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The “Cheddar” binary trading strategy

The “Cheddar” system of generating trading signals for binary contacts uses a list of trend indicators with the function of filtering false market entry points. This results in a binary trading strategy with an efficiency level of no lower than 85%. Such performance indicators on the binary market allow traders to obtain high and the most stable trading results, and dynamically increase their own capital investment. Moreover, the “Cheddar” trading system is very simple and understandable to all traders.

The “Cheddar” trading system – setting up the operating template

So, to use this approach to generating trading signals in practice, you need to install a set of analysis tools of the following format and settings on the underlying asset quotes:

  • The SMA indicator, standard
  • The MACD 25/50/9 indicator
  • The standard MACD indicator

The  indicator system of the “Cheddar” binary trading strategy acquires the following markup format on the operating chart of the trading asset:

This mode of forming vector forecasts for binary contracts allows us to identify on the market short-term correction and trend movement in the price of the underlying asset. As a result, the trader can use the filtered signals to register successful trading positions at a rate of more than 85%.

Let’s consider the conditions for the correct operation of the strategy. It is worth noting that the shortcomings of most of the trading terminals for binary trading do not allow the trader to effectively work according to the rules of this trading system. For the correct use of the “Cheddar” binary trading strategy, the trader should have at their disposal the following services and operational conditions on the market:

  • An indicator set with functionality for technical analysis tools to be used directly on the chart of the underlying asset
  • A set of underlying assets with a high level of contractual payments
  • Trading conditions with the minimum parameters
  • High-speed trading position registration
  • Expiry ranges from 60 seconds to 15 minutes

In terms of the best trading platform to use for the strategy, we suggest the Binomo broker’s terminal, which, by all accounts, is suitable for highly profitable stable trading. This company’s terminal offers the following list of services for binary trading:

  • A functional set of indicator analysis tools
  • Underlying assets of various types with high yields – up to 90%
  • The trading conditions of the company have the minimum parameters – accounts for trading from 10 USD, trading contacts from 1 USD
  • The period for registration of trading positions is 1.7 ms
  • A wide range of maturities for transactions – from 60 seconds to a day

The “Cheddar” binary trading strategy – signals

Forecasts in the direction UP for trading binary contracts are generated by the  trading system with the help of the following analysis tool signals:

  • On the oscillator of the MACD 25/50/9 indicator, the lines reverse upwards
  • The oscillator of the standard MACD indicator intersects level 0 upwards
  • The asset price on the quote chart intersects the level of the SMA indicator upwards

Forecasts in the direction DOWN for trading binary contracts are generated by the  trading system with the help of the following analysis tool signals:

  • On the oscillator of the MACD 25/50/9 indicator, the lines reverse downwards
  • The oscillator of the standard MACD indicator intersects level 0 downwards
  • The asset price on the quote chart intersects the level of the SMA indicator downwards

For this system of trading signals, the optimum type of contract is a turbo option with a periodicity on the market from 60 to 180 seconds. This expiration period for a contract gives enough time to make a profit on the strategy trading forecast, while in that contract expiry period, quotes will not have enough time to reverse in the opposite direction, and the trader will receive a guaranteed result.

Money management

The “Cheddar” trading system is highly efficient, but it cannot completely eliminate the loss of funds. Therefore, it is necessary to have a set of money management rules that is able to minimize the volume of trading fund losses. In this case, the rules for risk limits have the following parameters:

  • For trading on the minimum account, it is necessary to use trading positions with the initial cost parameters
  • When carrying out market transactions on accounts of high financial status, use contracts with risk limited to the level of 5% of the amount of trading capital funds

This mode of risk limitation will allow market participants to profit with the lowest possible amount of losses.