Developing binary trading strategies can be a very difficult task if you don’t know what you are doing. This is why you should be practicing your method for quite some time before the live account gets going. There are several things you can do when it comes to a strategy. Learning everything you can about the markets you want to trade is the first and foremost part of the process. Without common knowledge of the asset you want to trade the likelihood of it working diminishes greatly.
What does it take to create a winning strategy? First of all it takes a lot of dedication. You may put in hours upon hours of time into making a working method. The key is not to get discourage if you aren’t successful at first. During the development you will learn the markets so well, that a hidden gem may pop up and save you. Keep pushing to find one that works. Also, don’t try and find or build the holy grail of binaries. The odds of this are zero. There are no sure bets in trading. All you need is a better winning percentage then losing. We’ll break down some of the things to help you get started on you strategy development process.
Making your Own Strategy
If you are a better than average trader and can understand the markets this is where you want to start. You feel like you’ve watched the markets for sometime and you are ready. You must think about what might work and might not work. Rule out all the garbage so you don’t waste your time. Take a look at what you’ve done so far. Are you a short term or long term trader. Are you looking to take 60 second binary trades or daily. Bring all the information to the table and then go from there. Once you have this you can start picking the assets you want to trade. Look for patterns on the charts or use indicators to help you decide. Price action is your friend so make sure you include that as well. You have a lot to consider. After a while things should come together for you to start testing. If you find something that has potential, you must backward and forward test. You’ll be happy you did before real money is at stake.
Copy Someone Else’s
Don’t feel bad copying another traders work. Take this strategy you found online or in a book and do your own testing. Be sure it works the way the developed says it does. Again, test and test some more. This will help you over the long run. If you find some success after a while you can then bring it to 24option. Over time you will see if it is successful or not. Again, don’t get down if it doesn’t work. This is a long process.
Develop Your Own Based on Anther Strategy
If you are feeling real good about your skills you can take someone else’s strategy and make it your own. You can apply a moving average or some kind of trading indicator to help rule out the noise. There is so much you can do to an existing strategy to make it that much better. Don’t try and reinvent the wheel if it is working. A lot of times people tweak methods and make them worse. This leads you to believe the original strategy isn’t good. You can always change what you have, but remember you won’t know for some time if it is good or not.
Testing the Binary Options Strategy
As mentioned above, this is probably the most important part of developing a strategy. Testing it can save you tons of money. We would say time, but the fact is it takes time to practice and make it right. How do you Test? Easily, all you have to do is open a binary trading demo account and you are well on your way. You of course need the charting software to manage the price action. Bring the two together and you are well on your way. No matter if you are using indicators or just plain price, you have to put it to work and see if you get a decent winning percentage.
The truth is, there is no holy grail trading system. If you can create one please let us know. However, there are strategies that work that are available now or just waiting to be created. Figure out what type of trader you are during this phase and try to develop the best method possible. Use your demo wisely and don’t force any real money into the creation process. Once you have a good sign, run with it and see what it can do for you. If you have something that works over time, then you are great shape. We are always open to suggestions at BinaryOptionsU.com. Keep us posted.