Short term (5-15 min) binary options with CCI+stochastics+MA / RSI+MA
So I've been trading pretty successfully with my current strategy (~65%), but last night I discovered it can be scaled to a 5-15 minute timeframe and work even better. At that level the bigger market trends are less important so I can trade off of a one minute chart exclusively. When the CCI+stochastics is either in overbaught or oversold territory and I see the CCI cross the MA strongly, I can pretty much assume the stochastics will follow within a minute. If this happens, then I look at my RSI+MA to verify the reversal. As long as the recent historical movement has shown a strong wave pattern, I take the option. This has given me about 75-80% success after 20 trades so far, but I need a few more days to confirm it is actually a quality strategy and I'm not just falling prey to an uber winning streak.
Here's what to look for:
Last edited by spiderbyte87; 04-02-2013 at 07:41 AM.
Reason: added chart screenshot
just did an 1.5 hours of trading over my lunch break.. 8/10 trades successful.. Seems to be working well still.. I forgot to mention that the MA on the CCI+stochastics needs to be overbought/oversold as well. So far I've been finding about 10-12 of these an hour.
How do you verify the reversal using RSI+MA? I also trade using OB/OS but I dont know what to say about the settings u use. How did u choose them? 20 trades is far to few if you want to be serious about a strategy and just like u said, it needs a few more days (try backtesting, dont waste money). Also, could you please add more pictures so we can get a good grasp of the exact entry point? Cool, thanks
All I look for with the RSI+MA is to see that the RSI line is moving in the same direction as the CCI+Stochastics+MA. I guess there really isn't a way to "verify" a reversal, but it is a little extra peace of mind that I'm doing the right thing. To get the settings I just played around with it for awhile until I saw a pattern that lined up with reversals, so I'm not sure I can explain the logic behind the actual numbers (not that experienced yet I guess). After I get done trading today I'll try to put something together that explains my process a little better.
Ok so the attached picture should give a good idea of what I look for in a trade.. it is continuing to work at about 75-80% success rate as a write this, and two of my $50 trades just expired strongly ITM. There is some finesse required to pull this off, but so far it looks like a strong strategy. The only other thing I like to watch out for is the economic calendar. I have "news updater" which is a free program that pulls the calendar and warns you when significant economic events are near. I tend to stay away from trading news because it has proven unreliable for me in the past.
Last edited by spiderbyte87; 04-02-2013 at 04:27 PM.
OK I'm finished trading for today.. best profit since I started with binaries: $421 in 5 1/2 hours. Most of it was on $25 trades. I placed $50 when everything lined up perfectly (maybe once an hour). One thing I learned is that the D% line needs to be firmly OB/OS with a curve that indicates it has bottomed out or it becomes a complete toss up. Again I'm going to continue cautiously with this, but so far so good.
All of my losses thus far have been due to improper timeline management. Even though I can consistently catch a reversal at its peak/trough, I still have to make sure my expiry is appropriate for the situation so I don't run into another higher high or lower low. To do this, I look at the recent historical "wave pattern" that has formed through oscillation. I look at the time between highs and lows, and make that my target expiry. I ONLY take a trade when the pair is OB/OS, and ONLY take a trade when the peak/trough has been solidly established and the price is heading the other direction.