26# Binary Arrow with Backtest

Submit by Alexander

Objective: This strategy is based on a trend momentum arrow indicator on MetaTrader 4 (MT4). The trade is entered at the opening of the next candle after the arrow appears. Before trading in real-time, a backtest is performed using MT4's Strategy Tester on a chosen currency pair and time frame to verify profitability.

Steps to Implement the Strategy:

Select a Currency Pair and Time Frame:
- Open the MT4 platform and choose a currency pair (e.g., EUR/USD, GBP/JPY) that fits your trading style.
- Select a specific time frame (e.g., 1 minute, 5 minutes, 15 minutes) based on your preferred trade duration and market conditions.
- Ensure the chosen pair has sufficient liquidity and volatility during your trading hours.

Backtest Using MT4 Strategy Tester:
- Use MT4’s built-in Strategy Tester to backtest the trend momentum arrow indicator.
  - Go to View > Strategy Tester.
  - Select the indicator and the chosen currency pair and time frame.
  - Set the model to "Every tick" for the most accurate results and run the test over a reasonable historical period (at least several months or hundreds of signals).
- Focus on key performance metrics:
  - Win rate (aim for at least 56-70%).
  - Profit factor.
  - Drawdown.
- If the backtest is profitable, proceed to live trading. If not, consider adjusting parameters or selecting a different pair or time frame.
Define Entry Conditions:
- When an arrow from the trend momentum indicator appears on the chart:
  - Bullish (upward) arrow: Enter a CALL option.
  - Bearish (downward) arrow: Enter a PUT option.
- Place the trade at the opening of the next candle following the arrow.
Expiration Time:
- Set the binary option expiration to 1 candle:
  - For a 1-minute chart, the trade will expire in 1 minute.
  - For a 5-minute chart, the trade will expire in 5 minutes, and so on.
Risk Management:
- Risk a fixed percentage of your account per trade, such as 1-2% of your balance.
- Stick to your risk management rules and avoid emotional trading, especially during losing streaks.
Live Trading:
- After successful backtesting, switch to live trading using the same settings:
  - The same currency pair, time frame, and arrow indicator used during the backtest.
- Trade only during active market hours for better liquidity and price movement.
- Monitor your trades and stick to the plan.

Ongoing Performance Review:
- Regularly assess your trading performance.
- If the strategy becomes less profitable, repeat the backtest on different pairs or adjust the time frame.
- Continuously improve the strategy based on performance data from both backtesting and live trading.

By performing thorough backtesting using MT4’s Strategy Tester and adhering to a disciplined approach in live trading, you can optimize this trend momentum arrow strategy for short-term binary options with 1-candle expirations.

Binary Arrow with Backtest

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Binary Options Strategy High/Low: JMO with ATR

ATR Breakout Binary Options Strategy

Submit by joy22 (from idea of FreddyFX 18/10/2013)

This Binary Options strategy (is an ATR breakout strategy) predicts where there is going to be a breakout in pips by using three main indicators ATR Ratio indicator and JMO indicator. This Binary optiosn Strategy is from idea of the trading system,

(ATR with MACD) written by Freddy FX.

Time Frame H1 Expires Time: 120 min or 60 min .

Currency pair: EUR/CHF, EUR/GBP, EUR/USD, USD/CHF,

Commodities: Gold, Silver, and Crude Oil.

Futures: Indicies

Forex Indicator

Set your JMO indicator to 5, 3, 3. (level 80, 20)

Set your ATR Ratio (21, 7, ) level >0,8.

Rules Binary Options Strategy High/Low: JMO with ATR

Buy call

when JMO indicator cross upward in oversol area and

ATR Ratio Indicator >0.8.