The Binary Scalping binary options strategy generates trading signals based on a unique proprietary indicator. It is based on a custom smoothing function, similar to an enhanced weighted moving average, with the ability to suppress minor price fluctuations and visualize trends.
In this review, we'll explain how to set up this strategy's signals to maximize profits when trading binary options.
Content:
- Characteristics
- Installation
- Overview and settings
- Binary Scalping Trading Rules
- Specifics of application
- Conclusion
- Download Binary Scalping
Characteristics of the Binary Scalping Strategy
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 3 candles
- Option Types: Call/Put
- Built-in indicators: HAMA_.ex4, nonlagdot.ex4, precentualzz_victor.ex4
- Trading instruments: currency pairs , commodities, cryptocurrencies , stocks
- Trading hours: 8:00 - 20:00 (GMT+2)
- Recommended brokers: Quotex , Pocket Option , Alpari , Binarium
Setting Up a Binary Options Scalping Strategy
Binary Scalping strategy indicators are installed in MetaTrader 4 using the standard method. First, open the terminal and select "File" → "Open Data Folder" from the top menu. In the window that appears, navigate to the MQL4 → Indicators folder and copy all indicator files there.
If the package contains templates, they need to be moved to the templates folder in the root directory of the terminal.
After this, restart the platform for the new indicators and templates to appear in the list. For more detailed instructions, watch our video:
Binary Scalping Strategy Review and Settings
The Binary Scalping binary options strategy is based on a proprietary indicator with a unique formula. Thanks to a built-in weighting function, it effectively filters out minor price noise and reacts only to truly important market movements, generating more accurate entry signals.
This feature allows traders to quickly react to trend changes. As can be seen in the image above, signals to buy call options, indicated by green dots, appear near the very lows. Meanwhile, red dots, signaling potential buy put options, form near local highs.
It's important to emphasize that the signals from the nonlagdot.ex4 dot indicator are considered reliable and don't repaint after they appear — but only if configured correctly. For the nonlagdot indicator to register signals immediately, set the ColorBarBack parameter to 0. This means the dots will be displayed on the current bar without delay and will not change subsequently.
If this field is set to a value such as 2, the indicator may redraw the dot color on the last two candlesticks. Therefore, when working with the nonlagdot indicator, it's crucial to carefully monitor the ColorBarBack parameter to ensure accurate signals without lag or redrawing.
The key settings of the nonlagdot indicator include the calculation period and filter – with these, a trader can adjust the sensitivity of trading signals to different market conditions and timeframes.
In addition, two additional tools are used on the chart: the HAMA hybrid indicator and the precentualzz_victor arrow indicator. HAMA (Heikin-Ashi Moving Average) combines the principles of Heiken-Ashi candlesticks and moving averages. It effectively smooths out price noise and helps more accurately determine the current trend direction.
The unique feature of HAMA is that it applies moving averages of varying lengths to the opening, high, low, and closing prices, then processes them using the Heiken-Ashi formula. This results in a unique bar pattern on the chart, visually distinct from classic Japanese candlesticks.
As you might guess, the blue bars of the HAMA indicator signal a bullish trend, while the orange ones signal a bearish trend. Trading decisions are recommended to follow the current trend, but we'll return to that later. For now, let's take a closer look at the third component of the strategy—the precentualzz_victor arrow indicator.
The precentualzz_victor arrow indicator has only one adjustable parameter—Percent—which controls its sensitivity. The lower this parameter, the more arrows appear on the chart, and vice versa: increasing it makes the signals less frequent, but potentially more accurate.
The indicator's arrows act as an additional filter for Binary Scalping strategy signals, helping you more accurately time your trade entries. However, as experienced traders note, trend-following trading remains the most reliable approach. If you're still unsure how to accurately determine trend direction, we recommend checking out the helpful materials on our website:
- How does a trend work in the markets?
- Identifying and using bullish and bearish trends.
- Market phase changes .
- How to identify a flat market?
Binary Scalping Trading Rules
The Binary Scalping binary options strategy offers two trading methods: the first is based on dot color changes filtered by the HAMA moving average, and the second is based on arrows in the direction of the HAMA indicator. Both approaches can be combined, but in this review, we will focus on trading using arrows. The rules for this option are as follows:
Opening a Call Option
- We are convinced of the presence of a bullish trend – HAMA is blue.
- On the previous candle the dot is green.
- On the current candle there is a green dot and arrow.
- At the opening of the next candle we buy Call.
Opening a Put Option
- We are convinced of the presence of a bearish trend – HAMA is red.
- On the previous candle the dot is red.
- On the current candle there is a red dot and arrow.
- At the opening of the next candle we buy Put.
We recommend setting the expiration time to three candles. However, the optimal holding period depends on the specific asset and should be determined by you based on historical data testing results. This approach will help tailor the strategy to the specifics of the chosen instrument and improve its effectiveness.
Specifics of Using the Binary Scalping Strategy
As mentioned, the Binary Scalping strategy offers several options for use. Besides trading using arrows, as discussed in this review, another method is to enter a trade when the indicator dots change color. However, relying solely on signals from a single, even highly accurate, tool is not recommended.
Therefore, we recommend using nonlagdot.ex4 in combination with one of the trend indicators. A detailed overview of such tools is provided in the article "Best Binary Options Trend Indicators." Choose a suitable trend indicator and test it with nonlagdot's colored dots – this will help make the signals even more reliable.
Advantages of the Binary Scalping Strategy
One of the main advantages of the Binary Scalping strategy is the high frequency and accuracy of its trading signals. Finding a similar indicator that can so reliably point to market reversals is truly difficult. The indicator is based on a unique formula that effectively filters out market noise and focuses only on significant price movements.
And when supplemented with one of the proven trend filtering methods, the strategy becomes a powerful tool for stable binary options trading.
Cons of the Binary Scalping Strategy
It's difficult to find any serious flaws in the Binary Scalping strategy, but one is worth noting: the lack of built-in alerts. This means traders must constantly monitor the chart to avoid missing an entry opportunity. This is especially noticeable when trading multiple assets simultaneously: without trading alerts, the risk of missing an important signal increases, and the overall trading experience is reduced.
Conclusion
The Binary Scalping strategy for binary options is built on a unique indicator that generates precise and easy-to-interpret signals. Even a beginner will find it easy to understand: a green dot signals a buy call option, while a red dot signals a put option.
To enhance trading reliability, the HAMA indicator is used, acting as a trend filter. If the price is above the blue HAMA line, only call trades are opened. When the price drops below and the line turns red, this is a signal to switch to put options. This logic makes trading as clear and visually appealing as possible.
Before trading binary options with real money, we recommend testing your strategy on a demo account with a reliable broker. This will allow you to hone your skills without risking your deposit. Also, remember the rules of risk and money management – they play a key role in generating stable profits.
Good luck in trading!
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