What a trader needs to effectively trade binary options? Economic calendar, a number of complex technical indicators? You might be surprised that you can do without all the above and make good profit even in a single minute! We bring to your kind attention the “Matryoshka” strategy based on a simple graphic analysis of the market.
The strategy suits the most to trade 60-seconds binary options, but you can also use it to trade classic Binary options with expiry up to 15 minutes.
According to its developers, the strategy approved itself when trading on Verum Option trading platform. The platform operates with high speed and shows real-time quotations with no delays. Additionally, it has more than 200 base assets and user-friendly interface easy to cope with even for beginners.
How to use Matryoshka trading strategy?
The strategy has its name “Matryoshka” because it involves 4 timeframes from higher to lower: 1 hour, 30 minutes, 15 minutes, and 5 minutes. Every timeframe is important to understand the overall market situation and in this way minimize trading risks and maximize profit from trading.
- 1 hour timeframe shows the long-term market sentiment and allows to follow the global trend.
- 30 minutes timeframe is an indicator of the middle-term trend.
- 15 minutes timeframe shows the short-term trend of quotations movement.
- 5 minutes timeframe shows the market sentiment at this very moment.
The principle of using the “Matryoshka” strategy is extremely simple: you only need to open all 4 indicated charts of the same base asset simultaneously or one after another. Please note you must select candlestick charts.
If all four timeframes show the last red candlestick, you should open a “down” binary option, and if all 4 candlesticks are green, then you should open an “up” option.
Let us further explain the given principle. If the long-term, middle-term, and short-term price trend are the same, it means the current trend is strong, and such trading bears the lowest risks. So if all the timeframes show the descending trend, it makes sense to trade on the fall of the price of the asset, and if the trend is ascending, then we choose the price increase.
Matryoshka trading strategy: recommendation
What should you do if the timeframes show candlesticks of different colors, or at least one candlestick differs from the rest? The answer is simple: DON’T trade and just wait. This situation indicates the market with high volatility, unstable investor sentiment, and it’s not the best time to execute any trading operations. Finally, the binary options market allows to make profit 24/7, and you better wait for 15-20 minutes in order to save your deposit from risks.
As for money management, the best solution will be investments from 2% to 5% of your deposit per every trade. For example, Verum Option offers 1$ minimum trade amount, so even if your account balance is only $100, you can effectively trade according to money management rules.
If you like this strategy – we advise you to try it together with 24option Binary Broker!