The Baedeker effective options trading system

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The “Baedeker” effective options trading system

When analyzing professional recommendations and the operating principles of the main strategies, you can notice the following pattern – everyone without exception mentions the ineffectiveness of analyzing the smallest chart time frames, while many specialists suggest options scalping on a minimal expiration range. Two incompatible things – analysis of an extended market period and trading contracts with very small expirations from 1 to 5 minutes! In our material, we will suggest breaking these templates and we’ll present the effective Baedeker strategy for assessing and analyzing minimal market periods with forecast efficiency of 85% for profitable contracts. This technical approach is based on standard indicators and allows you to earn on the market movements of any trading asset.

Operating principle of the system

The technical operating algorithm of the strategy is based on a combination of highly professional indicators. In principle, it uses quite standard analytical tools with clear and proven settings. For this reason, you can use the system on any options trading platform that offers a set of trend indicators. We recommend the platform from our rating as the main trading service for efficient trading on this system. You will get all the tools necessary for forming the system template and you will be able to carry out your trading under the best financial and technical conditions.

You will need to make the following adjustments to the operating chart in order to work effectively on the system: set the quote time frame to S15 (in this mode, one price candle is formed on the chart after 15 seconds), then apply the following analysis tools to the liquidity of the asset:

• The Bollinger Bands with the minimum channel building range of 10/1. In this mode, we will immediately get 3 moving averages capable of displaying market trends for the current time period in several projections.

• The SMA with a market evaluation duration of 120. Such a moving average period is necessary in order to obtain information for a wide range of market fluctuations. In addition, in conjunction with the channel indicator, this service will generate signals for the direct registration of trades

• The RSI – set the period to 75 so that we can track the overall medium-term trend of quote fluctuations and adjust the strategy for different market conditions

After completing the configuration of the trading chart, we get the following form of technical markup:

System signals

CALL trades are registered upon receiving system signals of the following type:

• On the trend RSI, the moving indicates a steady upward trend in market movement

• The narrow-band price channel intersects the level of the medium-term SMA with upward dynamics

The trade is opened when the combination of strategy signals is fully formed:

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PUT trades are registered upon receiving system signals of the following type:

• On the trend RSI, the moving indicates a steady downward trend in market movement

• The narrow-band price channel intersects the level of the medium-term SMA with downward dynamics

The trade is opened when the combination of strategy signals is fully formed:

As you can see, the system signals have a very simple format. But at the same time, it is possible to effectively evaluate the minimal time frames of the asset chart and get great trading results in the process of trading.

Expiration

In order to obtain a high level of effectiveness when using the strategy, and to steadily increase your profits, use contracts for trading on this strategy with expirations from 180 to 300 seconds. Thus, you will be able to effectively work out trading forecasts on the strategy under dynamic trading conditions.

Money management

Frequency trading of contracts with minimal expirations is characterized by a high risk level. Therefore, in order to ensure that losses do not destroy your investment capital, and profit growth is dynamic and stable, use contracts for your trading operations with a cost level of no more than 3% of the amount of available trading funds.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

A scalping strategy for options

The format of scalping on options is a fairly common way of making a profit in this area of the market. The speed of trading and its high profitability results are the main factors that attract people to this method of trading. Today we will consider the effectiveness of high-speed trading, as well as a few practical examples of scalping strategies for futures contracts that could become highly effective tools for predicting the market using short-term contracts.

How reliable is the scalping strategy for options?

The question of reliability and effectiveness of this strategy for scalping on the market is primarily related to the effectiveness of the trading signals of the system, as well as the correct risk management. In addition, the reliability of this scalping strategy is tied to the professional level of the trading terminal and the parameters of the trading conditions that are available on the operator’s platform. By picking the right technical and trading parameters for the scalping strategy you can get fairly stable and high results using this trading format. Here are a set of recommendations that contribute to the effectiveness of scalping on options:

• Use platforms for trading from professional companies — in this regard, we recommend the terminal for futures trading from the our brokers rating, where you will find all the necessary technical indicators for scalping, as well as a set of highly effective forecasting tools
• Carefully and accurately calculate the risks when registering trading positions. The correct ratio of the cost of the trade to the volume of capital will help you avoid critical losses and drawdown in your account
• To conduct trading in scalping mode, use a system with an efficiency level of at least 85% and maximum universality for all underlying assets

This list of recommendations will allow you to engage in high-frequency trading in a safe and profitable mode.

Scalping indicators for options

Market professionals recommend using technical indicators that are capable of generating signals on fast impulse changes in the price of an asset as forecast indicators for scalping trades on the futures market. In this case, the main trend indicators work perfectly, and they can be found on the many platforms:

This set of forecasting tools will allow you to build universal strategies for scalping on electronic options.

A scalping strategy for futures trades – practice

For our first practical example of a strategy for scalping on the financial market, we will show a system that uses a combination of settings of two trend indicators. This format of generating technical signals allows you to best assess the current market situation on the asset chart and opens up the possibility of determining the points of price quotes where the chart reverses to build corrections or new trends. So, let’s set the following technical forecasting tools on the asset quotes:

• EMA Indicators with technical parameters 10, 20, 30
• 2 MACD indicators — 50/75/9 and the standard configuration

We will use turbo trades with an expiration period of 120 to 240 seconds, and we will register the positions when we receive the following signals from the indicators:

• EMA Indicators – a beam of movings reverses upwards on the chart after convergence in one point
• Indicator MACD 50/75/9 – the lines intersect upwards
• Standard MACD – the movings intersect level 0 upwards

Signals for trades DOWN will have the reverse building configuration. This scalping strategy format has a technical signal efficiency ratio of 90% and allows you to make the most stable earnings for short-term trading. It should be noted that the risk management parameters for this system are of the classic parameters – the maximum amount of trading funds for one trade should not exceed 3% of the total amount of capital.

Scalping in 1 minute

The next scalping strategy format for electronic options is designed to work with contracts that have the minimum expiration period of 1 minute. Here, trend indicators are also used with subtle settings parameters, allowing for the formation of two types of trading signals for turbo contracts. In this way, we will achieve high cyclicity of our technical signals and increase profit opportunities for scalping since this operating approach makes it possible to register contract packages. So, let’s install the following instruments on the trading chart:

• SMA 5 and 10 indicators — we use blue for the moving with a five-minute period of building, for the second technical tool we use the standard coloring.
• MACD indicator – standard

To register trades UP with expirations of 1 minute, we use the following types of technical indicator signals:

Signal for the 1st type:

• The technical movings of the MACD indicator intersect upwards
• The blue lines of the SMA indicator intersect the second moving upwards

Signal for the 2nd type:

• The MACD oscillator lines intersect level 0 upwards
• The SMA indicator movings diverge upwards on the chart without intersecting

Using these signals, you can register up to 40 trades with short-term options in one hour, of which 90% will close with a profitable result. This factor will make it possible for you to earn up to 300% per week on options scalping.

Let’s sum up — scalping with futures trades using the correct mode of risk management and in combination with an effective trading system is the most rapid way to increase your account balance.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Binary options scalping trading pattern called the “Jeweler”

The “Jeweler” options scalping trading scheme

In binary trading, the concept of scalping, when clearly predicted minimum changes in the cost of an asset are used to register trading positions, is one of the most popular approaches to trading. This technical mode of registering options allows you to maximize your capital as quickly as possible and get the highest possible profit. However, scalping requires highly professional methods of market analysis. As an effective method of market evaluation, we offer you the “Jeweler” trading system – a technical approach to generating forecasts which is built on a highly effective set of classic indicators. This system allows you to accurately determine short-term trends of market movement, which allows you to achieve the most secure conditions for scalping.

The “Jeweler” trading system – creating the operating template

To create a professional operating template for this strategy, we will need a service for binary trading with high-tech equipment and the most optimal financial conditions for options trading. As the best possible choice, we suggest using the Bimono broker’s terminal. This trading company has developed an excellent service equipped with all the necessary tools and conditions for professional scalping on the options market. From the basic set, we will highlight the following list of tools we need:

A set of analysis indicators
Options in turbo mode
Expirations of turbo options from 60-300 seconds
The maximum amount of payout on a trading position is 87%
A large and diverse set of assets
Quick options registration mode
High accuracy of quotes
A chart with functionality settings

In practice, this significantly increases the financial performance of the strategy when used in binary trading.

Next, set the operating chart to a time frame mode of 30 seconds and apply the following technological set of indicator services to the asset quotes:

The SMA 10 indicator (red moving average)
The SMA 20 indicator (yellow moving average)
The EMA 30 indicator (blue moving average)
The MACD indicator (standard)
The RSI 25 indicator, technical scale levels 30/70

When forming the trading system’s template for forecasting, you should get this technical chart markup:

The “Jeweler” trading system – rules of trading

To conclude operations with trading positions UP, we use the following market situation:

  • The RSI indicator identifies a clear upward trend on the market
  • The MA indicator moving averages reverse to growth after a short consolidation in one point
  • The lines of the MACD indicator intersect level 0 upwards

To conclude operations with trading positions DOWN, we use the following market situation:

  • The RSI indicator identifies a clear downward trend on the market
  • The MA indicator moving averages reverse to decline after a short consolidation in one point
  • The lines of the MACD indicator intersect level 0 downwards

Money management and expiration

To obtain the maximum number of successful contracts, we recommend trading using turbo options with an expiration of 120 to 240 seconds. In this way, we will achieve high trading dynamics and achieve trading efficiency at a level of at least 85% successful options.

The issue of risk management in scalping is of no small importance. A large number of registered options and high dynamics of trading operations can quickly lead to a loss of capital. Therefore, to effectively work on the signals of this system, we recommend using options of the initial cost or trading positions with a maximum level of 3% of the investor’s capital.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

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