Innovation is a reliable strategy for binary options

Innovation is a reliable strategy for binary options

One of the most reliable and well-known indicators in stock trading is Moving Average. It is this indicator that may not only be found in the majority of indicator trading strategies, but also in many other effective technical analysis tools. Today, we are introducing you to the trading system, the main component of which is this technical tool. The “Innovation” technique is a multiple indicator approach of market forecasting, allowing you to draw a profit of more than 85% of transactions.

Innovation” strategy of moving averages for binary options: technical parameters

Actually, the strategy not only uses Moving Average, but also the RSI oscillator, filtering trade signals, and the Moving Average is used itself in two types of moving, Exponential and Triangular, and in six periods versions at once. Many do not understand why there are two different types of Moving Average, and a whole 6 versions of lines. The focus is that the exponential MA better captures current changes in market trends in the short term, while triangular MA, performing double data averaging, further smooths out all market noise and allows you to see future trend reversals. The RSI oscillator is used in the system to confirm that the market has actually turned, and that the new trend will last for a sufficient amount of time for the trader to be able to close a transaction with a profit.

At first glance, this strategy template format looks complicated, but if you trade with the system on a professional trading platform, building a template will not take more than a minute. To show you how to work with this trading strategy, we have chosen the Binomo broker terminal, because its platform is equipped with an integrated set of indicators and the ability to apply to an unlimited number of automated tools to the graph.

So, to build a template of our strategy, from the indicator set we establish the following range of tools on the graph:

  • EMA with parameters 10, 5, 3 (Exponential type MA) – leave color of  moves red;
  • TMA with parameters 25, 30, 35 (Triangular type MA) – set color of  moves to blue;
  • RSI with period 35 and 50/50 extreme marks.

We recommend choosing M1 as the time frame for the graph, and trading assets with a pronounced trend. The working system template should look as follows:

Trading on binary options with the “Innovation” strategy

The whole trading process by this method consists of determining the trade signals which should appear at an intersection of red EMA moves and blue TMA moves in a certain direction and the breakdown of the trend line of RSI level 50 with identical direction.

A trade transaction with a forecast of increase in value occurs when:

  • the EMA profit red lines break TMA blue lines in an upward direction;
  • on the RSI scale is a breakdown of move trend level 50 in an upward direction.

Press the UP key on the platform immediately after the formation of a trading signal:

A trade transaction with a forecast of decrease in value occurs when:

  • the EMA profit red lines break TMA blue lines in an low direction;
  • on the RSI scale is a breakdown of move trend level 50 in a downward direction.

Press the DOWN key on the platform immediately after the formation of a trading signal:

It is worth noting that concluding a transaction is only necessary when the indicator generates an unambiguous signal of a pronounced trend. In this case, the effectiveness of this method attains 87% positive statistics. Of course, the cyclical nature of this technique cannot be considered high, but its signal guarantees an upcoming reversal of the market that allows you to trade more confidently.

Expiration and money management

Given the period of relevance of the trading signal and the working timeframe graph, you need to conduct transactions with a term of expiration of 5-10 minutes. If you decide to trade with this system on second time frames, which is also possible when trading by this method, the expiry period should be reduced to 3-5 minutes.

And in terms of competent risk management, the maximum option amount should not exceed 5% of the total deposit. Follow this and you will never enter a slump, even after a series of losing trades. If you have very modest capital, we advise trading in 1 dollar lots – you can do this with Binomo.

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