This strategy is great for short term binary options traders because signals are taken on the 5-minute charts and come with the backing of the underlying longer term trends. What are the Three Ducks you may ask? They are your three time frames. Hammish utilizes 4 hour, 1 hour and 5 minute charts and only one indicator, the 60 bar simple moving average.
How Does The Three Ducks Strategy Work
This strategy works by capturing price movement in three time frames. The first is the 4 hour chart. If prices on this chart are over the SMA then the underlying trend is bullish. At that point move down to the 1 hour charts for confirmation. On that chart if prices are also above the 60 bar SMA then that confirms the 4 hour chart and you can move down to the 5 minute chart. If prices are once again confirming the underlying trend then bullish trading opportunities should be taken. If prices are below the SMA then wait for them to cross over. The crossover itself is another buying signal. The exact same is true in reverse for bearish trades. If the 4 hour is bearish then move down to the 1 hour for confirmation. If confirmed then move down to the 5 minute charts and await a put buying signal.
Why This Strategy Does Not Suck
This strategy does not suck because it is written by a known successful trader, is well presented, provides detailed information, uses multiple time frame analysis (and explains what that is!), seeks to weed out conflicting signals, is good for short term trading and uses more than one indicator. Some strategies you find on the internet suck because they are random jibberish put up by some unknown person. Not this one, Hammish Raw is a known and respected trader. Some strategies are hard to implement because they are confusing to read. Not this one. It is well laid out and explains in detail how is works. Not only that, the strategy uses multiple time frame analysis, a pillar of my own trading strategy. It also uses more than one indicator and does a pretty good job of weeding out conflicting signals.
Why This Strategy Might Suck
This strategy might suck because everything sucks at one time or another. There are no guarantees with trading except that you will lose at some time or another. No trading strategy is fool proof and this one certainly is not. Because it starts with the four hour charts there is a strong possibility that deeper trends could prevail so I would definitely take heed of any signals presented on the daily or weekly charts as well.
My Last Words On The Three Ducks Trading Strategy
Hammish warns that this strategy may not be good for newbies but I disagree. It is a simple but effective way to trade short term binary options and one that I think newbies can embrace. I can’t stop new traders from trying their hands at ultra-risky short term binary options but I can lead them to great strategies like this one in order to help them on their path to success. More experienced traders are likely already using this strategy in some form or other even if they have never heard of Hammish Raw or the Three Ducks.
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