Binary options trading strategy on Volkswagen shares

Binary options trading strategy on Volkswagen shares

I propose to consider trading binary options on Volkswagen shares. Usually, stock trading is not very popular among traders, but with a properly assembled strategy, you can make great money on such assets!

This broker engaged in the provision of financial services on the Russian exchange market, once again confirmed that he is an advanced company when he added shares of world-famous corporations - Volkswagen to the list of financial assets of his terminal.

For this reason, the technical potential of market participants that have partnerships with this company in terms of obtaining a stable income has been significantly expanded.

This article will focus on trading tactics on Volkswagen stock quotes, a large company that produces cars with a focus on a wide clientele.

Due to stability and steady fluctuations in the trend, Volkswagen shares have become one of the most popular financial assets for binary trading.

The trading strategy that we are going to talk about gives high trading results. According to statistics, on average, about 85 percent of trading positions in this system are positive.

Read also - A simple and effective strategy for trading in consolidation zones

Broker as a stock trading company

In addition to the possibility of using quotes of financial instruments of the stock market, this broker provides its clients with optimal trading and technical conditions for trading binary options, namely:

  • A trading terminal of our own design with an indicator set and an additional graphic service for plotting different trend levels figures and patterns of market technical analysis;
  • A wide range of options types - standard and turbo;
  • Profitability of options up to 87 percent, and on financial assets of the securities market - up to 75 percent;
  • Loyal conditions for trading on the exchange, allowing you to enter the market with a deposit of $100, rates can be from $5;
  • Funds from a personal account are withdrawn very quickly - within a day.

Thus, technical equipment and trading conditions this financial company make this broker an excellent option for establishing partnerships in binary options trading on exchange-traded stock market assets, which include Volkswagen shares.

What indicators are needed to trade Volkswagen stock?

To build a trading template for the system, we first need to install the following technical indicators for analyzing quotes on the Volkswagen stock trading chart:

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— MACD indicator with classic settings;
— Moving average with a period of 5, construction type Exponential (colored in red);
— Moving average with a period of 10, construction type Exponential (paint black).

As a result, we get a trading chart like this:

Volkswagen asset chart in the Binomo terminal

With this combination of technical means, we have the opportunity to determine the exact direction of the quotation movement of securities and the point of short-term market reversals.

This trading approach to creating a market forecast performs well on Volkswagen stock movements with a low degree of price change, moreover, they move in waves and are often cyclical.

Trading signals when trading Volkswagen shares

For option transactions PUT We are waiting for the following trading signals:

1. The black line of the MA indicator crosses down the red MA line;

2. The lines of the MACD oscillator cross in the lower direction.

If the signals from all indicators coincide, we conclude a downtrend:

PUT option on Volkswagen shares

For deals CALL trading is carried out in strict contrast to the signals:

1. The black line of the moving average indicator crosses the red MA line in the upward direction;
2. The lines of the MACD indicator also cross in the upward direction.

As soon as all conditions match, we buy an option to increase the stock:

CALL option on Volkswagen shares

Deposit management

A trading technique with a high speed of generating signals and cyclicality is capable of producing large losses if the rules of financial risk management are violated.

To minimize losses and to avoid drawdowns in the trading account, it is necessary to place bets when concluding transactions no more than three percent of the total amount of working capital.

If you have small amounts in your account, then you should make a minimum bet equal to $1.

This possibility exists, for example, this broker. By following these rules, you can significantly increase the size of trading funds in a short time and avoid serious losses in your trading account.

Expiry level

Trading tactics on Volkswagen shares is considered one of the systems of high-frequency trading, where it is necessary to use options with short deadlines for completing transactions.

It is best to set the option period from 1 to 3 minutes. With this parameter, the strategy gives the best results.

Apply strategy ⇢

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