Range Market Binary Trading Strategy is a simple system built on standard indicators – Stochastic and Parabolic SAR. The strategy can be used for binary options, scalping, and intraday trading. Its rules are straightforward and clear, making it suitable even for beginner traders. It is also easy to program into a trading advisor for quick testing and optimization of the best parameters for the current market.
Entry Parameters
To start trading, you will need:
- Currency pairs: any (for scalping or day trading, with minimal spread)
- Timeframe: M1 and M5
- Binary options expiry: 5 candles
- Trading time: London, New York
- Risk management: choose a lot size or option amount so that risk does not exceed 2-5% of your deposit per trade
Indicators Used
To analyze the market, use the following indicator settings:
- Stochastic Oscillator (5, 5, 5, close) with overbought and oversold levels set at 25 and 75
- Parabolic SAR (0.04, 0.1)
Indicator and Template Setup
To simplify indicator installation for this strategy, use the template provided at the end of the article. To do this:
- Unpack the archive with templates and indicators
- Copy the indicators to the MQL4 -> indicators folder
- Copy the templates to the templates folder
- Restart the terminal
- Open the chart for the desired currency pair
- Apply the template named Range Market Binary Strategy
The chart should look like this:
Signals for Opening a Long Position or Buying a CALL Option
- Both lines of the Stochastic indicator cross above the 25 level from below;
- Parabolic SAR dots are below the price.
Signals for Opening a Short Position or Buying a PUT Option
- Both lines of the Stochastic indicator cross below the 75 level from above;
- Parabolic SAR dots are above the price.
Setting Stop-Loss and Take-Profit Orders
To protect your trades from unnecessary losses and missed profits, use protective orders:
- Stop-loss is set above/below the previous local high or low;
- Take-profit is set at 3-5 points.
Range Market Binary trading strategy for binary options, scalping, and intraday trading has simple rules that will not cause difficulties even for beginner traders. More experienced traders can replace standard indicators with advanced modifications to increase the strategy’s effectiveness and functionality. Experts recommend opening positions only in the direction of the current trend, which can be determined on higher timeframes.
Download the Range Market Binary trading strategy template
