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Now that I have come to realize that most websites touting free, reliable, no-risk binary options strategies that work are mostly just a bunch of BS I have started to focus my time more on unearthing strategies you can actually use.
This poses a challenge to traders for binary options strategies resources reasons. One place I have found that is a great resource for free trading strategies and resources are forums. The strategy is called the The Guppy System. It is based on an array of moving averages ranging from 3 candles out to or more depending on your set up and preferences.
The system is based on wave theories and makes good use of the moving averages to produce an easily recognizable signal. One of the things that I like about this system is that is a good one for newbies to start with and provides a platform to build more advanced trading strategies from.
To set it up you will need to load 13 moving averages onto your chart. The ones used here are exponential moving averages. Exponential moving averages give added weight to the most recent data which caused them to track price action more closely than a simple moving average. This means that an exponential moving binary options strategies resources EMA will give more signals than a simple one, and also more false binary options strategies resources.
This is why this strategy uses so many binary options strategies resources averages. The averages are 3,5,8,10,12 and 15 all in light blue then 30,35,40,45,50 and 60 all in darker blue so you can tell the two groups apart. The final average is set to and is used to set trend. This one should be colored brown or red in order binary options strategies resources keep it separated from the rest.
A bar moving average can be substituted binary options strategies resources theespecially with more active and volatile assets. The signals are trend following. Starting with the bar EMA to set the trend only take signals in line with the trend. When the EMA is pointing up or trending up the trend is up, if it is pointing down or trending down the trend is down.
Once you establish trend wait for the longer term group of binary options strategies resources, the dark blue, to rollover in line with the trend. Once this happens wait for the shorter term group of averages to rollover in line the the trend as well.
The very strongest signals will occur when the longer term group of averages is in line with the trend and completely crossed over so that the averages are in order. Two rules for trading with this strategy given by the author are to avoid trading against the bar EMA and not to trade on shaky crossovers. I will say that you should never trade against the bar moving average and to wait for confirmation before entering a trade.
What time frame to use? Think about it binary options strategies resources this; a 30 bar EMA on the weekly charts is equal to days 30 weeks X 5 days so it is in fact equal to the bar EMA on a daily chart. The array of averages used here are all short term and expiry should be treated as such but the signals themselves are good because they are in line with trend and time frame.
So, back to time frame and which one to use…. I my self trade on the daily and hourly charts and have found this strategy to be effective on both.
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