Universal trading strategy for binary options "The Power of Trend Inertia"

Trading Strategy "The Power of Trend Inertia is designed for trading hourly PUT/CALL options, but is also great for scalping, intraday trading and swing trading. According to the author of "The Power of Trend Inertia" strategy, it can be used in the foreign exchange market when trading both major and exotic currency pairs, stock and commodity markets.

We will consider the use of the trading strategy "The Power of Trend Inertia" for trading binary options.

Strategy input parameters

• Currency pairs: any.
• Timeframe: M15 (for options with expiry date of 1 hour) and older
• Bidding time: any.
• Risk Management: Choose such an option volume that the risk is no more than 2-5% of the deposit per trade.

Used indicators

• Heiken Ashi;
• NonLagMA (period 18, filter 0.5);
• NonLagMA (period 8);
• Fib Pivot Indicator;
• Curve Indicator;
• Zero Lag MACD (9, 21, 4, 3);
• Stochastic oscillator (14, 2, 3);
• TMA Slope,
• Zig Zag,
• Zig Zag Pointer alert.

Setting indicators and system template

• Unpack the archive with templates and indicators.
• Copy the indicators to the folder MQL4 -> indicators.
• Copy the templates into the templates folder.
• Restart the terminal.
• Open the chart of the desired currency pair.
• Install the template named PowerTrendMomentum.
• Switching to the TF M15.

Signals indicating the purchase of a CALL option (predicting an upward move)

• The thin moving average crosses the thick one from bottom to top.
• ZeroLag indicator goes through zero from bottom to top.
• A green bar has formed on the TMA Slope indicator.
• Stochastic indicator is directed upwards and is as close as possible to oversold area.

Signals indicating the purchase of a PUT option (predicting a downward movement)

• The thin moving average crosses the thick one from top to bottom.
• ZeroLag indicator goes through zero from top to bottom.
• A red bar has formed on the TMA Slope indicator.
• Stochastic indicator is directed downward and is as close as possible to overbought area.

Signals for exiting the market (for normal trading)

Signals to close a trade (if we work not with binary options, but with regular Long/Short positions):

• When the thick moving average changes color to the opposite.
• When the price has reached a significant pivot (support/resistance level).

Conclusions

• According to the experts of ForTrader.org, the undoubted advantage of the trading strategy "The Power of Trend Inertia" is trading on trendwhich significantly reduces trading risks.
• The next advantage is the universality of the strategy, which allows you to use it not only in the binary options market, but also in other financial markets, which significantly increases the number of interested traders.
• The trading strategy "The Power of Trend Inertia" uses quite popular technical indicators, which have repeatedly proved their effectiveness. In addition, these indicators are constantly being modified, which allows you to optimize the trading strategy, increasing the accuracy of market entry.
• The trading strategy "The Power of Trend Inertia" has simple rules for entering the market, which greatly facilitates its use by novice traders.

As a result, we get a fairly simple, but no less effective universal trading strategy, which allows you to make a profit in any financial market.

Download templates and indicators

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