Binary option system
The exits are not that important to us as binary traders unless you are trading options with an Early Out feature. In fact, the exit signals may even provide additional entry points for short term entries in some cases. The system relies on 2 exponential moving averages, a 5 and 10 bar, as well as stochastic and RSI. It is important to use the exponential moving average with this system because is gives added weight to the front end of the data set and tracks asset prices more closely than a standard moving average.
The stochastic and RSI both have custom settings, the only thing about this system that is not simple. This strategy can be used in any time frame but I suggest using daily, 4 hour or hourly charts for best results. Anything shorter than that is less reliable. This is how signals develop. Then wait for confirmation from from stochastic and RSI. For a put signal the opposite is true. Stochastic should be pointing down following a bearish crossover and the RSI should be falling below the mid line or moving lower while below the mid line.
Because the original strategy is meant for spot forex it has exits as well. For binary traders these are pointless but we must take expiry into consideration. The signals given by this strategy are fairly strong and the asset moves into the money within a few bars. When choosing expiry using the daily charts a 3 day to one week expiry is recommended for the strongest signals.
On the 4H chart end of day, 3 day and up to one week expiry is what will work best, depending on the asset and strength of the signal. On the hourly charts end of the day and end of tomorrow are what you want to target.
Every once in a while when perusing the internet for scams, sharks and shady dealings I come across something that is actually of value. Usually my first impressions turn out to be wrong but sometimes even I can be a little to harsh of a critic. Adding to that impression was the incredibly small amount of details given in the original description. In the end though it turns out that this strategy, with the addition of information found in the comments and my own suggestions, is quite good.
The B-Bands are based on standard deviation envelopes and are intended to measure volatility and to predict short term market direction. This strategy uses the two together to predict trend following strategy and in my experience so far work well together.
The signals are simple. You are to use the 15 minute chart for analysis and signals, only take trend following signals and use the standard settings for both indicators. What I like about this strategy is that once you have a grip on the underlying trend you can take your signals with very little care for anything else. I assume this to mean longer term trend analysis and a fundamental grasp on market conditions. This is how the signals work.
The first dot outside of the bands should be considered the signal as it usually precedes a fairly sharp movement. The farther outside the bands the first dot of PSAR occurs the stronger the signal.