flatOptions (CFD/FX) strategy 

Simple binary pattern with Bollinger bands

Your capital may be at risk. This material is not an investment advice

Pattern Rules

It is essential to follow the trends and check on the technical currency crosses that could say “Strong Buy” or “Strong Sell” (Hourly/Daily), which in binary trading means “Strong Call” and “Strong Put”.

In other words, when the trend is Up, you are buying a Call option, and when the trend is going down, you can buy a Put option. To check on the trend you can use exponential moving average (EMA) or simple moving average (SMA) with 100 period. This is the maximum at IQ Option.

You must set the Bollinger Bands indicator with Period: 6 and Deviation: 2. You can use same color for Top line and Bottom line.

Call Trading

strategy_call

  1. EMA shows an up trend
  2. A red candle breaks the bottom band
  3. You can buy a call option

In our example, the pair is AUD/CAD and the EAM is going up. The two red candles that break the bottom band are followed by a green candle, which is our call trade in this case.

Put Trading

strategy_put

  1. EMA shows a down trend
  2. A green candle breaks the top band
  3. You can buy a put option

In this example, we are trading EUR/JPY, and the EMA clearly shows down trend. You can see two green candles breaking the top band and right after it follows a red candle.

Expiry time

IQ Option offers a big range of expiry times, but the most popular are 1 and 5 minutes. You can use 1 or 5 min candlesticks on the chart and trade accordingly: 1 or 5 min expiries. For example, if you want to place a 1 min option, you have to wait until the platform shows Purchase Time: 00:31

Important tips

flat

  • Do not trade when the EMA is flat
  • Do not trade when the EMA is in the Bands
  • Always trade with the trend
  • Do not martingale

 

Win Rate

In our experience, this strategy shows some good results: Up to an 80% win rate on some trading sessions. However, we remind you that IQ Option platform behaves in its own way, and if you had good results on MT4, it doesn’t mean you will replicate your success at IQ.

You can’t expect 100% success with such a simple set up of two indicators, and of course, you will face false signals. It is very important that you don’t martingale in such cases; otherwise, you can easily blow your account.

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