Strategies are an extremely important part of trading. Some strategies are proven to work extremely well, while others may be shared with others prior to being fully tested. The following ten tips can be used regardless of strategy and trade type. Each of these can help prevent substantial losses and should also help in the […]
The One Touch Method
You should always be very wary of a strategy that claims to have zero risk involved, but there are some that have less risk than others. The following strategy, what we call simply “The One Touch” method, has little risk, but that is not equal to no risk. It is a little tougher than some other types of trading methods to implement, but once you master the nuances of this, it can be very helpful.
First, you need to make sure that your broker offers one touch trades. Not just the high yield variety, but low yield one touch trades. The high yield one touch binary options are nice, but they are going to prove to be very inconsistent in their results, and therefore will not be used with this strategy.
Next, we want to focus primarily on Forex pairs here, so having experience trading currencies is going to be helpful, but it’s certainly not necessary. As long as you are able to measure volume, you will be okay even if you’ve never used a Forex broker before. MetaTrader4 will be helpful for this reason, just make sure that you have some experience with it before you start risking actual money. Also, waiting for the highest volume portions of the days can be a helpful trick to make this strategy even better.
Now comes the hard part. You want to find a touch price that is realistic and is being offered at moments of high volume. You can do this with any currency pair, but knowing which ones are going to be best at each time of day will be helpful. For example, if you are trading the EUR/USD pair, the world’s most highly traded pair, you should do it at the time when the European market hours overlap with U.S. market hours in order to increase volume.
You will be looking for a “realistic” one touch price, as mentioned above, but the term “realistic” is purposefully vague. To further narrow down the definition, you will want to look at a price chart for the pair. Do not go back too far in time, no more than to the beginning of the week, and identify resistance and support prices. If the target price is within this range, then it is a good trade. Look for the longer timeframes if they are available, but do not stretch the expiry out more than to the end of the trading day. These are a lot of rules to follow, but there is a high probability of success if you stick to these guidelines.
This method works because price swings are most common during times of high volume. You will not be successful with every single trade, but by coupling high volume with an in-range target price, you will increase your likelihood of having more winning trades more often.
Are There Drawbacks?
Like any other type of trading strategy, the one touch has its share of negative features. For one, not all binary brokers offer this type of trade. Those that do, usually defer to the high yield variety, simply because they make more money off of this trade. That’s fine, but it won’t work with this particular method.
The biggest here is that you won’t always find good trades, so you will need patience. You might find that a week goes by and you haven’t executed a single trade. That’s okay with this method, but it certainly won’t help you to make money. This method of trading is best used in conjunction with other strategies for this reason. It can be frustrating having only a handful of trades per week, especially if they are not all winners. Supplement this with other methods whenever possible.Try trading with a Trusted Broker of our Choice