TMA Crossing trading strategy is a simple yet highly profitable strategy for binary options, which can also be used on forex for scalping on any high-volatility currency pairs. The strategy is based on generating trading signals from the crossover of TMA and a moving average. For scalping, a channel from two MAs is additionally used.
Input Parameters
To start trading, you will need:
- Currency pairs: any
- Timeframe: M1 and M5 for binary options (expiration – 3 candles), M5 for scalping
- Trading time: London, New York
- Risk management: choose an option (lot) size so that the risk is no more than 2-5% of the deposit per trade
Indicators Used
To analyze the selected assets on the chart, place the following indicators:
- Simple moving average (20, high)
- Simple moving average (20, low)
- Simple moving average (20, close)
- Pivot points levels
- TMA ML Col sline
Installing Indicators and System Template
To simplify installation, use the template available in the archive at the end of the article. To do this:
- Unpack the archive with templates and indicators
- Copy indicators to the MQL4 -> indicators folder
- Copy templates to the templates folder
- Restart the terminal
- Open the chart of the desired currency pair
- Apply the template named TMA Crossing
The chart after correct installation looks like this:
Template of the TMA Crossing trading strategy
Signal for Buying a Call Option
The TMA ML Col sline indicator line crossed the blue moving average from bottom to top. That’s it!
Example of buying a Call option
Signals for Opening a Long Position
Similarly simple buy signal for forex: the TMA ML Col sline indicator line crossed the blue moving average and the upper boundary of the channel from two MAs from bottom to top.
Examples of entering a long position
Signals for Buying a Put Option
To sell on options, the TMA ML Col sline indicator line must cross the blue moving average from top to bottom.
Example of buying a Put option
Signals for Opening a Short Position
The TMA ML Col sline indicator line crossed the blue moving average and the lower boundary of the channel from two MAs from top to bottom.
Examples of entering a short position
Setting Stop-Loss and Take-Profit Orders for Scalping
Protective orders on forex are set according to the following rules:
- stop-loss is set at a distance of 5-8 pips from the lower (for buy) or upper (for sell) boundary of the channel;
- take-profit is set at 10-15 pips or near the pivot level.
The TMA Crossing trading strategy for binary options and scalping has such simple rules that it won’t cause difficulties even for beginner traders. Nevertheless, despite its simplicity, never forget to strictly follow money management rules.
Before using the TMA Crossing trading strategy on a real deposit, Fortraders experts recommend testing it on a demo account.
Download TMA Crossing strategy template and indicators
Other Strategies for Binary Options Trading
- Range Market Binary trading strategy for scalping on standard indicators
- Ultra Profit Scalping trading strategy for binary options, scalping, and day trading
- Binary Point Reversal trading strategy for binary options
