Strategy M – Milos 15 Minutes Binary Options Strategy

HomeMade Strategies: Strategy “M” – Milos 15 Minutes Strategy

Economic data is a well known mover of financial markets. In fact, data can be such a big mover of markets and such a tremendous source of market volatility that most traders will not make trades until after data is released. The Milos Strategy, or Strategy “M”, takes a stab at trading macro-data and provides a good base for those interested in this type of strategy. What Is Strategy “M”, made by ThatSucks.com (former BinaryOptionsThatSuck.com) writer Milos?

Strategies are often applied to different markets and different scenarios. If you are familiar with the various strategies you will be able to use the right strategy for the right market and achieve much greater benefits than the average trader. You will also have the opportunity to learn new and exciting ways to analyze the market and market trends. After spending a lot of time in front of my trading screen this is one strategy I have found to be effective. This strategy is designed for 15 minutes expiry. I wanted to test this strategy in order to see the behavior of price movement with 15 minute expiries and focusing on macro economic data/news releases. I have tested this strategy in every market and in every market condition ranging from the quieter Australian session to the more volatile Asian, European and U.S. sessions as well.

How to use this Strategy?

Strategy “M” is a strategy focusing on a very short time frame. In order to determine trades I use trend lines, starting with charts of daily prices and then moving down to hourly. For signals use the 15, 10 and 5 minute candlesticks. Trend lines are one of the basic tools are one of the most important and effective tool for binary options traders. Determining the trend lines help the binary options trader find the underlying market sentiment. I draw my  trend line from the lowest bottom to the highest peak. Then I draw support and resistance lines. These lines help determine trades once news is released.

Once I have my trend, support and resistance lines drawn it is time to use the following Binary Options indicators: MACD, Stochastic Oscillator  and Relative Strength Index(RSI).

How To Take A Signal

Signals are taken just prior to the publishing of macro and micro economic data. Since the strategy can be used on any currency pair it is necessary to choose which pair and which announcement to trade very carefully. Before the announcement you must prepare your charts and make an initial analysis based on the daily and hourly charts. Is the market overbought, oversold? Is it near support or resistance, is it near the trend line, is it moving up/down/sideways etc. Once you have done that move down to the 15 minute chart to get a clearer view of the market based on the underlying longer term trends. Just before the release of data place a trade in the direction of the underlying trend using the 15 minute chart for your signal. Signals include any confirmation, break-out or break-through of support, resistance, trend etc. Signals should be confirmed by the indicators. Once the signal occurs enter a position in the direction of the break with a 15 minute expiry. Once the data is release market sentiment is expected to follow through producing an in-the-money trade.

Why this Strategy Doesn’t Suck?

The strategy doesn’t suck because it offers the possibility of excellent profitability with 15 minute expiries.  It uses multiple time frame analysis, a tool that helps traders view the short term movement from the proper long term perspective. It also uses multiple indicators including trendlines and MACD, two of the most trusted indicators in option trading. Because the strategy uses the underlying trends it can be used in both directions allowing bullish and bearish trades. The best part of this strategy though may be the timing for entry position. You know when the announcements are going to be made, trades are placed minutes or even seconds before the release, that easy.

Why this Strategy Sucks?

 This strategy sucks because it such a short time frame strategy. The shorter the time frame the more chance that longer term trends will adversely affect your trading, especially if you are trading against the longer term trends. It also might suck because it is data dependent. This means that you can’t use it every day. It is also advisable not to use it for trading over the weekend. Sometimes there will be economic releases from Japan, China or even an EU nation on a Saturday or Sunday afternoon.

My Last Words On Strategy “M”

Strategy “M” is a potentially useful strategy. It gives traders a base for trading based on signals given during volatile economic data releases. The downside is that it is a complicated strategy and one not suited to new or even intermediate traders. The level of analysis needed, not to mention the level of calmness and faith a trader has in his/here analysis, for this strategy to work is quite high. I also want to take this time to note that trading during the release of economic data is something that most traders don’t do, and for a reason. The markets are very volatile and subject to knee-jerk reaction. Most traders will wait until after the data to see where prices are heading before making a trade.

Downloads Available

• Milos Strategy Screenshots and Notes