The Cross Trading binary options strategy consists of several proven solutions: an arrow indicator , which indicates potential entry points, and a trend filter in the form of an oscillator located at the bottom of the chart. The oscillator deserves special attention – it is based on the popular WATR indicator and features a unique approach to market analysis. In this review, we will examine how this combination of tools works and how it can be used to improve the accuracy of signals when trading binary options.
Content:
- Characteristics
- Installation
- Overview and settings
- Cross Trading Rules
- Specifics of application
- Conclusion
- Download Cross Trading
Characteristics of the Cross Trading Binary Options Strategy
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 4 candles
- Option Types: Call/Put
- Built-in indicators: TT Alert 1.ex4, TT Alert 2.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 Cross Trading Strategy for Binary Options
Cross Trading 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:
Cross Trading Binary Options Strategy Review and Settings
The Cross Trading binary options strategy is based on the precise TT Alert 1 arrow indicator. It signals a potential trend reversal in advance, giving traders time to prepare for a trade. In fact, this tool alone would be sufficient for finding profitable entry points, as its trading signals are highly accurate.
However, if you adhere to the principle of trend trading, you shouldn't ignore the second element of the Cross Trading strategy – the TT Alert 2 indicator. It helps filter signals and only trade in the direction of the prevailing movement, which reduces the number of false entries and makes trading more confident.
As the image above shows, uptrend and downtrend sections form after the oscillator lines cross. When the fast line crosses the slow line from top to bottom and a red arrow appears on the chart, this signals the beginning of a bearish phase . Under these conditions, only put options should be considered. If the crossover occurs from bottom to top and a blue arrow appears, call options can be used – the market is entering a bullish phase.
Thus, the strategy offers an unconventional way to determine trend direction. Unlike classic solutions, which often use simple moving averages as a filter, it uses an oscillator with its own calculation logic.
Regarding settings, the developers have limited the ability to change the signal indicator's parameters. Only basic functions are available to the user: enabling sound alerts and sending email notifications. Everything else is already built into the algorithm.
The "basement" indicator offers a few more settings. Users can set the WATR calculation period, change the oscillator sensitivity coefficient, and select a calculation method — either by closing prices or by extremes (highs and lows). Alerts are also available, which is convenient for those who don't want to constantly monitor the chart.
As a result, we have a fully-fledged trading system for binary options. Our tests confirmed that the strategy truly works, and what's especially pleasing is that it's self-contained. There's no need to add additional indicators or filters. Despite its apparent simplicity, Cross Trading is a well-balanced solution that includes everything you need for confident and profitable trading.
Essentially, this is a working scalping strategy. If you want to delve deeper into this trading style, we recommend reading this collection of articles on the topic:
- Indicators for scalping
- Scalping in binary options
- Successful Overnight Scalping Strategies
- Pocket Option Scalping Strategy
Cross Trading Rules
As mentioned above, this trading system doesn't require any additional filters or methods for increasing the percentage of profitable trades—everything is included in the trading system itself. Therefore, we can immediately begin describing the trading rules.
Opening a Call Option
- The yellow line of the oscillator crossed the blue one from bottom to top.
- A green arrow appeared under the candle.
- At the opening of the next candle we buy Call.
Opening a Put Option
- The yellow oscillator line crossed the blue one from top to bottom.
- A red arrow appeared above the candle.
- 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 Cross Trading Binary Options Strategy
Despite the simple rules, this strategy has a couple of nuances you should be aware of. One of them is related to the arrow indicator: the signal may disappear if the first candle after its appearance closes in the opposite direction. To avoid confusion, we recommend waiting for the first bar to close — this way you'll be sure the signal is confirmed.
Such cases are rare, but they do happen. The indicator's algorithm likely takes into account the ratio of the current candle's close to the previous one. We can't influence this, so we're giving you a fair warning so you're prepared.
Advantages of the Cross Trading Strategy
Among the advantages of this strategy are its precise trading signals. They are sufficient for active intraday trading. And the built-in "basement" oscillator helps you navigate the market direction and open trades in line with the trend, which positively impacts the percentage of profitable entries.
Disadvantages of the Cross Trading Strategy
One downside of this strategy is that the signal may be cancelled if the following candle closes in the opposite direction. To avoid this, it's best to wait until the first candle closes after the signal and enter the trade at the opening of the second — this will protect you from false entries.
Conclusion
The Cross Trading binary options strategy is based on a time-tested approach — trading with the current trend. However, unlike many similar strategies, it utilizes rare custom indicators that help generate more accurate trading signals.
Before using this system in real trading, be sure to test it on a demo account with a reputable broker . And don't forget the basic rules of risk and money management — they remain relevant in any strategy. Good luck with your trading!
Download Cross Trading
To leave a comment, you must register or log in to your account.