5 Minute Killer Forex Binary Options Trading Strategy For MT4

 

Table Of Contents:

  1. 5 Minute Killer Forex Binary Options Trading Strategy For MT4
  2. Key indicators used in this system
  3. Functions of the key indicators
    1. MA 10 and MA 5
    2. EMA crossover signal
    3. MACD indicator
    4. Stochastic indicator
    5. RSI indicator
  4. The Call option setup sequence
    1. Stop loss
    2. Take profit
  5. The put option setup sequence
    1. Stop loss
    2. Take profit
  6. 5 Minute Killer Forex Binary Options Trading Strategy For MT4 – Useful advice
  7. 5 Minute Killer Forex Binary Options Trading Strategy For MT4 – Conclusion

 

Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

 

The 5 Minute Killer Forex Binary Options Trading Strategy For MT4 is based on the time frame M5 and can be used for all binary options with an expiry time of 5 minutes. The strategy is based on five indicators and the purpose is to spot high momentum moves where you will have a high probability that the next candle closes with the same color as the previous color.

The 5 Minute Killer Forex Binary Options Trading Strategy For MT4 is specially designed to give you the prediction of the direction of the next candle. If you predict the direction of the next candle more than 60% of the time then you will be a winning binary options trader in the long run. Now let’s have look at the prime indicators used in this system.

 

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Key indicators used in this system

 

  1. MA 10 and MA 5
  2. EMA crossover signal
  3. MACD indicator
  4. Stochastic indicator
  5. RSI indicator

 

Chart setup with the 5 Minute Killer Forex Binary Options Trading Strategy For MT4

 

Functions of the key indicators

By seeing these indicators some of you might be thinking that the system is very easy to master. But as a smart traders, we should never underestimate the functions of these frequently used indicators. Unless we dive deep and learn how these tools generate the signals, we are not going to get a good result. Moreover, we have to keep in mind that we are taking the trades in a lower time frame. So, without any delay, let's learn the functions of these tools.

 

MA 10 and MA 5

The MA 10 acts as the slow-moving average and the MA 5 is used as the fast-moving average.  If the purple color moving average crosses below the red moving average, we may consider that the price is in a downtrend. On the contrary, if the fast moving average crosses above the red moving average, we should consider the overall trend as bullish.

 

EMA crossover signal

The novice traders often get confused while analyzing the crossover in the MAs. To solve these issues, we are going to use the EMA crossover signal. As soon as the bearish crossover takes place, we are going to see a red color bearish arrow.

Identifying the bearish and bullish crossover

On the contrary, if the bullish crossover takes place in MA 10 and MA 5, we should see a green color arrow. But in the trade execution process, we need to pay attention to the place where these arrow marks are formed. Unless it is formed near the important support or resistance level, we should be ignoring these arrow marks.

 

MACD indicator

The MACD is a simple tool that shows the strength of the trend. If you notice consecutive green bars on the positive side, you should be expecting a strong bullish rally. On the contrary, if the green bars are formed on the negative side of the reference line, you should see a strong drop in the price. Note that the length of the bars also gives you a hint regarding the strength of the buyers and sellers.

 

Stochastic indicator

While using the 5 Minute Killer Forex Binary Options Trading Strategy For MT4, the stochastic indicator will be used as a trade filter tool. Usually, it will help us to find the overbought and oversold state of an asset.

Identifying the overbought and oversold state

The overbought zone in the stochastic indicator is marked between 80-100 levels. On the contrary, the oversold zone is marked between the 20-0 level. Based on the position of the signal line, you should be able to detect the overbought and oversold state of an asset.

 

RSI indicator

The RSI or relative strength index is used as the second trade filter tool in the 5 Minute Killer Forex Binary Options Trading Strategy For MT4. For a bearish trade setup to be valid, the signal line should be trading with a downward slope. On the contrary, an ascending pattern in the signal line gives us the indication that the bulls are dominating the market.

 

The Call option setup sequence

Finding the long trade setup or call option is going to a bit tricky for the novice traders since we will do the data analysis in the lower time frame. To ease the overall trade execution process, we are going to divide the key steps to execute the long trades sequentially. Without any further ado, let’s check the prime conditions for the long trade execution process.

 

Conditions to execute the call option

 

  1. Select the major currency pairs since they tend to exhibit stable price movement in the lower time frame.
  2. Manually mark the highs and lows of the market so that you can determine the critical support level by using the simple line or trend line tool.
  3. As the price test the support zone, you should see a  bullish crossover in the MA 5 and M10.
  4. The bullish crossover in the MA should be confirmed by the MA cross-over the signal indicator. This means we should see a green arrow mark below the support level.
  5. At the MACD indicator, we should see a gradual increase in the green bars on the positive side of the reference line. If the bars are on the negative side, we should see a gradual decrease in the length of MACD bars.
  6. Check the reading in the stochastic indicator. The red signal line should be trading above the green signal line. And the position of these two signal lines should be in the oversold zone.
  7. At the RSI indicator, the signal line should have a positive slope. The positive slope in the signal line tells us the price is ready to move up.
  8. After checking all these prime conditions, you may take the call or long trade.

 

Execute the long trade

 

Stop loss

In options trading, you need to be cautious about the trade timing since the expiry period is going to act as your stop loss. If you take the trades in the 1M, 5M, or 15-minute time frame, you should be looking for an expiry period that doesn’t exceed 5 minutes.

On the contrary, if use this system to take a simple long trade, place your stop loss below the support level.

 

Take profit

The payout for your long trade should give you a 1:2 risk to reward ratio. If the risk to reward ratio is less than that, you should not take the trades. Wait for a better opportunity that will offer less risky trade signals.

 

The put option setup sequence

Shorting the asset at the major resistance level is a very challenging task. And when it comes to option trading business, even after using the 5 Minute Killer Forex Binary Options Trading Strategy For MT4, you might mess things up. In this segment, we are going to teach you the most sophisticated way to use this system as it will help you to deal with complex markets.

 

Conditions to execute the put option

 

  1. Select the major currency pairs only so that you don’t have to deal with wild spikes or sudden changes in the trend.
  2. Draw the important resistance levels by using the highs and lows. Look for the rejection of the price at the resistance zone.
  3. As the price rejects a major resistance level, you should the formation of the red color above the resistance zone. This means a bearish cross-over has taken place in MA 5 and MA 10.
  4. Check the reading in the MACD indicator, the bars should be formed on the negative side of the reference line. If not, you should see a gradual decrease in the bars that are formed on the positive side.
  5. At the stochastic indicator, you should the signal lines are trading at the overbought zone. Wait till the signal line gains a negative slope.
  6. The slope at the RSI signal line should be negative. And the line should be falling from the overbought zone.
  7. After checking all these prime parameters, you do have the option to execute the short trade in the market.

 

Execution of put option

 

Stop loss

The minute expiry period for your trade is going to act as your stop loss. But if you use this system to trade the Forex market without any time variable, you should be setting up the SL price right above the resistance level. No matter which method you chose, do not take more than 2% risk.

 

Take profit

The take profit should be set at the nearest support level. While using the 5 Minute Killer Forex Binary Options Trading Strategy For MT4 to trade the options market, wait till the option expires.

 

5 Minute Killer Forex Binary Options Trading Strategy For MT4 – Useful advice

Novice option traders often get confused by seeing the fast-paced trading environment. At options trading, you should have quick decision-making skills. To develop such skills, start using this system in the virtual account and make yourself more comfortable. Once you know INS and Out of this system, you may start using the system in the real market.

 

5 Minute Killer Forex Binary Options Trading Strategy For MT4 – Conclusion

Successful traders know that fact that losing trades are inevitable. Just because the 5 Minute Killer Forex Binary Options Trading Strategy For MT4 looks very promising doesn’t mean you will win all the trades. You should have the courage to deal with the losing orders once in a while. And if you feel that the system is not for your style, you should ignore using this strategy.

Download the complete system description and the files here:

FREE 5 Minute Killer Forex Binary Options Trading Strategy

Download the FREE 5 Minute Killer Forex Binary Options Trading Strategy for MT4.

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