What asset should I use?
According to this trading strategy, we can use only the Dow Jones index.
The idea of this binary options strategy
The strategy based on monitoring the Dow Jones morning chart and on the assumption that the trend of price movement is maintained for 10 minutes, until the publication of morning news bulletins.
What indicators should I use?
To implement the strategy, "Dow Jones impulse" indicators are not needed.
How often can I use the strategy?
You can use this strategy every day (except weekends), entering the market at 9:50 (Eastern Standard Time, EST). During one year, you can make up to 200 transactions if market conditions allow.
The trading system is quite simple and involves only two scenarios:
If at 9:50, the price is higher than at time of opening (i.e.,9:30), you must buy aCALL option and choose an expiry time of 10 minutes.
If at 9:50 the price is lower than at time of opening, buy a PUT option with the same conditions.
Comments on the strategy
The main prerequisite for this strategy is the traders monitoring the Dow Jones behavior in the morning. The monitoring shows this regularity: the tendency of growth or decline in prices persists during 10 minutes before publication of the morning news.
How to develop the strategy?
You can also try to apply this strategy, "Impulse Dow Jones 10 minutes,” to other popular indices, such as the Japanese Nikkei or the NASDAQ; however, there isn’t the regularity for these indices. Moreover, these indices don’t open simultaneously with Dow Jones.
At 9:50, you must open a Dow Jones price chart. You can use any platform. For example, MetaTrader4 is perfect.
Find Dow Jones chart
Compare current prices with prices at9:30 and purchase options in accordance with the rules described above.
If your option was unprofitable and you lost money, you can try to compensate the loss by buying the same option. However, you shouldn’t get involved after 10:15 because such trades turn into a pure lottery.