IQ Option Trading
This is a simple binary strategy that uses Bollinger Bands and can be easily implemented on the IQ Option platform. The results depend on the trader’s personal skills and experience with price action.
IQ Option is an excellent choice if you prefer technical trading, considering the number of indicators and graphical tools this platform has to offer.
As one of the most popular binary brokers, IQ Option attracts traders from all around the world and most of them are simply looking to make some extra cash. The registration process is very easy, and in less than 5 minutes, you can start trading on the markets. After couple of trading sessions, you might discover that making money on the platform is not as easy as it looks on some YouTube videos.
The problem with IQ Option is that the platform works in its unique way, and you can’t really implement strategies from Meta Trader 4. Actually, you can implement them, but the results would be different.
IQ Option platform has some of the most popular indicators, such as Bollinger Bands and Moving Averages, but you can’t add custom indicators the way you do on MT4.
IQ Option Strategy Rules
It is essential to follow the trends and check on the technical currency crosses that could say “Strong Buy” or “Strong Sell” (Hourly/Daily), which in binary trading means “Strong Call” and “Strong Put”.
In other words, when the trend is Up, you are buying a Call option, and when the trend is going down, you can buy a Put option.
To check on the trend you can use exponential moving average (EMA) or simple moving average (SMA) with 100 period. This is the maximum at IQ Option.
You must set the Bollinger Bands indicator with Period: 6 and Deviation: 2. You can use same color for Top line and Bottom line.
- EMA shows an up trend
- A red candle breaks the bottom band
- You can buy a call option
In our example, the pair is AUD/CAD and the EAM is going up. The two red candles that break the bottom band are followed by a green candle, which is our call trade in this case.
- EMA shows a down trend
- A green candle breaks the top band
- You can buy a put option
In this example, we are trading EUR/JPY, and the EMA clearly shows down trend. You can see two green candles breaking the top band and right after it follows a red candle.
IQ Option offers a big range of expiry times, but the most popular are 1 and 5 minutes. You can use 1 or 5 min candlesticks on the chart and trade accordingly: 1 or 5 min expiries. For example, if you want to place a 1 min option, you have to wait until the platform shows Purchase Time: 00:31
- Do not trade when the EMA is flat
- Do not trade when the EMA is in the Bands
- Always trade with the trend
- Do not martingale
In our experience, this strategy shows some good results: Up to an 80% win rate on some trading sessions. However, we remind you that IQ Option platform behaves in its own way, and if you had good results on MT4, it doesn’t mean you will replicate your success at IQ.
You can’t expect 100% success with such a simple set up of two indicators, and of course, you will face false signals. It is very important that you don’t martingale in such cases; otherwise, you can easily blow your account.
We advise you to trade wisely and place trades with 1% of your account. If you are winning just continue until you lose 1 and stop. If you lose two trades in a row, step out and come back for another session or the next day.
IQ Option is a professional trading platform, which requires a lot of skills as well as being good at mind games. You can easily be trapped in martingale (increasing your stake) when you lose trades and many YouTube “experts” will advise you to do it. Better be patient and wait for a good opportunity on the market.
What is really good is that IQ Option is offering a completely free demo, and you can test this strategy until you master it. You need over 70% win trades in the long run. Good luck!