60 seconds binary options strategy

In terms of strategy, 60 Seconds options take a very special place. While all binary options are short term oriented compared to regular trading, 60 Seconds options are even more extreme. Due to their incredibly short expiration time of only 60 seconds, they need special trading strategies. Read more here about 60 seconds binary options strategy.

While some aspects of these strategies can be adapted to other strategies, some of them are unique to 60 Seconds options. In general, every trader will benefit from thinking through these strategies at least once, because it will provide him with a greater insight to how the market works.

The unique challenges of a 60 Seconds binary options strategy

A strategy for 60 Seconds options is faced with unique challenges: In these short time periods market movements are especially erratic. News and fundamental influences, a company doing well for example, are almost meaningless. Instead, technical analysis, trends, and candlesticks are invaluable instruments to make sense of the erratic price movements in these short time frames.

To create your own 60 Seconds binary options strategy, you have a few options. First of all, you can look for trends in short time frames. These trends are short lived and most of the time does not obey to trend lines as strictly as trends in longer time frames. Therefore, you have to be quick when trading them.

Another ingredient to your 60 Seconds trading strategy could be candlesticks. In this case, make sure each candlestick represents a time frame of at least 15 seconds, or the movements will be too random. Finally, you can use technical indicators like the Moving Average to generate signals. In any case, experience is an especially important ingredient to making good decisions in such a fast paced environment.

The advantages of a 60 Seconds binary options strategy

When trading High/Low options or Touch options, for example, you are operating with far longer expiration dates than in 60 Seconds options. In these bigger time frames, market movements become less erratic and more predictable.

As a 60 Seconds trader, you therefore have to work with less secure predictions than all other traders. On the other hand, you will have an abundance of trading opportunities compared to other strategies. Instead of generating only a few signals every day, a 60 Seconds binary options strategy can generate tradable signals every few minutes.This means, although you have to accept a higher percentage of losing trades, if you still manage to make a profit, a 60 Seconds binary options strategy can help you make a lot of money in a short time.

How to make the best predictions for 60 Seconds options

60 Seconds binary options strategyYou can, however, create a strategy that will enable you to have a high percentage of winning trades with a 60 Seconds options strategy. To do this, you have to combine different time frames.

This means, you can look for a trend in a daily or in an hourly chart. When you find one, you wait until the price is about to break through the price level of the previous point 2. Then you switch to a smaller time frame and look for the trend that will lead the price to break the point 2 in the bigger time frame. By doing this, you can make your timing exact enough to work with a 60 Seconds options. As soon as you see that the price is about to break through the previous point 2, you place your 60 Seconds option, and profit from the big price movement this event will create.

With a strategy like this, you will be able to win a high percentage of your trades. Still, you will have fewer trading opportunities than with other 60 Seconds trading strategies. You can try to make up for this disadvantage by searching for trading opportunities in many different charts and assets.

 

References and Further Reading:

1. Trading system for fixed-value contracts (L Kohls, BF Clare – 2006)

2. Private prediction markets and the law (TW Bell – 2008)

3. Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes (R Rhoads – 2011)

4. A course in financial calculus (A Etheridge – 2002)

5. GARCH vs. stochastic volatility: Option pricing and risk management (A Lehar, M Scheicher, C Schittenkopf – 2002)

6. Empirical Case Study of Binary Options Trading: An Interdisciplinary Application of Telecommunications Methodology to Financial Economics (G Giunta, F Benedetto – 2012)

7. Extended BDD’s: Trading off canonicity for structure in verification algorithms (SW Jeong, B Plessier, G Hachtel – 1991)

8. The efficacy of regulatory intervention: Evidence from the distribution of informed option trading (RC Anderson, DM Reeb, Y Zhang, W Zhao – 2013)

9. The Forex Options Course: A Self-Study Guide to Trading Currency Options (A Cofnas – 2008)

10. Options and Options Trading (RW Ward – 2004)

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