My Best Reversal Eur/Usd Binary Options Strategy

By | December 3, 2014

Wednesday, December 3rd, 2014 by Tim Lanoue

Hey everyone I hope you had a great Turkey Day and are ready to get back to business with trading! I am rather excited today to present you with a high success rate trading strategy that I have been working on lately and I hope you are ready increase your vast knowledge about trading binary options. For those of who you prefer or enjoy trading the Eur/Usd currency pair much like myself then you will want to keep reading because you definitely will want to add this trading strategy to your arsenal. A charting solution, three technical indicators and a kick ass attitude is all you need in order to use this trading strategy. Below I will highlight the main functions of the three technical indicators that we will be using along with discussing the set up and implementation of this binary options strategy.

TRIX Indicator

The TRIX indicator, also known as the triple exponential average indicator, is a oscillator driven indicator whose main function is to determine whether the asset we are watching are showing symptoms of being overbought or oversold. This is exceptionally helpful with our trading strategy here because the main focal point and concept behind this strategy is to trade strong reversals. The TRIX indicator acts as our guide really, if we can determine whether the targeted asset is overbought or oversold you can bet it will change directions soon down the line which is where our reversal trading strategy concept falls perfectly into play.

Simple Moving Average Indicator

Many of you already know that the simple moving average indicator is my favorite technical indicator to use when trading binary options. The main function of the simple moving average indicator is to display past average prices of our targeted asset over a predetermined period of time. For example, if we wanted to see the average price of our asset over the past 14 days we would set the period of our indicator to a period of 14.

Time Series Forecast Indicator

The Time Series Forecast (TSF) indicator, also known as the Moving Linear Regression indicator, is an extremely effective technical indicator that is used to show trends over a predetermined period of time. The TSF indicator is quite similar to the simple moving average indicator due mostly to the fact that you can change the period that the indicator displays and see how it reflects the charting solution.

Set up and Strategy Implementation

Setting up the Reversal Eur/Usd Binary Options Strategy strategy is relatively simple and only requires a few steps. The first step would be set up our charting solution, I prefer to use www.freestockcharts.com due mainly because it has all the indicators that I need and the values reflected in the solution have a better real time value than downloadable charting solutions. The next step would be to adjust our time frame to 15 minutes and select the Eur/Usd currency pair as our asset of choice. The last step would be to add our indicator to the charting solution, this can be done by clicking on Add Indicator. Once our indicators are added to the charting solution then we can begin implementing our trading strategy.

As you can see in the picture above we have a total of 5 investments placed and all but one ended up in-the-money, meaning that we had an 80% success rate. The signal line in this trading strategy would be the TRIX indicator line, not the simple moving average line like in most of my other trading strategies. In order for a signal to be generated we need to wait for a merge or cross to occur between our TRIX indicator and our simple moving average indicator. Whether the cross was conducted in an upward or downward direction will determine the type of investment trade we place. So if our TRIX indicator line crosses our simple moving average indicator in an upward direction and we have a confirmation candle directly above the break then we are good to place a CALL trade. The same can be said for a cross in a downward direction, once the cross has been established and we have a confirmation candle above the cross then we are good to place a PUT trade. Expiry times when using this trading strategy should stay between 5 – 30 minutes, no less and no longer.

This is an extremely effective binary options strategy when used correctly and on average you should have no problem seeing a success rate between 70-75%. Trading reversals is one of the most effective trading strategies in binary options and only continues to grow in popularity in the binary options community. As always guys if you have any questions, comments or suggestions please feel free to leave them below and I will get back to you as soon as possible!

10 thoughts on “My Best Reversal Eur/Usd Binary Options Strategy

  1. Mirrella

    Hi Tim

    Does this strategy still hold true? If so, can you tell me how to attach the Trix indicator to a chart rather than having it appear as a separate window beneath the chart? (Requesting it to be attached to the chart, in mt4, does not achieve this.) The screenshots in your instructions above do not appear any longer, so I cannot see the crossing of the Trix and the SMA9. I’m assuming that you have the Trix on the chart. I’ve tried several Trix downloads and they all appear as a separate window. Thank you.

    Reply
  2. Tim Lanoue

    The setting for our simple moving average is 9, not 14. Hope this helped you out!

    Tim

    Reply
  3. Tim Lanoue

    Hey Gary,

    The TSF indicators acts as sort of a third confirmation where you can see the long term trend of the asset, as you can see it follows the directions of our trades for the most part.

    Hope this helped!

    Tim

    Reply
  4. Gary

    Tim,
    Above it says that the signal is the TRIX crossing or merging with the SMA. Where and how does the TSF fit into this?

    Reply
  5. Tim Lanoue

    In theory it could but it is designed specifically for the Eur/Usd currency pair, spent a lot of time perfecting this for this asset. It could correlate to other currency pairs such as the GPU/Usd and Aud/Usd.

    Hope this helps guys!

    Tim

    Reply
  6. Geoff

    Hi Mike
    Thanks again for the info
    Will this work on any other pairs or assets?
    Thanks
    Geoff

    Reply
  7. Dustin

    Hey Tim, Just wanted you to know Ive set it up and will give it a shot. I like the simple strategies. Many of us work during the day and can only trade like this at night during the week. Do you think the win/ratio will diminish during off hours? Also how could we use this in a five minute time frame? Thanks! Cheers
    Dustin Angell

    Reply

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