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Trading strategy “Double Cross”

Trading systems in the digital options market are typically characterized by their remarkable simplicity. This isn’t solely because newcomers prefer electronic contracts for earning potential. In fact, many seasoned traders from stock and foreign exchange markets have also found their way to this platform.

The trend of “simplification” stems from the unique dynamics of this market. Here, the key to substantial profits lies not in waiting for the price to reach a certain point threshold but in accurately predicting its direction and purchasing the corresponding contract.

Consequently, binary options traders engage in short-term transactions, a strategy well-suited to this context. This fast-paced trading takes place on lower timeframes where conditions change rapidly, necessitating a straightforward strategy that enables swift responses to price fluctuations.

At the same time, traders seek a simple yet effective trading system that doesn’t react to market noise, sparing them from frequent losses. Thankfully, such strategies do exist, and “Double Cross” is one of them.

How to set up a trading area

Market analysis in this strategy hinges on signals generated by two widely used indicators: Stochastic and MA (Moving Average). Conveniently, both of these tools are readily accessible in the Olymp Trade terminal, easily accessible from the list of standard advisors.

For optimal results, it is advisable to apply this strategy to volatile assets. This choice increases the frequency of buy contract signals and can expedite the growth of your deposit over a relatively short period.

Opting for Japanese candlestick charts is the norm, offering a clear visual representation of market movements. The recommended timeframe for Double Cross trading is M15.

To set up your chart, you will need to incorporate two moving averages: one with a period of 5 and the other with a period of 14. Assign distinct colors to each to avoid any confusion during trading.

Stochastic, on the other hand, should be added to your workspace with default settings. It’s worth noting that in the “Double Crossing” strategy, Stochastic plays a role somewhat different from its usual “overbought/oversold” zone interpretation.

How to trade using the Double Cross strategy

As the name of the trading system implies, trade entry is contingent on the intersection of two lines. This scenario will be monitored for both indicators.

In Stochastics, the fast line (depicted in blue) is required to cross the slow line (in red), while on the MA 5 chart, it must cross the MA 14 line. It’s noteworthy that these crossings don’t occur simultaneously. Stochastic issues a proactive signal, allowing you to prepare for a contract purchase, and the actual intersection of moving averages typically takes place on the subsequent candle.

To employ the “Double Crossing” strategy for a CALL contract, you should initiate the purchase after both the Stochastic and MA signal lines have crossed in an upward direction.

To buy a PUT contract, you should do so when both the Stochastic and MA signal lines have crossed downward in tandem, creating a double-crossing scenario.

The expiration period should be more than the period of formation of three candles.

If you meticulously adhere to all the conditions outlined in the strategy above, as attested by its creators, it has the potential to yield profits in over 80% of transactions.

In conclusion, the “Double Crossing” strategy, when executed with precision and discipline, shows promise as a reliable approach to binary options trading, with a track record of significant success.

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