5 Minute Trades with the Trix Indicator

By | June 23, 2014

Monday, June 23rd, 2014 by Tim Lanoue

One of the most difficult things to accomplish in life would be financial freedom, so many people are only fingertips away or one venture away to accomplishing what they never thought possible. Luckily for myself and thousands of others, binary options has been that golden paved road that has lead myself and many others to financial freedom without having to work paycheck to paycheck. Today, I am going to share one of the strategies that helped me to become as successful as I have been and I hope it can help you become one step closer to your goals.

The indicator that I use in this trading strategy would be the TRIX indicator, otherwise known as the triple exponential moving average indicator. The TRIX indicator is a center-line oscillator that oscillates from exponentiated values created by the price action of the targeted asset. The main function of this indicator is to determine whether or not the asset being watched is overbought or oversold, the way it does that is by measuring the momentum generated by varying price levels.

A couple of the best advantages about this great indicator is how it tends to be a leader in indicators, not a lagger, meaning that it helps to accurately predict future trends and is set up to filtrate market noise and tendencies making it easy to not fall victim to reversals.

Like I always preach, setting up the strategy is the most often overlooked and neglected portion of any trading strategy. Many traders are so eager to get started they simply make a small error by not having right settings or by trading during hours that are not major market hours. The first step you need to make sure is to choose an asset that you would like to trade, for me I solely traded the Eur/Usd asset simply because I have found over time it is the most reliable asset to trade. In addition, you need to make sure that the time frame that you are watching your asset is set on five minutes and you need to add your TRIX indicator to your chart. The last step that you need to make sure to do is change the settings of this indicator to a period of 7 and offset it to -5, once that is done you are good to trade.

Checkout other leading Indicators for Binary Options!

In the picture below you can see an example of how this strategy would be applied. Whenever our blue line crosses our yellow line in a certain direction we go ahead and place a call trade in that same correlating direction. So if our line crosses in an upward direction we place a five minute call trade for 5 minutes and then vice versa for a downward cross. The arrows indicate where the trade was placed and the yellow stars show where the trade would expire, as you can see all 5 of the trades placed were winners. I prefer to use this trading strategy during the New York trading session as well, try to stay away from intra-day trading when using this strategy when possible.

Using this strategy accurately and as described can definitely be your way to financial freedom. This trading strategy is very simple to setup and the signals generated are highly accurate. As always guys, if you have any questions or comments please feel free to leave them down below and I will make sure to get back to you!

21 thoughts on “5 Minute Trades with the Trix Indicator

  1. Mirrella

    Hi. When I set this up on Freestockcharts with TRIX 7 and Moving Average 7 -5 (offset -5) the signals on backtesting do not match up with price action. The screenshot referred to above is not displayed, so I have nothing to compare my chart to. Could you refer me to another link or tell me which setting/s to change. Alternatively, could you advise on Metatrader 4 Trix settings to achieve the same results. Thank you.

    Reply
  2. Jonathan

    This strategy amazes me. I tried this out in a demo account and I have attained an 80% ITM so far. I aim to test this strategy even more and yes, it still works in 2015. Thanks Tim.

    Reply
  3. Brian

    Hello Mike , Can your Trix indicator work through any broker site such as Beeoption ,interactiveoptions or what ever or only certain one . Regards Brian

    Reply
    1. Michael Freeman Post author

      Yes Brian, but you need to use a free charting solution to set up the indicator, many traders are using MetaTrader4.com, you can download and it’s free. MT4 let’s you upload custom indicators and it already comes with a wide range of indicators and live charts ready for you to work with.

      Reply
  4. PetrD

    Hello. I have to admit that I still don’t understand this strategy. Yes, signal is generated, but five candles back. I am still not sure how this works.

    Reply
  5. Tim Lanoue

    Hey Dele and Mark,

    Dele: This is actually my strategy that I composed haha, but moving forward I will explain step-by-step how to get this strategy set up, after that it is just following the instructions on the signal process which are pretty basic.

    1. Please visit http://www.freestockcharts.com

    2. Once that page has loaded, change your time frame that you are watching the asset to 5 minutes, so click on the time selection that is on the right side of add indicator.

    3. Next step is to choose your asset, I would recommend trading the Eur/Usd so click on your asset and if it is not already Eur/Usd then go ahead and change it to that asset but searching it.

    4. Now click on Add Indicator, Scroll Down to TRIX Indicator and Select it, now to change the settings on the TRIX indicator now, left click on where it says Moving Average 9, and select Edit. Now look where it says Offset, it should be at a value of 0, go ahead and put it on -5. Once you have done that you have it all set up and ready to go.

    Also, Dele,if you are newer to binary options which I am guessing you are you can always email tradingbinaryonline@gmail.com to get ahold of Michael Freeman, he is a great source to help get you started on your way, the right way!

    Mark: We are setting the offset to -5 and the period to 7.

    Hope this helped you out!

    -Tim

    Reply
  6. Mark

    Hi Tim and Michael,

    I’ve got to admit, I’m confused – the download link shows four different indicators, do I use all four?

    Also, you say set the period back by -5 – do you mean the signal_period value??

    Regards,

    Mark

    Reply
  7. DELE

    Hi Phil, I’m happy to come across your strategy, but I have no idea how to set the indicator up, can you please show me step by step how to set it up, I’m trading with TRADERUSH ACCOUNT with no profit yet, I’ll really appreciate your time. Thanks. Dele.

    Reply
  8. Tim Lanoue

    Hey Phil, yes you are correct, but signals are still generated, we set it back -5 for the blue line, that is the line that changes, signals are based on when the blue line crosses the yellow, not the yellow with the blue. Signals are just as accurate, I only scrolled back so you could see how the trades played out. This strategy does work and I have been using it for over 4 years in the binary options industry.

    Great, educated question though Phil.

    Reply
  9. Phil

    Maybe I’m missing something but when you put a -5 shift on the blue sma it shifts 5 candles to the left. This means the blue sma starts 5 candles to the left of the current candle so there can’t be a TRIX and sma crossover under the current candle and thus no signals will be generated.

    Sure it looks good on back test, but we can’t open trades in the past and can only open trades at the right most candle.

    According to the rules published, this can’t work.

    To get the blue sma under the current candle, the TRIX must be shifted +5 but then the published crossovers occur on different past candles.

    Can the OP please explain?

    Thanks,
    Phil

    Reply
  10. Nadia

    im having a hard time understanding this……grace how did you figure it out? can you add me on fb? Nadia Collins

    Reply
  11. Bob

    I had 1.1 on this today on E/U.

    What is the % rate wins on this system?
    Also what’s other pairs that can be used?

    Bob

    Reply
  12. Tim Lanoue

    Hey guys!

    Anthony: The yellow line does appear a little but longer but it should not effect the accuracy of your signals! I just scrolled back a little bit to find good trade opportunities in my example!

    Grace: I am glad you did not give up on binary options! This strategy helped me from the bottom to the top and I hope you continue to find great trading success! I honestly do not have a preferred set up with for the EOD or EOW, I just go with it and tinker along the way!

    Vic: I am not to familiar with the thinkorswim chatting solution however I do believe there is a way that you can download that indicator into your solution. If you don’t want to go through all that hassle though I would highly recommend using http://www.freestockcharts.com!

    Great questions guys and I am glad you are enjoying the articles!

    Tim

    Reply
  13. Vic

    Im using thinkorswim platform. I dont have mt4 platform, is it possible to download that indicator to my thinkorswim platform?

    Reply
  14. paul

    Grace, is you’re yellow line longer then the light blue ?

    Cheers

    Reply
  15. Grace

    Thanks for the strategy!
    This morning, I set up on Freestockchart.com with 6 different currency pairs. EVERY trade is in the money.

    Wonderful advice. I almost gave up on binary options until I found your website.

    Do you have any preferred strategy to set up EOD or EOW trades?

    Reply
  16. Anthony

    Is the yellow line meant to be longer then the light blue line?
    As mine is longer!

    Thanks. 🙂

    Reply
  17. Carl Kirk

    Thanks Mike & Tim

    I look forward to giving this a crack!

    Regards

    Carl

    Reply
  18. Carl Kirk

    Interesting article Michael & Tim; it makes me keen to try this out, where do you get this TRIX indicator, I checked out my MT4 and it wasn’t on the list?

    Regards

    Carl

    Reply

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