FOREX TRADING TRUTH (A Simple Forex Binary Holy Grail Trading Strategy) – You see in my early days of trading I used so many strategies and indicators so I can’t even say exactly how many but there were lots of ones. I tried to find that super strategy or indicator that could help me make money and bought almost all the systems that were offered to traders in those days.
There was time when I thought I would never become successful in trading. Thank God I was wrong. I studied different strategies and learnt much about trading including difficult to understand things like Fibonacci, Elliot Waves, Convergence, Divergence, you name it.
And how do you think if all these things helped me in trading? The answer is NO! I did not become a better trader when I learnt all of these things.
Why? The truth is you will never start getting consistent results if you always change the strategies. I am not going to say that Fibonacci techniques do not work or some other techniques do not work. The problem was I did not know what things were best to use. But the truth is there are no best things to use.
There are things that work and thing that do not work. That’s it. And I learnt one of the most important lessons of trading. What is it? It is simple indeed. YOU SHOULD STICK TO ONLY ONE STRATEGY and trade it on everyday basis! Sure the strategy should be a reliable and good working one. The one you are going to learn here is of that kind.
It is reliable and easy to implement. And the most important thing about it – IT WORKS! There is not such a thing as the best strategy in the world. There are strategies or indicators that are worth of using. That’s all.
All the systems including the indicators are only instruments to achieve our trading goals. When I understood this simple truth It was easy for me to get used to idea of using only one system to avoid confusion.
Remember you do not need all the indicators or trading systems in the world in order to become a successful trader. Moreover the majority of strategies and indicators are complex and ones are difficult to use in real trading. The second truth I understood was all the best performing strategies I had ever seen before were simple and easy to implement.
If the strategy is complex, the ambiguity will lead you to confusion and the confusion will lead you to losing your hard earned money.
So our second rule and the truth will be the following: IF WE WANT TO MAKE MONEY IN TRADING WE SHOULD CHOOSE THE STRATEGY THAT IS EASY TO IMPLEMENT AND HAS NO AMBIGUITY.
In fact you do not need to know much of trading in order to trade successfully. All you need is to understand what things are worth of learning. My strategy is based on basic but sound principles of market behavior. And believe me this will be more than enough to make money with binary options.
I assume you already know what binary options are. If not please find some time to google it. Here I am also not going to teach you basic things of Forex trading. There is much free information on this topic onthe internet. And if you need something to know simply google it.
In this guide we are going to concentrate on my strategy implementation. That’s it. But do not worry, it is easy and does not require extensive knowledge of Forex or binary options trading.
Ok, are you ready to start? Let’s go!
As I have already told you my straegy is based on simple knowledge of market behavior. First of all we should understand that the market may be a trending one when the price is going upward or downwards and flat one when the price is moving in the horizontal channel.
Before we start trading we should look at our chart and tell if the market is in trend or flat state. It will be easy to do with the indicators I am providing you with the strategy. When we know in what state the market is we can understand what type of trades to take.
If the market is in range (flat) we will be taking price reversal trades when the price bounces of the high or low of the channel. If the market is trending we will be taking trend continuation trades and pullback trades as well. So as you know these types of trades are all we need in order to be able to trade in any market conditions.
Before we start please copy the indicators from Indicators folder of the system to your MT4 indicators folder which is located in the Experts folder of your MT4. And then copy the template file to the templates folder of your platform which is located in the main folder of your MT4.
I assume you already know how to install MT4 platform and copy the indicators and template file to it. If not please google it. It is very easy so I thought we should better concentrate on the strategy itself.
Once you have done all of these please start your MT4 and open a EURUSD chart. Choose M5 timeframe. Then load the template Binaryholygrail. Simply right-click on the chart and put your cursor to Template and then choose our template. If you’ve done this right you should see the picture like the one below.
Do you see these yellow dots? This is the HolySignal indicator. This is a very important indicator. It calculates and shows the real time tops and bottoms of the price.
You can even use it alone with pretty good accuracy.
This is not a well known ZigZag indicator. My indicator is different. If you ask me if my indicator repaints or not I will say YES it may repaint. But it is ok. As it indicates tops and bottoms of the current price it must repaint because the price is moving and the tops and bottom levels are also moving with the price.
But IT IS OK! Remember we are going to use this yellow dots as indication of a probable trade. Though we can use this indicator for entries but we will not be doing this because we want to achieve a higher accuracy, right? Right!
By the way you should not be glued to your chart all the time. You can simply do the things you want while waiting for the signal to come up. When you have a yellow dot appeared you will hear an alarm sound. You should not enter right away. We need a confirmation of the signal. Only once the signal is confirmed you enter the trade in the opposite direction of the dot.
So it means if the dot is in the bottom you enter with a CALL trade (buy trade) and if the yellow dot is in the top, you enter with a PUT trade (sell trade). But only once the signal is confirmed. I remind you this indicator may repaint but it is ok because it is dealing with tops and bottoms.
We all know the market may have double top or double bottom.
Example: You see the yellow dot but the price continue going against it and when it forms a new high or low the indicator will post another yellow dot. But as I said it is absolutely ok. Even taking into consideration its repainting nature it still gives us accurate signals so you can easily use it alone with accuracy up to 70%.
But in conjunction with our second indicator we can do much better. So I highly recommend you taking only trades when the signal is confirmed by our second indicator.
Our second indicator is the HolyChannel indicator. We will be using it as a confirmation of our signals. But that’s not all.
This indicator provides us with the picture of the market. It is a very powerful indicator. It shows the state of the market. Simply by looking at this indicator we can easily say if the market is trending or not. By using this indicator it will be much easier for us to trade in any market conditions.
We can go with the trend or trade pullbacks or we can even wait for a trend reversal when the indicator changes its price channel projection to horizontal one. So we can take any type of trades by using this indicator.
The idea of this indicator came from using the Bollinger bands indicator. But the HolyChannel is much more powerful and accurate than Bollinger bands. Moreover this indicator may even show the future price movement with high accuracy.
Our third and the last indicator is the HolyCandleTime indicator. It simply shows the time left for the end of the candle.
We open our trades right at the beginning of the new candle. So we use this indicator just to see how much time is left before we enter the trade. That’s it.
So these are all indicators we will be using for trading. Believe me I tried different combinations of many indicators and after extensive trading I came to the conclusion that these indicators are really enough to trade successfully. And the best part of it, your chart look easy to read. It helps you avoid ambiguity when trading.
Ok, now when we have our chart open and ready for trading, I will show you how to trade the system. I am going to show different types of trades to you. But before I will give you overall trading rules for this strategy.
We wait for a yellow dot and sound alarm signal. Once we have one we look at our HolyChannel indicator.
First of all I want to say some things about expiration time. I tried different expiry terms and found that the best expiry time was 30 minutes.
Also I found that the best time to trade is European session and first three hours of the US session. We trade during these times because the market is moving fast and it is what we need.
I highly recommend you trading EURUSD only! This pair provides the most accurate signals.
If your broker does not offer 30 minutes expiry please choose the one close to it. But I do not recommend to trade if the expiry time is less than 25 minutes.
It is better to trade 40 or 50 minutes than 25 or less. So the best time is 30 minutes. But you can also trade if the expiry is from 25 minutes up to 60 minutes maximum. So this is all about time.
When you see a yellow dot, the price should be in red zone. If the price is not in the red zone – do not trade! Also do not trade if the price is in the red but you do not have a yellow dot.
If the price is in the red and we have the yellow dot, we wait for the current candle to close and then buy a PUT or CALL option with 30 minutes expiry right at the open of the next candle (use our HolyCandleTime indicator to know how much time is left before the candle closure).
Please note! When the market is moving very fast there may be situations when you may easily get a second yellow dot right at the beginning of the entry candle.
What should you do in this case? If you already entered the trade so you do not need to do anything. But if you did not, please wait for that current candle to close and enter the beginning of the new candle.
Remember you should always wait for the signal candle to close (the one with the yellow dot and in the red zone) because there may be situations when the price continues going deeper in red or even outside into the black area. That’s why our chances to get a good signal are much higher if we wait for the current signal candle to close.
So these are all the rules you should follow with this strategy. Very simple rules, isn’t it? But please do not think if the rules are so simple the strategy is not good. That’s not the right way of thinking.
Contrary to this opinion I must say that the good system is a always a simple one. All genius things are simple by nature. So do not complicate things.
Do not try to use any other indicators. Do not try to make the system better. The system works and works good. Just keep trading it and you will be making money.
Before I show you some trade examples I would like to talk about money management. So our next chapter is about this very important aspect of trading.
I do not know any successful trader who does not have a money management plan. To have a money management plan is a good idea but another idea that is even more important – to follow your plan to the letter.
So REMEMBER, you should follow money management with each and every trade.
There are different ways to manage your capital but I would like to show you only the best one that brought me the best results.
Probably you heard someone saying that you need to trade 5% of your initial balance with each of your trades.
Example: you have $1000 balance. 5% is $50, so it means you should trade $50 options until you reach you balance up to $2000. Once you have it, you trade with $100 until you have $3000.
And by the way the majority of traders who have pretty good results follow this plan. But I do not. Why? I know better way to trade. The plan I have shown you above has one disadvantage.
When you have a losing streaks of several losing trades going one by one you can lose a good portion of your balance. You see with each and every of your trades your real risk is more than 5% because you are trading fixed values of initial balance and not your real time equity. So I have prepared a better plan to you.
What you need to do is to trade 5% of your real-time equity. So what does it mean?
It means you should recalculate the amount of money you are going to put into the next trade with each and every of your trades.
This is a very reliable plan to trade that will keep your balance alive even in the worst scenarios you could imagine. But the part of it, if you implement this plan with my system you will have a money printing machine.
Your account will be growing at a very healthy pace.
Here is example: Let’s assume your initial balance is $1000. It means your first trade should be $50. Now let’s assume you have won that trade. So now you have a balance of $1035 (considering you have made $35 with the trade).
What will you do next? You should recalculate that 5% of your real time balance before you place another trade.
5% of $1035 equals to $51,75. So your next trade will be $51,75. You have won your second trade and now your balance is let’s say $1041,04.
Before you place your third trade you recalculate your 5% of equity and get 52,07. So your third trade will be $52,07. Got the idea? If you lose that trade your balance will be 988,7. So your next trade will be $49,43.
Sure this is just an example and real values depends on the return on investment your broker provides. But believe me if you be following this plan, your trading will be much safer because your risk will never exceed 5% of your real equity.
I want to remind you that money management works only if you follow it. Follow this plan with each of your trades and you will be growing your account safely and at healthy pace.
Well, now I will show you different types of trades that I took with the system.
We have a yellow dot and the candle is in the red zone. We enter the trade with the open of the next candle for 30 minutes. As you see we have won the trade.
As you can see we had several more trading opportunities after that entry but I did not trade ones because the price was not in the red. You can still trade and win these signals but I recommend you waiting for high probability setups when our entry criteria are met.
Ok. This is an example of a pullback trade. As you see we are in the downtrend now. The price goes in the red zone and we have a yellow dot. I entered the trade at the open of the candle with the word ENTRY.
The yellow dot was under the candle before my entry candle but then it repainted as the price went lower by forming a lower low (that candle with yellow dot). So my actual entry candle is underlined with the small black line. As you see this was a winning pullback signal.
Please look to the left of the screenshot. Do you see the upward movement? Ok. Once it is done the price went to consolidation.
In other words it started ranging. Then our HolyChannel indicator showed us a possibility of continuation of the previous upward movement by turning the channel upwards.
I marked my entry with the ENTRY word to the right of the screenshot. We have a yellow dot, the price is in the red. We enter at the beginning of the next candle. By the way it was a winning signal.
So this is the same screenshot with the pullback trade. But please look above. Do you see the letters TF? These are trend flow trades. As for this type of trades we may ignore the yellow dots. All we need is just to make sure that the price is in the red zone.
So when our HolyChannel indicator shows us the downward movement all we need is to wait when the price gets into the red zone like on the screenshot above and then we open a trade with the trend direction. These are very powerful trades. I like trading ones so much.
They say trend is your friend. I fully agree with this famous statement.
Please note! When we are in the trend it is still better to trade in the direction of the trend than taking pullback trades as the trend flow trades are of higher accuracy.
Well we have come to the final chapter of this manual. I have shown you different types of trades you may take with my system. As you see my strategy really works in all market conditions. It means you will have many opportunities during the day for your trading. But please do not hurry.
Overtrading is not what you should do. Remember you need only high probability setups. I always wait for all the conditions to meet the criteria for entry.
Now all you need is to test the system. Do not stake much once you are starting up and follow the money management plan. Or you can even trade the smallest stakes your broker allows until you get a pro in trading this strategy.
Take some weeks to get used to it. Once you get used to the strategy you will be easily trading with 80%+ accuracy consistently. Just give it enough time to master that new trading skillfor you and it will definitely reward you.
Once again I want to say Thank You for purchasing this strategy and wish you many-many winning trades!