Touch Binary Options Strategy

I call this the Touch binary options trading strategy. The binary options market is known for its numerous trade types. This strategy is a strategy designed for the Touch/No Touch trade format. The strategy utilizes the LinRegressionBreakout_v1.1.ex4 indicator.

Chart Setup

  • MetaTrader4 Indicators: LinRegressionBreakout_v1.1.ex4¬†indicator (default setting).
  • Preferred Time Frame(s):¬† 15 minutes, 30 minutes, 1 hour
  • Recommended Trading Sessions: Any time. Depends on when the indicator signal appears on the chart.
  • Currency Pairs: Any. It can also be used on other asset classes.

Download

Download the Touch Binary Options Strategy Free

Binary TRADE Example (click the image for full size):

Touch_binary-options-strategy

Strategy

The LinRegressionBreakout_v1.1.ex4 indicator will draw trend lines across the price highs and lows, and project same into the future (dotted sections). The trend lines can then be used as the reference lines for the trades.

The price action will bounce from one trend line to the other. The trader is expected to look at the trading platform offering this trade, and check to see if the price given for the Touch component of this trade falls within the trend lines.

If the trader intends to select Touch for the trade, the following is done:

  • Ensure that the price given as the Touch strike price falls within the channel traced by the 1.ex4 indicator. If this is the case, then a Touch option can be chosen.

Expiry for Call Trade

The trader needs the trade open for as long as possible. So the time for expiry for the trade must span at least 4 candles. This is equivalent to 60 minutes for a 15-minute chart setup.

Early Exit Strategy

You can also close the trade early when the trade is in profit for a smaller payout.

No Touch ENTRY RULES

If the trader has decided to trade a No Touch, the following parameters must be sought:

  • Ensure that the strike price for the trade is well outside the channel traced by the 1.ex4 indicator.
  • If this is the case, select the No Touch option as price is unlikely to break the channel to hit this area.

Expiry for No Touch Trade

The shorter the trade, the better the outcome for the No Touch option. The essence is to ensure that there is not enough time for price to stage a huge breakout which will negate the trade outcome.

Early Exit Strategy

You can also close the trade early when the trade is in profit for a smaller payout.

Download

Download the Touch Binary Options Strategy

About The Trading Indicator

The LinRegressionBreakout_v1.1.ex4 indicator draws clear trend lines which help the trader make the right determination for the trade. However, this strategy is best suited for trading platforms which offer short term Touch/No Touch options.

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