Wednesday, 22 March 2017

Using binary bots and selecting which currencies to trade.

Ok, so I am getting a ton of questions on how to select which currencies to trade using the binary options bots and at which times of the day. Also some saying that the currency settings that I gave in the examples do not work for them.

Ok, so a setting that I had last week for a currency pair is not going to be the same forever and a day. 

You have to take a look at the market each and every day and see what is ranging for the day, or in a trend, strong trend, etc and of course watch out for high impact news events, which can possibly derail your analysis completely.

You need to do this on a daily basis at least and better yet during the course of the trading day. I will often change my currency pairs during the day. Just stop my bots , change currency pairs and start again. Why not? I want the best possible trading conditions.

Just because it is a bot does not mean that it is going to overcome bad trading conditions. 

You need to take a look at your charts and see what is doing what.

Here is a really helpful indicator for you called a Heat Map and will make this a quick and easy job for you. If you do not have this indicator, then you can download it in the FaceBook Group of ours.

This is just a quick explanation to help you use it quickly and I will try and make a more detailed explanation when I have more time.

This is how it looks on my US Dollar Index chart: (click to enlarge)
I only put it on my US$ index chart and only one chart as it is very CPU intensive. Also you do not need it on more than one chart. If you put it on multiple charts, your MT4 is going to freeze up.

Binary Options with Heat Map
US dollar index with Heat Map on 15 min

That is it in the below chart window.

What it is showing is the 8 main currencies and which is strong and strongest and which is weak and weakest.

Obviously the high green with the highest percent is the strongest for the day and the red with the highest red percent for the day so far is the weakest currency.

I usually take a screenshot of it every 30 minutes to an hour as it is continuously changing and you can get a much better feel for where the money is going as you look over your screenshots of the last couple of hours.

So with this information, we want to be trading the strongest currency against the weakest.

So a quick look at out Heat Map shows us that the JPY is the strongest currency of the day and the GBP is the weakest for the day so far.

If you were watching this earlier in the day, you would have picked it up much earlier.

So let us go to our GBPJPY chart with our basic %HTTBOP_Pullback template and add on the RSI indicator to give us an idea on how we want to set up our RSI bot.

GBPJPY 5 min chart with HTTBOP Pullback template and RSI
GBPJPY 5 min chart with HTTBOP Pullback template and RSI
You would have the download link for all those indicators and templates given to you when you joined my newsletter.

Remember that most of the volume is going to be from the London open to the London close and certainly around the London open and the New York open.

However looking at our charts before the London open we could see with the HTTBOP_HAshi indicator that GBPJPY was in a downtrend, then we would look for confirmation on our Heat Map and then possibly set up our RSI bot like in the example below:

GBPJPY RSI binary bot settings 5 min chart
GBPJPY RSI binary bot settings 5 min chart

So on a 5 minute chart on our RSI binary bot and we have settings for a Put trade of 15 minutes when the RSI hits the 30 level and a Call trade when the RSI hits a level of 1 oversold.

If you wanted to be trading some ranging markets for example then you would look for currency pairs showing much the same for the day on the Heat Map and then maybe set up on your RSI an 80 level Sell and a 20 level Buy trade.

As I am writing this we just had US crude oil inventories which is a High Impact US news event that can move markets and which it has done.

So rather wait at least 30 minutes either side of a high impact news event before taking another look at what the currency strengths are.

Also remember that after New York closes the volatility and volume generally will drop right off until the Asian session at least so currencies will tend to range during this period, so set your bot accordingly.

Hopefully this has given you some ideas on selecting which currencies to trade with your binary bots.

For your Ichimoku bot and Payout Vs Stake bot just overlay the settings on your chart for trending currencies and ranging currencies just like we did for the RSI indicator and you will get an idea on how to set your settings.

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