Every trader has his own opinion on what are the best BO and profit making strategy. Much depends on the player’s skills and his risk appetite. Trades in accordance with trend direction are able to provide a steady income, especially being in the short-term intraday trading timeframe. Because of the high profitability, playing on the sudden reversal trend is a priority for experienced traders. Success is defined by reliable trading platform. Preference should be given to those who have a solid reputation and are equipped with an easy software (easy trading terminal and a wide range of indicators). Prime Signals is among them.
Nota Bene: BO previously belonged to exotic options since the transaction success in most cases is not tied to specific indicators of asset price. Today it is appropriate to assume them as an independent financial tool that guarantees making profit.
BO in General
BO market is not limited to certain underlying assets that can be represented by natural resources, grain, precious metals, and even such exotic instruments as crypto-currency (currency entered into circulation by certain Internet users, and its value depends on the goals it should achieve.
Forex, shares and stock indexes currency pairs’ ratio is the most common subject of bargaining. It is much easier to purchase BO at previously agreed Buy price and Bonus amount, than to purchase expensive shares.
BO differ by forecasts:
- Increasing (Call) and Lowering (Put) BO- some sources separate them, some keep together: Call/Put, but the essence remains the same. It is important to predict whether the price is going to increase or lower without being tied to an indicator – and receive bonus in the end;
- Tangential BO – when it is necessary to foresee the achievement of a certain price level at the option close, or to rely on its failure to: One Touch or No Touch. High profitable BO implies a certain analytical experience and correct selection of indicators. The events before expiry (closing) are oriented to the stock exchange;
- Corridor BO – like the previous ones, also are designed for experienced traders, but they bet on the range in which the price fluctuates;
- Repayment BO (Below) – are rarely used exclusively by professional traders and are intended to predict the exact asset price level at the time of expiration.
Market intrigue lies in the fact that the best BO has not formed yet in players’ general consciousness. It all depends on the experience and techniques. There are different BO strategies, such as:
- Simple – when you buy at specific time that is good for forecasting using visual indicators;
- Short-term – making profit in short period. One of the most famous is 60 Seconds Strategy;
- Long-term – require a long period before expiration, focused on maximum profit. Traders often use other strategies with it, including the short-term one;
- Graphic – these techniques are characterized by the presence of a mathematical component, with the gaming terminal teemed with graphs.
Let’s name some strategies
It is impossible to list all strategies in the article. Let us pay attention to some of them. Popular and simple techniques include:
- Martingale Principle, including New Martingale;
- Attack the Trend;
- Four Medium;
- Bollinger Principle;
- Trading on News;
- Two Candles and etc.
Short-term contracts (deals) are purchased on the basis of the following effective strategies:
- RSG, etc.
Some of the popular long-term strategy involve:
- Concrete Levels, etc.
Among the BO graphic strategies are:
- Head and Shoulders;
- Peak-Bottom and others.
The list is constantly growing. For more information, visit he gaming platforms, including Premium Signals.
Examples of Simple Strategies
Martingale principle involves playing field for charts. One choose an asset in a special box that includes info on the max deal profit in percentage. A trader should select the option time indicator when the option purchased. Then tracking its direction on charts, he has to choose which BO to buy – Call or Put.
New Martingale Principle is improved by covering broader period, with the ability to predict the global trend.
Attack the Trend include using only a single indicator: EMA or moving averages. The exponential average is set at 96. The USD/GBP is the most demonstrative and active currency pair. The indicator line starts over the long term. Fluctuations in prices displayed by candles and you should ensure that the candle shadow does not intersect the line of the indicator (Moving Average) – this position is favorable conditions for the rate.
The price position is important to moving average: if it is below, so it should be below the closing level, and vice versa.
Short-term Ichimoku Strategy
When you buy long-term BO, a lot of attention is always paid to the Ichimoku strategy – many traders believe that it provides the output to best BO. For Japan (where it was invented) – this view is unique.
Ichimoku Strategy assumes a high profit probability, its average size, min deposit loss. The max timeframe is 24 hours (for player to choose the optimal time to enter the market). Graphically, Ichimoku indicator abounds with lines that indicate the short and medium trend, and so on. Each has a Japanese name (Tenkan, Kedzhun, etc.), its value (standard turn, lead, etc.), supported by mathematical formulas. Their weaving – is a signal for traders. When the price is in cloud it means that sideways trend dominates (when the majority of traders do not buy options).
RSG is another popular technique used in scalping (intraday trading) on timeframes of M1; M5. When used properly it makes min risk and high result, works best with dollar and euro quotes and two indicators: Exponential RA and MACD. One of the buying Call-option indicators – it is when 3 Exponential lines of M1 and M5 timeframes are directed upward, and 4 MACD histograms at 4 are above zero.
When the same Exponential RA indicators are directed down, and MACD shows value below 0, it means that you should buy a Put option. If you want to use this strategy, you need to conduct trading only during the work of the European and American stock exchanges – when the currency pair is live.
Long-term BO guarantee success with the skillful approach
Long-term BO is the lot of traders, whose experience ensures a better deal at the expiration time. Such strategies may take more than one day, but the result makes the guarantee to use them. ZEUS is one of these. It should be used within a week. As a rule, it is applicable to One Touch and Below options – that are the most profitable..
ZEUS involves the use of two indicators: Stochastic Oscillator and MA2 Signal. When Stochastic main and signal line with MA2 movings are directed upward, therefore, it is a signal to buy – Call. When both indicators are directed down – you should buy Put- option.
The long-term Climber strategy is based on the Support-Resistance indicator principle. It covers a period of over a month and uses multiple timeframes – it’s easier to make deals with different urgency.
Graphic strategy. Doji
Dodges Candlestick (Doji) is popular in the series of graphic strategies, because of its simplicity. The main indicator is Doji candle that determines the deal entry point. The Bull candle, followed by a sharp price rise – Doji is formed after such a sequence and means calm market. At the same time you should ignore the rising candle if that appears immediately after the Doji.
After the black Doji candle there immediately appears the Sell signal. It should pass the minimum Doji – and then it makes sense to enter the market. In the case of top-down option it is necessary to follow the conditions described above, but only after the price breaks the maximum. The strategy involves the use of the H1 timeframe, as it monitors the behavior of the candles in the best way.
It is noteworthy, that traders often develop strategies specifically for themselves. In such cases, many brokers provide their users with special structural framework, where they can select the optimum BO, expiration dates and tools. This framework is called – the Designer (Constructor).