Binary Scalping Strategy

Those of you who have never heard of “binary scalping” term should not worry. All scalping strategies were adopted by binary options traders from Forex and are quite easy to explain and implement. The main principle of binary scalping strategies is that you buy many binary contracts and each of them brings you very small amount of profit but in a short time. The more deals like this you make, the higher the profit is.

Binary Scalping. Basics

As I said previously, binary scalping is a strategy originally developed by forex traders. It is tested by thousands of professional and novice market players and optimised to make the highest profits with lowest possible risks.

When using this scalping strategy we will trade 5 min binary options, so those of you who enjoy seeing fast results – this is your day!

Binary scalping is a trend strategy, so when you open live chart to pick an underlying asset, make sure you choose one with a visible up- or down- trend and which is volatile.

Scalping Strategy Set-up

In this scalping strategy we will use 4 trading indicators (don’t worry, they are very easy to use).

Moving Average Exponential (EMA) – period 5

E     E

Choose this indicator from the list and make sure that in the settings of this indicator you change the colour of it to red and the period (in the very left section of settings “Inputs”) to be 5.

Moving Average Exponential (EMA) – period 10

E     EMA-10-period

Once again, we need to add EMA to the chart and now we colour this line in blue and give it a 10 period setting.

Stochastic

Stochastic-Indicator      Stochastic-settings

Now choose from the indicators list Stochastic and change the settings to the following: 14, 3, 1 just as you see on an image below.

Relative Strength Index (RSI)

RSI-indicator

Just add this indicator to the chart, no need to change any settings; they are good as they are.

Trading Binary Options Using Scalping Strategy

Buy a CALL option (some brokers call it “Higher”) if the red line crosses the blue line from the bottom up. RSI should be looking upwards and be higher than 50. Stochastic lines should be also looking upwards, but not touching the upper boundary.

Buy a PUT option (some brokers call it “Lower”) if the red line crosses the blue from above. RSI should be lower than 50 and Stochastic’s lines facing downwards, but not reaching the bottom.

scalping strategy

Binary Scalping. Pros and Cons

I hope by now you know how to use scalping strategy to trade binary options. Please make sure that you follow the set-up guidelines as precisely as possible. One of the cons of this strategy is that if you make a mistake even in one indicator setup, the strategy will show you false signals and you will not make profits.

As for the pros of this strategy, there are many but the main advantage is that by using 4 indicators we are eliminating the false signals that often appear when you trade short term binary options. Thus, we can make money faster and with lower risks.

Where to Trade Using Scalping Strategy

Not all the brokers offer short-term binary options trading, so you need to find a broker that offers 5 min binary options. Out of the market leaders both FinMax and 24option offer 5 min options. Also they have CySEC certification which is a must-have for brokers who want to provide its services within the EU.

You can read my review of 24option and FinMax or simply open an account and test the binary scalping strategy right now:

logo-24optionswww.24option.com
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logo-finmaxwww.finmax.com
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*Capital can be lost

2 Comments + Add Comment

  • Hi All

    Tried this method on 1 minute time frame appears to be OK.

  • i also tried this method and it works perfectly.

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