Follow the trends on one minute charts
This 60 seconds strategy is based on up and down price trends which can be followed by binary options traders using one minute charts.
It is a very profitable and proven strategy but it requires charts experience, fast thinking and account at a binary broker which offers 60 seconds trading.
To use this strategy you will need tools such as time chart and tick chart which are both a type of candlestick charts. Binary brokers do not offer them so you will have to use other sources which provide charts.
What we are looking for is to catch a trend no matter if it is an upward or a downward one. In my example I am showing my recent EUR/JPY trades which I performed successfully on September 9th 2013. I am using one minute chart and 133 tick chart where one candle represents 133 trades on the pair.
Two green/red candles in a row on the time chart supported by same color candles on the tick chart can lead to a trend. What you are looking for is the one minute chart to be confirmed by the orders in the same direction Up/Down.
How does it work?
Basically when you have 2 candles from the same color confirmed with orders you can give a shot. If you win, just continue to buy options in the same direction till you lose. When you have lost wait to see if it is just a pullback after which the trend will continue in the same direction. If it doesn’t just stop and wait for another try but don’t trade when the market is choppy.
Usually trends continue 5 to 10 min but if you are lucky it might last even 20 min. That means if there are for example 3 pullbacks on a 20 min trend – 17 successful trades. If after a pullback you lose again just stop and wait for a better trend.
How to perform this strategy?
On one monitor you should have the charts and on the other you need the brokers’ trading platforms. If you don’t have two monitors just split your screen in two parts but you need to watch the charts and the brokers simultaneously.
When an uptrend starts you have to buy 60 seconds Call options and if a downtrend starts buy 60 seconds Put options. Set up your budget in a way that you can afford some losses in case of pullbacks.
More experienced traders can perform this strategy on up to 3 brokers at the same time but if you are a beginner I would recommend you to use only 1 broker. Three brokers will multiply your winnings by 3 but it might multiply and losses so be cautious.
As you see on the chart a 19 min downtrend which started at 2:35 and ended at 2:53. There were two green candles in a row but they weren’t supported by the tick chart so continued to buy Put options till I lost again at 2:54. My budget allows me to invest $100 on each trade and the return is 80%.
I entered the market on the third red candle and performed 13 successful trades and 4 unsuccessful.
13x $80 = $1.040 profit
4x $100 = $400 loss
Net profit = $640 in 19 minutes
Two hours later a very nice uptrend came which lasted for 20 min with only 3 pullbacks. So I entered it on the third candle and performed 15 trades in the money and 4 out of the money. I have invested $100 on each trade with 80% payout that means:
15 x $80 = $1.200 profit
4 x $100 = $400 loss
Net profit = $800 in 20 minutes
After a good run just stop and leave the broker, don’t get greedy because usually a choppy market will follow where you will lose. It can’t go Up or Down forever. You have to remember that any good trend needs a good pullback. If you finish out of the money 2-3 times in a row just stop trading and wait for a better trend.
I would recommend you first to try this strategy on a demo account. Your broker should offer 60 seconds trading with low investments such as $1.