What is Trinity Trading Strategy?
Trinity binary options trading strategy is not against the trend despite the fact that the main technical indicator is RSI here and the main trading signal to be used in this strategy is the moment when RSI crosses the level of 50. Lots of traders do not want to stand against the trend and there are lots of beginners who have lost their money because of a common feature of any technical indicator to be slightly late. As for us, this binary options trading system has good records and it compensates the late features of any indicator by its rule to enter the market for one candlestick only. Timeframes suitable for Trinity are 15 minutes and above. We use 15, 30 and 60-minutes timeframes.
Which Indicators will be Used?
Trinity trading strategy is based on three popular indicators:
- Simple Moving Average;
- Relative Strength Index;
- Moving Average of Convergence and Divergence.
If you like this strategy, you might also be interested in this Hanging Man Candlestick
Example - How that Works on Chart
- Simple Moving Average (MA) with the period 10;
- Relative Strength Index (RSI) with the default settings;
- Moving Average of Convergence and Divergence (MACD) with the default settings.
Those traders who have studied the RSI indicator’s nature more closely can make a conclusion that a 100% trend signal occurs when the oscillator crosses its 50 level. But as all of the technical indicators trading signals, it needs an additional confirmation and filtration. The most simple filter is the MA line because we can determine easily whether the price is above or below the average rate for the given number of periods. It is enough to have a look at whether the current price is currently above or below the MA line on the chart. We can also use MACD as the second filter. This indicator gives rather strong trading signals when a cross of the main and baselines happens. ‘Trinity’ strategy uses MACD with standard settings and MA with 10 periods.
A trade signal is a trigger for the action, either to buy or sell a security or other asset, generated by analysis.
CALL options signals are:
- RSI Indicator crosses the 50 line from downside up;
- MACD lines cross each other below the 0 mark;
- The chart is above the MA 10 line;
- We buy a CALL option till the end of the current candlestick.
PUT options signals are:
- RSI Indicator crosses the 50 line from upside down;
- MACD lines cross each other above the 0 mark;
- The chart is below the MA 10 line;
- We buy a PUT option till the end of the current candlestick.
It has to be noticed, that such signals appear on the chart very rarely but at the same time, they have extremely high results. This trading strategy is rather difficult because the RSI crossing 50 level and MACD lines’ cross might happen on different candlesticks with a little delay from one to another. We do not take such signals but some traders might consider finding better entering rules for such an approach and for such cases. The second problem of this trading strategy is that the RSI indicator could waver around the 50 level without crossing it quite a long time. Therefore we recommend to be patient and test the Trinity system on paper just to avoid too early entrances and to get used for the signals. Some of you could also use the trader’s diary.
If you will not pay too much attention to some difficulties in understanding this strategy and comparatively low number of signals per day, the binary options trading system Trinity should give more than 75% of profitable deals with the condition of using it in the right way.