5 min Binary killer Strategy For MT4
Table Of Contents:
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 min Binary killer Strategy For MT4 is also known as the killer trading method in the trading industry. The professional traders rely a lot on this method as the system can generate decent profit at any market condition.
The rookies might get confused by seeing the complicated setup of the template but after you go through each step to take the trade, it will be easy. Most importantly, the steps are sequential and convey logic to the retail traders which makes it easier to trade in the market. RSI 9 period, Stochastic, MACD, Heiken Ashi, and EMA Crossover Signal are going to be default indicator for the template.
Every one might Heiken Ashi candles are useless. But those rely on PA, knows how important the Heiken Ashi bars. Those who are new might not have any idea what we are talking about. For them, let's clarify the details. The red candles are formed when the actual momentum is bearish. On the contrary, white candles are the results of the filter bullish movement.
But Heiken Ashi candles are not 100% reliable and it needs to use with other technical tools. And this system uses the perfect tool that can create perfection in the Heiken Ashi candles. As the name of the system tells us, our default time frame is 5 minute and the expiry for the trade is just 120s.
However, we will teach you how to take advantage of this system in a higher time frame and manage the trade like an expert at the last segment of this guideline. Now let’s continue to learn to take our call and put trade with this reliable system.
Call option setup
For our call option, we have to assess a series of parameters. We have already told, the Heiken ashi candle itself is not 100% reliable. So, we will consider other tools. When we use this system to take a long trade, we have to find a bullish trend. This can be done by seeing the structure of highs and lows.
The market will make new higher lows when the trend is up. The bearish retracement is the phase where we can take advantage to take the call option. The bold purple MA should cross above the red-purple MA indicating the bulls have entered and the bearish retracement phase is over. The Heiken Ashi bar will change from red to white supporting the bullish cross in the chart.
The bars in the MACD indicator should on the positive side and should show a steady rise. At the stochastic line, we will see the bullish cross at the 20 regions. The red line will cross above the lime green signal line indicating the bulls have a steady hand on this market. Finally, we have to get to the RSI reading. It should in the oversold zone.
In an ideal case situation, the RSI line will pass above the 50 lines stating our call trade is a valid one. Take the call option with 120s expiry and you can make some strong profit with this method. Note that the white Arrow mark must be present below the supportive candle to make the final decision for the long entry.
Put option setup
For our put option, we will describe the method in a bit classical way. We know the resistance level provides us the selling opportunity. So, examining the highs or the lows can give us the resistance level in the 5-minute chart. Wait for the bearish cross to take place in the EMA.
The purple moving average will cross below the red moving average stating selling momentum. The bars in the Heiken Ashi will change from white to red confirming the bearish momentum is stable. The bars in the MACD indicator should be on the negative side and the three should steadily increase in the length in the MACD bar. The reading in the stochastic indicator will be at an overbought place.
The signal line which is colored in red should push above the lime green line, telling us the sellers are going to push this pair to a new low. Lastly, the RSI reading should on the overbought region. If not, it must pass below the 50 lines with a negative slope. The negative slope of the RSI line is very important regardless of its position. If the slope is not negative, it will be hard to make a profit in the shorter time frame.
After checking all these parameters, take a final look at the bearish arrow. If the arrow is present you can short the asset with confidence. But not put option setup is perfect and must be well prepared to accept the loss. Thus, increasing the risk imposes an unnecessary threat to your trading account.
Managing the trades
Trade management is the most important part of this trading method. The traders get confused when they lose a few trades in a row. Losing streaks are very common and there is nothing you can do to avoid the loss. So, you need a well-prepared risk management rule so that you can take your trade with confidence.
But remember, the expiry period for this method is just 120s. So, in all trade, you should be risking less than 1% of the account balance. Now let’s come to the advanced part of this system. To trade in the higher time frame, you have to draw the support and resistance level. Some traders use the fibo tool to find the exact point of retracement.
It allows them to take trades along with the trade-in any time frame. Higher time frame trading is not necessary unless you deploy the edge to trade indices and stock. As long as you are dealing with the currencies, you are good to use the generic concept of this trading method. But switching to the stock and indices market requires adaption to the big scale pips movement.
This can be done when the time frame is changed to the higher one. A higher time frame tends to offset the movement in the price and offers better signals for such a market. But get used to the indices and stock market in a demo account before you live trade with this method.
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