Contents:Short-term trading strategies allow binary options traders who love beholding the platform gathering signals from every tick. Meanwhile, mid-term and long-term techniques, on the other hand, enable them to generate substantial returns in the long run. If you are willing to learn how to become a professional options trader and make a stable income from financial markets, then this article will guide you how to master a popular and effective mid-term strategy – the “fourteen”.
What is Fourteen Strategy?
Establishing this strategy is so easy like Sunday Morning because this Fourteen Strategy is combined with three Moving Averages which are definitely famous and can be found quickly in the indicator box of FiNMAX’s advanced charts.
A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price and action by filtering from random short-term price fluctuations.
The detailed settings are as follows:
- 14-period Simple Moving Average (SMA), applied to low;
- 14-period Simple Moving Average (SMA), applied to high;
- 200-period Exponential Moving Average (EMA).
The near-term SMAs are used to identify trading opportunities, while the long-term EMA highlights tradable market trends.
“Binary options” is considered one of the most volatile financial markets due to its formidable fluctuation. Believe it or not, short-term traders after months trying to grab quick profits will find themselves being tired, hence, they will gradually switch to use longer-term strategies. This Fourteen Strategy technique is a perfectly alternative method for whom are serious to earn stable profits in the long run from trading binary options.
Having deliberately been checked over 100 signals, this strategy in last eight months has exposed a win-rate of about 85%. Despite the fact that it’s not the most profitable strategy, this “14” is worth trying.
How to use the Fourteen System to Trade Forex
One-day is the chart that the system works best on. After installing the required indicators, you will have to define the trends then wait for trading occasions to be valid.
A calling signal is presented when:
- The EMA (200) confirms an uptrend.
- The higher SMA (14) stays above the EMA (200).
- A daily candlestick crosses above the higher SMA (14).
On the contrary, a bearish opportunity is defined when:
- The EMA (200) confirms a downtrend.
- The lower SMA (14) remains below the EMA (200).
- A daily candlestick turns below the lower SMA (14).
There are two important notes when trading with this system. First, you should only enter the market at the opening of the next candlestick after affirming that the prior one closes above/below the near-term SMAs, and secondly, only one order should be opened at a time.
The expiry time should be set to five days.
If you like this strategy, you might also be interested in this hammer candlestick
Pros and cons of the Fourteen Strategy
Besides the easy-to-use advantage, this strategy doesn’t necessitate binary options traders to continually observe the platform to grab trading opportunities since it is based on the daily chart. But because of that reason, this technique requires a high level of patience as a candlestick takes 24 hours to be fully formed, and it means that money makers sometimes have to wait for weeks to open only one position.
The Fourteen Strategy is a useful technical system and entirely suitable for binary options traders who understood that trading on larger time frames actually makes more money than scalping the market. Of course, there are a few near-term strategies which really work, but for the safety of most traders, we highly recommend this mid-term strategy. Nevertheless, never forget to use risk controlling and psychological managing methods to minimize the risk as there are no systems guaranteeing for a win-rate of 100%.