Follow the trend is a basic binary options strategy. Actually, a trend is a basis of many different strategies and of technical analysis as well. And what is more important about follow the trend, the strategy doesn’t make trading too complicated.
Today, I’ll tell you about a trader who could return $126,800.5 on $1,000 investment in just two weeks!
Recently, a trading company arranged a competition between binary options traders. The participants were granted a $1,000 initial deposit. According to the terms and conditions of the competition, the winner had to make maximum profit during 2 weeks.
The winner of this competition has turned $1,000 into $126,800.5 within just two weeks. He could achieve this amazing result solely thanks to the follow the trend binary options trading strategy.
Simplicity of the strategy makes it available to anyone.
“Too many indicators and signals confuse you. To use them may have sense if you trade on the foreign exchange market, but this market is different”, said winner of the competition.
And the very point of the strategy involves no additional instruments. The only thing you need is to pinpoint the current trend and invest in a binary option based on your forecast.
There are three types of a trend, namely,
- Upward (bullish)
- Downward (bearish)
- Sideways (Flat)
Follow the trend binary options strategy means no trades during sideways.
Trend lines on a chart:
You can see how the trend lines look like on the charts of AnyOption:
I guess now it’s clear how they look like, and to pinpoint a trend is quite easy.
How to Select Binary Options Expiration?
If a current trend continues over 30 to 40 minutes or an hour, there is a strong probability that it will go on 10 to 15 minutes more. The winner of the competition used this peculiarity. He opened positions for 7 to 10 minutes.
Follow the trend binary options strategy doesn’t limit an amount of your investment. Each investor decides what amount he can afford to invest. You can use any financial strategies, for instance, not to invest over 10% of your capital.
After you have invested in a binary option, immediately look for the next underlying asset showing a vivid trend, say, a coffee futures contract. The more trades you open, the less the risk is. Even a vivid trend can be sometimes followed by a price reversal. According to the statistics of the competition’s winner, 15% to 20% of all trades don’t yield a profit. Therefore, if you open many trades, you ensure that your profit covers the loss arising due to 20% of unprofitable trades.
It’s important not to open several trades on the same underlying securities as it increases your risk.
Below are the screenshots of the trades based on the follow the trend binary options strategy:
As you see, multiple profitable trades (highlighted in green) cover all losses (highlighted in red).
To look for trends, to open trades, to look for trends again, and to open trades again is meticulous work. However, this is the way the winner of that competition could turn $1,000 into $126,800.5 within just two weeks.
This just proves again that following the trend yields a high profit. I used to check trends in indices and stocks as I considered the foreign exchange market unpredictable. However, that winner’s success proves that currencies as an underlying asset also show multiple steady trends.
Although follow the trend strategy is reliable, I advise you to always do fundamental or technical analysis to be sure of the trade.
If you trade following the trend, I advise you to deal with AnyOption. This top binary options broker provides convenient charts, and you don’t need any additional tools. Also, you can view four charts simultaneously. Besides, trading with AnyOption, you can try the strategy of reducing your risks as this is the only broker that refunds in case of a bad trade.