The Oracle Binary System binary options strategy was originally intended for the Forex market. But it was easily adapted for binary options. The strategy is a trend one, as you can guess by looking at the names of the indicators . Therefore, it can be used successfully only with good movements and expiration of transactions for at least one hour. In flat conditions, this strategy for binary options will give many false signals. Before you start working on it, you should definitely know how to correctly determine the trend in the market .
Characteristics of the strategy for binary options Oracle Binary System
- Terminal: MetaTrader 4 .
- Time frame: M5.
- Expiration: H1.
- Types of options: Call/Put.
- Indicators: Oracle Direction, Oracle Momentum, Oracle Strength.
- Trading instruments: Any.
- Trading hours: 9:00-17:00.
- Recommended brokers: Quotex , PocketOption , Binarium .
Installing Oracle Binary System Strategy Indicators in MT4
Indicators are installed as standard in the MetaTrader 4 terminal.
The Oracle Direction and Oracle Strength indicators have no settings and are therefore installed as is. The Oracle Momentum indicator is set with the Period parameter - 50.
To avoid setting up the chart yourself, at the end of the article you can download indicators and a template for this strategy.
Instructions for installing indicators in MetaTrader 4:
Trading Rules Using the Oracle Binary System Strategy
As discussed above, the strategy is based on working with the trend and the best results can be obtained with good trend movements. With this strategy for binary options, you can also make scalping transactions, but then reduce the expiration period. We will focus on transactions with an expiration time of 1 hour.
Regarding the indicators that are used in this strategy, I would like to mention Oracle Direction and Oracle Strength. The Oracle Direction indicator shows the price direction of the trading asset being used and changes values when the local trend changes. And the Oracle Strength indicator determines whether the market is currently trending or flat. If with the first indicator everything is extremely simple, since arrows are used to indicate the direction, then on the second indicator the trend and flat look like this:
The remaining areas are also considered trendy (thick columns) and flat (thin columns).
Now let's move on directly to the trading rules.
To open a Call option you need to:
- The blue line of the Oracle Momentum indicator has crossed the brown one from bottom to top, and a blue arrow will appear.
- The Oracle Direction indicator should show an upward direction (blue arrows).
- The Oracle Strength indicator should show a strong movement, that is, a white thick bar chart should be formed.
To open a Put option you need to:
- The brown line of the Oracle Momentum indicator has crossed the blue line from top to bottom, and a brown arrow will appear.
- The Oracle Direction indicator should show a downward direction (orange arrows).
- The Oracle Strength indicator should show a strong movement, that is, an orange thick bar chart should be formed.
As a result, we have the fact that in order to open a position, the indicators of all three indicators must coincide.
Examples of trading using the Oracle Binary System strategy
For example, we will use the currency pair EUR/JPY.
Opening a Call Option
In an uptrend, we could wait for a signal from all indicators and open a Call option, and we would get a profit:
As can be seen from the example, if a trade against the trend is worth taking, it will be with a lower expiration, which should be selected through testing. And using the rules of the strategy when working with the trend and expiration 1 hour, you can make a profit in most cases.
Opening a Put option
A similar situation with a downtrend with the same expiration:
Conclusion
Based on everything seen above, we can say for sure that this strategy for binary options performs well over long expiration periods and during a trend. Therefore, lovers of scalping will have to independently rebuild it for quick transactions. But if you are new to the market, then it is better to leave everything as it is. Most importantly, do not forget that the main rule in any strategy remains the competent application of capital and risk management rules.
Also, for successful trading, it is recommended to make transactions only through a trusted broker. You can find one in our rating of binary options brokers .
Download indicators and template for the Oracle Binary System strategy
Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.
See also:
Live chart for binary options free online
Three Best Strategies Based on Moving Averages
To leave a comment, you must register or log in to your account.