Trinity - New strategy for binary options

Trading on Bybit. 

Binary trading enthusiasts, particularly those who are new to the scene, are in a perpetual quest for innovative techniques. However, the pursuit often leads them into vast compilations of strategies that may not always yield profitable outcomes, especially when geared towards the fast-paced world of scalping on M1-M5 timeframes. On the contrary, seasoned players and trading signal services, like vfxAlert, adhere to straightforward and time-proven combinations of standard tools, akin to the principles underlying the renowned "Trinity" strategy.

Characteristics of the Strategy:

- Type: Trend

- Timeframe: Any within the M1-D1 range. While our case involves M1, broadening the analysis timeframe enhances signal accuracy.

- Trading Asset: Any currency pair, with a prerequisite of a fixed (2-3 points) spread and no concealed fees.

- Trading Time: All Forex trading sessions.

- Percentage Premium Option: Not less than 70-75%.

Indicators Employed:

1. Simple (SMA) Moving Average with a 10-period.

2. Classic trend indicator, instrumental in identifying the overall direction of the scalping trend. It's crucial to note that the strategy is unsuitable for flat periods; trading is only executed when the range spans at least 15-25 points.

3. RSI with a 14-period and an additional level of 50.

4. Trend indicators must receive confirmation from at least one oscillator, signaling either an overbought condition where buyers can no longer propel prices upward or an oversold state where there's a scarcity of market participants willing to sell at lower prices.

5. Standard MACD (12,26,9).

   This indicator serves dual roles, functioning both as a trend and oscillator instrument. It serves as the conclusive signal for initiating an option. Post installation of these tools, the trading terminal's working interface assumes the following appearance:

Trading Insights: Unleashing Profit Potential

Embark on the journey of maximizing gains through strategic trading signals, a realm where astuteness prevails. Let's delve into the speculative domain, focusing on the optimistic trajectory of currency pairs. The prime avenue to explore is the CALL option, a harbinger of anticipated upswings.

Foray into a transaction armed with prerequisites that serve as your compass in the volatile market:

1. RSI Line Ascendancy:

   Witness the RSI line gracefully transcending the pivotal 50 level in an upward dance, signaling a potential for profit.

2. MACD's Narrative:

   The MACD script unfolds as it stages a dramatic ascent, orchestrating a crossover from the bottom to the top of its zero lines. Alternatively, observe the histogram's graceful upturn post a newfound local minimum—a signal of medium strength that beckons the discerning trader.

3. Price Momentum:

   A crucial cue lies in the price's upward mobility, gracefully meandering above the moving average. This serves as a testament to the underlying strength of the trading proposition.

Execute the option on the second candle that gracefully ascends beyond the SMA (10), embodying a calculated risk with an expiration time ranging between 5 to 7 minutes. Elevate the signal's potency by ensuring that the breakout candle, or a substantial portion thereof, proudly stands above the Moving Average—a pivotal nuance in the trading symphony.

In the realm of trading, a set of opposing conditions becomes imperative when contemplating a PUT option: the market price descends below the Simple Moving Average (SMA), the Relative Strength Index (RSI) experiences a downward breach from the 50 level, and the Moving Average Convergence Divergence (MACD) concurrently ascends. This apparent simplicity unveils a swift entry into the trading arena, yet one must factor in various elements influencing the ultimate outcome:

It becomes paramount to sidestep periods coinciding with the release of impactful fundamental news, wherein technical indicators tend to furnish misleading signals. The realm of binary options proves unsuitable for news-centric trading, given the impracticality of initiating a pending order and the formidable challenge in foreseeing the commencement of a market's initial impulse – both in terms of destination and timing. Opt for intraday periods characterized by minimal news activity and moderate volatility. Signals materialize frequently, offering potential gains with minimal associated risk.

The graphical representation illustrates a sequential delay in signals from RSI and MACD, a phenomenon not uncommon in various technical tools. However, the amalgamation of these tools in a strategic framework facilitates the minimization of this temporal lag, allowing entry into the market at an optimal juncture. For an in-depth exploration of how this delay is mitigated, refer to our comprehensive video on the "Trinity" strategy.

When contemplating the expiration term, strike a judicious balance: options with excessively brief (1-2 minutes) or protracted (10-15 minutes) lifespans are deemed precarious. In the former scenario, there's a risk that the market price might not have sufficient time to align with the anticipated direction, resulting in losses. Conversely, the latter scenario provides the market ample time to reverse course, yielding unfavorable outcomes. Given the scalping nature of the strategy, aim for an expiration timeframe within the 5-7 minute range.

A crucial consideration lies in the aftermath of robust market trends, wherein RSI, akin to other overbought/oversold oscillators, might linger for extended periods within critical zones or around the 50 level without crossing it. Simultaneously, MACD and SMA may furnish compelling signals for option initiation. The decision to act upon such signals rests with individual discretion, though novices are advised to exercise patience for a thoroughly formed entry point, as per which the "Trinity" strategy boasts a success rate of approximately 70-75% in transactions.

Video:

Trading on Bybit.