BINARY OPTIONS

TRADING STRATEGIES
Strategies of Pros Explained for Dummies
Welcome!
Do you want to become a successful
binary options trader?
You are in the right place. In this e-book you will be
introduced to the top 10 binary options strategies. As well
as picking the most effective and easy-to-use strategies out
there, we have presented them in a fun visual manner that
is easy to understand, even if you dont have much
experience.

Some binary option traders play the markets without any

solid strategies. We however, strongly recommend
mastering at least a couple of strategies and trading only
when strategy indicators are clear. By doing so you can not
only reduce your risk, but also significantly increase any
profits.

That said, always be aware of the other factors that drive

markets, dont just follow indicators blindly!

And Remember that its okay to have losses as long as

more of your trades are In the Money than Out of the
Money.

TOP
RATED
SLIDESHARE
AUTHOR
 Fundamentals Why Binary

Why Binary options are becoming more

and more popular?
Simplicity
Binary options are generally simpler to trade than
other instruments. This is because you only need to
form a view on what direction the price of the
underlying asset will move. In comparison, traditional
options also require you to form a view on the
magnitude of any price movement.

Fast outcome Multiple asset classes

Binary options offer contracts with short-term A trader can access multiple asset classes such as
durations, from 60 seconds to 60 minutes. This stocks, currencies, indices and commodities, and can
provides the trader with several investment usually trade them whenever a market is open some-
opportunities during a day. It also offers flexibility as where in the world.
markets change over time.

Less risk
With the forex market, every time you enter into a
trade you risk the entire amount of money in your
trading account. With binary options, however, your
risk is always limited to the amount you committed to
that specific trade.

The best thing about binary options is that

No fees I know exactly how much my return or loss
will be before I make an investment. It
Unlike with other trading instruments, there are makes risk management incredibly easy.
usually no fees or commissions attached to binary
options. Brokers make their money from the
percentage discrepancy between what they pay out on
winning trades and what they collect from losing Richard.
trades. Developer,
Netherlands
 Fundamentals Binary Vs Forex

Comparing two top trading opportunities

BINARY VS FOREX
OPTIONS

Profitability rates 60%-85% Uncertain

Risk Controlled Unpredictable

Refunds for losses >15% refund None

Risk/Reward ratio Reward < Risk Reward > Risk

Leverage* Not available Up to X500

For beginners Simple to use Not so much (except social)

Fees No Spread and/or commission

Regulated in the US No Yes

Ownership of asset No Yes

Assets for trading Multiple Limited

* Leverage (margin) allows you to increase your investment capital so you can make a larger trade, and potentially a larger profit if your trade is a winning one.
 Fundamentals Trade example

How it works
2. Choose expiry time
1. Choose an asset 3. Select investment 4. Decide if the rate
amount will go Up or Down

Gold 18:00 $100

Will Gold go up or down?

Gold 1309.50
CALL
11:00 Payout percentage
1309.650
72%
11:00 PUT Potential payout

$175
11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 Time left: 00:29

41% UP DOWN 59%

Market sentiment - dynamic fluctuations of buyers and sellers creating trends

Overview Example
Binary options offer a way to trade stocks, For example, a trader forms a view that the price of
commodities, indices and currency pairs where your gold will fall in a given period of time, and so places
rate of return is FIXED. You just need to correctly $100 in a put. If correct, s/he wins a fixed payout -
pick whether the value of the asset is going up (Call) $175. It does not matter if the price of the asset falls
or down (Put). Usually, these options expire in 15-30 $1 or $100 - the payout is the same. If the price of gold
minutes. rises, however, the trader loses the entire amount of
the investment - $100.

Some brokers, however, let you minimize risks by

choosing the payout and loss percentage you want.
For example, you can choose to lose only 75% in the
event that your view is incorrect. With such an
option, you would also have to accept a lower win
percentage.
 Fundamentals Bulls & Bears

A visual trick for memorizing what is bull

and what is bear
On Wall Street, the bulls and bears are in a constant struggle. If you haven't heard of these terms already, you
undoubtedly will as you begin to invest. The terms bull market and bear market describe upward and downward
market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securi-
ties. These images will help you memorize which is which.

Bullish action Bearish action

Bearish trend

Bullish candlestick Bearish candlestick

 Fundamentals Tools

How to set up your workspace for

successful binary trading
Precise binary trading decisions must include technical analysis. This requires more specific information than that
provided by a line chart, so professional traders use independent candlestick charts that offer more in-depth data.

1. 1. 2.

Simple binary line chart Binary line chart + candlestick chart tool

Recommended free chart tools

Trading View tm
Free Stock Charts tm
Multicharts
Fundamentals Charts

Unlock the potential of charts!

How to read candlestick charts
ed shadow
The line is call
Highest price Highest price
of the day of the day
Close price Open price
called body
The color bar is

Open price Close price

Lowest price Lowest price
of the day of the day

Color variation 1 Color variation 2

Close Open Close Open

Open Close Open Close

A. Doji - when the opening and closing price are equal.

B. Long-Legged Doji - after small candlesticks, they
indicate a potential trend change.
C. 4 Price Doji - where the high and low are equal.
Normally only seen on thinly traded pairs.
A. B. C.
 Fundamentals Timing

Best time for trading

One of the most important aspects when trading binary options is to know when to trade the market. Even though
trading on foreign exchange options, stock options, commodity options and index options is available 24 -hours a
day, five days a week, not every hour or minute is worth trading. There are different hours during the day and differ-
ent days of the week which see more volume and liquidity than others, resulting in high volatility and oppor-
tunities to maximize trading.

Overlaps - the peak time

The binary options market is most active when there When more than one market is active, you can expect
is an overlap of the London/New York and to see increased volatility, meaning that prices move
Asia/London sessions. The market experiences a high around more and in a clearer direction. During
volume of trades at these times. off-peak hours, there is little volume and less price
movement, resulting in flat and directionless markets.

Tokyo/London overlap

London/New York overlap

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Sidney
Tokio

Effects of timing Best days of the week

As a binary options trader, you profit when you There are days that see more volatility and price action
correctly predict the direction of an asset price. than others. According to our research, Tuesday and
Volatility is therefore essential to maximize the Wednesday are considered to be the most active
chances of you increasing your return on investment. trading days of the week. Friday is also recognized as
Studies have shown that the most active trading hours a high-volatility trading day, especially during the
occur during the European session. In the US, trading hours when European and US trading sessions
activity picks up sharply around 8:30 am EST. this is overlap. During the second half of the day, price
due to the release of closely watched US economic movements can be very unpredictable.
data, which generates the liquidity and volatility
needed for the underlying asset to reach its target Best time
price before the option expires. Prices become most
MON TUE WED THU FRI SAT SUN
volatile when the US releases its monthly non-farm
payrolls report on the first Friday of every month. In
contrast, markets will be less active and liquid during
major holidays in the US and Europe, resulting in
subdued trade.
 Fundamentals Expiry time

What time frame to choose for trading

binary options
When it comes to trading binary options, you have a variety of choices for what kind of time frame (time until
expiry) to trade in. the majority of binary options, however, have expiry times ranging from 60 seconds to 30
minutes.

Description Return rate Type of analysis

60 sec
NEW! Very unpredictable time frame. Quick results, but hard 65% - 70% More like gambling
to make a sound prediction.

10 & 15 min
Random reversals are less likely to occur here. Use Up to 80% Technical
hourly chart to understand the underlying trend.
Most popular
30 minutes binary options should incorporate some 80% and up Technical +
fundamental analysis techniques during your re- Fundamental

30 min for an asset to perform more closely to what its long

term forecast is. Long term investors rely very heavily
on fundamentals. You will also want to look at 15
minute charts and hourly charts to give you a broad
view of the technical factors surrounding the asset.
Fundamental analysis will help you here, but 30
minutes is still short enough that you cant neglect
the technical side of things. Looking at both of these
things will give you a much more complete picture
of how an asset will perform over this longer time
period.

What time-frame to use for the pattern recognition

In order to confirm a trend, use a candlestick chart with a bigger time frame than the one you use to decide your
expiry time. it is usually recommended to use a time frame of at least 1 hour for chart pattern recognition. short-
term traders, however, may choose to use 1-minute and 15-minute candlestick charts. The 1-minute chart provides
entry and exit signals while the 15-minute and hourly charts are used to confirm the trend and support and resis-
tance levels. If you trade binary options with 15-minute or 30-minute expiry times, 1-hour and 4-hour candlestick
charts can be used to determine/confirm your view
 Strategies #1

The Double Red Strategy

1.
PUT

2.

Description Key elements

The double red strategy is a short-term reversal system Chart for analysis: 5 min
based on price action and resistance. The trade is Expiry time to use: 5 -15 min
planned on a 5-minute chart and is signaled when
two bearish candles form following a test of resist-
ance. Watch out
1. Choose an asset and watch the market until you see Not suited for volatile markets.
the first red bar. then wait for a second red bar. Do not use it when big news events are taking
2. If the second red bar closes lower than the first red place.
bar, then thats it Jackpot.
3. Usually, what happens is that the third bar will go
even lower than the second bar. This is the point
where you should immediately place a Put option on
the asset, with an expiry time not longer than 15
minutes.
 Strategies #2

The Pinocchio Strategy

Bearish Pinnochio

2. Upper shadow
at least 2x the size
of the real body

4. Potential profit

3. Confirmation
of a downtrend.
PUT

1. Uptrend

Description Key elements

A Pinocchio bar is a candlestick bar that has a very Time-frame for analysis: 1h, 4h win

small body and a very long wick (nose). It is also Expiry time to use: 5-15 min 68
rate
%

called Shooting star, Hanging man, Hammer and

Inverted Hammer. As you remember, Pinnochios
nose grew long when he was lying. The same happens Watch out
with the pinnochio strategy - when the wick is
longer than the body, this tells us that the market is Do not use 60 second expiry time!
deceiving us and that we should trade the opposite Do not trade in a neutral market! A true bearish
way! pinocchio signal must come after an uptrend (see
image above). Trying to trade the bearish Pinocchio
The entry point varies, as some traders prefer to wait pattern in neutral market conditions can be risky.
for the next candle to retrace to the 50% Fibonacci
level of the Pin bar, while others enter immediately
after the Pin bar closes. A long wick indicates strong
selling pressure, whereas a long tail suggests intense
buying power.
 Strategies #3

The 1-2-3 Strategy

1. If a peak is not surpassed,

it becomes point 1.

Point 3 does not go

higher than point 1.
3.

PUT

2.
Point 2 marks the end
of a counter move.

Description Key elements

1. After an uptrend or at least a strong move up, look Choose expiry time equal to the time frame in
for the 1 2 3 pattern to form, starting of course which you spot the pattern.
with the first peak (1).
2. Now, if a counter move starts, mark the bottom of
that move with (2). Watch out
3. If the new move up does not surpass point 1 and
starts turning down, mark the highest point of this It is better to open two trades with smaller expiry
new move up with (3). times than 1 trade with longer expiry times.
4. our pattern is now complete. However, there is still
a very important rule that must be observed: the price
must move down to break the low created at point
(2). If that happens, all our conditions are met, and we
enter the trade with a Put.
 TOP binary Brokers

TOP 5 brokers Globally

BROKER MININUM EUR/USD DEPOSIT REGULATED HOW IT LOOKS
DEPOSIT PAYOUT BONUS

$1 90% 30% - 100% Cysec

1 Pending Visit broker

2 $1 90% 25% - 100% Visit broker

3 $20 70% 20% - 100% Pending Visit broker

4 $5 85% 25%-100% Visit broker

5 $20 81% 20%-95% Visit broker

* Voted as best customer service provider.

TODAYS TOP 5 - regularly updated & fresh tops.

As broker data is subject to change, we have developed a regularly
updated section featuring our top 5 brokers, both for US and World
clients. Visit it here.
 TOP binary Brokers

Why our Top & Reviews are different

Honest and useful numbers

95%
Most reviews out there are one-sided advertisements,
filled with marketing traps like payouts of up to
95%. We know that such promos are useless, as these
95% payouts only apply to exotic options, which
nobody actually uses. Thats why we use specific Payouts
comparable values such as payouts for EUR/USD
options.

We also highlight broker weak

points
We have not only summarized the strengths of each
broker, but also investigated their weak points. Just as
every person has their weaknesses so does every
company. It is our duty to provide the full picture.

Verified information
The most common problem with broker reviews is
Deposit options:
that they are based on sketchy information. Very
WireTransfer,
often, the data is either incorrect or different from MoneyBookers,
what clients actually think and experience. Thats why Paypal, CashU and
the statistical part of our reviews is verified by the more.
brokers themselves. And most importantly, our n!
informatio e
Secondary c h e c k is NOT th
overall ratings are based on user reviews and n e e d to s !
you really raw option
feedback. The thing o n s , b u t the withd
ti
deposit op

No hidden fees
If there are any fees, we include them in our reviews!
This is because even when brokers advertise no fees,
there are usually hidden charges involved, for example
in certain withdrawal options.
 DETAILED REVIEW

BEGINNERS
for

In customer polls SigmaOption are leading with the most responsive and freindly
customer service. Their live data feeds are provided by Reuters and they provide
expiry graphs for any given moment. SigmaOption uses todays leading binary
options trading platform that provides traders with an excellent trader experience in
terms of security, features, user-friendliness, tools, and education.

Pros Facts
Minimum trade just $10 Minimum $250 deposit
Experienced personal account manager Deposit in GBP, USD, EUR.
Beautiful & user friendly platform Deposit and withdrawal methods: Credit
Up to 100% bonus for the rst deposit Card, Wire Transfer, Paypal.
Regular promotions for traders Trading platform: SpotOption
Trading accounts in USD, GBP, EUR Trading Instruments: Currencies,
No fees for deposit and withdrawal Commodities, Stocks, Indices.
Trading methods: Binary, Pairs, Long Term, 60
Sec, One Touch, Ladder, FX/CFD

Cons Trading methods

No demo account
Doesn't accept US clients

60 sec Binary Long-term Pairs One touch

$
Ladder FX/CFD
 DETAILED REVIEW

Banc De Binary was the very first specialist binary brokerage to become licensed and
since then has gone from strength to strength. It is one of the biggest online trading
platforms and is seen as very reliable by its customers worldwide. The website and
one-to-one broker service is available in eight different languages, and the firm has
won awards for its excellent trading platforms. Youll love the wide range of available
tradable assets and the high payouts on every trade. Banc De Binary provides an
impressive selection of free educational resources to help clients succeed, from
webinars about trading tactics with its financial analysts, to daily email bulletins and
market event updates. Youll be able to put the tips into action on its user-friendly
trading platforms, which are available on desktop and also via its free mobile
application. The firm takes pride in catering for all its traders, with an exclusive VIP
platform for professional investors and free $50,000 demo accounts for beginners.
Sign up today and be sure to claim your 100% deposit bonus!

Pros Facts
150 currencies, stocks, indices, commodities Founded in January 2009
Free mobile app for apple & android Regulated by CySEC & registered with FCA
$50,000 demo account Minimum deposit: $250
5 user-friendly trading platforms No fees to deposit or withdraw (debit card,
Free daily analysis and trading advice credit card, wire transfer, Moneybookers)
Educational videos and webinars
100% sign-up bonus
This Broker is Scamed recently
Cons Trading methods
Demo account only after deposit
Doesnt accept US clients 30

Binary One touch Long-term Pairs 30 seconds

60 seconds
120 seconds
 DETAILED REVIEW

uBinary is our favorite binary broker in terms of functionality. We recommend this

broker for its user-friendly, high-performance binary system. It has a unique trading
platform that stands out from the rest with its attention to detail. The firms
proprietary platform is second to none with its unique tools, such as analytics to
deeply monitor the markets; Option Builder that allows the trader to create their
own trades by either minimizing the risk or maximizing the payout; Social trading;
Dynamic Buy Me Out; Trading signals with an average precision of 80%; and more.
Our favorite tool is called Flip - it allows a trader to change his/her position after
s/he starts trading and sees that the market is going in a different direction than first
expected. uBinary offers five different account types to meet the needs of different
traders. All of the account types include training and client protection insurance.
Platinum accounts enjoy a bonus program of 20% to $5000.

Pros Facts
Most highly developed platform in the market Founded in: 2012
Biggest oer of unique and useful tools Regulators: None.
Social trading and Signals for smarter decisions Minimum deposit: $250
You can change the position if market changes Assets to trade: 80+
Possibility to create your own terms by either Withdrawal methods: credit & debit card
minimizing the risk or maximizing the payout. (free), wire transfer (free), neteller (free),
to create their own trades by either minimizing the Skrill/moneybookers (free)
Very well written guides and personal help from
uBinarys analysts.

Cons Trading methods

No mobile platform yet

60 sec Up-Down Speed-trade Option builder

 Well done!
Dont stop learning.
Have success!

Risk Warning: Trading in Binary Options is highly speculative and involves a significant risk of loss. Such
trading is not suitable for all investors so you must ensure that you fully understand the risks before trading.