Beginner Binary Options Winning Strategy
It’s a little bit awkward to talk about a particular and well-established binary options winning strategy given the fact that this strategy doesn’t really have any name at all. However, let’s call it beginner binary options winning strategy, because effectively this is what it is. Read below to find out how this could be the best binary options strategy for beginners and what you will have to do in order to use it.
This strategy works by predicting the future movement of an asset taking in consideration the data supplied by four financial trading indicators. These indicators are mentioned below.
The indicators listed below are automatically generated by the charting feature offered by most binary options brokers. It is extremely important to only register at binary options brokers that have these indicators (like the ones we listed in the toplist table above) otherwise you will not be able to use this strategy.
It’s also not really necessary to fully understand what these indicators precisely are in order to be able to use this strategy. If you want a full description about these indicators please check out our related article.
You can find the indicators listed below:
13 Exponential Moving Average (EMA)
20 Simple Moving Average (SMA)
26 Exponential Moving Average (EMA)
These three indicators are represented by three lines that are moving around the line on the charting platform that represents the value of the asset itself.
The Bollinger Band however is represented by two lines. The middle of these two lines is the average of the position of the above mentioned three indicators. So, basically the Bollinger Band has two boundaries, an upper boundary and a lower boundary in which the above-mentioned three indicators are positioned.
How to use:
Now, lets talk about the actual strategy itself. As explained, with this strategy you will be able to predict the future movement of an asset.
In order to use this strategy, you will have to activate the above-mentioned indicators on your charting interface.
First you will have to watch out for the following things:
– The 13 Exponential Moving Average (EMA) crosses the 20 Simple Moving Average (SMA)
– The 26 Exponential Moving Average (EMA) will cross the 20 Simple Moving Average (SMA) AFTER WHICH it will cross the 13 Exponential Moving Average (EMA)
If the above conditions are met, then most of the time the following will happen:
– The value of the asset will go outside of one of the Bollinger Band boundaries.
You will be able to tell which boundary the asset will cross based on the direction of the general movement of the above-mentioned three indicators.
If in average the three indicators (except the Bollinger Band) move up, then the asset will break the BB’s upper boundary. If in average the three indicators will move down, then the asset will break the BB’s lower boundary.
Like mentioned, the above outlined scenario will happen around 80%-90% of the time, which is a lot but it also means that there will be cases when this prediction will be incorrect, so you should not assume that this strategy is a “sure win” – “sure win” strategies do not exist and anyone selling you one is lying.
Applicability of this Strategy
So, now you would want to know what exactly you would have to do in order to use this strategy to your advantage. There are actually multiple positions you could open in such cases. Let’s take the example below.
– The exchange rate of EUR/USD is at 1.35 at this moment.
– The upper boundary of the Bollinger Band is at 1.37
– The lower boundary of the Bollinger Band is at 1.33
Now, you notice that the 13 EMA has crossed the 20 SMA and that the 26 EMA crossed the 20 SMA and is about to cross the 13 EMA soon.
You also notice that the three of these indicators are moving downwards.
In this case you will know that during the next 15-30 minutes the value of EUR/USD will bounce BELOW the lower BB line, in other words, it will be below 1.33.
You will have to remember that after a short while the value of the underlying asset will always return back into the two boundaries of the Bollinger Band. There are basically two choices you can make in this situation.
a.) Buy a boundary option or a one-touch option and invest on the fact that the value of EUR/USD will hit a low boundary of at least 1.33. Remember, using this newbie strategy in most cases you will be able to predict that the asset will go below 1.33 the next 15-30 minutes.
This choice is a bit risky because you cannot know exactly when that event will happen during the next 15-30 minutes. However, purchasing a boundary option or a one-touch option can offer you extremely high payout rates of up to 500%. If you want to go safe, then buy a regular high/low option. if you are a beginner, then stick to high/low options for now.
b.) Buy a simple high/low option and bet on the outcome that in 15-30 minutes the value of the asset (in this case the exchange rate of EUR/USD) will be BELOW the current line (in this case 1.35).
This choice is less risky because the value of the asset will most likely go down during this time frame. By choosing a high/low option it is not relevant if the value of the asset will reach a specific value (in this case 1.33); it only matters that its value will decrease – and as the data from the strategy told us, the value will indeed most likely decrease in the majority of cases.
If all this seems too complicated at first, you can try out a service such as OptionRobot initially. This will check the charts for you automatically for this and similar positions. You can then execute trades and learn to use this strategy yourself.
So, at first read the strategy might sound a little bit complicated to total newcomers who have never traded binary options or other instruments online. However once you try it out yourself it’s actually not that complicated.
You will only have to watch the movement of the three indicators (13 EMA, 20 SMA, 26 EMA). You will have to enable these indicators on your charting interface in order to use them.
You will be able to tell which is which based on the color of the line representing them. You will only have to remember which color is which after which with a little practice you will be able to recognize them with ease.
Here is a color reference for these indicators:
13 EMA – Blue
20 SMA – Red
26 EMA – Cyan, light blue
The colors are usually the same at all brokers.
So, after watching these indicators, and you see the pattern mentioned above (13 WMA crossing the 20 SMA, 26 EMA crossing the 20 SMA after which crossing the 13 EMA) you will most of the time be able to predict the movement of the underlying asset (but remember, not always – nothing is guaranteed in financial trading).
If these three indicators collectively move up, then the asset will break the upper boundary of the BB (Bollinger Band). If these indicators show a downward trend movement, then the value of the asset will break the lower limit of the BB.
And it’s really this simple. Use this, and you may be able to achieve a winning percentage that allows you to make profits. We believe that this is probably the best binary options strategy for beginners that is at this moment out there.
NEW: There are now tools out there that will do this process for you. These are called binary options signals. The tools are apps that will scan the charts at various brokers and when they discover the trends described above, they will automatically make the correct investment for you. The best tool of this kind that I found is OptionRobot. Unlike most other signal apps, this one does not force you to sign up at any broker. You can use any broker you want and simultaneously use the signal app as well.
In order to be able to execute all the above, you will also have to find a binary options brokers that has all the mentioned indicators and charts. One of the legit brokers we found to have all this is CTOption (USA only. CTOption is also the only broker available that has a same-day withdrawal policy (i.e. the broker will send you your winnings within a maximum of 24 hours after you’ve requested it). For non-USA visitors I recommend 24Option, which is a fully EU regulated and licensed broker.
New: Long-term Binary Options Strategy for Beginners
As written in the final paragraph of the intro, I decided to also talk about a different beginner binary strategy. This strategy specifically focuses on binary options with long expiration times. The reason this wasn’t included in the initial version of this guide was because long-term options are only a recent addition to brokers’ services.
Essentially, this strategy works by you having to follow major news events related to the stocks of important companies and then make accurate long-term predictions.
Below you will find one example of how this strategy works:
You know that Apple will launch a new iPhone on October 1st. You also know that usually this will usually result in an increase in Apple’s stock prices the next day.
Around two weeks before this event takes place, you buy a binary options contract that predicts that Apple’s stocks will increase by October 2. And boom, you just won because this prediction will very likely come true.
You can do this strategy with hundreds of other companies and with other assets as well other than stocks. You need to check which major news events are upcoming during the next few weeks and months and make long-term predictions.
I actually believe that this strategy is even easier than the initial Bollinger band strategy described above. With this strategy you don’t have to use charts and indicators; you’ll only have to wait for major news events to happen (expected product launches by companies, annual revenue reports, etc.).
You can find a full description of this strategy by reading this article. Like said, I actually think this method is actually easier than the one described here in this page initially, so definitely check it out.
Learn More About Binary Options Strategies
These are just two of the many binary options winning strategies for beginners available. I felt that these ones were the simplest strategies available, so if you are new to binary options then you should begin with mastering these strategies.
After you have mastered these strategies come back to our site and read about additional and more advanced strategies that will increase your winning margin even further.
Remember, binary options trading is not about luck, it’s about strategy and knowledge.