There is no one binary options trading strategy that is perfect for all traders. It’s best to test out several strategies to find the one that works for your trading style and needs. One of the possible options for short-term trading is the Jump strategy. It is very clear, simple, and effective with all tools can be found in almost any terminal, including Binomo. The advantage of the system is its suitability for trade with the shortest expiration period and on lower timeframes. Thus, you do not have to wait for a signal for a long time, and you can make a number of transactions in one trading session.
Prepare your trading terminal
If you are a client of Binomo, look no further. Your terminal has significant advantages over other trading platforms because it offers all necessary tools for successful binary options trading.
The Jump strategy combines two heavy lifters in trading circles: Stochastic and EMA. Both indicators will not be used according to the usual algorithm for the Jump. Read to learn more.
First, you need to set up to apply the “Jump” strategy. You should choose highly volatile assets like currency pairs or even cryptocurrencies. You should set the timeframe, as mentioned above, to the minimum – 1 minute. Depending on your preferences, you can use candlestick and bar. In this case, it doesn’t really matter.
To find an entry point, you need to set two EMAs of period 10 and 21 on the chart. Use different colors for convenience. Stochastic in the Jump strategy is used with periods of 14, 3, 3.
Now, you are set up and you can move on to following signals and buying contracts.
Trading with the Jump strategy
The strategy got its name because of creative use of the Stochastic indicator. It is known that most traders open positions at the exit of the signal line from one of the “over” zones. However, with the Jump a contract is bought at the entrance to one of the zones: buy when the line breaks into an overbought or oversold area.
In addition, we will need two exponential moving averages: the junior line crossing the senior one in one of the directions. They are used instead of a trend line. At this point, we are ready to trade following the rules of the Jump:
- Buy CALL option when the Stochastic signal line enters the overbought zone. At the same time, EMA 10 should cross EMA 21 from the bottom up.
- Buy PUT option when Stochastic signal line enters oversold. At the same time, EMA 10 should cross EMA 21 from top to bottom.
The expiration time is set to three candles (three minutes in our case).
The “Jump” strategy has many positive reviews. It shows effective results not only on the binary options market, but also on other exchanges. However, for stable operation of this system, it is necessary to follow simple rules: do not trade during news releases and enter a trade only in case of a confirmed signal. With traditional options trading alone, a strategy is needed. This is even more so for binary options trading. A binary options trading strategy is necessary when trading binary options. Without any semblance of guidance, a vast majority of newbie traders will experience losses. The only way to really find success in binary options trading is by using a tried-and-true strategy.
Caution! This article is not intended to be investment advice. No strategy can guarantee 100% correct trading results. A successful trading result in the past is not a guarantee that it will be repeated in the future. Any information contained in this article is for informational purposes only.