Your capital may be at risk. This material is not an investment advice.
Wild Rriver is another effective strategy for binary options trading, which is based on working with the standard technical indicators of the Binomo platform. By using a mutual combination of the RSI and MACD indicators, the trader can more precisely determine when the price will exit correction and conclude a transaction in the direction of future price movement.
The principle of the Wild River system
The main task performed by Wild River is to define the moment of a trend reversal, that is, the exit of the price from correction into the direction of the main trend movement.
For this purpose, two indicators are used in the strategy:
- The MACD, showing the trader the direction of the main trend;
- The RSI, which determines the moment of completion of the correction.
Creating the Wild River trading template
In order to create the working template with indicators on the Binomo platform, you will need to do the following:
1. Apply the RSI indicator to the quote chart:
2. Set levels 60 and 40 on the RSI indicator:
3. Apply the MACD indicator to the quote chart:
4. Set the following on the MACD indicator:
- Fast period — 24
- Slow period — 52
- Signal period — 9
Once you set the indicators, you can start trading.
Trading rules for Wild River
The rules are quite simple and will even be clear to beginner traders.
Transactions on a rise in the price of the asset are concluded when the following is observed:
- The MACD lines are above the zero level on the indicator scale, which indicates the presence of a growing trend.
- The RSI indicator falls below the level of 40, and then reverses and intersects that level upwards:
Once these conditions are met, we can conclude a transaction on the increase in the price of the asset.
Transactions on a decrease in the price of the asset are concluded when the following is observed:
- The MACD lines are below the zero level on the indicator scale, which indicates the presence of a falling trend.
- The RSI indicator rises above the level of 60, and then reverses downward and intersects that level:
Once these conditions are met, we can conclude a transaction on the decrease in the price of the asset.
Risk management and expiration terms
Adherence to the risk management recommendations shows a 50% success rate. In order to trade with the optimal value of risk/profit, use no more than 3% of the amount of funds in your trading account when registering transactions.