Donchian Binary Options Trading Strategy
The DONCHIAN binary options trading strategy generates signals based on Donchian Channels and SMI Ergodic with 68% to 72% win rate. This strategy is designed to work with 10min expiry time, 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 Tools||Donchian Channels,
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1 Open an Account to Start Using This Strategy
2 Set up Your Chart
3 Apply the Indicators to Your Chart
4 Get Trading Signals
- The current candle closes above the DONCHIAN central line.
- The SMI Ergodic lines cross bottom-up.
Once you've got these signals, wait for the current candle to close and buy a CALL option.
- The current candle closes below the DONCHIAN central line.
- The SMI Ergodic 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.