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The Three In A Row strategy

“What is a good trading system” is a popular question of binary options traders. We have studied around 100 most profitable strategies and discovered an interesting fact: all of them consist of at least one lagging indicator which helps define market trends and signals, and one leading to confirm whether the signals are worth trading or not. Based on this research, we have found out a very effective and all-purpose trading system, called “three in a row”.

Introduction


Combined with the most famous indicators including Exponential Moving Average (EMA), Relative Strength Index (RSI) and Stochastic Oscillator, this trading system is really comprehensive and could work on almost all time frames. The “three in a row” uses two EMAs with different period settings (5 days and 10 days) to identify tradable market trends and trading opportunities, in addition to a default RSI and a Stochastic Oscillator, which are responsible for confirming the reliability of spotted signals. This means that the system has sufficient basic features of a professional trading strategy.

A little question here is why we need to use two leading beacons in one strategy. RSI and Stochastic, technically, have the same usage, however each has its own specific pros and cons. The Stochastic Oscillator is much more sensitive than the RSI and works very effectively in stable range-bound markets, while the RSI, due to its slower response, determines more accuracy trading occasions in uncertain ranging conditions. Hence, these two indicators make a perfect combination, allowing traders to be flexible with market changes.

After a year being tested by us over 250 signals, this strategy has so far confirmed a win-rate of about 82%.

How to use the “three in a row” system to trade binary options

Despite the fact that the technique could be applied on all time frames, we suggest using it on the 15-minute or 30-minute chart. Installing the needed indicators which are found easily in the “gear” box of FiNMAX’s advanced charts takes only 30 seconds, and then you can start seeking for trading occasions.

A calling signal is defined when:

  • The EMA (5) turns above the EMA (10).
  • The RSI line stays above 50 but below 70.
  • Stochastic lines are in the channel 20-80 and tend to move upwards.

The Three In A Row strategy

On the contrary, a putting opportunity is presented when:

  • The EMA (5) crosses below the EMA (10).
  • The RSI line stays below 50 but above 30.
  • Stochastic lines are in the channel 20-80 and tend to direct downwards.

The Three In A Row strategy

There are some important entering rules as follows:

  • Only one position should be opened at a time.
  • The expiry time should be three or four times larger than the period of the chart you trade on. For example, you can set the ending time to be 45 minutes when trading on the 15-minute chart.

Pros and cons of the “three in a row” system


Pros

  • Easy-to-use, general-purpose.
  • Generating highly reliable signals by strict checking rules.
  • Enabling traders to profit from various market conditions.
Cons

  • Requiring traders to constantly monitor charts.

Conclusion


The “three in a row” is a comprehensive & effective strategy, providing highly accurate trading opportunities thanks to its strict checking rules and the indicators performing in perfect teamwork. We highly recommend the system for traders who are new to binary options trading and seeking for a safe start. We believe that using this technique strictly with risk controlling and psychological managing methods could generate substantial returns in the long run.


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