The two most important Binary Options Trading Strategies

The two most important Binary Options Trading Strategies

Over the years, Binary Options world of trading have seen a tremendous increase in the number of traders willing to take part in it. Generally, this is due to the fact that Options trading can generate an awesome ROI when compared to other forms of traditional trading like forex, bonds and stocks.

This has lead to traders seeking the best profitable strategies they can use in trading binary options.

There is no single “binary option strategy” per Se rather they can even be divided into beginner, intermediate and advanced strategies.

No matter the form, any one individual can still develop his/her working strategy and maintain it. Though there are many articles online stressing on the various types of binary option strategies, we’re going to deal exclusively on the most important and still the most popular trading strategies for both binary options and forex.

These are the fundamental and technical analysis.  Note that this article serves as an introduction aiming to explain how fundamental and technical analysis can be used as a strategy for trading options.

Fundamental Analysis

Also known as News trading, fundamental analysis is the study of an asset using both the external and internal economic factors that influence the price or exchange rate of the asset.  These factors could range from simple company data to a complex global events that affects the price of an asset.

When trading using fundamental analysis, one should focus on the news concerning the asset being traded rather than putting interest in the whole lot of data encompassing other various assets.

👉 Are you looking for a Forex Robot that offers realistic returns even when the markets are volatile or down? Golden Pickaxe is the BEST Forex robot using low risk and EARNING a whopping 47.93% monthly profit margin. You get a robot offering the best in terms of safety and guaranteed profits no matter the risks. A gold-driven EA robot, the robot was created and developed over ten years. It has the pedigree to offer gold traders a profitable all-year-long profit regardless of market conditions. We have tested the platform, and it has seen remarkable profit margins for the past 15 months. The well-known trader developer (Valeriia), put the robot out there for any trader to confirm its realistic profitability. And the robot was tested and seen to be even better than what we thought was the best, Waka Waka. Golden Pickaxe is now one of the best-proven forex robots that offer profitable outcomes, and all data are third-party verified independently via Myfxbook. The balance volume for Golden Pickaxe is there for anyone to see. And that means you get a transparent Forex robot guaranteeing results. Even when facing drawbacks of 37.47%, the robot balances the profits. With an automated trading robot, you can receive near-perfect signals for trading gold. And that’s what every trader needs when investing in Gold. So what are you waiting for? We have tested the robot and Guarantee it’s a perfect match for you. Start earning realistic profit margins from forex trading with a LOW-RISK thanks to Golden Pickaxe. We have been using it even when the gold market was risky. Thanks to this automated forex robot, you can earn 47.93% ROI or more per month consistently. Complete beginners to Forex can start and immediately start earning a stable and reliable income with it.  What's more? You don’t even have to deposit funds with your broker when using the Golden Pickaxe robot. Just register with a Broker such as IC Markets or Coinexx (for US-based traders); there’s no need to deposit your real funds with them. Instead, use the Golden Pickaxe robot to pass a funded account challenge on FTMO. No worries, it’s very easy to pass once you install the EA. Once you pass the challenge, FTMO funds your account with real live funds depending on the challenge you passed, then you can simply carry on trading with the EA on the live account and request payouts monthly whenever you want to withdraw your profits. All challenges and trading are done automatically by the Golden Pickaxe robot, so you don't have to worry. Or... if you don't like the idea of a trading challenge/evaluation, you can simply buy a cheap funded account with prop firms we recommend like FundYourFx, get instant funding of a real account, then start using the robot to trade, profit and make weekly withdrawals, very easy. If you have any questions or want help with the setup, head over to our live chat and ask for Corey Woods. Corey will help you with any issues, problems, or initial setup along the way. Here’s your chance to start trading Gold and earn with an AUTHENTIC, PROVEN, AND SAFE Forex Robot. Sign up today for a chance to get a reliable side income with GOLDEN PICKAXE. Click the button below to buy the EA, then contact me on live chat if you need any help setting up the whole thing.

Click Here To Buy Now

In general, news concerning politics, natural events, economic releases, sentiments e.t.c may in one way or the other affect the price of an asset.  For example, in Politics, during US presidential elections, traders often witnessed a high volatility in currency pairs like the EUR/USD, GBP/USD, USD/JPY with USD becoming stronger in value than most of them all during those times.

Presidential speeches and Central Bank  Governors’ speeches can also have a high or medium impact on the current exchange rate of a particular asset.

fundamental analysis binary option strategy.

Economic data releases can have an instant impact on the direction of an asset. This is why a binary option trader should have an economic calendar stating exactly when and what type of data will be released.

There are many types of economic data releases but the most important ones are the GDP, Interest rates, Retail sales and unemployment status of a country.

You can see why these data can have a high impact on the value of a country’s currency.  Take for instance, the Nonfarm Payroll which accounts for about 80% of the total US workforce, is an important indicator of the GDP of the United States. When the Non farm Payroll  data of US is low (signifying that most business workers are not paid) for the month of March, 2014, it means that this will negatively impact on US GDP thereby creating an opportunity for binary traders to stake on the USD currency pairs.

Also worthy of note  is the interest rate. Interest rate is a kind of commission that banks pay people or organizations to save money with them. The higher the interest rate, the higher the currency price because the high interest rate attracts foreign investors to save in that particular country.

You Can Also ReadOption Bot 2.0 User Reviews

During news releases, the reversal trading strategy is completely contraindicated.

I will explain further.

The reversal trading system is one of the popular strategies used when an investor observes that an asset has abruptly moved in a particular direction and is very unlikely to stay at that peak and will move towards its original position. In this case, the investor will stake a put or call depending on the direction of the asset.

As you can see, it’s very dangerous to use the reversal system during important, high impact news data releases because the asset price may continue in the same direction without moving towards it’s original position.

Technical Analysis

Also known as chart trading or analysis, technical analysis is the most widely used strategy for binary options trading. Due to the fact that technical analysis is not as simple as fundamental analysis and used mainly by advanced traders, we’ll only give a brief overview of how technical analysis is used in trading.

technical analysis binary option strategyLike forex, technical analysis involves the studying of graphs and charts and the appropriate use of indicators to determine the future direction of an asset.

This type of analysis is purely based on Dow’s theory, a great financial analyst. The theory teaches that what happened in the market in the past has a high or medium probability of repeating itself today or in the future. In essence, the technical studying of past charts representing important financial events can give us a clue of what can happen in today or in the future.

In binary options trading, technical analysis is usually done using indicators like MACD indicator, Bollinger Bands, Fibonacci Retracement lines, Parabolic SAR, Simple Moving Averages e.t.c

Other less common binary option strategies are the Martingale, the Straddle, Double Trade and other personally developed systems.

4 Replies to “The two most important Binary Options Trading Strategies”

  1. Hi Val,
    Can u please tell me the authenticity of super simple robot auto trading. Also, i would like to know the best possible setting to keep on super simple robot.

Leave a Reply

Your email address will not be published. Required fields are marked *


Follow Us will not be liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the website constitute the authors’ opinion only. Trading Forex, Binary options and Cryptocurrencies involve high-risk and are not suitable for all investors. Online trading in general, may not be legal in your jurisdiction. It’s visitors’ responsibility to make sure these entities are legal in their jurisdiction before engaging in trading activity. All trademarks, images and logos that appear on this site are copyrights of their respective owners and have been used under the Act of Fair Use.