What is in the name of the strategy? Well, Fan refers to professional strategies for trading binary options. You can use this strategy to operate on time frames (min) and a set of standard indicators.
The Pocket Option Broker platform offers its traders wide set of tools with extended functionality. Start making money with your strategy after you register an account and follow the rules described below.
How to set up your trading terminal
The “Fan” strategy is ideal for short-term trading in highly volatile assets. We recommend choosing currency pairs or cryptocurrencies.
Next, you will need to choose “candlesticks” chart with a time interval M1.
When all parameters are set, go to the “Indicators” and choose 7 MA and MACD.
Yes, you will need seven moving averages with different periods. Together they form a “Fan” strategy. As a matter of fact, this is precisely why the strategy got its name.
For the “Fan” trading system, you need 6 same-color EMAs with periods: 3, 5, 7, 9, 11 and 13. Set up the exponential MA, not simple. You can do it in the indicator settings in the list under the “Period” parameter.
Set up the seventh MA as exponential with a different color and with a period of 55.
We need the MACD oscillator to confirm the signals from the EMAs. You will see this indicator in your work area with default parameters.
How to trade with the “Fan” system?
Now, you will see seven signaling moving averages and oscillator on your chart.
It is time to start trading.
Execute CALL contract when all lines of the “fan”, without exception, cross the EMA with a period of 55 from bottom to top. At the same time, the fast (green) MACD line should also cross the zero level in the upward direction.
Execute PUT contract when all six lower EMAs cross the higher EMA from top to bottom, and the MACD signal line goes into negative zone.
The above signals are quite enough to make a profit in the binary options market. However, this strategy has one more additional option for a reliable market entry.
If you see that all the lower EMAs gather in a “bundle” and the MACD signal lines (blue and red) stopped, then it’s time to buy an option. The type of contract in this case depends on direction is directed and in which direction the green line of the oscillator crossed the red one.
It is recommended to set 5 minutes for expiration to manage risks (the time of formation of five candles on the chart). It will help you to neutralize the effect of market noise.
In general, the “Fan” strategy can bring you tangible profits in the electronic contracts market. However, due to the frequent occurrence of signals, do not forget about competent money management and do not use more than 3% of the total deposit in one deal.