A binary option gives you two choices: a yes or no. Either you select an option that provides you with a fixed amount or an option that gives you nothing at all. Binary options work on the instincts. If your gut says to go with it, you go with that decision. However, doing this will not result in profitability. As a trader, one should utilize this easy and quick approach smartly.
Most Accurate Binary Options Strategy
It may not seem substantial to have a strategy if one wants to use binary options. Nevertheless, if your goal is profitability, then you need to use the most accurate binary options strategy to reach a win-win situation. Below are some of the binary options strategies that you can use:
Rainbow Strategy is about mixing sophisticated predictions with simple signals. This binary options strategy is perfect for traders who want to gain profits by a successful, proven strategy. It is a strategy based on three moving averages. Moving averages that utilize multiple periods for their calculation utilize more time to react to price movements than moving averages that use lesser periods comparatively.
When you observe that the moving averages are in the same direction as the price movements, you should know that now will be the ideal time to put in your money. You can use more than three moving averages; however, if you want to keep things simple, you should stick to three.
When opting for a rainbow strategy, you will get three different periods to invest:
• The right away investment where you have to invest as soon as the averages align in the right direction
• Wait a period to invest
• Wait two or more periods to invest
End of the Day Strategy
End of the day strategy focuses more on time to look for the signals rather than which signals to look for. As the name explains, the best time to look for signals is at the end of the day. The reason behind this is that at the end of the day, the traders are almost closing their trading, and the stock exchange indicates different new characteristics. Overnight, anything can happen, which this why one should keep a track at the end of the day.
Many traders argue that day trading is a more viable option because of the unpredictability that can arise overnight. Nevertheless, this has created an absence in overnight trading, and not much happens. As such, this is the most accurate binary options strategy one should focus on.
Martingale Money Management Strategy
The Martingale Money Management Strategy focuses on recovering whatever losses one incurs as soon as possible. In this strategy, a trader needs to invest their money in large amounts of trades following a losing trade.
However, one problem with this binary trading option is that the investment can also result in a losing streak, which is terrible if you want to maximize your profitability. One thing to keep in mind is that everything in binary options depends on your instincts. If you wish to be sure of the accuracy and the predictability of the losses, you need to be sure of yourself.
The 5-minute Strategy revolves around trading under 5 minutes of expiration dates. When you talk about this binary options strategy, specific questions might arise in your mind. To answer all these questions in one collective answer: use your instincts smartly. There are hundreds of possibilities that have a probability of happening in those 5 minutes. As a trader, you need to learn how to identify these possibilities and act on your instinct. As short as a 5-minute strategy sounds, its expiries can be as long as possible.
5 Minute Strategy: The News
If you are not sure of a 5-minute strategy that relies on mathematical predictions and calculations, then you should go for trading the news, which is also a 5-minute strategy. We know that in any given market, high-impact news is bound to create shock waves that can increase the risk. There are specific reactions, as well. You can use these reactions to exchange the highs and lows options, one-touch option, or any other option depending on how much risk you can tolerate.
The Expiry Strategy
If you have been trading in the market for a long time, you will know how to judge and predict the duration of the given signal. To create an accurate binary options strategy, the first step is to identify the type of message that has been given to you. Five kinds of signals can be offered:
• trend line bounce
• stochastic crossover
• shift in momentum
• candlestick pattern
• a combination
Once you have identified the type of the signal, you check the strong and the weak signals. You take an average of the number of the signals and match the expiry that concedes with it.
Before you get into binary trade options, there is one thing you need to understand. Binary trading options all depend on your instincts and predictions. If you want the most accurate binary options strategy, you need to analyze all of them. Those, as mentioned above, are just a few binary trading options strategies that we think are close to being accurate.
In our opinion, as a beginner or an expert, the most accurate binary options trading strategy is the End of the Day Strategy. It has less risk of having losses and more chance of maximizing profitability if you act smartly.