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Simple strategy with one indicator which I want to share with you

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Hi guys.Today, I want to explain to you the strategy that I use to trade 60 second options. I've read various strategies on this site, and on other sites, but I think this strategy is easier and more convenient, and most importantly, profitable. This strategy requires patience because just a few deals are made per day, but the deals madeare "very accurate."

This strategy uses only one indicator: Bollinger Bands set for the period 20 and the deviation 3.
This strategy works on all time frames.

We need the candle to close outside the upper or lower Bollinger bands.
If the bullish candle closes outside the upper limit of the indicated Bollinger bands, we will enter the market with the option PUT because the next candle will be bearish.

If the bearish candle closes outside the lower limit of the indicated Bollinger bands, we will enter the market with the option CALL because the next candle will be bullish.

Please note that when I say the candle is completely closed outside the Bollinger band, I mean both corners of the candle should be outside of the Bollinger Bands.

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Comments

Zoran D.'s picture

I tried this strategy sometimes. It's profitable and simple. However, using this strategy with any timeframe you limit your your profit compared to ohter strategies. If you check the quotes of GBP/USD at 30M timeframe, you'll see that the candle closes outside the upper or lower band just once per 1-2 days. So you can buy just 1-2 options per 2 days. So this strategy is poor.

Zoran D.
@FreemanZ's picture

If you read this BO strategy description, you should notice that it's written that "This strategy requires patience because just a few deals are made per day, but the deals madeare "very accurate.""
And as you see the pic, it's the chart of EUR/USD H1. You can take any chart, not only your GBP/USD or EUR/USD, and you'll be sure that candle closes outside the band really rarely in any timeframe and asset.
I don't claim this strategy to be the best. I use this strategy because it's really simple.

@FreemanZ
Zoran D.'s picture

I think the biggest advantage of this BO strategy that it can be used by experienced trader and newbie. Trader can know just Bollinger Bands from all the indicators and it's enough to trade binary options and get profitable.

Zoran D.
SanPaulo's picture

I see the big advantage of this strategy that there is no nesessary to use Metetrader for this strategy. Many BO brokers (24option, grandoption, iq option) allow use Bollinger Bands with their trading platforms. And it eases the trading.

SanPaulo
@FreemanZ's picture

Yes, you are right. I forgot to say about it in my description. Sometimes there is difference between MT price and price of your broker. However, if you use your broker's trading platform, the possibility of qoutes difference is excluded.

@FreemanZ
shortex's picture

I use this strategy from time to time. It works 100%. You can check it with any chart and timeframe, Everytime when the candle closes outside the band (don't confuse with the case when only shadow is outside), the next candle is reverse. The candle should close completely outside the Band (2 corners should be outside).

shortex
Masterpip's picture

Hi Freeman, thanks for sharing, you use this strategy only for 60 seconds? can I use it with 5 min trades?

Masterpip
@FreemanZ's picture

You can use this strategy for any options. However, if you trade 5 min options, use 15M timeframe. If you trade 1hour options, use 1H timeframe.

@FreemanZ
riksa18's picture

I am not a fan of 60 sec strategy however I have seen many traders making good returns with 60 sec expiry..

riksa18