Universal strategies are very popular today among traders. This is because they do not have strict requirements to the speculator’s experience, the level of his information base, do not depend on the company in which the trader is trading and even the presence of an impressive amount of money on his deposit. There are, however, not many such strategies. Some systems require a speculator to choose an exceptionally long period of exposure, others cannot be used without a deposit with several zeros at the end. The third methods can be used only by professionals, while beginners can rely on His Majesty’s case.
Initially, the T3 sniper trading method was developed exclusively for traders’ use in the Forex market. Due to the fact that the tactics brought the desired results to Forex traders, it was decided to adapt it to the “binary” market. If in the Forex market it is desirable to conclude transactions for a long period of time, then when working with options the term of contracts’ expiry varies in a rather wide range – from 60 seconds to several hours.
As one could understand from the name, Sniper shoots precisely at the target, which is what is required from the application of the technique in practice. In addition, the Sniper strategy for binary options is multi-currency, and therefore different currency pairs can be used as assets. The optimal time for testing a strategy will be the timeframes of 1-5 minutes, while the expiry time of options may be similar. Trading is done exclusively on the chart of Japanese candlesticks.
Trading Binary Options by Strategy Sniper
This trading method is somewhat similar to Martingale, which is based on the probability theory. However, in this case, the trader is not required to conclude a large number of deals and constantly monitor the formation of a number of bars of Japanese candlesticks.
The essence of the trading method is as follows: with a clearly formed candle, for example, green, you need to open a deal “Higher”. And vice versa – after the formed red candle, you should buy the option “Below”. If the speculator, relying on this tactic, nevertheless made a deal and found himself in a loss, it is time to remember about Martingale, having doubled the minimum investment. In this case you should wait for the moment when the candles on the chart will start alternating.
Now we should say a few words about increasing the value of the investment in case of loss. If the minimum investment amount was originally $ 1 and the trader “caught” only profit transactions, this amount should not increase. If the situation is good, even with a minimum investment you can get a good profit. If the system did fail, then according to the rules of the method we should win back. The cost of options in this case should be as follows: 1$, 2$, 5$.
To determine which candlestick will appear on the chart soon, you can also use a number of indicators such as MACD, Parabolic, Moving Average and others. These tools can be found in the terminals of those brokers that offer their clients platforms with indicators. Ideal, of course, is the use of the Sniper indicator, after which the tactics of trade under consideration was named. But in this case, the indicator requires the installation of a broker in the trading terminal. Of course, it is the most accurate one for the strategy under consideration. The need for it is especially felt in Forex, and the options market allows to cope without this algorithm. More universal indicators can be used for BO strategies.