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  1. #1
    Solid Member luderalison's Avatar

    The Mysteries of the Unnamed Strategy !!!

    Hi Bogdan,

    I saw your unnamed strategy. The screenshot looks amazing. I have here two questions. I am still a newbie. And I work 12 hrs job (15-20 days a month). Hardly I find time to look for news and for experimenting indicators. The question is - Is the unnamed strategy suitable for beginners and for guys like me who cannot watch the charts for longer periods? I read in one of your article, I guess, that 60 secs or 120 secs strategies cannot go in line with news releases and technical indicators are hard to apply. For that I think we need a yes or no type indicator or strategy. The unnamed strategy I believe fulfills that condition to a good extend. Just tell me if i am right or wrong; with your gold standard explanation of course.

    The 2nd question maybe longer than the first!

    My broker doesn't offer 120 secs. I have 60 secs offered. i have just started in BO I just don't feel wise to open account with a broker with 120 sec.., you know I need money. Haven't made any money using my original broker (only lost more than half of my original account!) I wish to earn the lost money but slowly and steadily using the BOTS.

    Tell me how i can adapt the strategy to 60 secs. I may make you angry I know you don't consider 60 secs as trading but gambling!! But Bogdan I have to ask this question. And I have a suggestion too. After reading my suggestion please tell if it can be applied; with your gold standard explanation of course!

    I look for adx - below 20. Now to Bollinger. Say it reached top border with a 1 min bull candle. closes exactly touching the line. strategy says condition met; now go with put of 2 mins expiry. Since I have no 2 mins option, here comes my adaptation. I don't place the trade that min. But the next min with 60 secs. I know it weakens the strategy but will it close in the money? If 120 gives 80% win of say 20 trades. will this modified trade give at least 65 - 70%?

    Regards

    luder

  2. #2
    Master Member Bogdan G's Avatar

    The Mysteries of the Unnamed Strategy !!!

    We had a Binary Options Strategy developed by a German trader, many developed by Americans and some developed by unknown traders. Today I will review a strategy developed by Italians. Of course… fast cars – Ferrari – fast bikes – Ducati – why not fast Binary Options trading. I say fast because this strategy uses the fastest time frame available (1 minute) to analyze the charts and just 2 minutes for expiry time. The strategy is simply referred to as “Binary Options Strategy with Bollinger Bands and ADX Indicator” and that doesn’t really qualify like a name so at the moment we’ll stick to “Unnamed”.
    http://www.binaryoptionsthatsuck.com...amed-strategy/

    What do you think? Can it work?

  3. #3
    Master Member SeasaltMcFish's Avatar
    This one really looks a lot like my own strategy for 2m, I trades successfully last year. Difference: I don't use Bollinger Bands but a BMA indicator and don't use ADX. However, I'm going to combine them and look what comes out...

    Problem with short term trading like this, is how trustworthy and accurate your broker is in pricing and the payout they use. In the tests I run, this would make a huge difference in being profitable or not.

    What about 'BosBolli ADX' ?

  4. #4
    Master Member Bogdan G's Avatar
    Quote Originally Posted by luderalison View Post
    Hi Bogdan,

    I saw your unnamed strategy. The screenshot looks amazing. I have here two questions. I am still a newbie. And I work 12 hrs job (15-20 days a month). Hardly I find time to look for news and for experimenting indicators. The question is - Is the unnamed strategy suitable for beginners and for guys like me who cannot watch the charts for longer periods? I read in one of your article, I guess, that 60 secs or 120 secs strategies cannot go in line with news releases and technical indicators are hard to apply. For that I think we need a yes or no type indicator or strategy. The unnamed strategy I believe fulfills that condition to a good extend. Just tell me if i am right or wrong; with your gold standard explanation of course.

    The 2nd question maybe longer than the first!

    My broker doesn't offer 120 secs. I have 60 secs offered. i have just started in BO I just don't feel wise to open account with a broker with 120 sec.., you know I need money. Haven't made any money using my original broker (only lost more than half of my original account!) I wish to earn the lost money but slowly and steadily using the BOTS.

    Tell me how i can adapt the strategy to 60 secs. I may make you angry I know you don't consider 60 secs as trading but gambling!! But Bogdan I have to ask this question. And I have a suggestion too. After reading my suggestion please tell if it can be applied; with your gold standard explanation of course!

    I look for adx - below 20. Now to Bollinger. Say it reached top border with a 1 min bull candle. closes exactly touching the line. strategy says condition met; now go with put of 2 mins expiry. Since I have no 2 mins option, here comes my adaptation. I don't place the trade that min. But the next min with 60 secs. I know it weakens the strategy but will it close in the money? If 120 gives 80% win of say 20 trades. will this modified trade give at least 65 - 70%?

    Regards

    luder
    Well, let's start at the beginning. Screenshot looks amazing but it's cherry picked; in a strong trend things will not be so smooth. But then again, a 1 minute chart is not known for a lot of trends. Anyway, especially because you work 12 hours a week, maybe it's better to go for less trades, on a higher time frame. But you will decide that.
    What do you mean by a yes or no type indicator or strategy? How I see things, all mechanical strategies are Yes or No: either all conditions are met and Yes, we enter a trade or they are not met and No, we dont enter a trade. From that perspective, the Unnamed Strat is a Yes or No type of strategy (the ADX level is not clearly defined by teh original author, but other than that everything is mechanical).

    There's no way you can make me angry by asking the second question and I have nothing against guys who use 60 sec options. After all, if it works and makes money consistently, I would use any 60 sec strategy. Now about the expiry and your suggestion of waiting one 1min candle before entering (after the signal was generated): let's use teh following example (big numbers so it's easier):

    Original version
    Close of Candle 1: price is 1.3500 and a signal according to rules is generated - you open a Put with 120 sec expiry
    Close of Candle 2: price is 1.3490 and your trade is open and In teh Money
    Close of Candle 3: price is 1.3495 and your trade expires - result: In the Money

    Suggested version
    Close of Candle 1: price is 1.3500 and a signal according to rules is generated- you should enter with a 120 sec expiry but you wait one more candle
    Close of Candle 2: price is 1.3490 and now you enter with a 60 sec expiry
    Close of Candle 3: price is 1.3495 and your trade expires - result: Out of the Money

    In teh example above you can clearly see that waiting for another candle can drastically change the outcome of your trade. Of course, sometimes this can work in your favor but we must prepare for teh worst case scenario.

    "I know it weakens the strategy but will it close in the money? If 120 gives 80% win of say 20 trades. will this modified trade give at least 65 - 70%?"
    My friend, I have absolutely no idea. To answer this question at least a few months of backtesting are necessary. I dont even know if teh original version gives a 80% or a 60% win rate.

    The thing is that I dont backtest for extended periods of time the strategies I review. If I feel something could work, I write an article on it and I explain it as well as I can. Then, if people like it they use the strategy, backtest, trade demo, etc. The outcome of the example above is highly influenced by luck, market conditions, broker execution, etc, etc, etc. There are too many variables involved for me to give an answer.

    Suggestions:
    try a 5 min chart with a 10 min expiry if available
    try a 15 min chart with a 30 min expiry if available
    try a 1 min chart with a 1 min expiry

    Let me know if you think of something else.
    Cheers.

  5. #5
    Master Member Bogdan G's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    This one really looks a lot like my own strategy for 2m, I trades successfully last year. Difference: I don't use Bollinger Bands but a BMA indicator and don't use ADX. However, I'm going to combine them and look what comes out...

    Problem with short term trading like this, is how trustworthy and accurate your broker is in pricing and the payout they use. In the tests I run, this would make a huge difference in being profitable or not.

    What about 'BosBolli ADX' ?
    Haha BosBolli ADX.... we should open a poll once we have more suggestions for a name.

    Broker accuracy and reliability will make or break this strategy, you are right.

  6. #6
    Master Member SeasaltMcFish's Avatar
    Couldn't find the ADX in my indicator list. Does it have another name in MT4?

    There are trends on the 1m charts, a lot of them! You can avoid them by not trading within -30 to +120 minutes from heavy news items (180 minutes with important speeches) or on meeting days like ECOFIN or G8 etc.

    I took a quick look on the Bollinger option, but it didn't look attractive on first sight (too many false signals). These kind of systems only work in slow ranging markets.

  7. #7
    Master Member SeasaltMcFish's Avatar
    @luderalison

    I made a test of more than 4000 trades on 60sec with a system that looks a lot like this one. My advise: stop trading 60 sec, especially if your broker has a payout on 60s that is lower than 74% for ITM. Variance will be huge and there's a good chance your broker is not accurate enough in pricing for trading ultra short term.

    You say you lost half your account now. In that case, I would advise your to take a more conservative strategy on longer term exp. times.

    Ultra short trading is fun and exiting, but also very vulnerable to tilt moves (losing control and starting to gamble) and even a small difference in pricing with your broker, can ruin your trades.

  8. #8
    Master Member Bogdan G's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    Couldn't find the ADX in my indicator list. Does it have another name in MT4?
    Average Directional Movement Index

  9. #9
    Master Member Bogdan G's Avatar
    Yea, I think you are right when saying there are trends on 1m charts, just that I dont really look at those moves as trends. What looks like a good trend on 1m could be a 10 pip move on 15 min.

  10. #10
    Master Member SeasaltMcFish's Avatar
    Thanks

    Correct about trends. That's why restraining from trading during heavy news events is important for a reversal strategy like this one.

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