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Mentor Strategy

“Mentor” is a popular trend-trading system which is very suitable for mid-term binary options traders.
Developed in 2015, the system has quickly been appreciated for its flexibility and simplicity.
This article will tell you everything there is to use the Mentor to earn profits from binary options trading.

Overview

What makes the Mentor strategy typical is that it is a perfect combination of three proficient and combinative indicators - Bollinger Bands (BBs), Alligator, and Moving Average Convergence Divergence (MACD).
Developed by John Bollinger with the main function to identify trending market conditions, the BBs’ responsibility in the system is to detect and highlight tradable trends. Supporting the BBs in defining trading opportunities is the Alligator - a product of legendary trader Bill William, which informs very accurate entries using three smoothed moving averages.
Last but not least, the Moving Average Convergence Divergence – an extremely famous leading guide invented by professional technical analyst Gerald Appel in the late 1970s - is added in the system as a leading beacon which helps confirm the determined trends’ momentum and the reliability of the spotted signals.

The detailed settings of the strategy’s analyzers are as follows:

  • A 40-period Bollinger Bands indicator.
  • An Alligator with the parameters 25,20,15.
  • A MACD with the parameters 50/100/15.

The win-rate of the strategy has so far been affirmed at 82.25% after 6 months being carefully tested.
According to our testing result, the Mentor works best on the one-hour chart, and could be used on any financial instruments.
There are normally 5 to 10 signals appearing daily, hence, the strategy is mostly suitable for short-term traders.

How to trade binary options with the Mentor

Setting up the strategy takes only 30 seconds because all the required indicators are available in the Finmaxbo’s advanced trading platform.
Right after the Mentor is established, you can start seeking for entries.

A bullish opportunity is defined when:

  • The BBs’ central band crosses above the Alligator beam.
  • The MACD’s SMA line heads upwards.


Mentor Strategy


Conversely, a bearish occasion is determined when:

  • The BBs’ central band crosses below the Alligator beam.
  • The MACD’s SMA line heads downwards.


Mentor Strategy


Below are some important terms when using the Mentor system:

  • The candlestick of confirmation must be fully close before trading decisions are made.
  • Only one order should be opened at a time.
  • Order’s expiry time should be set ten times larger than the chart’s time frame. In this case, the finishing time should set of 10 hours as we are trading on the one-hour chart.

Pros and cons of the Mentor strategy

Pros

  • Highly flexible, easy-to-use.
  • Requiring no custom indicators.
  • Generating very accurate signals by strict entering terms.
  • Allowing traders to gather a series of profits from the detected trends.
Cons

  • Necessitating traders to constantly monitor the trading platform.
  • Requiring a high level of patience.

Conclusion

With a lot of advantages described above in addition to a good testing result, the Mentor deserves to be ranked among the most profitable trend-sticking strategies.
We believe that strictly following the strategy could help you earn profits substantially from binary options trading.
Nevertheless, don’t forget to use risk controlling and psychology managing methods to minimize risks because there are no perfect systems that could bring 100% win ratio.


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