Hello everyone, another week has passed. And today, in this week’s article, I will bring you a very good Binomo trading strategy with the Bollinger Bands indicator. This deems to be the most effective strategy, bringing the most stable profit in Binomo. Let’s follow the article to find out how professional traders have made money on this platform.
Video on how to use Bollinger Bands strategy effectively in Binomo
Binomo trading strategy with Double Bollinger Bands
The basis for opening an order in this trading strategy is based on the signals of the Double Bollinger Bands. This is a technical indicator that allows traders to find very good reversal entry points.
This trading strategy uses 2 Bollinger Bands with 2 different Standard Deviations (2 and 2.5).
How to set up Bollinger Bands indicator in Binomo
- Select the “Indicator” menu and then “Bollinger Bands”.
- For the 1st Bollinger Bands, set the parameters as 20 and 2 (BB2).
Then, customize the colors and click Apply to complete the settings.
For the 2nd Bollinger Bands, set the parameters as 20 and 2.5.
Using Double Bollinger Bands will help traders filter out signals when the price sticks to the bands. With the BBs strategy, if the price sticks to the bands, it will make traders lose.
How to trade with Double Bollinger Bands
In this strategy, we open orders following candlestick colors. It means to guess what color the next candle is by opening an order at the time the price creates a new candle. The expiration time is equal to the candle time period.
If you do not know how to open an order using candlestick colors, you can review this article: How to trade using candlestick colors in Binomo
Formula for the Double Bollinger Bands strategy
Conditions: A 5-minute Japanese candlestick chart. 2 Bollinger Bands indicators (BB 2 and BB 2,5). Open orders with an expiration time of 5 minutes.
How to open an order:
+ Open an UP order when the price creates a red candlestick which falls out of and closes outside the lower bands of the BB 2.5.
+ Open a DOWN order when the price creates a green candlestick which breaks out of and closes outside the upper bands of the BB 2.5.
For capital, this strategy uses the Martingale capital management method. This means you will increase the investment for the following order if the previous order is a losing one. This is to undo the previous losing order and make a small profit. A Martingale cycle consists of 3 orders with increasing investments. If you win any of 3 orders, you must start the cycle again with the initial capital.
Specifically, assuming the income rate for each order in Binomo is 80%, then you need to open orders with investments as follows:
With this capital management method, you will completely eliminate the risk of price sticking to the bands. This is the culprit killing a lot of traders’ accounts when using Bollinger Bands.
If you want to better understand this capital management method, you can review it here: Martingale capital management method.
If you want to earn money, any trading strategy in Binomo must have principles. With this strategy, you need to strictly follow the following:
- Only open orders when there is a clear signal. The signal candle breaks out of and closes outside the BB 2.5 bands.
- Open the order exactly as soon as the price starts to create a new candle. This eliminates price manipulation from the platform.
- Open orders with investments in line with the Martingale capital management method
In reality, within a day, the price deviation from the BB 2,5 bands in Binomo does not happen often. You just need to wait patiently for the signal to appear. Trust me, if you do all of the above correctly, you will definitely earn money in Binomo.
The above article is about the best trading strategy in Binomo using Double Bollinger Bands. In the following article, I will review how to use this strategy on a Real account along with the actual entry points. Let’s follow it up. Goodbye and see you again.