› Binary options trading strategy ‘CAJAPY’

Binary options trading strategy ‘CAJAPY’

Binary options trading strategy ‘CAJAPY’ has been developed by its authors for two currency pairs taking in count their special features. It has not been tested for other currency pairs, however, it is rather probable that this trading strategy could be profitable elsewhere. The pairs considered here hold the trend in a sustainable manner, and this fact allows to trade on the whole duration of the trend once it has been determined.

Statistics tell us that for the one-year period (starting from May 2017 till May 2018), ‘CAJAPY’ binary options trading strategy has shown a profitable performance of +78.8 percent of successful deals while the maximum drawdown was very modest during that period. Currency pairs used here are CAD/JPY and AUD/JPY and the intraday timeframe is four-hours. Technical indicators coming together with this trading strategy are MACD with modified settings (12, 72 and 9 periods) and Momentum Indicator with the period of 14 bars.

Conditions for CALL options according to ‘CAJAPY’ binary options trading strategy are as follows:

MACD Indicator:
1. Option ‘A’. MACD Indicator scale crosses the zero mark from downside up.
2. Option ‘B’. MACD Indicator scale is above the zero level but still below the moving average. Once the scale appears to be above the moving average or touches it, we wait for the confirmation from Momentum Indicator before entering the market.
3. We expect for the initial downside movement from the Momentum Indicator. After that, once the indicator shows a growth right on the next candle close, we buy the CALL option.
4. We keep buying the same options until the price goes down for 50 pips from the entry point.
5. After moving 45 pips in the profitable zone, we move the deal to non-risk mode
6. The best distance for one-way direction is 100 pips from the entry price.
7. We do not buy any new options having a current open deal which is not set to the non-risk mode yet, despite new signals’ appearance.

Binary options trading strategy ‘CAJAPY’



Conditions for PUT options according to ‘CAJAPY’ binary options trading strategy are as follows:

MACD Indicator:

1. Option ‘A’. MACD Indicator scale crosses the zero mark from upside down.
2. Option ‘B’. MACD Indicator scale is below the zero level but still above the moving average. Once the scale appears to be below the moving average or touches it, we wait for the confirmation from Momentum Indicator before entering the market.
3. We expect for the initial upside movement from the Momentum Indicator. After that, once the indicator shows a decline right on the next candle close, we buy the PUT option.
4. We keep buying the same options until the price goes down for 50 pips from the entry point.
5. After moving 45 pips in the profitable zone, we move the deal to non-risk mode
6. The best distance for one-way direction is 100 pips from the entry price.
7. We do not buy any new options having a current open deal which is not set to the non-risk mode yet, despite new signals’ appearance.


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