15-30 Minute Strategy for Beginners!

OkaneOkane Posts: 1,270 admin
edited March 2015 in Binary Options Strategy
M15-30 Strategy – SMA and Stochastic For Everyone!

This strategy is very newbie friendly because it only
uses 2 simple but powerful indicators that are easy to understand!
It is a good start for beginners who want a strategy to comprehend and evolve with.


Video here: https://youtu.be/RXZ2Alz-7t0

This is how it works:

Set your time frame to M15.
I prefer USD/JPY and GBP/USD and EUR/JPY.

We use SMA 50 for identification of the trend:
Candlesticks should be above the SMA 50 for the trend to be considered an uptrend.
Candlesticks should be below the SMA 50 for the trend to be considered a downtrend.

Add Stochastic Oscillator, standard settings (5, 3, 3) and levels 80 and 20.
Price is oversold when Stochastic is near or at 20.
Price is overbought when Stochastic is near or at 80.

Call Options:
Find Higher Lows. Look for locations where candlesticks come down and touch
the SMA 50 and confirm that Stochastic is oversold at the same time on the M15 time frame.
If the candle does not break below the SMA after closing, take a 15-30 minute Call Option.

Put Options:
Find Lower Highs. Look for locations where candlesticks come up and touch the SMA 50
and confirm that Stochastic is overbought at the same time on the M15 time frame.
If the candle does not break above the SMA after closing, take a 15-30 minute Put Option.

** If you have any questions please ask them here or if you just wish to discuss this strategy!
Also let me know how it works for you! Don't forget to watch the video.
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Comments

  • RaidenRaiden Posts: 186 ✭✭
    No questions on my side, just congratulations on your first video for Binaryoptions.net Okane!!!

    Your contributions will be to the benefit of all Newbies.
  • OkaneOkane Posts: 1,270 admin
    Raiden said:

    No questions on my side, just congratulations on your first video for Binaryoptions.net Okane!!!

    Your contributions will be to the benefit of all Newbies.

    Thanks Raiden! I sure hope so :)
  • mrsbearmrsbear Posts: 43
    Thanks Okane for a nice simple strategy. I particularly like it because it's an easy one to set alerts for (I use TOS) so as not to miss a potential set-up.
  • OkaneOkane Posts: 1,270 admin
    Welcome! Yes, simplicity can be profitable!
    I see too many beginners overwhelming themselves with loads of indicators...
  • DuhhDuhh Posts: 12
    I dont think your video is working. It keeps saying an error occurred.
  • mrsbearmrsbear Posts: 43
    The embed option wasn't working - I had to click on "watch on YouTube" to view it. It's now been changed to a simple link so if you click on that it works.
  • OkaneOkane Posts: 1,270 admin
    Duhh said:

    I dont think your video is working. It keeps saying an error occurred.

    Yeah, it is fixed now like mrsbear said.
    But I should mention that all videos will always be posted on the
    BinaryOptions.net Youtube channel so make sure you take a look
    there :). There will be more videos and strategies coming up in the future so stay tuned!
  • mrsbearmrsbear Posts: 43
    My first trade with this strategy and I thought I'd post a screenshot even though it was a well-deserved loser - I knew I shouldn't have taken it but this was my first alert for the strategy and I thought I'd risk it. Clearly INTC is in a downtrend even though it was above the 50 SMA but I thought there was a chance of a rebound after the candle broke below the 50 SMA but closed above it. However, it continued downwards for the 30 mins of my trade and lost. I'm quite pleased in a way because in future I'll stick to the rules - winning may have given me a false sense of security! (The white lines are where I entered the trade and where it closed).image
    INTC Loser.png
    492 x 608 - 74K
  • OkaneOkane Posts: 1,270 admin
    I don't know how well this strategy works with assets other than currency pairs.
    As I mentioned, I would mostly suggest USD/JPY, GBP/USD and maybe other major
    and volatile currency pairs. Maybe it'll work on other assets too but you have to test and find out :).
    Today might have been difficult due to all the news coming out for USD. Have to take fundamentals
    into consideration too.
  • mrsbearmrsbear Posts: 43
    Just to clarify - you wouldn't have taken that trade even on one of your preferred currency pairs if the chart looked the same as the one above - correct? I'm testing the strategy on a mixture of 30 currency pairs and assets because one could go for days without a trade on just the pairs you mention.
  • OkaneOkane Posts: 1,270 admin
    Well, I only know that the strategy should work on currency pairs, because I have seen it
    work. Other assets I don't know, if I were you I would test for a while, back test+ demo.

    Wow, I advise against overwhelming yourself with too many pairs.
    I usually focus on one asset only because it helps me
    learning and recognizing its patterns and habits.


  • mrsbearmrsbear Posts: 43
    Okane, could you do me a favour please. Scroll up the page and look at the chart I posted and pretend it's USD/JPY instead of INTC. Would you have taken the trade, yes or no? I think no because the price was going down but I'm keen to hear your opinion.
  • OkaneOkane Posts: 1,270 admin
    mrsbear said:

    Okane, could you do me a favour please. Scroll up the page and look at the chart I posted and pretend it's USD/JPY instead of INTC. Would you have taken the trade, yes or no? I think no because the price was going down but I'm keen to hear your opinion.

    You are right, I wouldn't have taken that one. But then again, it is no good
    to use it on INTC to begin with... Can't just pretend it will behave like a currency pair with high volatility.
    So it will probably give you more losses on that asset. I just opened my INTC chart and set the strategy up and guess what
    it looks no good at all. Price is most of the time nowhere near the SMA and it is way too jumpy.
  • mrsbearmrsbear Posts: 43
    Thanks very much for confirming what I thought. Perhaps the strategy isn't suitable for stocks but having set the alerts I can keep an eye on them without any trouble and obviously in future will only take trades that strictly adhere to your guidelines. I'll keep on posting screenshots of any trades I take and am looking forward to any further beginner strategies you care to share with us. Thanks for your valuable education and that of all the other contributors to this site. And on another note, thanks to the ebook download provided by Cory Mitchell (another contributor here), I am currently reading "Reminiscences of a Stock Operator" with as much excitement and enthusiasm as if it were a bestselling whodunnit!
  • OkaneOkane Posts: 1,270 admin
    Yes, keep me updated. New strategy coming up next week :).
  • loislaneloislane Posts: 11
    Hi Okane have tryed your suggestions today i have gone thru and marked my currency pairs backtested does it matter if the wicks go thru the 50 sma but not the body because it seems like they are still winning trades for either 15 mins or 30 mins or is it better for the body to touch i also saw the wicks come down and touch the 50 sma and the next candle was also a winning trade. great strategy thank you in advance for helping us newbies kindest regards lois lane
  • OkaneOkane Posts: 1,270 admin
    Hey! Hard to say, I would take every situation and analyze it depending on how "the big picture" is.
    Sometimes price goes through the SMA but then retraces back and the
    M15 candle closes above it then it could mean support is holding so
    it is a good setup (just to simplify it, in reality there are more things to consider before selecting a support/resistance).
    Other times candle might close under the SMA but the
    next candle still closes above the SMA.

    Situation from situation differs and these are the
    other things that one has to learn for himself/herself by getting experienced!
    I suggest you learn drawing support and resistance lines as well.
    Currency pairs also have wave patterns, time patterns and their own characteristics.
    These are things that are more difficult to just mention in text.
    I suggest you also take a look in my trading journal in the journal/diary room.
    I draw lots of S/R lines and you might learn something! ;)
  • loislaneloislane Posts: 11
    hi Okane i wanted to tell u that i made my first successful trade it was with gpdusd 15mins it came down touched the 50sma plus it got weekly low hit daily hit and b/band s i have been demo here and learning from bryan trading axis and lots of bot in the trading room learning it was a real shot in the arm confidence thank you okane so much
    kindest regards Lois Lane


  • OkaneOkane Posts: 1,270 admin
    That's great, that's exactly what I wanted people to do, observing and finding
    the significant support/resistance areas! Weekly and Daily support/resistance lines
    are very strong. Combining your analysis with a simple strategy will give you more
    winning trades than simply following indicators :).
  • loislaneloislane Posts: 11
    thanks for the message just made a second trade on the same pair with support and resistance yes thats what Bryan teaches us find at least 3 reasons to take the trade mine had 5 on the first one and 3 on the second you guys at bo.net rock im just a little excited today lol as i am here giggling. cause it worked amen
  • OkaneOkane Posts: 1,270 admin
    Yes, at least three reasons should be confirmed before you enter a trade.
    Sometimes there is more but you have to learn how to find them.
    There are patterns that one might neglect due to inexperience.
    So it all comes down to training and experience.
  • loislaneloislane Posts: 11
    thks I have much more to learn everday I learn and gain more experience will let u know how it goes and again much appreciated
  • OkaneOkane Posts: 1,270 admin
    Yes, keep me posted please. Thanks!
  • benzee123benzee123 Posts: 6
    Hi,I know there is no such thing as a stupid question here, but where do do you find the sma 50...I see moving average ...but where is the 50...are you talking about the median price HL/2, whats the parameter and the shift. Even the simplest of strategies perplexes me....Help me......
  • benzee123benzee123 Posts: 6
    Okane can you check my chart out, does this look alright...Hope the chart gets on...never uploaded a chart in a forum before
    eurusdi-m15-tw-corp.png
    1406 x 847 - 150K
  • OkaneOkane Posts: 1,270 admin
    benzee123 said:

    Hi,I know there is no such thing as a stupid question here, but where do do you find the sma 50...I see moving average ...but where is the 50...are you talking about the median price HL/2, whats the parameter and the shift. Even the simplest of strategies perplexes me....Help me......

    Hey, you need to watch the video, I show exactly where to find the SMA (smoothed MA).
    Just follow it step by step :).
    Also, on your chart, you need to make some space, don't have to but I recommend
    it. Close the unnecessary stuff (the windows to the left on your chart) and don't zoom in that much!
    Let me know if you have more questions.
  • benzee123benzee123 Posts: 6
    Thank you so much...will do
  • OkaneOkane Posts: 1,270 admin
    Hey everyone who uses this strategy, I just explained how
    you can combine Moving Averages with price action analysis
    in my diary in the journal room. Check it out because it will help
    you finding good entries!
  • mohammadovmohammadov Posts: 25
    Hey Okane, Thanks for the Strategy, Can this setup be made on freestockcharts.com? i couldnt find smooth SMA, only Simple?
    Another question, based on this strategy, does the criteria often happen more than 3-7 times a day - as an example- ? Thanks!
  • OkaneOkane Posts: 1,270 admin

    Hey Okane, Thanks for the Strategy, Can this setup be made on freestockcharts.com? i couldnt find smooth SMA, only Simple?
    Another question, based on this strategy, does the criteria often happen more than 3-7 times a day - as an example- ? Thanks!

    SMA can be replaced with EMA. SMA 50 = EMA 99. Higher time frames = less signals, lower time frames more signals but less accurate.
    Try M5 for more signals.
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