Profitable trading strategy: EMA+RSI consists of three exponential moving averages and an indicator - relative strength index.
For a while I was a forex trader, but my stay in this currency market lasted until I discovered binary options.
Since that day, I earn many times more, because this financial instrument gives me a really big return.
But the focus of my success is also in the fact that in binary options I continue to use one of my favorite Forex strategies, namely: EMA + RSI, the effectiveness of which in binary trading turned out to be significantly higher, apart from of course break even strategy.
It provides me with +1500% of income per year, so this trading strategy is worthy of being told about it to you.
About strategy trading: EMA + RSI
The first conclusion that I made for myself in option trading is that binary options trading should only take place on a platform with professional technically developed functionality.
This should be not only an indicator that the broker does not have fraudulent schemes, but also the ability to use indicator strategies, which, mainly, provide high performance in trading.
Chosen by me trading broker provides its own platform that allows you to create and use indicator strategies thanks to a set of technical indicators built into it.
In addition, this platform works without slippage and freezing, and the brokerage company itself allows you to trade on very convenient terms - with an initial deposit of $100 (plus the availability bonus program or risk-free transaction), with a minimum transaction value of $5.
With such technical support and trading conditions, you can really quickly reach high profitability.
To set up an indicator tactic template, you first need to open an account with a broker, then apply on the chart the RSI indicator with changed levels - 30 and 70, as well as the EMA indicator, while it will be needed in three forms:
- with Exponential type, frequency 3
- with Exponential type, frequency 5
- with Exponential type, frequency 13
And in order to clearly distinguish all moving averages, it is better to assign a separate color to each moving average.
After that, you should get something like this pattern on the chart:
At the same time, the signals of these indicators will provide you with a guaranteed closing of approximately 80% trading operations into profit. By the way, the strategy is designed for an average trading pace, which will allow you to take more balanced steps.
Trading signals for the RSI + MA strategy
Transactions UP a standard binary option occurs according to the following signal from the indicators:
1. The moving averages of the MA indicator 3 and 5 of the short period crossed upwards the MA moving average of period 13.
2. The RSI indicator line exited the oversold zone in the direction of the growing trend.
After such signals, it is necessary to conclude a deal, predicting an increase in the value of the asset:
1. The moving averages of the MA indicator 3 and 5 of the short period crossed down the MA moving average of period 13.
2. The RSI indicator line exited the overbought zone in the direction of the falling trend.
After such signals, it is necessary to conclude a deal, predicting a decrease in the value of the asset:
As you can see, it is quite easy to determine such signals from indicators. At the same time, I would like to note the stability of the strategy in terms of generating only unambiguous signals with a forecast of the market movement.
Expiration of trading positions
The RSI + EMA trading tactics allows you to choose the expiration for transactions from a fairly wide range.
The strategy demonstrates excellent stable performance with trade expiration from 1 to 5 minutes.
However, the system also demonstrates similarly high results on 15-minute options. However, in this regard, you will already be able to independently determine the most comfortable time for trading.
It is best to trade following the classic rules of money management and risk calculation.
For example, for testing a strategy or just for beginners, it is better to trade transactions of the lowest value - $5.
But having a more decent amount of trading capital, you can increase the cost of each transaction up to 3-5% of the deposit amount. So you will increase the amount of profit received, but at the same time maintain a minimum level of financial risks.