Binary Option Alliance

Your Edge To Success

Month: May 2015

Price Action Trading

The art of price action trading

Price action trading is an art, they say. The mystery that surrounds price action trading is appealing to young traders. There is something about the fact that some people can make money off the markets simply by looking at candles going up and down that attracts the attention.
While price action trading is indeed very profitable for a select few who have learned to trade it perfectly, it’s also a very dangerous path to go down to for complete beginners. Let’s see why that is.

funny binary option humour

What is price action trading?

It’s all in the name. Trading price action is to base trading decisions solely on price movements. A price action trader doesn’t have any indicators on his charts. The only indicator he looks at is price going up or down.
The idea behind it is that price action should actually be the only information you need to make good trading decisions. Everything can be seen in the way the price of an asset moves. Indicators are just pretty representations of things you can actually see in the movements, and often times they are lagging (ie: they give you information about the market when it’s too late, when the information isn’t relevant anymore) or simply cloud your charts and prevent you from seeing anything.

Why is price action trading an art form?

price action trading discipline

Price action trading can be compared to an art form for many reasons. First of all, it takes a long time to master. Remember, you have nothing on your charts. You need to learn to spot things happening in the market just by looking at the price movements.
Second of all, price action trading relies a lot on interpretation and experience. One experienced price action trader might spot a perfect momentum trade opportunity while another experienced price action trader might decide to sit back and wait for a rejection.
All in all, while price action trading is very attractive and intriguing, remember that it will take many hours of practicing and dedication to master.

Is price action trading in binary options possible?

Price action trading is a fairly common practice amongst experienced traders. Some of the most old school forex or stocks traders only trade price action based strategies and have been doing so for many years.
With the recent appearing of binary trading though, these traders have found a new way to profit from their wealth of experience. Is price action trading in binary options possible? The answer is a definite yes!

How to trade a price action based binary options strategy

The first thing you have to keep in mind is that binary options have many, many options available. You can trade as low as 30 second expiries and as far as one month expiries, and there are a plethora of different ways to trade (one touch, high/low, Ladder and so on).
You will have to pick one and stick with it. Build your price action strategy around the way you wish to trade and the one that makes the most sense to you.
The most common way to trade binary options is the high/low option. Basically you’re predicting that the price will go either higher or lower than the price at which you placed the option.
Given that, as we said earlier, you can place short term trades (5min/15min), price action traders will thoroughly enjoy momentum trading on these expiries.

The strategy, in a nutshell

 

This is a solid strategy, but one which requires experience and discipline. The idea is to use price action based levels (support, resistance, trend lines) and trade momentum breaks off them using short term expires on your binary trading account.
Let’s say for instance that AUD/USD is approaching a strong support area. The price finally pushes through and breaks down below the support area. This would be a perfect time to place a short term put option trade (for instance 15min expiry ). This will take advantage of the strong downwards momentum offered by the break of the support area, which should net you money as you manage your trade accordingly!
Whats your experience with price action? Do you trade price action? We would love to know;) Please leave your thoughts and comments below!

Swing Trading

The Perks of Swing Trading

Before we delve into the advantages swing trading can offer to a good trader, we must define exactly what swing trading is. Swing trading, in its purest form, is all about taking long term positions in a market. It’s basically the exact opposite of day trading, which is opening and closing trades within one day (or even within an hour).
Swing trading, or long term trading, offers many advantages to new and experienced traders. More often than not, new traders get bored really quickly and decide to jump into day trading because it’s obviously more exciting to be opening tons of trades every day. However, this often turns out to be a bad decision, as new traders don’t have the experience to handle such volatility and variance in the market.
This is the reason for this article! Let’s see exactly why you should be swing trading first, then maybe day trade here and there on the side.

The Advantages of Swing Trading

swingtrading2
As we said, swing trading is all about taking long term positions in the market. One of the big advantages of swing trading is that it’s actually long term, which means you don’t have to make quick decisions all the time like you would on a day trade.
You can start trading H4 charts and only have to update your trades every 4 hours. That gives you a ton of time to study, work, have family time and so on.
Swing trading also relies on long term trends, which tend to be more reliable than short term time frames. You can get into a long trend and ride it for many months without ever looking back.
Finally, swing trading is extremely easy to back test. You can take pretty much any strategy, plot it on a H4-D1 chart, go a few years back in time and start testing. You can rely on the results you’ll get because the charts are clear and the trends are reliable. It makes it very easy for any trader to decide if a strategy is profitable or not.

Does Swing Trading apply to Binary Options?

Swing trading has been around for many years. Some might even argue that it was the first real form of trading, as back in the days where internet didn’t exist yet (I know, scary right?) the data gathering process took much longer than now, therefore it took a while to find trades and people tended to hold positions longer.
With the age of the internet came faster access to more data, and faster execution of trades. Spreads reduced as well, which drove a ton of traders to try and beat the market for a little bit of money many times per day – hence day trading.

Swing Trading and Binary Trading

swing-trading-strategy
With the recent apparition of binary trading, traders have been placing trades faster than ever. Some binary brokers offer expiries as low as 30 seconds, which literally means you could be placing trades every 30 seconds and make money.
The clash of the titans comes when you start to think about compiling swing trading with binary trading. Could it be possible to make profitable long term trades using binary options?
The answer is a quite resounding yes!
Swing trading is all about trends. Whether it is in the stock market, forex or in binaries, if you’re looking to place long term positions you have to look for the trend and adapt your position to it. Therefore it’s not unconceivable to build a strategy that revolves around finding a long term trend in H4/D1 charts and placing One Day expiries or longer on your binary trading platform.

Risks and Reward

Risk and reward swing trading
The biggest risk you’ll encounter while swing trading in the options market is boredom. Be very sure to build a strategy that you know works (hint: backtesting!) and that you trust, or you’ll quickly go back to those potentially deadly 30 second trades.
The reward however is huge. If you play the trends well, you could pile trades up and make a ton of money following the herd of traders.

 

Mad Max Profits Review

Mad Max Profits- What its about? 

Mad Max Profits is the one of the latest, most advanced  5 minute binary options trading systems on market today. A lot of people know that Binary Options are a type of financial trading in which the payout rate is fixed and Mad Max Profits has managed to work the “system'” to put massive profits in its users bank accounts very quickly. Mad Max is a free automated trading software that gives its members profitable trading signals for their binary trading accounts. To use the Mad Max Profits software to trade for you, you will have to deposit a minimum of $200 with their recommended broker to get your trading started
If I were you, I wouldn’t do it without completing the 5 steps I’ve highlighted at the bottom of the article.

mad max profits

Don’t say I didnt warn you, but  Ill continue my speeal about how awesome Mad Max profits is and how to use it wisely. So Listen up! Because I might be able to save you some money and teach you something about trading binary options.

By using Mad Max’s simple trading techniques you can achieve a stabilized stream of profits daily and consistently. Within a very short time it can convert your $5 investment to $100 profit. And what’s better is that it is totally free now with a lifetime license to use the software. When you join the Mad Max group, You will get a completely untangled string of relevant info that is going to get you up and rolling without any hassle. In fact, Mad Max Profits is a very straightforward and convenient binary options system accommodating for new and experienced traders.

How to Get Started with Mad Max Profits

To get started with Mad Max Profit, you need to open an account with their associated broker. The reason you need to open a new account is because the app is only designed to be integrated with their recommended broker. Its not possible to access the software without opening an account with their recommended broker.
The process goes a little something like this : Open an account on their official website:  Sign up with their associated broker: Deposit your initial minimum investment: Access the automated trading software
Once you have opened an account, you will be eligible to access their member’s area. The features in the members area are exclusively for Mad Max Profit Members and are not available to the general public.

How Does Mad Max Profits Work?

Mad Max Profits is very simple and easy to use . There is no difficult task associated with it.

  • Sign up to Mad Max Profits 100% free binary options auto trader.
  •  Create an account with their recommendation broker.
  • After you complete the sign up process, you will be eligible to get the enable the software to trade the signals.
  • The win rate of this app is up to 81%

Max Mad Profits Review | Our in Depth Research

Mad Max Profits is an extremely new piece of binary options auto trading software. It is safe and is supported by all browsers. The software is 100% free with the minimum deposit amount of $200. Mad Max profits provide a detailed guide (manual) and instructions on how to run the software. There is also free online training and one-on-one special coaching and the support team consists of professional traders that are dedicated to supporting their members and help them get profits consistently.

Mad Max Profits Review | Pros

Mad Max Profits is offered only in the English language to ensure there is only one version of the software and they provide customers with highly efficient service. The process of accessing and utilizing this software is very easy. The software is hosted by dedicated servers so it is available to use from all over the world 24/7, making it easy for you to get access to the software wherever you are. You will also get all the necessary updates and tips automatically as a member of Mad Max Profits

Mad Max Profits Review |Cons

In actuality , all systems have some flaws. To be eligible for the Mad Max offer you must register with their recommended broker through their official website and deposit $200. Unfortunately traders will not able to use the Mad Max System for other brokers which is one of the main cons of this software.

The Mad Max Profits software is a highly efficient and valuable piece of software designed specifically to work with binary options platforms. When it comes to taking fast profits there is no reason to trade alone especially when you have the chance to use such a profitable auto trader. Mad Max Profits is recommended to binary options traders as a profitable auto trader however there is always a risk associated with binary options trading.  To ensure you profit with Mad Max I have outlined a few steps for new traders below.

My personal recomendation on how to use Mad Max profits

To ensure that you profit with Mad Max I will outline 5 simple steps you need to complete in order to trade profitably with the Mad Max profits software, If you do not follow these simple rules, you will most likely loose money with Mad Max Profits.

Step 1.
Learn how to trade.

 

Step 2.
Learn how to read the Financial Charts.

 

Step 3.
Learn Risk Management techniques .

 

Step 4.
Develop a strategy based on your temperance and risk allowance.

 

Step 5.
Practise and refine your trading strategy on a demo account until you are winning 60% or more of your trades.

Those are 5 Basic Steps and they are the exact same steps I myself, Dean Evans,  took to reach success with binary options. It took me about 2 years to complete all the steps so if I were you I would get started on the steps ASAP instead of focusing on getting rich quick with Mad Max and his auto trading software. 

mad max button

If you have any feedback or would like to comment on Mad Max Profits, please don't hesitate to leave a comment below. 

Also feel free to ask any questions related to binary options trading. Your questions are appreciated and will be answered within 24hours 

 

High Frequency Trading

High frequency trading on the financial markets can be an exhilarating ride but it can also be a rather expensive ride if you either do not have a plan or if your plan is very poor. When it comes to high frequency trading you need to have the right mindset because it can be one of the most profitable yet stressful forms of trading on the markets. You are likely going to have fair amount of losses but it is made up for by an even greater amount of wins.

What is High Frequency Trading?

Typically, high frequency trading is done by very powerful high speed computers that execute trades by transmitting millions of orders at lightning speed with the ability of making millions of dollars in just a few milliseconds. In fact, some of the high frequency trading algorithms used by the top high frequency traders enable them to literally look into a crystal ball just before making a trade to find out where a stock is going before they place their order and crazy thing is that it’s totally legal.

History of High Frequency Trading

high frequency trading computers

  • In 1998, USA Securities and Exchange Commission authorized electronic exchanges to integrate High Frequency Trading that could execute trades 1000 times faster than humans.

  • In 2000 High Frequency Trading accounted for fewer than 10% of equity orders.

  • In 2002, HFT( High Frequency Trading) made up 56% of the equity trades in the US market.

  • In 2011, ‘Fitnetix’ developed a microchip called “Nano trading technology” that revolutionized high speed trading and boosted HFT to a level where trades could be executed in nanoseconds.

  • In 2012, HFT made up the largest amount of equity trades. Estimated at 70% of all equity trades were high frequency trades.

  •  In 2013, It is estimated that $600 million worth of assets were traded in just a few milliseconds through the use of HFT, a record which has since been passed with the rapid development of many different high frequency trading systems.

The Different Types of High Frequency Trading Strategies

high frequency trading rigs

High speed trading has been taking investment houses by storm, capable of turning over large amounts of capital because of the computerized advantages involved. When High Frequency Trading is done with large investments, the profits can be substantial. There are many variations of high frequency trading strategies that exist and executed by programmed computers using pre-written algorithms. These algorithms are able to factor in may variable market conditions such as trend direction, pair movement and correlation, breakouts and rebounds of support and resistant levels, approach angles as many more. These same algorithms can also incorporate technical indicators such as the MACD, Stochastics and moving averages. Just about any technical indicator can be incorporated into a HFT algorithm and the most advanced traders develop, adapt and use these High Frequency Trading setups to scalp the market taking fast profits.

How People are using High Frequency Trading

high frequency trader

HFT has been around for many years now and people are jumping the queue to grab a bite from some of the best high frequency trade orders. In fact, there are so many High Frequency Trading Systems out there that it has created a lot of mixed views about HFT and the debate about the legality of it is likely to continue in the absence of concrete steps taken by the market regulators. With the right regulations in place, there would be much more transparency and less volatility. Ever seen the market behave radically without explanation? Some Big Shot Banker probably just fired up his HFTS ( high frequency trading system) and it can affect a lot of short-term investors as well are professional traders who are participating in the same market. As an individual investor or trader, rather than waiting for the regulators to bring about radical changes with regards to high-frequency trading, learn proper risk management techniques that will protect you when the market goes against you, limiting your exposure and ultimately saving your capital.

How High Frequency Trading affects the Financial Markets

high frequency algorithm

While it’s impossible to say how each and every trade placed affects the financial market or whether or not the trading world has been helped or harmed by high frequency trading, the biggest winners when it comes to trading appear to be institutional investors who are patient traders and the knowledgeable investors who trade individually, both types of investors benefit from the much higher payouts and narrower spreads that exist today. The Biggest losers are the institutional investors who have not adapted their investment and trading strategies to the modern paradigm. The most frequent losers are the gamblers, the risk takers and traders who trade without proper knowledge of the market or without a trading strategy.

Technology Used In High Frequency Trading

High frequency trading is a primary form of algorithmic trading in finance. Specifically, it is the use of sophisticated technological tools (highly configured computers) and computer algorithms to rapidly trade securities. Individual Traders can also be considered high frequency traders if they execute a large volume of trades in a short period of time.

Relation to Binary Options

binary options +high frequency trading

One of the more advanced strategies you can use while trading binary options is called the high frequency strategy. However, it is not a strategy that I would recommended you focus on if you are a new trader. Once you have more experience, the strategy can work very well and can generate a large amount of profits in a short time. In most cases this strategy is only used by professional traders who use have access to automated trading algorithms and they use these algorithms to execute multiple trades in milliseconds which is just not humanly possible.
To effectively use a high frequency trading strategy you will need to make several quick trades. In binary options, the shortest trade you can make is 30 or 60 seconds trades which are both suitable for the strategy. The strategy is fairly simple – All you will need to do is place a series of trades based on in-depth market analysis and signal identification. Access to the latest information and tools will certainty give you a profitable edge but ultimately your profitability depends on your ability to read the market.

Conclusion- Should Traders be worried?

High frequency trader loser

High frequency Trading is evolving at a rapid rate with the technological advancements of the modern world reaching new levels of growth. In the coming years we can expect high frequency trading to become more and more common and more advanced. Personally, I don’t have any beef with high frequency trading, I do have a few High Frequency Systems in my trading tool box but I prefer to have the final say in all my trades. I use them as more signal/forecast service to identify possible reversals, rebounds and breakouts and for that reason I believe high frequency trading definitely has its benefits.

What do you think about high frequency trading?
Have you experienced it?
Would you consider giving it a look?
Please leave your thoughts and comments below!