Trading short-term contracts, often referred to as “turbo” options, is a well-known approach among binary options traders. This method is particularly favored for its potential profitability in the binary options market, where profit doesn’t hinge on the extent of price movement but rather on the direction within a specified time frame. This characteristic enables traders to achieve significant gains in a short span.
However, the allure of high returns comes with inherent risks that deter some traders from engaging regularly in turbo options trading. Nonetheless, these risks can be effectively mitigated with the right strategy.
One such strategy, aptly named “Confidence” (Assurance), will be thoroughly explored in this article. This approach leverages the strengths of two widely recognized indicators in trading circles, offering a methodical and verified signal for entering trades with assurance.
How to set your trading workspace? What tools to choose?
Setting up your trading terminal and indicators is crucial for implementing the “Confidence” strategy effectively. Given that this strategy focuses on short-term contracts, it’s essential to adjust your chart timeframe to no more than 60 seconds. Opt for Japanese candlesticks as they provide a clear visual representation of market dynamics.
For optimal results, select assets with high volatility such as currency pairs, stocks, or cryptocurrencies. These assets tend to exhibit significant price movements within short periods, aligning well with the strategy’s objectives.
The Bollinger Bands indicator will serve as a primary signal generator for executing trades. Both this indicator and the Relative Strength Index (RSI) are widely respected among traders and readily available on the Olymptrade platform. This eliminates the need to consult external sources for market analysis.
Configure the Bollinger Bands with a period of 20 and a deviation of 2, which are default settings known for effectively capturing price volatility and potential entry points. Adjust the RSI settings accordingly to suit the 60-second timeframe, as the default period of 14 may not adequately respond to signals within this rapid trading interval.
How to trade with the Confidence strategy?
Let’s discuss the process of purchasing “short” digital contracts using the specified indicator parameters.
To initiate a CALL option trade, wait for the RSI signal line to exit the oversold zone. Simultaneously, observe for the lower level of the Bollinger Bands to be breached. This combined signal suggests a potential opportunity to enter the market with confidence.
Conversely, to purchase a PUT option, wait for the Relative Strength Index (RSI) signal line to exit the overbought zone. Concurrently, observe for the upper boundary of the Bollinger Bands to be breached.
Given that trading occurs in “turbo” mode, it’s crucial to set the option’s expiration period to a duration of at least 2 minutes but not exceeding 4 minutes.
Remember, the expiration period for turbo options should ideally range between 2 to 4 minutes to capitalize on rapid market movements effectively. By adhering to these guidelines and implementing prudent deposit management strategies, traders can optimize their chances of achieving consistent profits in a short period.
Mastering the Confidence strategy requires discipline, attentiveness to market signals, and the ability to swiftly execute trades. With dedication and practice, traders can harness the potential of turbo options to achieve their financial goals in the dynamic world of binary options trading.