Trading short-term options (they are also called turbo options) is very popular among beginners and more experienced traders. It is binary options of 60 seconds that allow you to get a very fast profit, the size of which is determined only by the size of your bet, i.e. the contract.
By the way, the broker Binomo, which provides its clients with a large number of trading instruments and types of options, has a minimum bet size of $ 1. The choice of a broker is due not only to the availability of the type of options we need, but also to the reliability of the company.
It is important that when trading on a strategy using the Bollinger Bands indicator (Bollinger Bands, BB), it is not at all necessary to use an increase in the bet when losing (the so-called catch-up or Martingale). Dogon is often used by beginners. In inexperienced hands, this leads to a quick drain of the deposit. In this strategy, profit is achieved not by covering losses with the winning of the next increased bet, but by a large number of profitable bets in relation to unprofitable ones. This will save the trader from the nervous tension that occurs when using the catch-up, and the deposit - from the extra load.
Before trading for real money, be sure to practice the demo mode. The Binomo broker provides a demo account if there is an amount of $ 250 or more on the balance. If you are not yet ready to deposit such money into your account, practice “on a piece of paper” by simply writing down the price when opening the contract and the price at the time of expiration.
The essence of trading strategy
The Bollinger band indicator is a popular tool for determining tipping points in price movement.
It is possible to use explosives in different ways. First of all, we are interested in the option “Trade for breakdown”. The bottom line is that when a price breaks the upper or lower border of the channel, the price in most cases shows a rollback to the midline of the indicator. This happens on the next candle after the breakdown.
Trading takes place on M1, which corresponds to the expiration time of a turbo option. It is important to know that trading is performed only during the flat (sideways trend). The reason is that the price moves differently after the impulse during the trend movement and in the flat. In other words, its reaction to the impulse will be different - when you exit the flat, the movement will be strong, and during the trend, the price can continue to move. But we need precisely retractable movements of different amplitudes. Therefore, we trade exclusively during the flat, when the Bollinger bands converge.
For the BB indicator, you need to change the Standard Deviation parameter. By default, it is 2, you need to change to 2.5.
The indicator is best applied to the currency pair charts provided by the Binomo broker. For each Forex broker or binary options, the quotes are slightly different, so we evaluate the BB readings not in the standard MT4, but through the broker's website.
There is one simple rule in the trading strategy: we open a deal (buy a contract) on the next candle after breaking through the upper or lower borders of the channel. The option is short-term, 60 seconds. We are waiting further. This type of option does not have premature closure; it cannot be closed until expiration. If successful, the profit will be 70%.
Here is such a simple trading strategy for binary options 60 seconds using the BB indicator. You will be convinced of its effectiveness by applying the acquired knowledge in practice.