Levels Binary Strategy For MT4
Table Of Contents:
- Levels Binary Strategy For MT4
- Levels Binary Strategy For MT4 Call option setup
- Levels Binary Strategy For MT4 Put option setup
- Trade management technique
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 Levels Binary Strategy For MT4 is a powerful impulse-based edge. We all know predicting the impulse is a very tough task as the market is demonstrate dynamic price movement. However, when the correct tools are used in a strategic mode, executions of trade becomes very easy.
Zone V1 support and resistance lines, Bollinger Bands, Market analytic pro arrow, Launcher directional indicator, I clock, Similar to FX MTN, and RD Combo indicator is used in the template. People who have less skill or new, don’t have the basic idea of these indicators. These tools are very easy to use and you can rely on these authoritative tools to open quality trades in the options market. Options trading is not so easy neither tough than Forex trading.
It’s a different industry where the timing of the trade is very important. A good trade can end up in loss just because you have selected the wrong expiry. We will deal with the expiry selection period in the last part but for now, we will stay focused on executions of the orders. The template is will format the chart with the advanced drawings.
The verified lines will be present as the SR level and you can take advantage of those lines. But we won’t be relying on the SR level as the options industry rewards the precise risk-takers. We have to count on the price action pattern in the important zone.
You may say, knowing about the price action pattern is a different story but it’s not. It’s a very easy method to open new trades with some of the staple candlestick patterns.
Levels Binary Strategy For MT4 Call option setup
Usually, the template will draw parallel lines that work as the channel. The parallel lines will be well supported by the horizontal lines. The conjunctions of the trend line or the channel line with the horizontal line are the sweet spot as they can give you a very accurate entry point. But in the options market, it’s very hard to find such setup especially when the preferred chart is 5 minutes.
The 5-minute chart is the ideal window for this edge, as we can get frequent trade setups without compromising the quality. But there is a small rule that will limit your trade entry. It will be discussed in the trade management part. Look for the bullish harami or the bullish pin bar at the black color support line. These lines should be examined with the naked eye so that you know the price is testing the key level and respecting it.
As the bullish pattern is identified, a black upward arrow should be present. Even if you fail to spot the bullish pattern properly, the black upward arrow is the indication of the presence of a buying signal.
The bars in the similar to FX MTN indicator should be on the downside. At times, the bars will be marked with bold black color with the dark circle on it. This suggests the price will push up and have the perfect signal to open the call option.
Levels Binary Strategy For MT4 Put option setup
The put option setup will be illustrated differently. We will be showing how to open the short trade at the channel without getting the black bar confirmation from the similar to the FX MTN indicator. In this case, our preferred candlestick will be the doji or the bearish pin bar. The retest should be done at the white line that is just below the channel resistance.
A black arrow should appear over the bearish candlestick. Before the black arrow, a small black dot should be present. The black dot has significant importance in the put trade. The black dot tells us the price is going to reverse as soon it meets the resistance. The bar in the similar to FX MTN indicator may not be black but it must be on the top of the reference line.
Open your put trade when such conditions are filled. People struggle with this simple steps as they neglect the importance of the black dot and the position of the bar in FX MTN. Not all resistance or support or the trend lines are going to give you selling opportunities. At times the buyers can break this barrier and start a new trend. Unless you are well prepared, change in the trend can make you frustrated.
Moreover, the analysis is done in the 5-minute chart, so you don’t have any options to impose a great level of risk. The intellectual investors contained the risk so that they can stake more money with comfort.
But if the stakes become too high in each trade, it’s just a matter of time before you hit the ground. Investment has nothing to do with big winners. It’s all bout consistency and how the risk is handled by the traders.
Trade management technique
To manage the trade, traders usually depend on the 2% rule. The 2% rule can be a lifesaver but it can’t be game-changer in the options industry. Evaluate the setup from different angles and see whether you do a better chance to win the trade. Instead of risking 2%, you can increase the risk to 4%.
That means you are taking money that is allocated for two trades. But this is a wise decision when quality becomes a priority. People often get involved in overtrading as they don’t have the basic skills to check the emotions. They find themselves strangled once the market starts to show is magic movement. Getting ready to expect the unexpected event is the most essential thing you should be learning as an investor.
As you know more about the essential elements of the industry, you will slowly know how to scale up the orders. It may be a simple technique to trade but if the steps are executed properly, you can win more than 80% of the time. Having an options trading method that has an 80% win rate is a dream strategy for many intermediate traders.
But don’t be naïve to start trading with real money. You have to test the shot in the virtual platform and get yourself familiar with this edge. As you get to know more about this edge, you will learn to scale up the risk and lot size in a very professional manner. Lastly, be aware of the critical news can cause massive spikes which can easily wipe out the trade.
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