5min Binary Options Strategy High Low Bollinger Bands Breakout For MT4
Table Of Contents:
- 5min Binary Options Strategy High Low Bollinger Bands Breakout For MT4
- Call option setup
- Put option setup
- Dealing with spikes
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 5min Binary Options Strategy High Low Bollinger Bands Breakout For MT4 depends on the ATRRatio indicator, Turtle Channel indicator, and Bollinger bands. Traders having the basic knowledge of this must have heard about the Bollinger bands.
This is a classic indicator that lets the traders find the critical trading zone in the asset. On the contrary, the ATR ratio indicator is used to filter out the bad trades. Though the system depends on the 5-minute chart, we must focus on the daily trend. However, those who can follow the rules of this options strategy with precision, don’t have to think about the trade.
Since we will be taking the trades at the Bollinger band and turtle channel, we will be sticking to the current momentum automatically. And momentum-based trading technique requires fast action from the trader's end or else you won’t be able to take too much advantage from this system.
Call option setup
The first thing to consider is the slope of the Bollinger band. The Bollinger band is sky blue and the traders look for a positive degree in the slope. A newly formed blue line must be visible after an extended bearish rally. Wait for the price to make a new high. After that, the price will slightly drop and found strong support and Bollinger band support level.
In the case of first bearish correction, the price might touch the blue line. The ATR value must above the grey line to take a call option. If you miss the first trade setup, you can wait for the second bounce. The second bounce might take place at the Bollinger band support.
But note that the Bollinger band support must be close to the blue line. Regardless of the position of the price, you can’t make any call option if the ATR ratio line is below the grey line.
Put option setup
The slope of the Bollinger band will be negative or pointing downward. After extended bullish rally support by the blue line, we will see a red line above the price. The price will slowly head towards the Bollinger band resistance level and we will be waiting for the rejection in price. If the price rejects the Bollinger resistance, we have to assess the ATR ratio signal line.
It must be placed below the grey line to take the put option. In case you miss the first opportunity for the put option, you can wait for the price to climb towards the red line. Try to spot the bearish rejection. If it becomes tough, you can wait for the ATR value to fall below the grey line. Go for the put option when it drop takes place in the ATR ratio curve.
Dealing with spikes
The 5min Binary Options Strategy High Low Bollinger Bands Breakout For MT4 is capable of finding great trades but the traders often complain about the spikes. Some of the best setups often hit the SL due to false spike. But we have a very solution to this problem.
Stop taking any trades when the market volatility is very high due to the release of the news. Try to trade in the natural volatility so that you don’t have to experience heavy slippage or spikes. As the technical analysis is done in the 5-minute chart, you must focus on the options that will expire within 5 minutes.
Taking trades on such a short expiry period requires strong risk management skills. Instead of going deep in the risk management profile, you can start taking a 1% money management rule as the default risk profile for this system. However, you can increase the risk profile to 2% after you gain decent experience with this system. But such a switch should be made after using this strategy for a minimum of three months.
Download the complete system description and the files here: