What is the Best Binary Options Strategy?

One of the most commonly asked questions with one of the most difficult answers! It’s so difficult to pinpoint the best binary options strategy as it depends entirely on how you like to work; the time frame you’re working in… with so many variables we’re afraid there isn’t an easy answer. Here’s a few of our favourites you can try; make sure to take advantage of social trading to work together to find out what suits you the most and don’t forget to let us know if you’ve truly found the ultimate binary options trading strategy! There are videos in our Trading Academy on each of the Binary Option Trading Strategies mentioned here ranked by level of complexity so be sure to check the videos for visual examples.


Trend Signal Strategy

This strategy can be used by beginners on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 15 minutes.

[INSERT TREND SIGNAL STRATEGY VIDEO]


The focus of the trend signal strategy is to catch a trend that after a correction will return to its previous trend. To catch this, a trend would either be inclining or declining and then begin a correction. What you’re looking for is when there is a surge against the correction that is larger than the three previous motions.
Therefore, you would need to enter a Call trade if there had already been a up trade in process, a correction was made against it and then you saw a sharp incline that was greater in value than the three previous declining motions. Obviously, this would be the same action should it be reversed, you would simply enter a Put trade instead.

 

Tunnel Strategy

This strategy can be used by beginners on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 15 minutes.

[INSERT TUNNEL STRATEGY VIDEO]


The focus of the tunnel strategy is that by using a combination of averages and fractals we can indicate a future trend.
To catch this, an asset would be fluctuating between an incline and a decline steadily, giving the look of a tunnel forming. What you’re looking for is when there is a surge against the correction that is larger than 30 pips; that break in the cycle indicated that it’s time for you to make your move.
Therefore, you would need to enter a Call trade if there had already been an up trade in process, a correction was made against it and then you saw a sharp incline that was greater in value than 30 pips. Obviously, this would be the same action should it be reversed, you would simply enter a Put trade instead.

 

Fractal Strategy

This strategy can be used by beginners on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 15 minutes, the greater the time frame, the higher the level of precision.


You will also need to use the indicators Alligator and Fractals for this strategy, see our video tutorials to see how to set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[INSERT FRACTAL STRATEGY]


The focus of the Fractal strategy is to catch the point where the three average lines of the Alligator Indicator cross and the values of the fractal pairs converge more so than the pairs prior. Working with averages allows for a broader scope and a less specific approach to trading so that you’re reviewing an overview opposed to slight movements, allowing for extra precision for long term traders.  You are looking for a difference of at least 30 pips over or under the fractal peak/trough.
At the point of the crossing Alligator lines, note the fractal pairs. Once a particular trend begins to emerge, by 30 pips or more, that would be the time to enter either a Call trade if it began to incline and Put if it were to begin to decline.

 

Fishing Strip Strategy

This strategy can be used by intermediate traders on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 15 minutes, the greater the time frame, the higher the level of precision.
You will also need to use the indicators Bollinger Bands for this strategy, see our video tutorials to see how we set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[FISHING STRIP TRATEGY VIDEO]

The focus of the Fishing Strip strategy is to use the Bollinger Bands as reference points. Observe the directions of the trade, and once the first marker falls outside of those lines, and the next closes within them, you know this is the time to act. If the first marker is below the fishing strip, you would Call, if it is higher you would Put.

 

Zigzag Strategy

This strategy can be used by intermediate traders, is recommended to be used on GBP/USD and GBP/JPYs and is most suitable for short 1 hour charts.


You will also need to use the Zigzag Indicator and CCI Indicator for this strategy, see our video tutorials to see how we set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[INSERT ZIGZAG STRATEGY VIDEO]

The focus of the Zigzag Breaker strategy is to identify points whereby a previous peak or trough has broken out and to then take advantage of that trends momentum.
Observe the peaks and troughs of the trade and correlate that with the CCI bar beneath. In a Call situation, if the trend reaches a higher amount than the previous peak and the CCI graph indicates that that it is above 100 then both graphs are aligning and indicating the breakout has taken place. It would therefore be time to Call. Alternatively, if the prior trough’s figure is surpassed and the CCI graph shows that it is below the -100 mark then it would be time to Put.

 

Wave Tracker Strategy

This strategy can be used by intermediate traders on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 1 hour, the greater the time frame, the higher the level of precision.


You will also need to use the indicators Average Directional Movement Index (ADX), Parabolic SAR and Simple Moving Average (100) for this strategy, see our video tutorials to see how we set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[INSERT WAVE TRACKER STRATEGY VIDEO]

 

The focus of the Wave Tracker strategy is to identify the change in rate direction using the indicators to join a new trend.
Observe the indicators set up as you will be studying these more so than the trend itself. You are looking for the point whereby the rate is above the 100-moving average but at the same time the +DI crosses the -DI; depending on its angle, depends whether you would place a Call or a Put trade. If in an upward trajectory, place Call, downward, place Put. You should only enter a trade once parabolic SAR has given a signal in the form of the first dot either below or above the rate.

 

T-Chaser Strategy

This strategy can be used by advanced traders on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 15 minutes, the greater the time frame, the higher the level of precision.


You will also need to use the indicators 4 exponential moving averages (8, 12, 24, 72), Fractals and Commodity Channel Index (CCI -150, 150) for this strategy, see our video tutorials to see how we set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[INSERT T-CHASER STRATEGY]

 

The focus of the T-Chaser strategy is to identify, using the indicators an emerging new trend.
Observe the indicators set up as you will be studying these more so than the trend itself.

You are looking for 3 things.

  • Firstly, study the moving averages. Only place a Call if the fast-moving average is above the short average which in turn is above the medium average. Place Put if the fast-moving average is below the short average, which in turn is below the medium average.
  • For Call, this rate will be above the long moving rate average also, for Put it will be below.
  • The CCI is above 150 for Call and below -150 for Put.

 

Fibo Trap Strategy

This strategy can be used by advanced traders on all currency pairs, commodities, indices, stocks and future contracts over any window greater than 15 minutes, the greater the time frame, the higher the level of precision.


You will also need to use the indicators Fibonacci (61.8), Relative Strength Index (RSI) and the Stochastic Oscillator for this strategy, see our video tutorials to see how we set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[INSERT FIBO TRAP STRATEGY VIDEO]

 

The focus of the Fibo Trap strategy is by using a reverse strategy, it will help us identify the end of a correction and enter when a new trend begins.
You are looking for 3 things.

  • Firstly, for Call, the sudden change in direction is correcting a trend in a downwards direction and Put, vice versa.
  • The initial trend crosses the Fibonacci 61.8% mark but then is corrected and reversed with an upward (for Call) or downward (for Put), and therefore closing that trend and showing a new and emerging trend.
  • The Stochastic Index has crossed its averages and it is still under (for Call) or over (for Put) the 50 line.

 

Zoom In Strategy

This strategy can be used by advanced traders on all currency pairs, and main indices over both the 4hr time period and the 15-minute time period. You must study the 4-hour chart to monitor and identify the minor trend and then the 15 minute one to know when to join the trend.


You will also need to use the indicators Relative Strength Index (RSI 9), 2 Exponential Moving Averages (5, 10) and the Stochastic Index (10, 3, 3) for this strategy, see our video tutorials to see how we set this up. Please be aware that the boundaries set are recommendations, feel free to alter these to your preferences.

[INSERT ZOOM IN STRATEGY VIDEO]

 

The focus of the Zoom In strategy is to identify a new minor trend and correctly time your entry into that trend to trade the most effectively.
You will need to set up both charts separately, the 15 minute one will contain the Stochastic Index and will need to watch when these two cross. For the 4-hour chart, you will need to set the two exponential moving averages and the Relative Strength Index.

  • For Call, start with the 4-hour chart and observe the short moving average and once this crosses the long moving average in an upwards direction and is between 50 and 70 on the RSI then revert to the 15-minute chart as a minor trend is beginning and you must work out when to join it. On that chart, check that the Stochastic Indicator is suggest high above Call up signal as the averages are crossing each other and have dropped below 20.
  • For Put, again, start with the 4-hour chart, observe the trend. Once it drops between 30 and 50, and the averages cross in a downward direction, refer to the 15-minute chart. If the Stochastic indicator shows a cross and is over 80, it is signalling a low below Put signal and would be the time to join the minor trend.

 

 

Although we haven’t definitively been able to answer what is the perfect strategy, we hope you enjoy trying our recommendations and manipulating them into a prosperous and exciting experience with us at Option888. Please feel free to share your experiences using our Binary Trading Strategies on our Facebook, and post your own, if you’re happy to share!