Binary trading is completely different than normal forex or stock market trading. Thus, the strategies and techniques it needs are different as well.
There are a ton of binary trading strategies you can find around the web. We have tested those all, and non of them come anywhere around this combination.
How to use the Bollinger Bands + RSI strategy?
The strategy is really really simple. You have to use 2 indicators, Bollinger bands and RSI. Leave them to the default settings:
- Bollinger bands: 20,2
- RSI: 14
Open the 1 minute chart and wait for a condition when both the RSI and Bollinger bands are oversold or overbought.
Meaning, if the previous candle has come out down of the bollinger bands, and the RSI level is oversold(Below 30) too, then you can open a call option for 1 minute.
Similarly, if the previous candle has come out from upwards of the Bollinger bands, and the RSI level is overbought(Above 70) too, then you can open a put option for 1 minute.
Also Read: Is EURUSD really worth it?
Tip: If you want to further minimize risks, you can count the RSI as oversold at below 20 and overbought at above 80.
Unlike other strategies, this one can act as an standalone strategy, meaning the you will not necessarily need to have a look at the other indicators.
Efficiency of this strategy
We back-tested this strategy 100 times. The results were as follows:
- No Result: 1
The Bollinger Bands + RSI strategy was found to have 65 percent win rate. If you are an experienced trader, you most likely know what it means for any strategy to have a 65% win-to-loss ratio. If you are a beginner, use this strategy in a disciplined way, and you are not a beginner anymore.