The digital contracts market is often employed as a swift entry point into the realm of financial exchanges. This tool facilitates a multitude of short-term transactions with predetermined profits, eliminating the need to wait for prices to meet specific thresholds to achieve anticipated earnings.
Nonetheless, binary options carry substantial risks. As the losses on contracts are also predetermined, erroneous analysis can swiftly deplete your deposit. Therefore, most seasoned traders concentrate on a strategy that, while not yielding a high volume of daily transactions, effectively mitigates risks and, consequently, provides a steady income.
Additionally, it’s essential for traders to remain vigilant and continually refine their strategies. The digital contracts market is dynamic, and economic events and trends can shift rapidly. Staying informed about the latest market developments and adapting to changing conditions is crucial for long-term success. Professional traders often engage in thorough research and analysis, combined with prudent risk management, to ensure their investments remain on a stable and profitable trajectory. By combining experience, knowledge, and adaptability, they can navigate the complexities of this financial landscape with confidence.
To stay updated, you should read about The Fidelity Trading Strategy, because it delivers 90% success rate on binary options. The strategy is based on two popular indicators Envelopes and SMA, which you can easily find among the pre-installed tools in the terminal from Pocket Option.
How Set Up a Screen for Trading?
It’s important to note right away that Envelopes, on their own, can offer highly accurate signals for entering contracts. This makeshift price channel bears a strong resemblance to the Bollinger indicator. However, it boasts a much higher sensitivity to market price fluctuations, providing us with an advantage in short-term trading.
In this strategy, moving averages serve as a complementary and validating tool, enhancing its reliability.
In essence, the “Fidelity” system can be applied to trade various assets, including currency pairs, stocks, commodities, and even cryptocurrencies. Both indicators excel in markets with varying levels of volatility.
As for the timeframe, opting for a 5-minute interval is recommended. This choice is driven by the fact that 60-second trading is particularly susceptible to market noise. Conversely, selecting longer timeframes wouldn’t be as fruitful, as signals in this method are not as frequent.
In keeping with convention, Japanese candlesticks are used for chart analysis.
Indicators, as it was already mentioned above, you will find in the list of standard ones. However, when installing them on the working area, you need to change the parameters to those recommended by the authors of the strategy.
In Envelopes it is necessary to choose the period 14 and deviation 0.05. The recommended parameters are ideal for the M5 timeframe. If you decide to trade on longer intervals, you should reset the values for the indicators.
How to trade on the Fidelity Strategy?
In terms of the actual trading process, you may have already deduced that the signal occurs when the price moves outside the Envelopes. Simultaneously, the chart breaking through the moving average serves as a validation for this signal.
Consequently, a CALL option should be purchased when the candlesticks are positioned below the lower Envelopes level and cross the SMA from the bottom to the top as they return to within the channel.
To initiate a PUT option, you should make the purchase when the candlesticks have crossed above the upper channel boundary and subsequently cross the SMA from top to bottom during the return.
The expiry time is fixed at 15 minutes.
By adhering to the guidelines of the “Fidelity” strategy, you can consistently generate profits in the electronic contracts market. This approach has garnered favor among numerous traders who prioritize risk management and view binary options as a dependable income stream.
In conclusion, the “Fidelity” strategy, with its well-defined rules and controlled timeframes, offers a viable pathway for those seeking a stable and reliable source of income in the world of electronic contracts. It serves as a prudent choice for traders who value risk mitigation while engaging in the binary options market.