Hey there, fellow traders! Let me share my favorite trading strategy – the “Point-to-Point”. This method is ideal for online contracts, and even if you're just starting out, you can definitely use it. No need to stress over complicated market analyses; we’re keeping it straightforward and effective, especially with those short expiration options. The name “Point-to-Point” comes from the Parabolic indicator points. High volatility assets are what you want to focus on here. For those interested in exploring a platform that supports such dynamic strategies, consider checking out the comprehensive trading options available at PocketOption broker.
As a trader on the Pocket Option platform, all the tools you need are right at your fingertips. No searching around for tools; your basic account has you sorted!
How do you set this up?
Ready to get going? First off, you need to pick a high-volatility asset. My favorites are currencies like EUR, USD, or GBP. If you're feeling bold, dive into cryptos—you can trade those too on weekends!
Next, set your chart to Japanese candlesticks and change that timeframe from M5 to M1.
Now let’s adjust those indicators. Head into the menu and click on your advisor's name—it’s setup time!
The sweet spot for parameters? We’re looking at 0.02 for Parabolic SAR and 14 and 3 for Stochastic, with 2 decelerations. You’re on the right track now!
Congrats! You’re all set. Now, let’s dive into snagging those buy signals.
How to trade using the “Point-to-Point” strategy?
The real power of this strategy is in reading the Parabolic Points and Stochastic zones. There are two zones in Stochastic: overbought (80 to 100) and oversold (0 to 20).
Here’s how it works: according to “Point-to-Point”, you buy a CALL option when the last Parabolic point appears below the candlestick, and those Stochastic lines are breaking out of the oversold zone.
On the flip side, you’ll want to execute a PUT contract when the Parabolic point appears above the candlestick and those oscillator lines are breaking out of the overbought zone.
When it comes to expirations, I recommend sticking to two bars. So if you're working with a 5-minute trade, you'll be looking at a 10-minute contract duration.
Now, check this out—statistically, the “Point-to-Point” strategy is boasting an impressive 85% success rate. Pro traders suggest keeping your trades capped at 3% of your total deposit. Don't get too pumped; staying calm while trading is the key to success!
If you're working with contracts on those lower timeframes with high volatility assets, you could be stacking up to 30 trades a day with the Point-to-Point strategy. Stick to the plan, and this strategy could lead to solid profits!
