A Working Binary Options Strategy By Okane

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A Working Binary Options Strategy By Okane

Having a working strategy is one thing, but knowing how to use it is another.
I’m going to guide you through my strategy that I use for trading currency pairs.
But you will have to practice and spend time to master it before you consider trying it out on your live account. If you are just looking for a “system” with arrows pointing where to take Calls/Puts you will have to keep looking… This strategy requires patience.

The MT4 Setup
-Choose Candlesticks
-Add Stochastic Oscillator, Stoch(5,3,3) Levels: 80 and 20 .
-Add RSI(4), Levels: 75 and 25 .
-Add Exponential Moving Average. Period: 50 , 10 and 5 (10 and 5 are Optional)
-Add Fibopiv_v2 (Optional) – I recommend this Support/Resistance indicator,
you can google fibopiv_v2 or just click here: http://codebase.mql4.com/3002

Here is how my charts look like:


OBS! Don’t zoom in too much. I only zoomed in for the sake of the example. Golden line, 50EMA. Aqua, 10EMA and Violet red, 5EMA. Stochastic and RSI are also visible. The Fibopiv is not entirely visible.

How to spot possible entries
This is a very simple strategy, just a few indicators.
What we are looking for is confirmation! I like confirmation, not anticipation.
Since I started using this strategy I’ve become better at finding accurate entries for my trades.
I recommend that you start with just 2-3 currency pairs to begin with. Monitoring too many charts is confusing and stressful and you will miss out on trade opportunities.
Okay, let us go through all the necessary steps and look at a few pictures.

  • I recommend, especially if you don’t want to use the fibopiv, that you start by going to the daily chart and drawing Support/Resistance lines, then change back to lower timeframes, H4, H1, M30 and M15 and repeat the process of drawing S/R lines that seem important.
  • Go to the 15M chart and study the chart. First confirm the trend. If it is an uptrend then you should clearly see higher highs and higher lows. If it’s a downtrend, look for lower lows and lower highs. Here the 50EMA helps, are the highs and lows below the 50EMA then we are probably still in a downtrend, are they above the 50EMA then we are probably in an uptrend.
    If you can’t really tell which way the price is trending, we are dealing with an undecided market. You are better off not trading until a clear trend is observed!
  • When a trend is confirmed we wait for a retracement. The goal is to catch the end of the retracement and get on the trade in the direction of the original trend.
    This is where RSI and Stochastic Oscillator will play a big roll. We will look for oversold/overbought areas. If we are to catch an uptrend, we obviously want the RSI to touch or go below 25 and the Stochastic to touch or go below 20. But that’s is not enough to enter a trade! See the picture of USD/JPY 15M chart below.

Notice how the candles have been making higher highs over the 50EMA.
Also the Pivot line (fibopiv) has become a solid support. See vertical line!
Stochastic and RSI are oversold. Arrow was my entry for a Call, star was my expiry.

  • So far we have confirmed the trend (up/down). We think the retracement is about to be over because Stochastic and RSI are telling us that. We need yet another confirmation to proceed. This is where our S/R lines will come in handy! Start drawing S/R lines on the 5M and the 1M chart. These are for spotting our entry. We want to see if S/R lines are likely to be broken or not. Now it’s the time to put your candlestick knowledge to use! Don’t get into trades if candles are mostly undecided, dojis for example… I usually wait for at least a good 5Minute candle to finish above/under (depending on wether I’m trading a Call or a Put) previous candles.

Here is another example:

Picture of the 15M chart of GBP/USD 20200130. A winning trade I took that day.

The vertical yellow line is for showing that at the moment I was looking for an entry I saw Stochastic Oscillator and RSI hitting overbought levels. The high is also lower than previous high, see vertical red line! Third confirmation was my support line (the fibopiv_v2). As you can see the first S1 could not hold so I had to confirm whether S2 would be stronger or not.
Then I changed back to 1M chart. See next picture below.

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The 1minute chart of GBP/USD. Now you can see the Support 2 clearly! Notice how bullish candles tried to break above it but failed. Arrow is my entry and the star is the expiry.


The expiry time for this trade was 30 minutes because I was worried that the price would try to break above support one more time before getting pushed back down. As you can see it did go for a second attempt on breaking the S2.
For this trade everything was in accordance with my strategy.
The Stochastic and RSI being over the overbought levels, I spotted a lower high, support line held and candlesticks closed under the support line indicating strong resistance.

The good, the bad and the ugly
The good part is of course, as I mentioned earlier, all the confirmations that this strategy provides the trader with. Confirmation leads to confidence and a confident trader makes less mistakes!

On the bad side, not getting that many trading opportunities can be a problem for some traders. Personally I don’t care how many trades I make. The most important thing is executing a trade with correct analysis. However, not getting many opportunities can lead to impatience, which can force an inexperienced trader into trading without confirmation. This can turn…hmm… Ugly.

In conclusion, this strategy can work for you if you are willing to put some time practicing your charting skills!
Since we are dealing with probabilities we can never be 100% sure that the trade will go as planned.
However, by mastering a working strategy and sticking to your rules you can at least be sure that the majority of your trades will end in the money.
As I advised you in my last post you can speed up the learning process by keeping a diary.
Let me know if you have any questions. See you in my next post!

HomeMade Strategies – Okane 15-30 Minute Strategy, Simple and Profitable

When I first attempted to create my own strategy my goal was to develop a system that could eliminate doubts and indecision out of the equation. I needed confirmation, a solid strategy with simple rules that could be followed and traded mechanically. Today, with months of training, I have the skills to fully benefit from the great trading opportunities it offers. If you are a newbie, you can follow the rules and trade this strategy mechanically until you acquire the skills necessary to understand the reasons behind the rules. Once you’ve reached that state you will also be able to take complete advantage of my strategy. Hence I can recommend this strategy to both newbies and more experienced traders!

Okane’s 15-30 Minute Strategy MT4 Setup

Downloads available at the bottom of the page

1. Add 3 exponential moving averages with the following periods:
200 and 50. 21 is helpful but it’s optional.
2. Add (5, 3, 3) Stochastic Oscillator with the following levels: 80 and 20.
3. Add RSI with value 4 and the following levels: 75 and 25.
4. Add FiboPiv_v2

Few words about the FiboPiv:

This is an indicator that calculates and draws S/R-lines on your chart. The accuracy of these lines are very high. I advise newbie traders to not trade near these lines until they understand price action well, specially the pivot-line. Sometimes price is in indecision around the pivot-line, which means you can’t identify a clear trend. After you understand how price reacts near important S/R-lines you can use them to your advantage. You can learn about the PivotCalc here.

How does this Strategy Work?

First you need to confirm the direction of the trend. The moving averages are the very useful tools for this task. To identify a trend go to the 15-minute chart and see if the candlesticks are under or above the 200-EMA AND the 50-EMA. To make sure the trend is not in a state of consolidation or about to change direction it’s important to identify previous highs and lows. To locate these highs and lows simply mark the areas where stochastic oscillator showed overbought/oversold levels. Check to see if price is stepping down and is under the 200 and 50-EMA, if that is the case look for lower highs and lower lows. If price is stepping up it should be creating higher highs and higher lows above the 200 and 50-EMA. The goal is to find these “steps” or small retracements inside the trend.

-For Call options: enter at higher lows, candlesticks should be above the 200 and 50-EMA and oversold levels on both Stochastic and RSI

-For Put options:
enter at lower highs, candlesticks should be under the 200 and 50-EMA and overbought levels on both Stochastic and RIS

Here is an example of a 15-minute chart of USD/JPY:

The two vertical red lines show the lower highs at overbought areas on the 15-minute chart. Notice that these two highs are also under the 200 and the 50EMA. These are good locations for Put-Options.

You can actually find two more Put opportunities if you look carefully. Notice that the distance between the 50 and 21-EMA is becoming narrower on the right side in the picture and Doji-candles are forming. This is not a good place for Put-options even though Stochastic and RSI are overbought.

How to pick an entry after you have confirmed the trend direction?

Depending on whether you are a newbie or an experienced trader the approach differs.

Method 1:

First approach is for the newbies who want to trade this mechanically until they become skilled. In the example above let’s pretend you are just seeing the candles form a lower high, look at the second vertical red line from left. Stochastic and RSI are about to touch overbought levels. You must let the current bullish 15-minute candle to finish and confirm that the retracement is over. In order to confirm the bullish move is over, change to the 5-minute chart and see if a 5-minute bearish candle forms.

Example of a Put Option in a downtrend
In this picture the charts are showing the same currency pair as in the picture above, USD/JPY. But this time you are looking at the 5-minute timeframe. Notice how the candles are closing lower and lower (in circle). This indicates that the high is likely to be over. Pay attention to the overbought areas too. The Stochastic and the RSI are now crossing the overbought levels and are heading down. The entry is after this 5-minute bearish candle is closed. Depending on the market volatility choose between 15-minute or 30-minute expiry.

Method 2:

This approach can be applied by advanced an experienced traders who have basic candlestick knowledge, you know how to use price action, you are good at drawing S/R-lines and you understand volatility. So, instead of waiting for a 5-minute bearish candle to form you can get more precise entries by switching to the 1-minute time frame and drawing S/R-lines. Remember though, the M15 and the M5 still have to be overbought!

Here is a picture of the 1-minute chart of the same currency pair in the pictures above:

Notice how price resisted at the second golden line from bottom to top. Notice the pin-bars indicating price was forced down. Your entry here would’ve been earlier than in method 1, meaning you entered at a higher price. So basically, using price action, there is no need to wait for a full 5-minute candle to finish in the direction you want to trade. Price failing to continue up confirmed the retracement was over and thus gave you a better entry.

You can apply the same methods on Call Options, just look for higher highs and higher lows as I mentioned earlier.

Why does this strategy suck?

Not so surprisingly, this strategy does not work in ANY market condition. But then again, I don’t know any strategy that does. The main issue is being able to patiently wait for all of the correct market conditions to line up for you. This could take a while, some days you can’t trade anything because market is simply not “stepping” in any direction but rather jumps volatilely between different support and resistance areas. Furthermore, it can be quite difficult for beginners to find the best entries.

Why this Strategy doesn’t suck?

This strategy provides with enough confirmations to induce the trader to take a trade. During the time I’ve tested this strategy it has proven to be pretty accurate. The rules are simple to follow. This strategy also teaches you trend identification and lets you practice on your price action skills!

Conclusion – Check out Okane’s Diary to Learn More!

Whether this strategy sucks or not depends entirely on how well you understand the reasons behind the rules of this strategy. Try it out on a demo account first. You can benefit from my trading diary and the forum thread I started about this strategy. Some of your questions might have been answered already in these threads!

Okane’s HomeGrown Price Action Strategy for EUR/USD

HomeGrown Trading: Okane’s EUR/USD Binary Options Price Action Strategy

Okane’s home grown EUR/USD price action strategy for experienced traders! Use support and resistance lines and time pattern to trade EUR/USD profitably.

Finally the time has come for me to share the strategy that I have been using on my live account for the past 6 months or so. I named it; ‘Okane’s Price Action strategy for EUR/USD’ because everyone uses Price Action in a different way and I don’t want to start a war on whether this is a PA or not…it’s my strategy and this is how I trade. This is far from a mechanical strategy and it’s absolutely no good for beginners, you’re gonna need some experience to make this one work, there aren’t any magical blinking arrows and there’s only one indicator… unless you want to call the clock an indicator. If you are familiar with using support and resistance lines, can recognize trends and understand candlesticks then keep reading and you might be able to use my strategy. Those who enjoy trading short expiries such as 10-20 minutes on EUR/USD can benefit from reading this review whether they choose to use my strategy or not.

What Is Okane’s Home Grown EUR/USD Price Action Strategy?

This strategy uses Stochastic Oscillator, price action and the clock to predict possible trend retracements. I use stochastic with standard settings, (5, 3, 3) with signal levels marked at 20 and 80 to confirm signals that occur near or on my lines. Start by drawing horizontal trend lines, also known as support and resistance lines on your charts. Higher time frames are preferred, such as H2, H4 and even the daily or above because they are more reliable. You should be confident at drawing lines, tell which lines are significant and why they are stronger than others. In my experience, the strong support and resistance lines are the ones drawn on higher time frames, areas that have the most “candle bounces” or thickest price action. Personally, I prefer to have two charts open simultaneously, one M5 and the other illustrating H1. The chart set on a higher time frame is practical to have because you can clearly see if price is heading towards a major support or resistance line. When price is trending and gets near a S/R level I watch the clock and Stochastic to get my signal.

The super-secret Guru part of the strategy that takes experience to master is timing the signals. This is where the clock comes into play. To help make it clear just look at a EUR/USD 15 minute chart, choose the cross hair (on MT4) and hover over full hours and half-hours. It should become clear that retracements in this pair occur at nearly every hour and half hour of the trading day. What I do is look for a potential retracement each time the clock approaches one of these times. This can presents up to 48 possible trading entries every day but we don’t want to trade all of them because sometimes price ignores this time pattern. The Oscillator’s purpose is to provide additional confirmation by identifying overbought and oversold levels as well as highlight potential support and resistance, ie the actual signals. Sometimes the signal is trend following and sometimes it isn’t. Obviously, we want to trade the retracements where one of our support or resistance lines are touched and confirmed with the Stochastic Oscillator. The best signals are catching the trend following entries after the retracement but the retracements can be traded too.

On the left: Put taken at almost 1.24842 at 17:59 and expired 18:10. Notice how it is moving back up after 18:10. Also, Stochastic indicated overbought on most timeframes. On the right, this was actually a touch option because price was moving up and trying to break the dotted red line repeatedly and I figured it wanted to reach to or near 1.15420 which it did! Stochastic on the M5 would get oversold very quickly each time price dropped.

Incase you still work your way around Price Action, here’s a short how to video:

Why Does My Strategy Suck?

My strategy sucks if you haven’t spent a lot of time watching and trading EUR/USD. Generally speaking; my strategy sucks for anyone who is not fully confident in drawing trend lines and S/R lines and is not in touch with this market. Furthermore, the time patterns are sometimes totally neglected and our expiry is so short that a small mistake can result in a few pip disadvantage which in turn could mean a losing trade. Getting a good entry and expiry can be crucial and time is not an indicator on its own.

Why Doesn’t My Strategy Suck?

This strategy doesn’t suck because after testing my strategy live during six months it gave me roughly 62% ITM on >200 trades. The two first testing months obviously lowered the win rate because it was new to me as well but once I got the hang of reading the chart according to the time my success improved. It also doesn’t suck because it does not rely much on any indicators, even though I use Stochastic it is merely for extra confirmation. I take patterns and trends into consideration and base my signals accordingly.

Conclusion – Will it Work?

My strategy works for me and it can work for you, but is an advanced technique. I have only tested it on the EUR/USD, if you want to use it on a different pair you will have to test it like I did for a few months and see for yourself! That’s why I call it ‘Okane’s EUR/USD strategy’ and not Okane’s “Every asset you wish strategy”. This review might leave some of you confused but strategies based on experience can’t be taught so easily. Luckily, we can discuss as much as you want in the forums and I can help you understand how to apply it and share more super hidden secrets =). You will also find some trades with more information in my trading diary here.

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