RSI and Stochastic Binary Options Strategy For MT4
Table Of Contents:
- RSI and Stochastic Binary Options Strategy For MT4
- Call option setup
- Put option setup
- Dealing with the losses
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 RSI and Stochastic Binary Options Strategy For MT4 helps you trade the options market like the old schoolboys. We all know the importance of Fibonacci retracement, stochastic, and RSI tools.
People struggle to earn money with the fibo tools since they don’t have the skills to analyze the highs and lows. But this system template draws the fibo level and place the stochastic, RSI tool for the ease of the traders. Having a fair knowledge about the key steps to use this system is enough to boost up the profit.
As you will take the trade along with the retracement, you must know the proper way to select the time frame. Choosing the lower time frame is fair but you have to focus on the PA signal. However, if trades are taken from M30 and higher charts, the PA bar can be ignored but remember, it’s always a great idea to incorporate the PA signal as it reinforces the trading idea.
Call option setup
When we anticipate the price will go higher, we intend to take the call option. In this template, the Fibonacci levels are drawn automatically. We must have the bullish retracement levels to entertain the call option setup. Wait for the price to test the 23%, 38.2%, 50%, or the 61.8% retracement level.
If the price bounces off from one of the critical fibo levels, take a look at the RSI reading will be below the dark black color line. Next, we have the stochastic curve to analyze.
The black signal line in the stochastic will push above the yellow line to consider it as a valid long trade setup. Take your trade when the setup is done. But don’t be too naïve taking too much risk even though it’s a trend trading method. The maximum risk you should take on this method is 1%.
Put option setup
We need the bearish retracement level to take the put option. At the test of the 23%, 50%, 382%, or the 61.8% retracement level, we will get ready to short the asset. The RSI reading must be over the black line showing the price is trading in the overbought territory.
Next wait for the bearish cross in the stochastic. The Stochastic signal line will be trading near the upper black line. The black curve in the signal line will fall below the yellow line stating the sellers have taken control over this market.
Be careful about the trade execution as you might have to lose trade when the trend changes. So, how do you prepare yourself from trend change? Well, for that you have to focus on the major news and trade the market with PA bars. But still, some trade will hit the SL and you must accept it.
Dealing with the losses
The RSI and Stochastic Binary Options Strategy For MT4 is so profitable the traders often find it hard to accept the loss. By winning consecutive traders the confidence level boost up to the next stage and this is when the rules are ignored by the rookies. But the pro traders are always well prepared even if they win 10 trades in a row.
The quality of the trade step might be perfect and the fundamental data might suggest the trade is going to hit the TP level but the sentiment of the market might change without any prior notice. So, without preparing yourself to deal with the losses, it will be a tough call to make a consistent profit.
Be aware of the fact, trading is nothing but taking trades with managed risk. Stick to the rules of money management and avoid taking more than 2% risk. Find the trades that have a high payout as it will improve the recovery factor.
Download the complete system description and the files here: