MA 2 signal Binary System 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 MA 2 signal Binary System For MT4 uses the classic concept of moving average. Those who have years of trading experience must have tried with multiple moving average bands with different period settings.
Due to the lagging property of the simple moving average, the traders often opt-in for the EMA based trading system. But EMAs are too much reactive to the price change and this results in an aggressive method. Considering the pros and cons of EMAs and SMAs, the MA 2 Signal system is developed on a well-balanced formula. MA 2 Signal, MaisMA, and trend line tool is used as the indicators.
Upon installing both templates, you will get a familiar chart consisting of colored moving average bands. At times you might also get trend line is the behavior of price movement creates highs or lows in the trending fashion.
So, how do we take trades using the moving average and trend line? We are going to implement some basic trading rules and deploy the MA as you trade triggering tools. Let’s explore the key steps for the put and the call option.
Call option setup
If you are lucky you will get a green trend line or the red trend line in the chart. If not, you have to use the moving average as your trade triggering tool. For the call setup, we will describe how to take the trade by taking advantage of the trend line.
The bullish trend line for this template is green in color and the price will respect this level forming a bullish candle pattern. The bullish pattern might be a single candle or a combination of some candlestick. After the rejection, the sapphire MA which is the thickest will show a sharp turn in the north direction.
The purple, aqua and red color moving average will also follow the bold sapphire line lead. Execute the call option when the bar or the candle has an ideal closing above the sapphire line.
If the bullish bar is very big, you can take a call option at the bearish retracement in price. The price often falls back and gain the bullish steam by testing the sapphire color moving average after a strong bullish break.
Put option setup
We have already said, the put option setup will be described without the use of the trend line. After the market reaches the ceiling point or hit the major resistance, the sapphire color moving average will take a sharp U-turn towards the south.
The aqua, purple, and the red color moving average will follow the same lead. Within the next 5 bars, the bearish breakout out takes place. We were supposed to take a put option at the bearish break but we need to follow an exception in this case since we don’t have the trend line. Price usually consolidated in the absence of a trend line on such bearish break.
The consolidation in the price might extend from 5 – 20 candles. If it more than 20 candles and we don’t have a sharp fall in the price, the setup is invalid. But a break of the consolidation pattern within the 5-20 candle suggests taking the put trade.
The MA 2 signal Binary System For MT4 is really easy and conservative. The advantage of using a conservative trading method is enormous. You will never be worried about the outcome of the trade since you will get enough time to scale the lot size properly.
Management of your trades
We have discussed the execution of the trade so far. But the success of this method greatly depends on your time frame selection, expiry period determination, and choosing the right session.
Usually, pro options traders use this method to take trade-in M30 and a higher time frame. In some rare cases, they rely on the M15 chart to trade options that have a 60 second expiry period. But this approach is done to take advantage of the news which requires special analytical skills.
You can use the same rule for the call and put option and open orders in favor of the news with 60 second expiry period. But if it seems too much, use the traditional method and use the expiry period 120 minutes. The risk level slightly varies as it depends on the risk tolerance level of the trader.
Considering the safest method, the risk should be contained between 1-2% only. And chose the asset that has a decent level of volatility. The best way to ensure this is by taking the trades during the overlapping trading session.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
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