New Signals Successfully Tested

New Signals Successfully TestedInvestors and analysts alike are always trying to come up with new strategies for investing and making binary option trades. Although there is no one magic formula for success, there have been some exciting new strategies that have come into the binary option trading marketplace lately.

There have been some new signals tested that have some more than promising results. Here is what one trader had to say about some of their trades using a new strategy.

The Story:

I have experienced a lot of successful trades in the previous weeks. These trades were based largely on end of the week expiration dates, but that does not mean they were all executed at expiration. Some were done in a few days or even less depending on trending price movement.

These particular trades all involved having US dollars as the low side asset and called for put options to be placed on the trades. The trades were mostly based on EUR/USD, AUD/USD and GBP/USD.

The technical analysis used in determining the trade showed that these would be the most favorable pairs to trade.

Here is a summation of that analysis:

As a result of a particularly strong bearish movement on the EUR/USD that was largely driven by market impulses, I looked for this change based on a Fibonacci extension when i was trading binary option broker called Banc de Binary. I used a five wave structure that helped to determine that the down trend should be finished at the 1.17 percentage as that level was supposed to be at 161.8% when that figure was in comparison with the first leg of the scenario. This resulted in me buying call options at the 1.18 percentage level with end of the week expiration dates.

The other two trades were structured almost the exact same way, especially the trade involving the GBP/USD; call options were placed on these too. I got a signal from a contracting triangle on the AUD/USD that indicated a reversal pattern; this trade was not as successful because I placed call options on a four hour expiration instead of the end of the week expiration like the other two.

Another factor in the trades was that they expired near the release of the all-important US Farm payroll data, which always makes the markets more volatile than usual. If you are too cautious around this time period as many traders are, then you stand to lose a good opportunity to make some profit at this time.

There were a few reasons I think that the trades had favorable results. While the numbers of the report made the US dollar look good in the future, it still suffered a loss in the short term; this made a vast majority of the trades I placed during the week have a positive result by ending in the money.

I will try this strategy some more and see what it brings as far as profitability in the coming weeks.

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References and Further Reading:

1. Shanghai as an International Financial Center-Aspiration, Reality and Implication (R Luo – 2012)

2. Forex Analysis and Trading: Effective Top-Down Strategies Combining Fundamental, Position, and Technical Analyses (TJ Marta, J Brusuelas – 2010)

3. Investigating high frequency exchange rate from the Brazilian Sisbex market (A Barbosa – 2012)

4. Forex trend classification using machine learning techniques (G Ciet – 2011)

5. Country News Sentiment Factors Predict Forex Prices (PA Hafez, J Xie – 2013)

7 Binary Options review: Binary Option Robot: 5 stars.
John Miller
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John Miller

John has worked in investment banking for 10 years and is the main author at 7 Binary Options. He holds a Master's degree in Economics.
John Miller
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