The Easy Breakout binary options strategy is suitable for traders who want to combine options trading with currency pairs on the Forex market. It's based on a proven approach: opening a binary option when a key support or resistance level is broken. Typically, such a breakout is followed by a powerful price movement in the same direction. In this review, we'll explain how to exploit this phenomenon to build a profitable strategy.
Content:
- Characteristics
- Installation
- Overview and settings
- Easy Breakout Trading Rules
- Specifics of application
- Conclusion
- Download Easy Breakout
Characteristics of the Easy Breakout Binary Options Strategy
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 3 candles
- Option Types: Call/Put
- Built-in indicators: Easy Breakout_fix.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 the Easy Breakout Binary Options Strategy
Easy Breakout 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:
Easy Breakout Binary Options Strategy Review and Settings
As its name suggests, the Easy Breakout strategy is based on one of the most popular trading tactics – trading breakouts of key price levels. The approach is simple: a trade is opened when the asset price breaks a psychologically important support or resistance level. In this situation, the trader expects the price to continue moving in the direction of the breakout.
If the price breaks the resistance level (marked with a wide blue line on the chart), it serves as a signal to open a call option, indicated by a blue arrow below the candle. If the support level is broken, an orange arrow appears above the candle, indicating a put option.
Additionally, for Forex traders, the Easy Breakout strategy suggests where to place take-profit orders to lock in profits and stop-loss orders to limit losses.
Support and resistance levels are automatically plotted and displayed on the chart. The trader's task is to promptly respond to the arrows' trading signals and open trades in the desired direction.
This strategy has a wide range of settings. Key ones include the parameters of signal arrows, pop-up notifications, and profit-taking levels for Forex traders.
So, here we have a complete trading system for intraday trading based on technical analysis. If you'd like to explore this approach in more detail, check out our selection of articles on this topic:
- Technical analysis of binary options
- Technical analysis of cryptocurrencies
- Autochartist: Technical Analysis on the Go
- D. Murphy's book "Intermarket Technical Analysis"
In it, you'll find useful materials that will help you better understand technical techniques and improve your skills.
Easy Breakout Trading Rules
The Easy Breakout trading rules are extremely simple: wait for the arrow to appear and open a position after the current candle closes beyond the support or resistance level. No additional filters or tools are required.
Opening a Call Option
- A blue arrow appeared under the candle.
- At the opening of the next candle we buy Call.
Opening a Put Option
- An orange 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 Easy Breakout Binary Options Strategy
Based on our testing, we concluded that the Easy Breakout strategy generates trading signals more frequently during flat markets. This is because during consolidation, the market forms multiple levels, the breakout of which serves as a trigger for entering trades using this strategy. The longer an asset remains within a narrow price range, the more support and resistance levels are formed, meaning more potential trades using this strategy.
Benefits of the Easy Breakout Strategy
Easy Breakout's advantages include its simplicity and clarity. The system automatically plots all significant levels on the chart as color ranges, and displays trading signals with arrows. Another advantage is pop-up notifications, which can be enabled in the settings. These help ensure traders never miss a trade and can monitor multiple assets simultaneously.
Disadvantages of the Easy Breakout Strategy
The disadvantages of the Easy Breakout strategy include relatively infrequent signals: it takes time for significant price levels to form, the breakout of which the system exploits. To minimize this disadvantage, it is recommended to trade multiple assets simultaneously.
Conclusion
The Easy Breakout binary options strategy has proven particularly effective when trading currency pairs. The lack of additional signal filtering simplifies the system's operation and makes it accessible even to beginners.
However, before using the strategy in real binary options trading, we recommend testing it on a demo account with a reliable broker. And don't forget about risk management – it remains the foundation of stable trading. Happy trading!
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