PFE Binary System For MT4
The PFE Binary System For MT4 is specially designed to trade DAX, US30, stocks and Forex majors. The reason behind the popularity of this system is high accuracy at stock and indices trading.
Those who don’t have any experience in the indices market don’t have any idea about the extreme volatility. The minimum lot size at indices is much higher than that of Forex. Without a big balance or high precision, it is impossible to take the trades in the indices.
This strategy is a bit different since we will be using two unique templates. Based on the volatility, we will be taking trades in each template. The first template is suitable to trade currencies. But with the second template, you can trade any financial instrument. But we have a small twist to this method. For different markets, we need to depend on different expiry periods.
For instance, if the trade is taken in Forex major, the expiry period is 4 hours. But if you take trades in the indices, the expiry period is 60 minutes and the analytical chart is 4 hours. For the stock, you can trade with an expiry period of up to 24 hours. Let’s see how we can take the call and put options with this advanced dual template trading method.
Call option setup
For the call option, we will be using the second template. The reason for using the second template at the first stage it's a bit easier. You will find both the template same after using it for a couple of weeks. We will be using red, blue, and sky color moving average with different parameters.
But the period will be 34. The signals for the long trade will be taken from the white color moving average which has period 9. If the white color moving average passes above the red, blue, and sky color moving average, we have the bullish breakout.
The bullish reversal must be supported by the PFE line. The PFE line will cross over the zero level confirming the buying action. Wait for the price to fall back to the red moving average to take the call option. The reason to wait for the fall back is precision.
Though we know price is supposed to go higher, advanced traders know such break usually comes with minor bearish retracement. So, if the trade is taken with the bearish retracement, we can use tight SL and the risked amount will be much lower.
Put option setup
Now let’s deal with a bit more complex template. But there is nothing to worry about, as we will be describing the key steps with precision. The key idea for taking the put trade is very simple but it requires some advanced knowledge.
Notice in the price chart that we have a white brick type structure in line with the moving average. These bricks provide support and resistance. In case of the put, the price should initially trade above the white brick. We need a double top pattern right above the white brick structure, to get the alert that the support level will be a break.
Price falling below the white brick will be confirmed by the PFE line. The PFE line should drop below the zero lines. Now it’s time to wait for the price to retest the yellow dashed channel resistance. Notice closely, and you find the yellow channel in that closely follows the market.
Take your short trade at the first retest of the yellow line. Avoid taking the short in the lower yellow line as the second yellow or the topmost yellow line provide more precision for the put entry.
Tips to trade stocks and indices
Most of the traders will have zero issues to trade Forex majors with the PFE Binary System For MT4. But things will get complex when they start using the method in the stock or indices market. We will be suggesting to take trades in the stock market first as the volatility is a little bit lower to indices.
See how things go and get habituated to a new level of volatility. After getting comfortable with the stock market, it’s time to get into the indices market. Taking the trades in the indices might be tough as the average pips movement per day may even exceed 500 pips. At times, you might see 1000+ pips movement in a single day.
So, the risk management for taking trades in indices should be of a high standard. No matter how good you are at trading, you can’t take more than 1% risk. And the average pips deviation you should expect during the running trade is 200 pips. So, if you can’t afford to risk 200 pips with 1% risk, it’s better not to trade indices. Go with the Forex majors and you can comfortably secure steady cash flow with this dual template trading system.
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