Channel Trading Strategy: Channel Line using a moving average is a simple but equally effective way to generate income on binary options.
Classic exchange trading in the channels of quotation fluctuations is a simple but effective way to earn money on the binary market.
But, like all systems, this tactic is not perfect - and the trading performed on it is accompanied by a considerable number of false signals, which bring losses.
Therefore, stock players try to combine approaches to form forecasts.
A profitable trading strategy called: Channel Line is the product of experiments with various signal indicators and long testing of the system.
As a result, a trading system was formed with an efficiency percentage of 75% and with excellent growth dynamics of deposit capital!
Recommended broker for efficient work
The effectiveness of trading in the binary market depends, of course, not only on the system used, but also on the quality of the broker’s services and the tools offered on the trading platform, as well as on the trading conditions.
For this reason, the choice of a brokerage house for cooperation is as important as the choice of an effective workable strategy.
And against this background, it is necessary to name a list of conditions and trading parameters that a modern professional and efficient binary broker corresponds to.
So, a company in which you can consistently and earn a lot is distinguished by the following main parameters:
- Minimum framework for trading conditions;
- A trading platform designed specifically for binary trading with all the necessary tools;
- High-quality - at the same time free - education;
- Professional analytical system;
- A simple mechanism for monetizing income;
- Legal regulation.
Considering the general list of existing brokerage companies presented on the market today, it can be argued that only the following fully meets the above requirements. these binary options brokers.
But in this case, consider this broker, as an excellent online binary options trading platform and here's why:
- Trading conditions have minimum values: the amount of the initial deposit for trading is $100, the cost of options transactions starts from $5.
- A platform developed by the company's specialists, with an optimal set of necessary professional-level technical tools.
- High-level training provided free of charge.
- Analytics from professionals - moreover, with daily updates.
- The withdrawal of trading profit will not require additional client verifications and will not take more than 24 hours.
- The broker is licensed by the regulator - the CROFR body.
Thus, there is a broker on the exchange market that is absolutely ideal for professional trading.
Setting up a strategy template
In order to get a template of this system and use it for trading, you need to install EMA indicators on the quote chart with the following frequency: 5 (color the indicator in blue), as well as 10 of the default standard red color.
Then, using the graphical service of the terminal, we build our classic channel of quotation fluctuations of the underlying asset. And as a result, the following picture will appear on the chart:
Signal for making a deal UP will serve as the quotes touching the lower channel level and the crossing of the EMA indicator lines to the upper side:
To issue an order to trade with a DOWN deal, we use the opposite direction of the indicator signals - the quotes touched the upper channel level, the EMA indicator lines crossed down:
By applying filtering signal tools, we formalize the trading indicator signal and, as a result, we are guaranteed to make a profit!
If we take into account the speed of formation of the tick type of the chart of the underlying asset, then we can receive about 25 signals per hour as part of the strategy.
And with the effectiveness of the system at 75%, as a result, we will get a fairly dynamic increase in the amount of profit on the deposit account.
With this method of high-frequency trading, it is necessary to apply the minimum parameters for the cost of lots.
Thus, we reduce the level of losses and the degree of trading risks. The optimal trading mode for minimum deposits will be the use of contracts with a starting value level of $5, which are available on the site at this broker.
For Gold and VIP level accounts, the degree of risk can be set within 3-5% of the amount of funds on your deposit.
In such a trading mode, the ratio of losses to profit leads to a continuous growth of the deposit.
Choice of expiration
For trading, we use only turbo options with contract expiration times of 60 seconds.
This rule is determined by the frequency of formation of indicator signals and the cyclicality of reversals of short-term trends on the chart of quotes of the underlying asset of the tick type.