Gold Bands Binary Trading Strategy features very simple rules and is designed for trading binary options, but it can also be applied for scalping on currency pairs with low spreads. The strategy uses a low timeframe for trading and two custom indicators for market analysis.
Input Parameters
- Currency pairs: any (for scalping, choose pairs with low spreads)
- Expiration time for binary options: 4-5 candles
- Timeframe: M5
- Trading hours: any
- Risk management: select an option (lot) size so that the risk does not exceed 2-5% of the deposit per trade
Indicators Used
Two custom indicators are required for market analysis:
- Gold Bands
- RSI Filter (14)
They can be downloaded in the archive at the end of the article.
Installing the Indicators and System Template
To speed up installation and ensure everything is set up correctly, use the template from the archive. Steps:
- Unpack the archive containing the templates and indicators
- Copy the indicators to the MQL4 -> indicators folder
- Copy the templates to the templates folder
- Restart the trading terminal
- Open the chart of the desired currency pair
- Apply the template named Gold Bands Binary
The chart should look like this:
Call Option Entry Signals (Opening a Buy Position)
- The middle line of Gold Bands Binary changes color from red to blue;
- The RSI Filter indicator bar is blue;
- It is possible to reopen a trade when the price bounces off the middle line and breaks through the upper channel boundary.
Put Option Entry Signals (Opening a Sell Position)
- The middle line of Gold Bands Binary changes color from blue to red;
- The RSI Filter indicator bar is red;
- It is possible to reopen a trade when the price bounces off the middle line and breaks through the lower channel boundary.
Setting Stop-Loss and Take-Profit (for Scalping)
When trading forex, protective orders are used for each position.
- Stop-loss is set above or below the channel boundaries.
- Take-profit is set between 7-12 pips depending on the currency pair.
Before using the Gold Bands Binary trading strategy for binary options and scalping on a real account, it is recommended to test it on a demo account.
- Download the Gold Bands Binary strategy template and indicators
Try other interesting trading strategies as well
- Channel trading strategy Bollinger Band Squeeze Reversal System
- Universal trading strategy based on range breakout
- Forex strategy Levels Breakout for breakout trading
