MT2Trading Blog

News and updates from world's leading automated trading platform
Feb 19 2021

How To Create a Winning Binary Options Strategy

Binary options strategies are not like other short-term trading ones, they tend to be the shortest of all. You can open binary trades of 1 minute, 2 minutes or up to 5 minutes. According to this logic, most of the strategies are based on market context analysis and short technical analysis. So, if you want to create a winning binary options strategy, you should focus on short-term analysis.

The most effective are the automation strategies, which you can apply if you use trading robots like MT2Trading, in which you can trade based on signals provided by different means and tools available in the platform.

Thanks to the versatility of MT2Trading, you can apply quite effective automatic binary options winning strategies, which are based above all on obtaining more reliable signals. CopyTrading and the bridge connectors for MetaTrader 4 and 5 are the main signal sources available in this software. MT2Trading also takes fundamental analysis into account; so a useful economic news and events filter is available to help you find your way around which are the underlying instruments with the best profit rates and target them in your automation process.

Create a binary options automation strategy with MT2Trading

To create an automatic winning binary options strategy, the MT2Trading robot has a wide variety of options, and these can be complemented to obtain the most optimal results for you.

Once you have the software installed on your PC, it is recommended that you install the MetaTrader Connector plugin, so that MT2 can access both the MetaTrader 4 and 5 platforms and obtain signals automatically from technical indicators, loaded on market charts.

In addition to this, you can use the CopyTrading service and find signal providers that suit your particular needs or expectations. You can choose from hundreds of providers and get the best signals and the best possible results. To customize MT2 CopyTrading, you can use the search by name or apply filters to find the best signal providers; analyzing their trading statistics to better understand what the historical performance of that particular provider has been.

Once you have set up the signals you want to follow in MT2Trading, the robot will use that information to automatically create a trading strategy. Using these signals to make investments at the key moments and generate a profit in as many operations as possible.

What are the best manual binary options strategies?

If you want to try a manual trading strategy other than the automatic one, you can try different ways of trading binary options, although automation will always be the one that can bring you the highest profits. In the case of manual binary options strategies, you can have several limitations, which have to do with physical issues; for example, as a human being you can only trade a maximum of 4 instruments at the same time, that, if not you want to lose money by neglecting some operation.

Although our brain is an excellent computer, it also tends to have many flaws. One of these flaws are the biases and a great tendency to romanticize everything, even in the field of business. MT2Trading, which is an automated robot, does not have these limitations. The platform can trade on a large number of assets at the same time, completely automatically and without emotions.

Although the market sentiment is an important parameter when it comes to trading in other modalities, in binary the best option is cold and well calculated data.

Hedging strategy

This strategy allows you to minimize the risk of losing money and increase your profits. Basically what it is about is to calculate the trend of an asset; that is, to know if the price of it is going up or down. As long as an asset is on the rise, we are much more likely to win with calls, while if it is down, we are more likely to win with put options.

Market reversal

By having less leverage in binary options than, for example, in Forex, the market breakout is usually quite useful for us. You must take into consideration when the next break will occur, analyze the market and measure the trend. This will allow you to know when the market is boiling.

It will help you to know how to identify Breakout or Fakeout movements, to know which is the next move you should make. It works on both stock market binaries and OTC binaries.

Martingale strategy: double the value of the investment

In this case, when you buy an option and you realize that it is going to end in favor, a great strategy is to double the amount you invested before finalizing the current position. This will make you win more money and compensate a bit for the lack of leverage that can be experienced in binary options.