No need to worry about how many pips we could grasp in the process. Binary options trading is a form of derivatives trading that has a fixed profit or loss. Trading binary options is simple.

All you need to do is ask yourself a simple yes or no question. Will the price of the underlying asset be worth more than the strike price at the expiration date?

Essentially, we can trade binary options for any type of instrument. Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills. It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction.

This will determine our success in trading binary options. The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option. Read more about call options vs put options. Third, we need to determine what the most critical aspect of trading binary options is. Being wrong means you incur a loss. We have made a nice infographic that highlights the four steps on how to master binary options trading.

If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you. Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably. Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings.

We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold conditions, we get more accurate day trading signals. By changing the RSI overbought and oversold line, we have eliminated the noise. The 1-minute binary options or the seconds time frame is the best chart for trading binary options. In other words, the best binary options expiration time is the 60 seconds time frame. We recommend highlighting the starting point on your charts.

And the ending point of your candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low. When you count the 50 candle low, you should always start from the current candle.

Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low. Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse. Keep in mind that in order to move to the next step, we need the 50 candle low. We also need an RSI reading below 20 to happen at the same time.

We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader. When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is.

What we need to see here is for the price to continue moving lower after the 50 candle low was identified. At the same time, we need the RSI indicator to move higher in the opposite direction. If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal. The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line.

The first candlestick formation that breaks above this high is your trade entry signal to buy a second Call option. Before learning how to make money trading binary options you need a great Binary Options broker. Secondly, you need a strategy-based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient.

We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading. The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades.

Don't forget to read our guide on regular options trading for beginners here. Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.

Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. You from tradingstrategyguides, could you create an indicator with these settings for us binary traders.

That way we would be better able to migrate to Forex. remembering that I am a loyal customer of yours and I pray that one day you can help us with this. And thank you so much for that knowledge. Does the starting point and ending point of your 50 candle low have to be the same color candlestick too? Thanks for the article.

I had a quick question, what exactly do you mean on 5 when you say ''strategy based trading technique to reveal the market direction''?

Are you referring to building a strategy multi-step indicators in a trading platform? The article on binary option trading strategy was useful. Thanks sharing for valuable information about binary options. This step-by-step guide will show you an easy way to trade with the MACD indicator. Get the free guide by entering your email now!

Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Run a backtest video 5. Run a forward test 6. FAQ 7. This article shows how to build a Binary Options strategy and test it in Strategy-Tester of Metatrader 4 with Binary-Options-Strategy-Tester utility. By default Strategy-Tester of Metatrader 4 can test Expert Advisors and Indicators against historical data, but it cannot handle Binary Options with expire times.

As I need a possibility to test Binary Options strategies automated in Strategy-Tester of MetaTrader 4, the Binary-Options-Strategy-Tester was build as a utility to fit those needs. This is a step by step example how to build a Binary Options strategy stored in an Indicator marked as red in image above to communicate through Binary-Options-Strategy-Library marked as green in image above with the Binary-Options-Strategy-Tester marked as blue in image above , to place virtual orders and count their results with backtests and forward tests.

Please keep in mind: Backtesting with historical data will never represent the real future, but it might give you an approximate value to get your strategy more stable. The quality of your backtest will depends on your historical data. Therefore it is strongly recommended to use a set of hight quality data! Download and purchase Binary-Options-Strategy-Tester utility from marketplace: Test-Framework to test Binary Options strategies in Strategy-Tester of MetaTrader 4.

Why a purchased version of Binary-Options-Strategy-Tester utility is needed? A Binary-Options strategy has to call a function of the Binary-Options-Strategy-Tester via Binary-Options-Strategy-Library to place the virtual trades. Related to the license concept of MQL4 this only works if the product has a working license.

Therefore you have to purchase the product to test Binary Options strategies or this example. Download free BinaryOptionsStrategyLibrary. See Binary-Options-Strategy-Library for more details of the library. Download free KVO. mq4 indicator and place it and the compiled KVO. Now you can go further with section "3. Binary options strategy example" and build the example code by yourself or just download the code of this example below.

Optional download BinaryOptionsStrategyExample. mq4 and place it and the compiled BinaryOptionsStrategyExample. To compile the needed. ex4 files open the. mq4 files KVO. mq4 and BinaryOptionsStrategyExample. mq4 - NOT Binary-Options-Strategy-Library. mqh in MetaQuotes Language Editor and click on button "Compile" or just restart your MetaTrader 4 after these files are stored in the described folders and MetaTrader 4 will do this automatically for you. The following steps will guide you throgh an example how to build an example Binary Options strategy stored in an Indicator to communicate with Binary-Options-Strategy-Tester.

You can build it by yourself or just download the code of the BinaryOptionsStrategyExample. Please note: This strategy is not a profitable Binary Options strategy! It is just an example how to build a strategy in an indicator to communicate with the Binary-Options-Strategy-Tester utility.

Of course you have to build a profitable strategy by yourself. But as you will see, this utility will help you to test and improve your Binary Options strategy. First of all we have to define the strategy and the changable values input parameters. Let us say we like to create a simple Moving Average cross strategy with one "fast" and one "slow" Moving Average to trade on next candle after they have crossed each other. Let us further say, we like to choose values for "MA averaging period" fast and slow and for "applied price" as well as for the "averaging method".

Other values like symbol, timeframe and shift depends on the testcase e. the symbol the tester runs on and should be set automatically. Therefore we basically need the following variables for a Moving Average:. As we need two Moving Averages to check their crosses, we need the following input parameters for the strategy example with some default values:.

You need to build an indicator which stores your Binary Options strategy to drag it on the chart where Binary-Options-Strategy-Tester is running on. The MQL Wizard will appear. Select "Custom Indicator" to create an empty indicator and click on "Next":. Enter the name, copyright and link of the strategy as well as the input parameters with their types and default values initial values by clicking "Add"-Button and press "Next":.

On tab event handlers select checkbox "OnCalculate" as we need this event to check for our strategy on every tick. Press "Next":. On tab drawing properties select checkbox "Indicator in seperate window" as we need a seperate window to print out the debug values. Press "Finish":. The initial input parameters are created with the MQL Wizard see 3.

In addition comments for the input parameters are added to show the comments as labels instead of variable names:. With this modifications the input parameters provides a dropdown with the available values to select as well as "labels" for the input parameters:.

If you have downloaded and stored the library see 2. Add a call to CallStrategy -function in OnCalculate of your strategy indicator to call the strategy on every new tick. CallStrategy is provided by Binary-Options-Strategy-Library you have inlcuded like discribed above:.

In CheckMyRules -function, which is called through the Binary-Options-Strategy-Library, the conditions for the strategy are implemented and trades are placed through PlaceTrade -function of the library. Values of both Moving Averages are temporarilly stored in variables to compare them in if-conditions while the values of the Moving Averages are taken from the helper-function GetValuesForMA :.

The function PrintDebugValue privides a possibility to print out debug values while the tester is running. In the example below the values of the Moving Averages are printed out with their variable names as labels:. In addition an external indicator which stores its values in buffers can be accessed for the Binary Options strategy, even if only the compiled ex4-file exists.

Download the KVO. ex4 file open KVO. mq4 in MetaQuotes Language Editor and click on button "Compile" or just restart your MetaTrader 4 after the file is stored in the described folder and MetaTrader 4 will do this automatically for you.

First we have to identify the relevant buffers which stores the relevant values to access. Therefore we press the button "Data Window" in MetaTrader 4 to show all available buffers of the used indicators and drag the KVO indicator on a chart. By hovering the cross over the chart press mouse-wheel on chart to bring up the cross the buffer values of the indicator of the hovered timeperiod will be shown in data window:.

The data window labels tells us the second buffer value of the indicator stores the signal line. If buffers of indicators did not have labels, we can find the right one by comparing the buffer values with the displayed value under the cross in the chart and indicator. Next we have to know all input parameters of the external indicator we like to access.

By draging the indicator on a chart, we see all input paremeters:. Let us further say, we like to access the indicator with its default values: 34, 55 and We use a helper function based on iCostum , wich provides us the possibility to get the values of the indicator with parameters for buffer and shift, while shift 0 will be the value of the current candle, shift 1 the value of the last candle, shift 2 the value of the second to last candle and so on.

In addition we temporarilly store the values of the indicator buffer and enhance the if-condition of the strategy:. It is also possible to enhance the input parameters of our strategy indicator with the values for the used KVO indicator and set the values in helper function by variables.

As this tutorial should be just an example and "as simple as possible", this variant is not shown. Below you will find the complete code of the Binary-Options-Strategy-Example from all the steps above, ready to drag on the Binary-Options-Strategy-Tester to test and see the results on chart:. The following video shows how to run a backtest of your Binary Options strategy in Strategy-Tester of MetaTrader To do a forward test simply drag the Binary-Options-Strategy-Tester utility and your strategy indicator on your demo or live chart of your broker instead of using it in Strategy-Tester:.

Question: Why do you show an example of a non profitable Binary Options strategy? Answere: This is just an example how to build a strategy in an Indicator to communicate with the Binary-Options-Strategy-Tester utility in marketplace to test and improve your strategy. Question: Binary-Options-Strategy-Tester stops after the exact amount of losses with error "Array out of range". Answere: Binary-Options-Strategy-Tester can rise an error after x losses to stop Tester and to analyse the situaion on the chart.

If you do not want to, just switch off the option in settings. Question: No arrows appear on chart after I draged my indicator with a working strategy on it.

Introduction 2. Installation 3. Binary Options strategy example 3. Define Binary Options strategy 3. Create Binary Options strategy 3. Input parameters 3. Include Binary-Options-Strategy-Library 3. Add CallStrategy 3. Implement CheckMyRules and helper-function 3.

Print out debug values 3. Use of external Indicators ex4 files 3. The complete code 4. Run a backtest video 5. Run a forward test 6. FAQ 7. This article shows how to build a Binary Options strategy and test it in Strategy-Tester of Metatrader 4 with Binary-Options-Strategy-Tester utility. By default Strategy-Tester of Metatrader 4 can test Expert Advisors and Indicators against historical data, but it cannot handle Binary Options with expire times.

As I need a possibility to test Binary Options strategies automated in Strategy-Tester of MetaTrader 4, the Binary-Options-Strategy-Tester was build as a utility to fit those needs.

This is a step by step example how to build a Binary Options strategy stored in an Indicator marked as red in image above to communicate through Binary-Options-Strategy-Library marked as green in image above with the Binary-Options-Strategy-Tester marked as blue in image above , to place virtual orders and count their results with backtests and forward tests. Please keep in mind: Backtesting with historical data will never represent the real future, but it might give you an approximate value to get your strategy more stable.

The quality of your backtest will depends on your historical data. Therefore it is strongly recommended to use a set of hight quality data!

Download and purchase Binary-Options-Strategy-Tester utility from marketplace: Test-Framework to test Binary Options strategies in Strategy-Tester of MetaTrader 4. Why a purchased version of Binary-Options-Strategy-Tester utility is needed? A Binary-Options strategy has to call a function of the Binary-Options-Strategy-Tester via Binary-Options-Strategy-Library to place the virtual trades.

Related to the license concept of MQL4 this only works if the product has a working license. Therefore you have to purchase the product to test Binary Options strategies or this example.

Download free BinaryOptionsStrategyLibrary. See Binary-Options-Strategy-Library for more details of the library. Download free KVO. mq4 indicator and place it and the compiled KVO. Now you can go further with section "3. Binary options strategy example" and build the example code by yourself or just download the code of this example below. Optional download BinaryOptionsStrategyExample.

mq4 and place it and the compiled BinaryOptionsStrategyExample. To compile the needed. ex4 files open the. mq4 files KVO. mq4 and BinaryOptionsStrategyExample. mq4 - NOT Binary-Options-Strategy-Library.

mqh in MetaQuotes Language Editor and click on button "Compile" or just restart your MetaTrader 4 after these files are stored in the described folders and MetaTrader 4 will do this automatically for you. The following steps will guide you throgh an example how to build an example Binary Options strategy stored in an Indicator to communicate with Binary-Options-Strategy-Tester.

You can build it by yourself or just download the code of the BinaryOptionsStrategyExample. Please note: This strategy is not a profitable Binary Options strategy!

It is just an example how to build a strategy in an indicator to communicate with the Binary-Options-Strategy-Tester utility. Of course you have to build a profitable strategy by yourself. But as you will see, this utility will help you to test and improve your Binary Options strategy.

First of all we have to define the strategy and the changable values input parameters. Let us say we like to create a simple Moving Average cross strategy with one "fast" and one "slow" Moving Average to trade on next candle after they have crossed each other.

Let us further say, we like to choose values for "MA averaging period" fast and slow and for "applied price" as well as for the "averaging method". Other values like symbol, timeframe and shift depends on the testcase e. the symbol the tester runs on and should be set automatically. Therefore we basically need the following variables for a Moving Average:. As we need two Moving Averages to check their crosses, we need the following input parameters for the strategy example with some default values:.

You need to build an indicator which stores your Binary Options strategy to drag it on the chart where Binary-Options-Strategy-Tester is running on. The MQL Wizard will appear. Select "Custom Indicator" to create an empty indicator and click on "Next":. Enter the name, copyright and link of the strategy as well as the input parameters with their types and default values initial values by clicking "Add"-Button and press "Next":.

On tab event handlers select checkbox "OnCalculate" as we need this event to check for our strategy on every tick. Press "Next":. On tab drawing properties select checkbox "Indicator in seperate window" as we need a seperate window to print out the debug values.

Press "Finish":. The initial input parameters are created with the MQL Wizard see 3. In addition comments for the input parameters are added to show the comments as labels instead of variable names:. With this modifications the input parameters provides a dropdown with the available values to select as well as "labels" for the input parameters:. If you have downloaded and stored the library see 2.

Add a call to CallStrategy -function in OnCalculate of your strategy indicator to call the strategy on every new tick. CallStrategy is provided by Binary-Options-Strategy-Library you have inlcuded like discribed above:. In CheckMyRules -function, which is called through the Binary-Options-Strategy-Library, the conditions for the strategy are implemented and trades are placed through PlaceTrade -function of the library.

Values of both Moving Averages are temporarilly stored in variables to compare them in if-conditions while the values of the Moving Averages are taken from the helper-function GetValuesForMA :. The function PrintDebugValue privides a possibility to print out debug values while the tester is running.

In the example below the values of the Moving Averages are printed out with their variable names as labels:. In addition an external indicator which stores its values in buffers can be accessed for the Binary Options strategy, even if only the compiled ex4-file exists.

Download the KVO. ex4 file open KVO. mq4 in MetaQuotes Language Editor and click on button "Compile" or just restart your MetaTrader 4 after the file is stored in the described folder and MetaTrader 4 will do this automatically for you.

First we have to identify the relevant buffers which stores the relevant values to access. Therefore we press the button "Data Window" in MetaTrader 4 to show all available buffers of the used indicators and drag the KVO indicator on a chart. By hovering the cross over the chart press mouse-wheel on chart to bring up the cross the buffer values of the indicator of the hovered timeperiod will be shown in data window:. The data window labels tells us the second buffer value of the indicator stores the signal line.

If buffers of indicators did not have labels, we can find the right one by comparing the buffer values with the displayed value under the cross in the chart and indicator. Next we have to know all input parameters of the external indicator we like to access. By draging the indicator on a chart, we see all input paremeters:. Let us further say, we like to access the indicator with its default values: 34, 55 and We use a helper function based on iCostum , wich provides us the possibility to get the values of the indicator with parameters for buffer and shift, while shift 0 will be the value of the current candle, shift 1 the value of the last candle, shift 2 the value of the second to last candle and so on.

In addition we temporarilly store the values of the indicator buffer and enhance the if-condition of the strategy:. It is also possible to enhance the input parameters of our strategy indicator with the values for the used KVO indicator and set the values in helper function by variables.

As this tutorial should be just an example and "as simple as possible", this variant is not shown. Below you will find the complete code of the Binary-Options-Strategy-Example from all the steps above, ready to drag on the Binary-Options-Strategy-Tester to test and see the results on chart:. The following video shows how to run a backtest of your Binary Options strategy in Strategy-Tester of MetaTrader To do a forward test simply drag the Binary-Options-Strategy-Tester utility and your strategy indicator on your demo or live chart of your broker instead of using it in Strategy-Tester:.

Question: Why do you show an example of a non profitable Binary Options strategy? Answere: This is just an example how to build a strategy in an Indicator to communicate with the Binary-Options-Strategy-Tester utility in marketplace to test and improve your strategy.

Question: Binary-Options-Strategy-Tester stops after the exact amount of losses with error "Array out of range". Answere: Binary-Options-Strategy-Tester can rise an error after x losses to stop Tester and to analyse the situaion on the chart. If you do not want to, just switch off the option in settings. Question: No arrows appear on chart after I draged my indicator with a working strategy on it. What happened?

Answere: You have to enable "Allow external expert imports" on the "common" tab while you drag your strategy-indicator on the chart log message will show an error in this case.

One needs to analyze the market movements of an asset in order to move ahead with this strategy. You just need to give in your time and mind to analyze what is best for you! How to win Binary Options every time? If we believe the current value will go up in the near future, then we buy a Call option. I had a quick question, what exactly do you mean on 5 when you say ''strategy based trading technique to reveal the market direction''?

Categories:

• Forex
• Binary Options online
• Forex Brokers
• Forex Bitcoin
• Binary Options