Introduction

The STOCH binary options trading strategy generates signals based on Stochastic Oscillator with 68% to 72% win rate. This strategy is designed to work with 10min to 15min expiry times, although you may use other expiry times as well. To do so, switch the asset chart to the desirable time frame and select the option expiry time accordingly.

Key Features

Difficulty Level 50%
Expiry Times 10min, 15min
Strategy Type Indicators
Win Rate 68% to 72%
Key Tools Stochastic

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1 Open an Account to Start Using This Strategy

2 Set up Your Chart

Open Tradingview.com to start trading based on the STOCH Strategy.


Open Tradingview.com >

Select the asset you want to trade.

Switch to 1 minute time frame.

3 Apply the Indicators to Your Chart

Add the following technical indicators:

Stochastic Oscillator with the following settings: Length=21, D=9, K=9

Stochastic Oscillator with the following settings: Length=9, D=3, K=3

4 Get Trading Signals

CALL Signal

  1. The Stochastic (21,9,9) signal line crosses the 20 level bottom-up.
  2. Both Stochastic (9,3,3) signal lines cross bottom-up.

Once you've got these signals, wait for the current candle to close and buy a CALL option.

PUT Signal

  1. The Stochastic (21,9,9) signal line crosses the 80 level from top to bottom.
  2. Both Stochastic (9,3,3) signal lines cross from top to bottom.

Once you've got these signals, wait for the current candle to close and buy a PUT option.

5 Select Assets, Options, and Expiry Times

This strategy works well with volatile instruments, such as Forex currency pairs. Trade regular binary options with 15-minute expiry times.

Money Management Rules

As a binary options trader, you should always keep the risks in mind. This is why your investment amount should not exceed 2% of your account balance. Despite all our strategies being quite effective (around 65%-75% win rate), you should still stick to that 2% rule. To comply with this rule, however, you need to have an appropriate account balance, which should be at least 50 times bigger than the minimum investment amount allowed by the broker. To minimize your risks, you may want to check out our Binary Options Trading Risk Management article.

More on Risk Management