If you need a real strategy for Options Trading. I think this very helpful post for you.I’m going to describe a working Options Trading strategy for 5 min trading.I have updated my 2nd Version of 5-min strategy with Elite60X indicator in MT4 rules in below:
Options Trading 5-Minute Strategy (Version. 2):
- Bollinger Bands: Period: 14 / Deviation: 3 (only change here)
- RSI: 14 70 30
- CCI: 14 200
- EMA: 100
- Fractal: 5
- PAR. SAR: Default
- Candlestick (CS) Timeframe: 5 min
- Expiration Time: 5 min.
From 9 GMT to 19 GMT. Avoid trading before 30 min of High Volatile news with this strategy. After 5-10 min of High Volatile news you can execute trade.
When a Candlestick (CS) cross Upper line or Bottom line of BB and RSI & CCI also overbought or
oversold. Then next task is to identify that at least 2 Corner of Candlestick’s Body or 30-40%
Candlestick’s Body of that Candlestick is outside of BB….. Then open a position on opposite direction immediately on expiry of closure of that CS (Figure. 1). It means that your expiry always “0” or”5” on last digit of time (i.e. 13:10 or 14:15 min). Suppose, If you find above criteria on 13:07:25 sec, then open position immediately for 13:10 min expiry. . So remember that your expiry will always “0” or”5” on last digit of time.
Otherwise wait and if still all criteria will fulfill then open position just like 3-5 sec before of closure of that CS (I.e. 14:09:57 sec for 14:15 min expiry). (Figure. 2)
If you lost 1st trade then again open a position with Martingale Strategy on same direction for next 5 min expiry just like 3-5 sec before of closure of that CS and so on. You can apply Martingale betting plan maximum 3 times. (Figure. 3)
If you want then you can use this rules without following Meta-trader. But I strongly recommend to use Meta-trader which minimize your risk and you can avoid easily a long uptrend/downtrend movement.
Options Trading 5-Minute Strategy Rules:
Before following Meta-trader, Of course you need to satisfy all above condition. Then you keep your eyes on Meta-trader. Rules is simple and same like Mr. Roger’s Elite60X indicator on 5-min Time-frame instead of 1-min time-frame because in our brokers we used 5 min time-frame and 5 min expiration for this strategy.
After fulfill above condition then if you find that Candlestick may closure inside “RED AREA” or beyond the “RED AREA” then it will be better option to open a position for next 5 min expiration on opposite direction and do trade as described in above. (Fig. 8 & 9).
- When a Candlestick (CS) cross EMA 100 then if you find a strong Support/Resistance then you can execute a position, OTHERWISE AVOID THAT.
- When one corner of Candlestick is outside of BB then don’t open any trade…. Simply avoid trade and wait for next signal (Fig. 4 & fig. 5).
- When we find a CS with according to Rules after a narrow BB… better to avoid trade and wait for next signal (fig. 6).
- Most Important point of avoiding trade, According to Rules, when you open position and if you will get 1st OTM and find out that CS is inside BB as “DOJI FORM” then simply STOP yourself for applying martingale on next CS and stop the trade for that signal…. Then recover this loss from next signal. (fig. 7).
- Never open a position which Candlestick’s spike cross the BB BUT his body is inside the BB circle.In total if a CS don’t cross the BB as above condition. Then please don’t execute trade.
Options Trading 5-Minute Strategy Suggestion:
- Many times you should get better opportunity to place a trade but if all the condition will not satisfy then please don’t take a risk. OTHERWISE you fall in trap.
- Many times, you feel that ..issh…although all condition didn’t satisfy but if I executed that trade I could win the trade. Don’t feel unsatisfied inside your mind. Every time remember my friends (OF COURSE THERE WILL BE ANOTHER CHANCE).
- Don’t make overtrade. Which will make you Emotional. Make a certain GOAL and tried to reach it on every day.
- For low balance and safe Trader…. If you want you can use maximum 3 times martingale and if you lost then try to recover it. Except all traders can use this strategy without hesitation and I hope you will never face more than 5 times Martingale betting plan. Still I didn’t face it.
- Always remember (PATIENCE IS SWEET).
SCREENSHOT of Options Trading strategy:
Wish all of you for Happy options Trading and Best of luck for your future.
My another post about binary options trading here: https://wikihat.com/binary-options-trading-and-options-trading-best-strategy-2018-2019/