There are many factors that influence the success of a particular trading strategy involving options, and one of them is the temperament of the user himself, his reaction speed, as well as the standard patterns of behavior in different situations. For instance, not everyone will be comfortable with a 60 second binary options strategy – many guys prefer a more conservative, long-term strategy. This does not mean that the model is bad – you just need to find a different working principle.
Also, if you initially came across an algorithm that helped you make high profits, don’t think it will always be so. Some strategies involving options wear themselves out over time and stop working, so you should always have alternatives in mind.
Profitable ones are divided into the following categories:
Option selling strategies based on the way the market is analyzed
- Ones that are based on fundamental analysis;
- Strategies that use technical analysis.
One of the most common ways to make money from fundamental analysis is option selling strategies on the news. The idea is that you analyze economic, political and even weather news and guess which ones will resonate in the financial world.
Use these kinds of strategies with FX Pro broker.
If we talk about the trading strategies involving options, then 99% of them are based on technical analysis, namely the indicators (MACD, RSI, Stochastic …) – these are parameters by which you can determine the future rise or fall in prices, and make appropriate predictions.
Binary options strategies by complexity
There are two types of strategies – simple and complex. The difference between them is only in the analysis tools themselves. Simple strategies use one or at most 2 indicators with very clear signals, such as arrow indicators. Complex option selling strategies include those where you need to open indicators on different timeframes, connect more than 2 indicators and use more complex tools, such as “Alligator” or “Ichimoku”.
Become successful by trying option selling strategies with Ayrex.
Strategies for binary options by duration
- Long term (transactions last one day or more);
The popularity of binary options is growing due to the ability to solve financial problems in a short period of time. With the use of 5 minute strategies, people sometimes increase their deposit by 2 times or more. Each strategy is characterized by peculiarities and risks that need to be taken into consideration.
- Short term (strategies for 60 seconds, 5 or 15 minutes, an hour).
The key task for every person, especially a beginner, is to intensively build up capital. Therefore, the most successful options strategy for 60 seconds is a good way to increase your income and move to the next level in this field of activity. It will take a lot of effort and a personal algorithm of actions to get a stable income
You can try out option selling strategies with Dukascopy broker.
Binary options strategies with an accuracy of 90%
If you are still undecided about what is right for you, the most successful option strategy is to read the examples for beginners and not only, which have proven themselves in the market for a long time. By getting to know them better, you will understand how binary options work and develop your own algorithm.
The most successful options strategy with accurate signals cannot be universal. Yes, they help many people make money, but not all. Even if you decide to use paid strategies, it does not mean that you will be able to make money with a shovel from the very beginning. The paid versions are just commercial projects of their creators. You might like this option and develop a good option selling strategies that you can sell later.
How to use the right strategy to trade binary options
Any broker, through which binary options are changed, works according to almost the same scheme, so even a beginner will not find it difficult to figure out what’s what. The only thing you have to do is to follow the strategies.
- Choose an option selling strategies and apply the conditions on the chart.
- Find the most appropriate asset for the strategy, to do this, look at the history of several different assets, and choose the one in which the strategy gave the least false signals.
- Specify the term of the transaction.
- Specify a prediction going up or down, depending on the strategy’s signal.
In addition to ready-made option selling strategies, you can use individual crypto signals or apply different types of technical analysis with instant signals, for example, Japanese candlesticks can instantly signal reversals. By combining candlestick analysis with Price Action patterns, you can come up with your own strategy. And of course, every binary options strategy must go hand in hand with money management.
If you chose the most successful options strategy, try it on Fx Pro.
Here are some option strategies with examples:
|The most profitable strategies||With 90% accuracy|
|Go-Go||Stochastic and Bollinger|
|Le Confort||EMA, MACD and RSI|
|Three in a Row||Fibonacci levels|
You can also consider these option strategies with examples:
|Trading systems for beginners||Strategies with minimal risk|
|Raccoon||Triple Top and Triple Bottom|
|Price envelope||Max reliability|
Call put strategy
There are two types of options. And the forecast of the market situation determines which transactions will be carried out by investors -call put strategy.
- option CALL – the agreement on the right to purchase an asset before a certain date at rates fixed for the current moment;
- option PUT – the agreement granting the right to sell the property before the date of sale at the value set for today.
To protect your stock from going down, a newbie needs to buy puts. The down play requires protection against rising prices with a call option.
There are three options for closing positions in an option selling strategies – execution, reverse (offset) transaction or expiration without execution.
Call put strategy:
- executes it, if the price of the asset increased sells, i.e. close the purchase counter sale,
- if the reward on the current transaction is higher than that paid when buying,
- if the buyer allows the contract to expire without execution, he will lose money in the amount of premium paid.
Seller call put strategy:
- close the transaction by reverse purchase,
- if the reward received on the sale will be higher than the premium in the current purchase;
- execution by the buyer, the seller must deliver the underlying subject of the trade at the value of performance; expiration without execution – ends with a profit in the amount of the received reward.
Derivatives are widely used in modern stock trading to create different option selling strategies. These can be combinations of options only, or combinations of options and futures. Large investors, funds and banks use combinations with underlying instruments to hedge risks.
Buying (selling) a call (put) option is the simplest option selling strategies consisting of a single option. For example, by buying a call option, the investor expects the stock price to rise above the strike price by the time the option expires. In this case, the potential profit is unlimited, because the growth of the stock is unlimited.
Try one of the easiest strategies involving options Ayrex.
Prevailing scams make people skeptical to invest in binary options. However, most companies operate with integrity, and as long as you choose a company with a good reputation, you have nothing to worry about.
European binary options brokers can only accept professional traders in Europe as clients.
However, in regions such as the US, India and Australia, binary options trading is legal for private users.
With a lot of experience comes a lot of knowledge, but learning from the mistakes of other people is the best way to learn. Three great tips we can give you about binary options are:
- Educate yourself and never stop learning.
- Keep a journal.
- Understand the psychology.