Some traders seek out high-performance trading strategies to quickly profit and exit the trade while some try to design their secret special strategy out of bits and pieces. There are a lot of strategies in the binary options market. However, almost all strategies employ several indicators for trade signals and confirmations. While experienced traders understand the technical tools for market analysis, most beginners do not. They are intimidated by complicated formulas and graphs for trading and shun away from a profitable opportunity. They should know that there are simple but effective strategies like 4/1 trading strategy.
What are the pros of a simple trading system?
If you are a beginner, you know that trading systems act like a blueprint for trading. It is a set of rules that can be based on technical indicators or fundamental analysis. A trading system tells the trader when and how to trade. Simple strategies are better for the novice traders because they are more accessible without special training.
Here is a list of advantages of 4/1 strategy:
- No special technical or math training is required.
- Almost all tools are available from broker platforms including Pocket Option.
- The timeframe is one minute. Please, check your settings.
- The strategy is good for quick trading. You can make up to several dozen transactions, which, with the right approach, can bring considerable profit.
How to set up a trading terminal?
Even for beginners setting the parameters of the trading terminal is easy. You need three ingredients to start trading with the 4/1 strategy:
- Japanese candlestick chart;
- timeframe M1;
- currency pair EUR/USD.
Once you are done with this simple fine-tuning, you are ready to trade.
How to trade with the 4/1 Strategy?
Before you start, please read some advice and recommendations for better performance. In this simple strategy, you biggest helper is Japanese candlesticks. Since you set up a one-minute timeframe, a new candle will be formed in 60 seconds.
One minute timeframe is the ultimate trading form since it takes very little time and can be executed even by those who have a full-time job, while still having great profit potential.
Binary options market goes up and down: downward candles appear after upward candles and vice versa. Trading statistics shows that the probability of a reverse candle after four same candles reaches about 70%. It is the cornerstone of the trading strategy.
- Buy CALL option after four downward candles;
- Buy PUT option, on the contrary, after 4 upward candles.
Timeframe is 1 minute or the time of formation of one bar.
Caution: do not trade at the time of the release of important news regarding the dollar or euro.
The performance of 4/1 strategy reaches 70% and you can strengthen your position by applying the Martingale principle. Become a trader at Pocket Option because the platform is the perfect place to use this tactic. The minimum trade amount here is only $1 and you can build a Martingale sequence up to 10 steps. There are a lot of success examples in trading but it will take a great understanding of the market, in-depth knowledge of concepts and trading psychology.