The strategy for binary options Karazon clearly shows how just a few simple indicators can turn into a powerful tool for earning. Many traders do not even suspect what opportunities are hidden behind the usual technical indicators . The main thing is to combine them correctly and supplement them with a visual panel with statistics. The result is a powerful tool that will help you improve the accuracy of binary options trading. This is what we will talk about in our review.
Content:
- Characteristics
- Installation
- Overview and settings
- Trading Rules by Karazon
- Specifics of application
- Conclusion
- Download Karazon
Characteristics of the strategy for binary options Karazon
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 1 candle
- Option Types: Call/Put
- Built-in indicators: Karazon.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 strategy for binary options Karazon
Karazon strategy indicators are installed in MetaTrader 4 in a standard way. First, open the terminal and select "File" → "Open data directory" in the top menu. In the window that appears, go 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 that, restart the platform so that the new indicators and templates appear in the list. You can watch more detailed instructions in our video:
Watch on Youtube | Watch on RuTube |
Review and settings of the strategy for binary options Karazon
The strategy for binary options Karazon is based on the author's indicator with the same name. It displays trading signals on the chart in the form of arrows: green indicates the possibility of buying a Call option, and red - a signal to buy a Put option.
In addition to the arrows on the chart, the Karazon.ex4 indicator displays a bar histogram called the Golden Bar at the bottom of the screen – where oscillators are usually located. Yellow bars above zero indicate local overbought conditions, while bars below zero signal oversold conditions. This visual element helps you navigate the current market conditions more quickly and refine your signals for entering a trade.
If the histogram bar noticeably goes into the positive zone, this may indicate the imminent appearance of a red arrow and a signal to buy the Put option. In the case of Call, the situation is the opposite - a large yellow bar in the negative area indicates a possible signal to increase.
Thus, the histogram at the bottom of the chart acts as a kind of warning indicator. It helps the trader to understand in advance in which direction the next trading signal may appear.
The tool's capabilities do not end there. In addition to the function of preliminary notification of a possible deal, the histogram at the bottom of the chart acts as a signal filter. You can independently set the threshold level, upon exceeding which you will take the signal into work. This will additionally increase the share of profitable deals in the already high win rate of the Karazon strategy.
In addition to signals, the system displays an information panel on the chart. It conveniently collects information about the current state of the strategy - whether it is in standby mode, buying Call or Put.
It also displays the status of the last bar of the lower Golden Bar indicator. The most important thing is the statistics of the latest system signals, including the number of profitable and unprofitable trades. With this information panel, traders can quickly select assets and timeframes on which the strategy showed the best results.
Now a little about the Karazon system settings.
All settings of the Karazon indicator can be divided into two sections: main parameters and alerts. In the main parameters block, the calculation periods of three moving averages are set - SMA, ShortSMA and LongSMA, as well as the value of the Deviation Period parameter. These indicators play a key role and directly affect the effectiveness of the strategy.
It is recommended to select settings individually for each asset and timeframe. The setup process is quite simple: change the parameters one by one and monitor the Winrate indicator on the information panel. The optimal values are those at which the Winrate is within 75–80 percent. If you cannot achieve such results, try switching to a higher timeframe. If this does not help to reach the required level of accuracy, it is wiser to abandon trading the selected asset using this strategy.
Even if the signals seem to be as accurate as possible, do not forget about the rules of risk and capital management. We talked about this in more detail in a separate selection of articles:
- Capital management. Principles of money management.
- How to keep losses under control? Risk management.
- Psychology and trading discipline.
- Trader's diary as a tool for debugging trading strategies.
Trading Rules by Karazon
Let's figure out how exactly to trade using the Karazon strategy. Unlike most signal indicators that work on the "black box" principle, Karazon gives fairly accurate and clear signals. This allows you to do without additional filters - with the exception of the built-in Golden Bar basement oscillator.
Therefore, you can immediately move on to a description of the basic trading rules, without being distracted by auxiliary tools.
Opening a Call Option
- A green arrow pointing up appeared under the candle.
- At the opening of the next candle we buy Call.
Opening a Put Option
- A red downward arrow appeared above the candle.
- At the opening of the next candle we buy Put.
We recommend setting the expiration time equal to one candle. However, the optimal period for holding positions depends on the specific asset and should be selected by you based on the results of testing on historical data. This approach will help to adapt the strategy to the features of the selected instrument and increase its effectiveness.
Specifics of using the Karazon binary options strategy
The Karazon binary options strategy has several application options. We have already discussed the basic trading rules, but they can be supplemented by filtering signals using the built-in Golden Bar oscillator, which is displayed at the bottom of the chart.
One approach is to set a threshold for the histogram and consider only those signals where the bar exceeds the specified level. This can help improve the overall effectiveness of the strategy. It is important to understand that any filter filters out not only unprofitable trades, but also some profitable ones. Therefore, each trader decides whether to use the Golden Bar as a filter.
Pros of the Karazon Strategy
Among the main advantages of the Karazon strategy, it is worth noting a large number of accurate signals - both for buying Call and Put options. The information panel helps the trader to select the most suitable settings for the indicators on the basis of which the system signals are formed.
An additional advantage is the visual representation of the strength of signals. The built-in oscillator located at the bottom of the chart is responsible for this. It helps to cut off some of the false entries, thereby increasing the overall effectiveness of the strategy.
Cons of the Karazon Strategy
One of the obvious disadvantages of the system is the lack of preliminary signals before the entry point appears. In some situations, quotes change too quickly, and the trader simply does not have time to react in time, opening a deal at a less than favorable price.
Because of this, you have to constantly monitor the chart, even despite the presence of pop-up notifications and sound alerts. This slightly reduces the convenience of using the strategy during active trading.
Conclusion
The strategy for binary options Karazon is based on a unique proprietary indicator that not only provides trading signals, but also functions as a backtester. The information panel displays detailed statistics that allow you to evaluate the effectiveness of the strategy on the selected asset and timeframe.
To increase the percentage of profitable trades, it is not necessary to connect additional indicators or conduct in-depth analysis. Often, it is enough to set threshold values for the Golden Bar oscillator to filter out false signals.
Before moving on to binary options trading on a real account, it is recommended to test the strategy on a demo account - preferably with a broker with a minimum deposit . And, of course, do not forget about the basic rules of risk management and money management .
Good luck in trading!
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