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The “Double” Trading Strategy

Effective trading strategies rely on a combination of technical indicators that provide accurate signals to traders. One approach is to combine signals from multiple indicators to increase the accuracy of the trading system. In this regard, the “Double” strategy, which combines trend indicators and oscillators, has gained popularity among traders seeking consistent profits. Let’s explore this strategy in more detail.

Some argue that the most precise trading strategies are those that use signals from multiple indicators simultaneously, and it is difficult to disagree with this viewpoint. However, there is one caveat to keep in mind: trading systems that combine trend indicators and oscillators tend to be particularly effective. This is the foundation of the “Double” strategy, which will be discussed below.

The “Double” strategy relies on two widely used indicators – the EMA adviser and the Stochastic oscillator. The IQ Option trading terminal makes it easy for traders to implement any strategy with a wide variety of tools.

How to prepare to trade with the “Double”?

To maximize the effectiveness of the Double strategy, it is important to select assets with high volatility. This is because the Stochastic oscillator is not effective in sideways trends and moving averages can generate a lot of false signals. Therefore, currency pairs that include the euro, pound or dollar, as well as cryptocurrencies (with caution due to high volatility), are good choices.

Any chart type can be used, as the indicators will do most of the work, and trading should be conducted on lower timeframes. The strategy uses two exponential moving averages with parameters of 10 and 21, each with its own color. The Stochastic values should be set to 5, 3, 3, which is ideal for lower timeframes. With the workspace prepared, traders can begin searching for signals.

How to trade with the “Double?

It is important to emphasize once again that for the Double system to work effectively, a clear trend must be present on the chart. This is because the primary signal comes from the intersection of the moving averages, which can produce false signals in a flat market. Therefore, it is essential to confirm the presence of a trend before trading. Even without tools, a strong trend can be easily identified visually. However, if you are new to trading digital contracts, you can use the EMAs that were set on the chart to determine the trend. If the price is above the line, the trend is up, and if the price is below the line, the trend is down.

To analyze the trend, the EMA 21 is recommended. As for the Stochastic oscillator, we will use the traditional overbought and oversold zones, located above the 80 level and below the 20 level, respectively.

Purchase CALL option when the oscillator lines have exited the 0-20 zone, and the 10-period moving average has crossed over the 21-period moving average upwards.

Purchase a PUT option when the oscillator lines have exited the 80-100 zone, and the 10-period moving average has crossed over the 21-period moving average downwards. This would indicate a potential downtrend and a good opportunity to sell the asset.

For traders who choose to execute the strategy with a five-minute trading time frame, the expiration period should be set at 15 minutes. It’s worth noting that the “Double” strategy has shown a performance rate of 85%, which is quite high. It is important to remember to apply proper deposit management rules and avoid risking more than 3% of the total balance on a single trade.

By using this strategy, traders can increase their chances of obtaining a stable profit.

In conclusion, the “Double” strategy has proven to be effective for traders looking to enhance their trading skills. By following the rules and guidelines of the strategy, traders can minimize their risks and maximize their profits.

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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