This is a very simple and quick video tutorial on the basics of trading Bollinger Band breakouts with 60 Second binary options. While this video doesn’t go into all the details of settings for the Bollinger Bands (many people really prefer to adjust the basic settings to a more appropriate frame for such extremely short term trading periods like 60 Second options), it is a good little overview of what it is that you are looking for to predict trend reversals.
Using the Bollinger Bands indicator to find breakouts to trade (and spot trend reversals) is an important tool for most successful traders.
You can find more in-depth tutorials on Bollinger Bands in our Bollinger Bands for Binary Options category that will get into more detail about settings and how you may wish to adjust them for use with binary options.
Okay, so I am putting up this trading video mostly because I’ve never seen this strategy before…but I have to say that there is no way in HELL I would ever use this trading strategy, lol! The general idea is that you use a 1 minute candle chart and when you see 3 candles in a row in the same color you should assume a trend is forming and place a 60 second binary options trade in the same direction.
This method is based on the idea that trends generally last 5 to 10 minutes so, if you see 3 1-minute candles in a row, then the next 1 or 2 will be the same…..to me that’s completely unrealistic (and possibly nuts). As crazy as it may seem to me, at least this trader did take the time and effort to record & explain his method that he finds to be useful for his own personal trading style, and he absolutely does stress repeatedly that the most important part of this method is that you know when to STOP trading; something I repeatedly stress here on this site 😉
In this video Owen purposely sets up a losing trade in order to show how to use hedging in order to either minimize the probably loss, or to actually turn the situation around into profit by doubling up on the corrective hedging action. He does accurately point out that in order to do this you do need to assess the probable situation in advance and place your hedging positions as soon as you recognize the trend going against your original position because you will still have to deal with the final lock-out period, and there’s not a thing you can do at that point.
When done properly (we have a few more videos on using the hedging strategy under the Binary Options Hedging Strategies category) using a hedging strategy for trading can be one of the safest and most sensible trading strategies that you can employ.
I’ve been getting comments and emails asking about the new OptionBot 2.0 signal software release ever since I mentioned it in another post about free signal software here. So let’s just get into it now because a LOT has changed since last year’s original release, and right now they are offering a Free 7 Day Trial of the new software to prove it.
I did not like OB 1.0, so what’s changed in OptionBot 2.0?
OB 1.0 left many things to be desired. Support was email only and spotty at best (and I’m being really polite here), it wasn’t multi-platform, you couldn’t tweak it to only alert to certain currency pairs you wanted to trade, and they stupidly didn’t make it clear that you had to create your broker accounts through their software in order for the signals to sync up and work right, so many people thought it didn’t work (and I got sick of hearing about it, lol). Plus, it was only compatible with Windows and it was a clunky mess to install, besides being slow and clunky in general. Needless to say, I was not impressed with OB 1.0 and even removed them from this site….
But, then I got their 2.0 version to try out….
With OptionBot 2.0 they seem to have paid attention to what was pissing people off and have corrected all of this. They now have live chat & phone support (I know this because I was on the phone with them two nights ago asking some questions) along with Skype support and also some kind of interactive weekly group training thing going on.
The new OB 2.0 is also now multi-platform, including mobile, so it works with W7 & W8 (not sure about XP), Mac, tablets, and smart phones. And, since it’s no longer clunky Windows-based software, it’s fast!
You also can now set it to only signal the currency pairs that you’re interested in trading or that your broker offers. That way you’re not constantly getting signals for currencies that you have no way of trading (that really used to annoy me). However, it does support 15 different currency pairs and 10 different brokers, so you really have tons of trading opportunities.
(For those of you that are impatient: If you go to the OptionBot 2.0 page, then try to close the tab, it will ask if you want to leave or stay on the page. Click “stay” and you will go directly to the software demo video and then you can fill out the form to get to the free trial.)
I have to say that I am definitely pleased with the massive improvements that have been made with OB 2.0. It’s fast, support is right there (they’ll even call you to help make sure you know how to work the software correctly), and an instructions tab is built right into it. My win/loss ratio is in the 80′s, but I don’t trade blindly. I always check their signals against my own charts & indicators before deciding whether to get in on something. I’ll admit that sometimes my caution works against me and I miss out, but that’s okay. I am a cautious trader by nature and I treat signals like suggestions, not commands
Go ahead and give the new OptionBot 2.0 a chance, I really think you’ll also be pretty happy with it….even if you hated OB 1.0 like I did, lol!
As always, with any new method, system, or software, don’t forget to test it first with your demo account, or paper-trade it, or back check signal results against your own charts & indicators to see if it works for you personally, before doing any live trading.
Here we have the instructor in this video first explaining about hedging and why some people love it, some people hate it, and the different ways to use hedging properly in order to trade in a more safe and conservative style. Personally, I LOVE hedging as I think it is the most sensible way to trade. He also goes through 3 different basic binary options trading scenarios (charting examples start around 17 mins) where hedging strategies can be used to limit losses and often increase profits. He also gives the basic rules of put/call hedging and explanation of the difference between hedging and simply doubling up.
The optimal usage of a hedging strategy is to create a “range trading” situation where you can actually end up making money from both your put and call positions, and at worst case scenario, neutralize your losses. While this does require you to understand support and resistance levels (we have several different videos about this here on the site), once you get that down this becomes a very sane and profitable method of trading.
A few brokers like 24Option and Cedar Finance even offer Range Trading as one of their styles of trading available, and when used along with the Early Close features that some brokers offer, that can make this very easy to get started trying out with very little risk. As always, test any new method you may wish to try in a demo account first before doing any live trading.
UPDATE: They have now made this fully automated trading and are now including a free $500 demo trading account automatically hooked up to the software for people to test the software out; you don’t even have to contact anyone to set it up. Now there’s no reason not to try it.
Hey y’all! Found this and thought many of you might be interested. So, let me explain how you can get a free download of Binary Options signalling software (kinda like OptionBot but FREE!). Obviously, here on FreeBinaryOptionStrategy we’re all traders and we all know about Binary Options. Duh. If you didn’t you wouldn’t be here learning trading strategies, right?
Okay, here’s the deal. There’s this new Wall Street Exposed promotion going on that’s introducing people to the concept of Binary Options trading and it is truly geared towards people that have never in their lives heard of binary options (just keep that in mind while watching the video). Anyway, they’re giving away a free download of signal software, and all you have to do is you just have to sit through the silly 20 minute video and then enter your email at the end to get the free AutoBinaryCode software and, now, also a free $500 demo account at Cedar Finance to test the software out in.
The latest updated version now automatically places the trades for you (and cancels risky trades automatically, too). No more being chained to the computer waiting for signals to act on, which many will find really nice for a change.
Granted, the software only works with Cedar Finance, and only if you open your free Cedar account through WSE’s system to make the signals work in sync, since Wall Street Exposed seems to have struck a deal with Cedar for this, but that’s not a bad thing. Cedar’s a really good broker, you can read our review of them here. And in that review you’ll find out that if you want Cedar Finance’s own free signal service you have to deposit a minimum of $1000 and be a Silver Level member. On the other hand, if you go through this Wall Street Exposed way, you can get the free signal software and a $500 demo account hooked up to test it out with. Pretty cool, huh? Have fun with it guys!
I believe it is safe to say that pretty much every single Binary Options Broker offers some sort of sign up/deposit bonus, and in some cases, multiple choices of bonus amounts. Thing is, they ALL come with strings and you really need to understand this before accepting them or turning them down.
Time after time, forum after forum, I see people writing in that Such & Such Binary Options Brokerage is a scam because they deposited money, traded, and then weren’t allowed to make any withdrawals yet. 99% of the time this is NOT because anyone got “scammed”, it’s because they never asked to have the details of the bonuses clearly explained to them until they could fully understand the ramifications of accepting a bonus from a broker.
Bonuses come with trading volume requirements of 10x, 20x, or 30x for reputable brokers…less reputable brokers will require 40x or even 50x trading volume before releasing ANY funds. If you ever hear a broker saying 50x, just hang up the phone or close the chat box because bonus or no bonus, you will probably never see your money again, lol!
This means if you deposit $500 and accept a 100% bonus with at 30x trading volume requirement, you will have to keep your trading account alive until you have done over $15,000 worth of trading, regardless of winning or losing, before you can withdraw any money, period. Any and all live trades count towards that $15,000, but you do have to keep it alive or you will not be able to withdraw a penny, ever. Everyone clear on that?
If you accept the whatever bonus is being offered by your chosen Binary Options broker you will have more leverage to trade with and more room to error without killing your account (thank you Captain Obvious, I know). For an experienced trader this can be a serious advantage, since with knowledge, skill, and the confidence that comes with experience, that 30x volume requirement can be knocked out in a reasonable amount of time. However, I will say that most experienced/professional traders don’t actually accept the bonuses because they prefer to do regular bi-monthly withdrawals. This is their “paycheck”, afterall.
For inexperienced traders accepting a bonus could also be advantageous since it does give a little more room to learn with, and a little more room to lose while learning. However, the correct mindset is necessary.
In my case, when I first began to trade, I took the bonus and “locked myself in”, in a manner of speaking. I used it as a learning/surviving incentive. Meaning that my goal was to teach myself the discipline necessary to keep my account alive and keep trading until I could hit that 30x goal to be able to withdraw. It often kept me from just being stupid and blowing out my account. But, again, it takes the right mindset. It is definitely NOT for everyone.
Captain Obvious here again, YOU CANNOT WITHDRAW YOUR MONEY. That means that if you do good and want to pay your mortgage with your winnings, it’s not going to happen.
That also means if you decide your broker is terrible and you hate them or their platform, you can’t take your money and go somewhere else. You either have to keep trading with the broker you hate or you are going to end up basically “donating” your money to the broker you hate by walking away from your account. That, in itself, can make you learn to hate trading altogether, lol!
They own your money until you’ve met the required trading volume that you legally agreed to when accepting the bonus they gave you. That’s it, that’s all.
If you take the bonus THEY have the power. If you refuse the bonus, YOU have leverage if or when your broker pisses you off because they never want to see anyone close their accounts.
So, that’s a reasonable overview of the pros & cons of Binary Options Broker Bonuses. This is something that is often far too quickly decided by newer traders and, really, it’s something that should be given some serious consideration.
For my own reasons outlined above I took a bonus the first time in order to teach myself discipline, but since then I haven’t ever accepted a bonus. I learned what I needed to learn, and it was monumentally difficult to make it to that $15,000 trade volume mark without completely blowing out my account. Now I prefer to skim my winnings when I choose or close my account if the broker displeases me.
Just remember, before you say “Free money?? Sure!!”, stop and think for a minute about whether this will even benefit you or if it will just end up making you crazy. And, if you’re not sure, either keep asking questions (and possibly get the answers in writing) until you understand and can make an informed decision…. or Just Say No.
Found a broker with a ton of indices to trade! Why is this something to get all happy about? Because some of the largest fortunes made in trading (especially by independent traders) have been amassed by trading almost exclusively on indices. Indices generally move with much more predictability than ultra-volatile currencies and commodities. Do you think those gigantic pension funds (with millions of people depending on them for their pensions) screw around with the euro? HAH! I don’t think so! Give them NASDAQ, DowJones, and the DAX! They like dependable things, or at least as close as you can get to them in the markets, lol! Dependable may not be sexy, but it is how to make great sustainable money and that’s sexy as hell.…at least it is to me, I have no idea what your tastes are, lol!
(here’s a great article on how huge institutional investors, the insurance sector, and major oil companies have been using Binary Options trading for years)
My personal preferences for trading indices is because of their tendency to be more stable and predictable in their movements and momentum. The reason for this is that they are being moved by the monster hedge funds and institutional investors. Their trading volume is also standardized, unlike forex currencies where it is very difficult to get a clear volume reading because there just isn’t the same standardization.
In fact, one of my favorite methods of trading (because it is reasonably easy and has such a high success rate) is to use the multiple asset trend trading method (video) with indices. With Cedar Finance, there are soooo many international indices available to choose from (27 in all at this writing), that you can actually trade this method around the clock, no matter where you live, unlike most other platforms that only have 4 or 5 or maybe 7 indices available only during a few hours a day. My other favorite method is to use a simple Hedging Strategy (video) because that is, perhaps, the most organized method of trading there is, and because hedging maximizes profits while limiting losses. After all, there is a reason why Hedge Funds are as enormous and successful as they are, lol, because they position themselves to win either way!
The platform is elegant-looking and has been recently upgraded to using the Trade-o-Logic software. With that upgrade, Cedar now offers not only the basic variety of trading choices including regular Binary Options and One Touch, they now offer the newest 2 Minute and 5 Minute Options along with 60 Second options under their new “Turbo” tab. Currencies, commodities, and even indices are available for these 1M/2M/5M trades. Also new at Cedar is Range Trading, one of my favorites since it is very closely related to hedging and can even be used as a simplified version of hedging. Returns range from 67% – 81%.
Minimum deposits are just $200 and all types of withdrawals are free and SAME DAY, without any fees from Cedar Finance. Deposits of all levels get a personal trading manager to assist with all manner of trading needs. Contact is convenient with 24 hour support by phone, skype, live chat, email. I have called at all kinds of weird hours with all kinds of questions and always got assistance immediately, which may explain why they have won the Platform of the Year award for Customer Service. Cedar will even help you get your feet wet without risking anything by giving you 5 Risk Free Trades, just ask your representative when signing up.
Another benefit worth mentioning is that they offer Free Trading Signals by email or SMS/text to Silver, Gold, and Platinum level depositors. Silver level accounts start at a $1000 minimum deposit, so if you were considering making a deposit in that range (though the minimum depositis only $200), why not go ahead and get the free trade signals system? Click here for the signals: Cedar Finance – Signals
This video discusses the basics of technical analysis for Binary Options trading, which would be watching price action for levels of support and resistance and then determining the trendlines.
You can go at trendlines in one of two ways: you can subjectively determine them for yourself, or you can use a few guidelines to objectively determine them. Here the narrator discusses using DeMark’s guidelines for objectively determining trendlines and predicting upcoming movements in the markets.
DeMark created his DeMark trend lines by using specific price points to find high and low points to create support and resistance trend lines. A summary of the DeMark trend lines are as follows.
To create a resistance trend line find the first high that is surrounded by 1 higher high on each side of the trend line. In the example below of the Australian dollar vs. the US dollar, an analyst would connect the high in mid June that was surrounded by one lower high on each side of it making it a DeMark pivot top.
The analyst would then look for the next high, which is higher than the initial high, which was surrounded by a lower high on each side of the high which would make that a second pivot top. The analyst could then connect the highs using a downward sloping trend line which would create a resistance line. When the resistance line is breached, the market generally continues in the direction of the break.
DeMark bolstered his pivot tops by making them more robust by looking for highs that were surrounded by 2 or even three lower highs. This process made sure that the pivot top was solid resistance.
To create support levels, DeMark created pivot bottoms. A pivot bottom is a low surrounded by at least one higher low on each side. An analyst would then connect the first pivot bottom to the next higher pivot bottom creating a upward sloping trend line that could be used a robust support.
DeMark bolstered his pivot bottoms by making them more robust by looking for lows that were surrounded by 2 or even three higher lows. This process made sure that the pivot bottom was solid support.
All of this is an excellent introduction to true technical analysis that can and should be used with Binary Options trading. Many of the best Price Action traders use this exact method to very successfully trade Binary Options.
You can also have some fun playing with our free tool for Pivot Point Calculation in our Useful Trading Tools Category.
Just a quick 3 minute video explaining the differences between types of regular Stochastics Oscillator Indicator and settings. The Slow Stochastics setting on charts is the most commonly used because of the smoothing effect of the %D, where the Fast Stochastic is far more volatile and prone to whipsaw swings. Full Stochastic includes the ability to adjust the inbuilt Moving Average.
14 Period is the most common default setting on most Stoch Indicators, meaning that the data is being compared to the last 14 periods. In Binary Options trading, you may want to play with this to see what period works best for your own personal trading style. For myself, I’ve found that using an 8-3-3 setting seems to work best for my style of Binary Options trading, simply because Binary Options trading is normally done in such short time frames, unlike Forex trading.
Speaking of Time Frames….don’t forget that your Stochastic Oscillator is tied to the Time Frame setting of your charts, so if you are using a 1Minute chart, the swings will be wilder. Try to remember to adjust the Time Frame setting of your chart to most closely match the time frames you will be trading in, so that your indicators will give you the most appropriate data.
***The link that was referenced in the video is actually a Wikipedia entry that can be found here: https://en.wikipedia.org/wiki/Stochastic_oscillator
While this tool is provided by eToro, which is Forex trading, this real-time Trader Insight tool is certainly very useful for trading Binary Options also. What’s great about this tool, versus the little Traders Choice arrows on platforms that use SpotOption software, is that you can use the dropdown menu to adjust what info you want to see. You can choose to see data involving different aspects of trading, to more closely relate to what style of Binary Trading you personally are doing. Below are the choices from the dropdown menu.
TradeRush has become synonymous with 60 Second Options, mostly because they were the first Binary Options brokers to offer this form of trading. Back in the winter of 2011/12 they were the only game in town for this, so naturally all the videos teaching 60 Second Options were using TradeRush and all the promotion being done was for TradeRush. Thankfully those days are over because TradeRush’s trading platform performance is just awful.
They use the SpotOption software (you know, with the Traders Choice next to the charts) and that’s good platform software, many brokers use it and it works great. However, on TradeRush, not so much. Their platform is insanely buggy, slow, has lag, slippage, and endless hangs & weird glitches. None of this is limited to just their 60 Second Options, but since many 60 Second methods rely on rapidly placing positions, it is especially bad for that.
They are the third largest brokerage in the industry yet, for reasons beyond comprehension, they don’t bother making sure they have enough “juice” to run smoothly, much less smoothly with their kind of trading volume. It’s pathetic that a broker this size (or of any size) isn’t running on a dedicated server(s). If you take a look at their site with an SEO tool, you’ll see that they only have 5 Name Servers listed and they actually have two other sites running on their server! That’s power-draining and completely unprofessional, besides being cheap & stupid. I think this speaks volumes about how TradeRush approaches business.
You can take a look for yourself (and check any other brokers that you want to know how serious they take their performance & speed) by using a little FireFox Addon called WhoLinks2Me. You can find the free download link here on our site on our Charts, GMT Clocks, Security, & Addons page under Miscellaneous Addons. The best and fastest brokers’ platforms will have a list of 6 (or more) NameServers listed and will be the only site on the server. Banc de Binary, 24Option, and GeoTradex all meet these standards and have platforms that run smoothly and responsively.
I have stated repeatedly in different places on this site to not use TradeRush. This is why, or at least one of the biggest reasons why.
Besides being slow and having major lag, their site is beyond buggy. I have experienced all sorts of weird glitches & bugs when attempting to place all sorts of trades, not just 60 Second Options. Just one example: You can choose an asset from the dropdown, and it looks like you’re dealing with your selected asset, but when you confirm the trade it turns out that only the dropdown changed…not the asset. So you think you’ve chosen Google and are placing a position for Google but when the trade is confirmed it turns out that it was still stuck on JP Morgan, so you’re stuck with a trade on an asset you weren’t intending to trade on! And it happened to me once or twice a day, every day, when I was trading with them.
Which brings me to their customer service. For general questions their customer service is decidedly hit or miss….but when you call with a complaint or issue, you are met with snarky, supercillious “service”. I once called to dispute an expiry rate that was off by 86 pips (I understand that most brokers have “proprietary algorithms” for expiry but 86 pips is ridiculous!). First they treated me like I was an idiot and then refused to transfer me to my “personal broker”, then I was transferred to someone even more rude, finally I was transferred to someone in accounting who took my information about the issue and sent me a form letter the next day saying I was wrong. Needless to say I never traded with them again.
There are FAR too many other brokers out there to choose from, and many are very good and offer great service & perks. Do your homework and pick one, or more, that care about customer experience. It is your money after all, trade where you are respected.
This simple little widget tells you when each of the four major global markets (New York, London, Tokyo, and Sydney) open and close…and exactly how much longer until then.
Below are widgets giving Real Time data of Technical Analysis Summaries for assets traded at most Binary Options Brokerages. We chose to include the six most commonly offered assets for Stocks, Currencies, Commodities, and Indices. If you looking for a Technical Analysis Summary for an asset not seen here just click on the “More Instruments” link at the bottom of each chart.
This handy little Pivot Point Calculator may be developed for Forex trading but there is no reason why it can’t be used to calculate Pivot Points for Binary Options trading. Just enter the previous day’s High, Low, and Close.