Topic: Binary options strategy based on Bollinger Bands

This simple binary options strategy was generated via Binary Option Tester.
AUDNZD 1 minute chart. Signals based on Bollinger bands. Test period 14/11/2014-01/08/2016. You can see the results in the upper left corner of the chart

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AUDNZDboM1.png 69.43 kb, 2 downloads since 2016-08-01 

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Re: Binary options strategy based on Bollinger Bands

These are the rules of the strategy. The idea is that AUD and NZD are highly correlated currencies. That is why AUDNZD should be trading in range.

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Re: Binary options strategy based on Bollinger Bands

You can use the EA's from the Binary Options Tester for automatic or semi-automatic trading. I have my own filters for opening of position. When I apply them to to the signals generated by the EA the win ration increases.

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Re: Binary options strategy based on Bollinger Bands

The results of the strategy for today: 4 wins, 0 losses

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EURNZDboM1.png 83.38 kb, 2 downloads since 2016-08-02 

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Re: Binary options strategy based on Bollinger Bands

One more update of the EURNZD strategy

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EURNZDboM1.png 71.59 kb, 1 downloads since 2016-08-02 

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Re: Binary options strategy based on Bollinger Bands

The same strategy optimized for EURCHF. The fact that it works for different currency pairs confirms that the BO tester generated a good strategy

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Re: Binary options strategy based on Bollinger Bands

Very good results today. AUDNZD 4 wins, 0 losses. EURNZD 6 wins, 2 losses

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Re: Binary options strategy based on Bollinger Bands

Backtest of the Bollinger Bands strategy on 1M chart of EURNZD. Pretty impressive results: 85% win rate with just 2.93% drawdown.

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Re: Binary options strategy based on Bollinger Bands

I'll use the example above to show you how to make the strategy more clear.

As you see from the Minev's screenshot, the strategy opens Up positions when the bar opens below the Upper Band.

Because the app sets automatically mirrored rules for Down positions, it will open Down when the bar opens above the Lower Band.

If you read the above carefully, you will notice that if the bar opens between the Upper and the Lower band, both Up and Down trading rules are satisfied. Fortunately, the app detects such cases and will not produce a trade.

The strategy will open Up only if the bar opens below the Lower Band because only the Up rule will be satisfied.

Having that in mind, we can safely change the Bollinger Band rule to "The bar opens below Lower Band".
That will not change the strategy result, but will make it more clear.

http://s10.postimg.org/i7zhmb4eh/screenshot_2019.png


With that change it will be easy to understand that the strategy uses the Bollinger bands to detect overbought and oversold conditions and trade in the opposite direction.


http://s10.postimg.org/wcmgls2yx/screenshot_2015.png

Re: Binary options strategy based on Bollinger Bands

Results of the BB strategy for AUDNZD at 15/8. 9 wins, 2 losses

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