In this article we will introduce one of the simplest trading strategies for the regular readers of our section Binary options: strategies. Indicators are not used in this strategy. In general, this strategy doesn't require a trader to have any knowledge in the field of the technical analysis. One trade a day strategy allows a trader to earn at least once in a day.
One trade a day binary options strategy
The currently offered binary options strategy is really very simple. Our readers will be able to make sure in this. As mentioned above, it really does not require usage of any indicators or knowledge in the field of the technical analysis. Lines of support and resistance are used here too, but everything is so informative that a trader may not think about them at all.
So, let’s look at the picture.
As you can see, the chart doesn’t include any indicators. We have not applied levels of support and resistance intentionally in order to show that their application is not even needed to receive trading signals. So, why the 1 trade per day binary options strategy is called this way? Everything is pretty simple here too. A trader has to act during one day and at the time when a signal appears.
According to this strategy, it is not needed to wait for any confirmations. Signal appear at the certain time can work off for the fairly short time. However, this strategy has the slight disadvantage. A trader doesn’t know the duration of the signal, as well as how the signal will work off.
At the same time, testing this strategy gave a result of 70% profitable deals against 30% losing deals. For this reason, you don’t have to disregard this strategy too.
1 trade per day strategy: trading signal
As we have mentioned above, this strategy is very simple. When you look at the chart, you will see that no additional tools are used. On the other hand, amount of signals with this strategy runs high. This is because its essence is very simple.
A trader opens a daily chart and follows the situation attentively. The signal appears when the current daily candlestick breaks out the maximum or the minimum of the previous one. At the same time, you don’t have to wait the closure of the daily candlestick, as it is usually happens for confirmation in other strategies. If you view the chart once more, you will make sure that the trading signals appear almost every day.
For example the bullish daily candlestick, which breaks out the minimum of the previous one, appears on the chart. In this case, you must not make the delay. You have to choose the investment’s amount, the expiration time, and you can start trading. In this situation, a trader buys the Call option. We have marked such signal on the illustrated chart. The benefit of this strategy consists in a fact that in order to open position, no additional confirmation is needed.
The same occurs when the price on the daily chart breaks out a minimum of the previous candlestick. In this case, a trader has to make no delay and the buy the Put option, as the descending movement is expected.
Therefore, the one trade a day strategy is the fairly simple strategy, and even the beginners can trade using it without having any knowledge about the technical analysis. The only one disadvantage of this strategy is that a trader can’t determine a time of the signal’s termination.