Trading Binary Options on Bigger Time Frames
There is nothing more paramount when it comes to picking an expiration date for binary options than selecting the proper time frame. It is never an easy decision but one that must always be paid close attention too.
One school of thought says there are certain times you don’t want to trade binary options on a bigger time frame:
If you are picking your entry point or strike price based on five minute time frames then it is not wise to use and end of the day expiration date because the information you used is not pertinent to that time frame.
It is very similar when trading on even shorter than five minute time frames such as sixty second time frames; especially of you are using charts that contain daily, weekly or even monthly information. It just would not make any sense at all to do this.
So when it comes to trading binary options on a bigger time frame, make sure the information that you are using to base your decisions is relevant to trading over that longer time frame. You will have a hard time obtaining the results you desire if you do not take this into account and remain aware of it.
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References and Further Reading:
1. Testing for arbitrage opportunities within the foreign exchange market (I Hussain – 2009)
2. Transaction Costs (R Di Lorenzo – 2012)
3. How to Make Money by Fast Trading: A Guide to Success (R Di Lorenzo – 2012)
4. Global Variance Risk Premium and Forex Return Predictability (Job Market Paper) (A Aloosh – 2014)
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