› MAD-X 4H Binary Options Strategy - How It Works

MAD-X 4H Binary Options Strategy - How It Works

Binary Options trading strategy MAD-X 4H uses rather common technical indicators, which are included in the MT4 terminal by default and we have already published several similar trading strategies. But considering the fact that it has some differences and appeared to be profitable with a good statistical record, we decided to publish this binary options trading strategy on the website anyway. The main target for this strategy is to take a large trend movement of 500 pips for 4-digits quotes. Such bigs trends happen not so often so you need to have the ability to wait and maybe sometimes to stand with some limited temporary losses.

Starting from October 2017 to June 2018 this forex trading strategy gave us the result of +2000 pips of profit which is quite good. Maximum drawdown was -400 pips and you have to be ready for this.

How to use MAD-X 4H Binary Options Strategy?


This strategy can be used for different other pairs related to the U.S. dollar, but in this case, an additional testing is required and also technical indicators have to have special parameters and settings dedicated to this exact currency pair.

This trading strategy uses the following indicators:
  1. Exponential Moving Average with period 5 - EMA5;
  2. Exponential Moving Average with period 13 - EMA13;
  3. Exponential Moving Average with period 21 - EMA21;
  4. ADX indicator with period 8 - ADX 8.

The average directional index (ADX) is used to determine when the price is trending strongly. In many cases, it is the ultimate trend indicator.


Conditions to buy CALL positions:
  • ADX 8 indicator (bold black line) must be above its’ level of 25;
  • The green line in the indicator window (+DI) is placed above the red line (-DI);
  • The price crossed from downside up to the EMA21 and the candle closed above this indicator;
  • The exponential moving average with period 5 is above the EMA13;
  • We open the CALL position on the next candle opening;
  • The stop-loss order has to be set behind the EMA21, but not more than 70 pips and not less than 60 pips;
  • After the position moves 85 pips in the positive zone, the deal has to be set at no-risk mode;
  • The initial take-profit order is set to 500 pips;
  • We close the deal by market price in case if the EMA5 and EMA13 cross each other, i.e. EMA5 appears below EMA13;
  • It’s better to ignore a position opening signals in case if the distance between the entry point and EMA21 is more than 95 pips;
  • We ignore the next signals until we have a current opened position.

If you like this strategy, you might also be interested in this Hanging man candle and Hammer Trading Strategy
Conditions to buy PUT positions:
  • ADX8 indicator (bold black line) must be above its’ level of 25;
  • The red line in the indicator window (-DI) is placed above the green line (+DI);
  • The price crossed from upside down to the EMA21 and the candle closed below this indicator;
  • The exponential moving average with period 5 is below the EMA13;
  • We open the PUT position on the next candle opening;
  • The stop-loss order has to be set behind the EMA21, but not more than 70 pips and not less than 60 pips;
  • After the position moves 85 pips in the positive zone, the deal has to be set at no-risk mode;
  • The initial take-profit order is set to 500 pips;
  • We close the deal by market price in case if the EMA5 and EMA13 cross each other, i.e. EMA5 appears above EMA13;
  • It’s better to ignore a position opening signals in case if the distance between the entry point and EMA21 is more than 95 pips;
  • We ignore the next signals until we have a current opened position.

The chart below illustrates both cases.
MAD-X 4H Binary Options Strategy - How It Works


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