Every trading system follows a specific algorithm that uses signals from various technical instruments. It’s commonly believed that using multiple Expert Advisors to confirm trade entry increases the probability of profitability. While this idea makes sense, there are highly profitable strategies that only use two Expert Advisors: MA and the DeMarker.
Strategies that use a combination of moving averages (MA) and the DeMarker indicator are popular among traders because they provide a clear and concise approach to trading. These indicators are widely used because they offer reliable signals that can help traders enter and exit trades at the right time.
These simple algorithms can generate a stable profit in various financial markets, including binary options. In this article, we’ll discuss one such system that is based on the interaction of two popular indicators, MA and DeMarker. These indicators are pre-installed tools in the IQ Option terminal.
Short Intro into the Strategy based on MA and DeMarker
This system’s versatility is one of its main advantages, as it works on any asset without exception, providing traders with a wide range of options. In order to take advantage of the shorter trade time on binary options, it is recommended to choose a minimum timeframe of M1 to M5, allowing traders to buy more contracts in a trading session. Japanese candlesticks or bars are the preferred chart types for this strategy.
The DeMarker oscillator can be used to identify overbought or oversold conditions, and its settings do not need to be changed. Additionally, the MA indicator can be used as a trend line, with a recommended period of 100 for the aforementioned timeframes.
Benefits of the Strategy
One of the main advantages of using this trading system is that it can work well for both novice and experienced traders. The simplicity of the strategy makes it easy to understand and implement, while the accuracy of the signals allows experienced traders to make quick and profitable decisions.
Another benefit of using this system is that it can be used with any binary options broker, as long as they offer the necessary indicators in their trading platform. This means that traders have the flexibility to choose a broker that suits their individual needs and preferences.
The CALL option should be bought if the DeMarker leaves the oversold zone, signaling a price increase, and the chart is above the MA.
The PUT option should be purchased when DeMarker line comes out of the overbought zone, signaling a price decrease, and the chart is below the MA.
The expiration period should be set at the time it takes for three candles to form. So, for instance, if you are using the M5 timeframe, you should buy a contract with a duration of 15 minutes.
In conclusion, trading binary options can be a profitable activity if approached with the right strategy. The strategy based on DeMarker and MA indicators discussed in this article is a simple yet reliable system that can be used by both novice and experienced traders. With its versatility and ability to work on any asset, this strategy provides traders with a wide range of tools to choose from. It is important to remember to set an appropriate expiration period and always exercise caution and risk management when trading.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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