› Day-X Binary Options Strategy - How It Works

Day-X Binary Options Strategy - How It Works

What is a Day-X Options Strategy?


x-Binary Strategy is based on price candlestick pattern which allows entering the market on trend reversal in some cases (D1 timeframe mainly) with minimal risks and a low number of declines (losses triggered). This strategy is applicable to any currency pair. This model does not appear very often but thanks to the multi-currency feature, it can be tracked on a large number of financial instruments and thus get the given signal more often. The timeframe used here is D1, at least the strategy was initially designed for the daily interval. It is also applicable for other timeframes but it is worth reminding that the shorter timeframe is, the larger is the number of false signals.

Candlestick patterns capture the attention of market players, but many reversal and continuation signals emitted by these patterns don't work reliably in the modern electronic environment.

Statistics for GBP/USD currency pair shows that 12 H1 patterns were triggered during the current year and 33% of them were declined (did not work well). The daily timeframe has only 10% wrong signals of the same number of patterns and the frequency of patterns is much lower for D1: three signals per year on average. It is not so often as we could have wished but the 90% profitability compensates that disadvantage.

PUT option model for the Day X binary options trading strategy:
  1. A top has been formed by the price;
  2. Downside retracement starts;
  3. A first bullish candlestick is awaited to appear;
  4. The bullish candlestick’s low has to be the overall retracement minimal price;
  5. PUT option is bought below the bottom of this bullish candle;
  6. Shorter timeframes can be considered for several PUT options in a row until the price gets above the top of the bullish candle formed after the bounce;
  7. It is recommended to stop buying PUT options in case if four more candles were formed after the bullish one and it was not triggered still;
  8. If the price goes up for the equal range of the first bullish candle, the PUT options have to be halted as well;
  9. PUT options could be bought several times until the price goes a distance equal to the difference between the recent top (reversal point) and the entry point.


Day-X Binary Options  Strategy - How It Works


If you like this strategy, you might also be interested in this Trade Envelopes
CALL option model for the Day-X binary options trading strategy:
  1. A bottom has been formed by the price;
  2. Upside retracement starts. An ideal case for such a retracement is when candles are not sharp and large, and the rebound is slow and systematic;
  3. A first bearish candlestick is awaited to appear;
  4. The bearish candlestick’s low has to be the overall retracement maximum price;
  5. CALL option is bought above the top of this bearish candle;
  6. Shorter timeframes can be considered for several PUT options in a row until the price gets below the bottom of the bearish candle formed after the bounce;
  7. It is recommended to stop buying PUT options in case if four more candles were formed after the bearish one and it was not triggered still;
  8. If the price goes down for the equal range of the first bearish candle, the PUT options have to be halted as well;
  9. PUT options could be bought several times until the price goes a distance equal to the difference between the recent bottom (reversal point) and the entry point.


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