You know just as well as I do that in the world of binary options, we need systems that not only provide the main signals but also support them. Trust me, one of the smoothest setups is to use at least two indicators that work well together. My favorite combo? A traditional trend indicator plus an oscillator. When those two start harmonizing about price movements, that's when I know I'm onto something good.
Let me explain this awesome trading strategy called “Double Cross” that I’ve been working on in the digital options scene. This strategy is a clever mix of two popular tools: Moving Average (MA) and Stochastic, which you can find on the PocketOption broker platform offering unique trading tools and insights and other trading platforms.
Here’s the deal: this strategy is all about keeping things straightforward, which leads to more efficient trading—I'm talking about a jaw-dropping 90% success rate. Plus, it’s flexible enough for almost any asset and works really well on shorter time frames, which is crucial in our binary options game.
Setting Up the Parameters
As I mentioned, this strategy doesn’t play favorites—it’s suitable for any asset type, but your choice will depend on your trading style and the session you’re in.
Stochastic. Since we're working with shorter time frames, I'm setting this up like this: %K – 5, %D – 3, slowdown – 3. If I ever decide to look at higher time frames, the setup changes to 14, 5, and 3, respectively.
Two Moving Averages. I prefer to trade on a timeframe of M5. Why? Trades get completed quickly, and the indicators aren't confused by too much market noise—this way, I reduce the chances of making a beginner mistake when placing those orders.
Now, it’s time to set up the two Moving Averages: I’m going for a simple type, with periods at 5 and 10. And pro tip—use different colors! It'll help you keep track of which line's ahead and which one's lagging behind.
Trading with the Double Cross Strategy
The two moving averages? They act like my imaginary trend line. When the trend's strong, these lines move parallel, locking in the momentum. But as soon as I sense a reversal or a correction, the faster MA (the 5-period one) kicks into gear and crosses the slower one, signaling where the market’s headed. That’s when I go for it.
Same goes for Stochastic—it has its own fast and slow lines. When those lines cross in a particular direction, it’s just another alert for me.
If the lines on both indicators cross upward, I'm going for that CALL option.
I’m grabbing that PUT option when the lines switch from top to bottom.
When I’m trading on M5, I've got a 10-minute expiration period ready.
Oh, and here’s a neat trick: Stochastic tends to give me a heads-up on price changes a bit earlier than the Moving Averages do. I’m all about using that advance notice to get ready for placing a contract once I see that confirmation.
