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Binary Option Short expiry time strategies | 60 second Option Strategies

The market moves fast and it takes quick wits and a bit of luck to make profits. These strategies are the fast action strategies for options scalpers. This time frame carries the highest risk, but also the fastest returns. Suggested expiry is only 60 seconds! Can you believe that!

  • Gone in 600 Seconds Strategy
  • 3 Bars High or Low Strategy
  • Simple Balanced System Strategy
  • BB and Scalp Strategy
  • Floor Trader Strategy

1. Keith Jones 60 Second Profit Strategy

It is developed by an ex-trader called Keith Jones. According to him, he worked for 8 years in the financial sector as a stock broker on Canary Warf for 7 years and Wall Street for 1 year. Pretty experienced trader….if what he says it’s true.

How it works:

The 60 Second Profit strategy consists in opening a sequence of binary trades on EUR/USD pair following a series of 5 predefined steps. In step one, we must check the “Popularity” column and always go with the highest percentage. So if traders insight favors Put, then we will trade only Put in all our following steps. Step two requires us to open a trade with $5 investment, using a 60 second expiry time. If we lost our first trade, we proceed to step three which requires us to open a trade using $10…..I’m sorry, but I started laughing again for the 10th time today and I find it very hard to continue describing this “technique”. Those of you who read my other reviews know that I can’t stand a scammer and I do my best to expose them, but also that I have the greatest consideration for an honest broker. Well, guys, I don’t whether Keith’s strategy could be considered as a scam, but I can defiantly say his strategy utterly sucks.

Disadvantages 

By step five you risk $100/trade hoping that a sleazy Martingale system will help you make your money back and then some. Yes, that’s all this strategy is, a Martingale system and he has the nerve to tell me that my fourth trade (step five is actually trade four because step one is checking traders insight) has a 100% winning probability. Wait…on what do you base this affirmation? It is a rhetorical question anyway, because all real traders know 100% probability of success is a utopia. Why would it be 100% safe trade? Price can go for more than four one minute candles in one direction and his strategy requires us to place four trades (assuming we lose trade 1, go to trade 2 and so on). Given that we have 60 second expiry time, trade four coincides with the fourth M1 candle and it’s 100% sure to win…pfff, just look at a M1 EUR/USD chart and see how many M1 candles you can count in a row and in a single direction. I just found 10 without looking too much. He further states that he used to do this on a larger scale for financial institutions…if that’s true, then maybe “techniques” like this one triggered the 2008 crisis. Another thing I can’t help but notice is what a cheap publicity stunt his strategy is. Throughout the entire explanation, he uses a certain broker and he says that’s the only broker that offers 60 second expiry time and urges you to open an account with them. I’m going to refrain from saying what broker he is referring to, but we know there are several brokers that offer this kind of options.

Advantages 

I’m speechless here…in fact, the only reason that this strategy doesn’t suck is because it made me laugh so hard. Other than that, I can’t think of any other reason. Oh, wait, I have one: the whole structure of the webpage and the wording in it shows us exactly what to avoid. Whenever you see something similar, walk away. No…run away!

3 Bars HIGH or LOW Strategy for Binary Options

The quest for a better Binary Options strategy never ends but I guess it all comes down to what suits each trader’s personality. Even the best strategy can Suck if you don’t feel comfortable with it and what works for someone can be totally useless for another trader. That’s why we try to bring you all sorts of strategies, some easy to use and some more complex and recommended for advanced traders. Today I’m going to review and explain for you a strategy developed for Binary Options right from the start so we don’t need to adapt it.

How it works:

 One of the main advantages is the simplicity of this strategy so I am sure everybody will find it easy to use right from the start. The only required indicator is… get ready *drum rolls* … Indestructible TrendWinner (download at the bottom of the page). I know, I know, I started laughing too when I first read its name. It sounds like something used by all those “secret” strategies sold for $99.99 all over the internet. But let’s cut it some slack and take a closer look: this indicator shows us the overall trend according to the strategy by changing colors from red to green and vice versa. So when the Indestructible TrendWinner is Green, we only look for Calls and when it’s Red we only look for Puts. As an additional confirmation, the author uses ADX and only trades when it is above the 19 level. I don’t know how he came up with that exact level and I am not sure ADX is really needed. Anyway, he considers the ADX filter as “optional” so feel free to experiment with it. I don’t find it necessary for this strategy.

Good, we have a sense of direction and now we must find the exact entry. The setup is two consecutive one hour candles/bars the same color as the… Indestructible TrendWinner (I can’t get enough of that name) and the exact entry is the beginning of the third bar/candle. The expiry is 60 minutes but the strategy can be used on higher time frames also; if you use 4 hour candles for your entry, the expiry will be 4 hours too. The author also mentions the two bars “must be in slope” so we need to see price moving up strongly for a Call and vice versa for a Put. Do not enter if price is just stalling or moving in a range. In fact, this is one of the first things he mentions: the strategy works only in a trend. Here is an example:

Three Bars HIGH or LOW Chart

Notice the white rectangles: they contain three Green candles and all Calls taken at the beginning of the third candle would have been successful according to the strategy.

Rules of trading

Call entry:

  1. Indestructible TrendWinner Green
  2. Two consecutive Green bars/candles in a rising slope
  3. Enter a Call at the beginning of the third candle

Put entry:

  1. Indestructible TrendWinner Red
  2. Two consecutive Red bars/candles in a descending slope
  3. Enter a Put at the beginning of the third candle

Disadvantages 

Right from the start the author warns us that it only works in a trend so if you try to use it in a range you will get a lot more Out of the Money trades than in a trend. But this drawdown is easily avoided: just follow the strategy and stay away from ranging markets. Also, I haven’t decided yet if the name “Indestructible TrendWinner” Sucks or not, but I’ll let you know when I do J

Advantages 

This strategy is easy to use and in fact I think that even a complete newbie can trade it if they can identify colors. It doesn’t get easier than this: Red or Green on the indicator – same color on two consecutive candles – Trade! The best part is that from what I saw, the accuracy is pretty high. You will get losing trades, don’t get me wrong, but overall I saw more winners.

Simple Balanced System

Lately I was looking for a system easy enough for a relative novice to understand, but still have more than one condition to enter the trade. The answer came in the form of the “Simple Balanced System” and I found it here: http://forex-strategies-revealed.com/trading-strategy-basicbalanced. It uses two Exponential Moving Averages (one with a period of 5 and one with a period of 10), Relative Strength Index (RSI) with default settings of 14 and the Stochastic indicator with settings of 14, 3, 3. If you never heard about RSI or Stochastic, don’t worry because I am going to tell you a little about them before starting to explain how to use the strategy. It wouldn’t be right to trade a strategy without knowing about the indicators involved. Since the Moving Averages were already covered in a previous article, here we go with the RSI and Stochastic.

How it works 

First of all, to plot the indicators on a Meta Trader 4 chart, go to Insert – Indicators – Oscillators and choose Relative Strength Index and then repeat the same procedure for Stochastic. If you are having problems with it, read my detailed article on how to use the Meta Trader 4 platform. For the two moving averages, follow the path: Insert – Indicators – Trend – Moving Average and select the exponential method. Ok, now we know how to display the indicators on a Meta Trader 4 platform.

Rules of trading

Call entry

For a Call, we need the 5 EMA to cross the 10 EMA upwards + the RSI to be above the 50 level (this is not a default level so you will have to add it manually) + the Stochastic to be heading up but not in Overbought territory. The word “and” is written in bold letters because we absolutely need all three conditions to be met at the time of entry. It will probably not happen simultaneously so wait until they are all met.

  1. EMA 5 crosses EMA 10 upwards
  2. RSI is above 50
  3. Stochastic is heading up but it is not in Overbought territory

 

 

Put entry

For a valid put entry we need to reverse all three conditions: EMA 5 must cross EMA 10 downwards + the RSI must be below the 50 level (drawn manually) + Stochastic needs to be heading down, but not in Oversold territory. Again, all three conditions must be met at the time of the entry.

  1. EMA 5 crosses EMA 10 downwards
  2. RSI is below 50
  3. Stochastic is heading down but it is not in Oversold territory

 

Disadvantages 

As you can see from my trade examples above, once all the three conditions are met, price quickly starts to move in my predicted direction, but keep in mind that I looked back on the charts to find those examples and in live market conditions, the situation can be quite different. This is not the Holy Grail of trading and sometimes the market can go against us much longer than we can stay solvent. Also low volatility and ranging periods can produce false signals.

Advantages 

Having three conditions that need to be fulfilled before placing a trade, this system keeps us out of many false moves and gives very accurate signals. The 50 level of the RSI is often regarded as a trend confirmation and by only trading when this level is breached we are making sure we are going in the direction of the trend. As the 50 level is not a sure confirmation of a trend, we don’t trade it alone, instead we have two other confirmations (EMA cross and Stochastic going down). I always say that we need more than one indication of price direction before placing a trade and the “Simple Balanced System” has three of them so in my opinion, it definitely doesn’t suck.

Bollinger Band Scalp Strategy for Binary Options Trading

Some currency pairs are so cool that they received nicknames; Ok, maybe not because of their coolness but anyway, it’s a fact they have nicknames. I’m not gonna go into details about each currency’s nickname but I am going to tell you that the most “terrifying” one belongs to the GBP/JPY: The Beast or The Dragon. What would earn it such a name, you ask? The answer is simple and clear: Volatility! You could say it moves like a Beast and bites like a Dragon and with an average daily range between 100 and 200 pips, it can sink an account faster than you can say “I’m broke” but it can also double it in a matter of days. In other words: it is not recommended for newbies! But the good part is that trading Binary options on this pair makes it smoother and somewhat easier to trade because we don’t use a Stop Loss which would be pretty big in Forex because of the pair’s volatility. However, it still remains a dangerous but attractive pair and today’s strategy attempts to “tame” the Beast by making use of a short time frame to scalp.

How it works: 

I first found this strategy at forexstrategiesresources.com but the author is unknown… or I failed to see his name and if that’s the case, I apologize for not giving him credit. Now for the strategy itself: we will use three Bollinger Bands with the following settings:

Bollinger Bands 1: period 50, deviation 2 – Red

Bollinger Bands 2: period 50, deviation 3 – Orange

Bollinger bands 3: period 50, deviation 4 – Yellow

Each Bollinger Band will be added separately, using the settings above and the result will be similar to the chart below:

GBP JPY Strategy Preview

Now we will be looking for a touch and break of the Red Bollinger Band and for price to go at least half way between the Red and Orange outer Bands. The author indicates that a touch of the Yellow band would be even better but this happens less frequent. Once this condition is met, we trade in the opposite direction, aiming for a reversal which would bring us a profit.

Rules of trading

Put Entry:

  1. Price pierces the Upper Red Bollinger Band and goes at least half way to the Upper Orange Band

Call Entry:

  1. Price pierces the Lower Red Bollinger Band and goes at least half way to the Lower Orange Band

Disadvantages 

As you already noticed this is a pure counter trend strategy. In fact, it totally disregards trends and has no filters for identifying a strong more or a trend. This, coupled with the high volatility of the Beast will make it an account killer during strong trending periods, especially if it is used by a newbie who doesn’t know how to identify a trend. The picture above shows a ranging market and the signals produced are very good and would produce In the Money trades if u would use a 5 minute expiry (remember the strategy uses 1 minute chart for entries).

Advantages 

If the trader can identify a ranging market or at least one that isn’t trending very strong, the results using this strategy could be astounding. In a ranging market price will play ping pong between the Bollinger Bands and that’s when quick money will be made trading against the latest move. One thing to note is that a one minute chart is full of noise and trends are rarely seen here. That’s exactly what this strategy capitalizes on: market noise. As long as price won’t move in single direction for an extended period of time, money will probably be made with this strategy. Although normally the expiry time should be longer than the time frame of the chart you’re watching for signals, some of you might want to experiment with 60 seconds options. I don’t recommend it but… maybe it will work.

The Floor Trader Strategy

Today I am going to present to you one of the first strategies I used after I learned the basics of the business and still one of my favorite strategies. To be honest, I spent a lot of time to really understand it, but that might be just because I was so green when I came across it. I am going to explain it as clear as possible and make it a bit more “user friendly”, because in its original form, the developer sometimes uses some complicated phrasing, at least in my opinion. The original strategy is used for Forex and can be found here: http://www.trading-naked.com/FloorTraderMethod.htm. The core of the strategy is trend following and that makes it one of my favorites. For trend recognition we will use 2 Exponential Moving Averages with periods of 9 and 18. The angle and positioning of the 2 Moving Averages will determine the trend and then we will use a pattern formed during the retracement to enter the market. Here is the detailed explanation of the strategy and all the rules.

How it works 

First of all, I want to make sure that everybody knows what a retracement is (as used by this strategy). During an uptrend, a retracement is a minor decline in prices and during a downtrend, it consists of a minor rally (move up). Retracements are counter trend moves and once they are over, the trend usually resumes. These are very important for our strategy because the entry pattern occurs during the retracement. Our entry trigger in an uptrend is the first candle that rises above the high of the previous candle, marking the end of the retracement and the continuation of our uptrend. The opposite applies for a downtrend. Here is the picture:

The best entries are found after a retracement that contains 2-5 candles and speaking of entries, here are the rules. Yup, they will seem complicated, but be patient, everything will line up eventually.

Rules of trading

An Uptrend is identified by:

1. Prices trading above both EMAs

2. The 9-EMA line is above the 18-EMA line.

3. The slope of both or at least one of the EMAs is upwards. (Exception: sometimes the 9 EMA will be under the 18, but curving upward and about to cross it. This is allowed.)

Number 1 above is the primary identifier; prices must first trade above both EMA lines – subject to the two conditions below:

1. Price is above the lines for at least 3 candles, or

2. Price is at a “significant” distance above the lines (before retracing to

touch the EMA lines).

There are three types of entry signals: Level 1 (L1), Level 2 (L2) and Level 3 (L3). L1 is the strongest signal, followed closely by L2. The weakest signal is L3 and should be traded very cautiously.

The LEVEL 1 Call (long) signal:

After determining that there is an uptrend and a decline retracement is identified, watch for:

  • Price to come lower and enter the zone between the 9 and 18 EMA lines, and
  • One or more candles touch the 18-EMA line (or penetrate slightly below it)
  • Once the 18-EMA has been touched, look for a candle that breaks above the high of the preceding candle by one or more pips. (Trigger candle)

The LEVEL 2 Call (long) signal: (similar to the L1 signal and may appear before it)

After determining that there is an uptrend and a decline retracement is identified, watch for:

  • Price to come lower and to enter the zone between the 9 and 18 EMA lines
  • A Call signal Trigger candle occurs before the 18-EMA is touched. The market begins to rally without touching the 18-EMA (which would normally trigger the L1 signal).

The LEVEL 3 (long) signal:

After determining that there is an uptrend and a decline retracement is identified, watch for:

  • Price to come lower but it doesn’t enter the zone between the 9 and 18 EMA lines, or price just touches the 9-EMA line.
  • A Call signal Trigger candle occurs above the 9-EMA. The market begins to rally above both EMA lines (or just slightly touches the 9-EMA line) after a shallow retracement.

Only take an L3 Call signal if it is the first one in a new uptrend.

Qualified L3 Call signals are not common. The best ones form when the market is trading at new highs in a “runaway” rally, or after a strong consolidation.

Continuation Long Signals:

Closely monitor the first Call signal in a new uptrend, regardless of whether or not it is taken, if this trade stalls, or returns to breakeven, do not act on any additional long signals in the current uptrend.  The developer of the strategy also advises us not to take additional long signals if they don’t happen well above the first one. In general, the best trades are the first signals in a new trend. That is, the highest rate of success will be with a signal from the first retracement after an EMA crossover. For a Put signal, all the rules must be reversed.

Disadvantages 

Well…look at all the rules and imagine how hard it would be for a novice to learn the strategy. I was in that situation, I know the feeling.  The thought of abandoning it crossed my mind several times, but I decided to stick to it and sooner than I expected I started to see the signals better and didn’t have to check my rules cheat sheet. The biggest drawback of the strategy comes from the fact that it doesn’t cope well with ranging periods and this is known to be the weak spot of the trending strategies. This could be avoided by using another tool (maybe ADX) for identifying trend better. Also, when the two Moving Averages are flat, avoid any trades.

Advantages 

This strategy is based on one of the strongest principles of trading and that is “The trend is your friend”. And what better place to join the trend than after a retracement? From my experience, it gives accurate signals and they occur with a pretty high frequency so even the guys that want to trade a lot are satisfied. Multiple trades can be taken during a trend and this maximizes the profits, giving the trader big gains if all the signals are taken.

Strategies collected from:

forexstrategiesrevealed.com

binaryoptionthatsuck.com

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Binary Option Collage

All Lessons in Part 3: Binary Option Strategies
Lesson 1: Binary Option trading Strategy
Lesson 2: Best Short Term Binary Option Strategies
Lesson 3: Binary Option Strategy Tester
Lesson 4: Binary Option Short expiry time strategies
Lesson 5: Best Short Term Binary Option Strategies

Lesson 6: Best Binary Option Trading Strategies for New Traders
Lesson: 7 5 Best Binary Option Trading Strategies For Experienced

About the author

David Richard

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