The Plank Strategy Profit On Futures Rates

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The “Plank” Strategy: Profit On Futures Rates

Using scalping in trading short-term contracts is a fast and simple way to increase your trading capital. However, the main advantage to scalping is the absence of connections between trading and some event or another, such as trading the news, or having to wait long periods to earn a profit, like you do with long-term rates. All that that a trader needs for scalping is a highly effective strategy and a volatile financial asset. We recommend “Plank” as a trading strategy, and you can get a volatile tool on any trading platform where they offer a wide and varied selection of financial tools.

Technical Demands

So, the strategy works using highly technological indicators, which aren’t available on electronic futures contract operators’ trading platforms. Therefore, we suggest using the well-known terminal, Meta Trader 4. You can easily download the service online. Besides that, safetradebinaryoptions.com, a resource for professional traders, offers a selection of all the necessary analytical services (we will need live chart for this strategy). As a demonstration, we propose using terminal MT4. To set up the strategy template, follow the instructions below:

* Drop down in the platform catalogue to РњРў4, as shown in the picture below:

* Copy the file В«IndicatorsВ» from the article archive and put it in the platform file MQL4;

* Copy the content from the file В«templatesВ» in the main platform catalog РњРў4.

* Restart the program and set up the strategy template for В«PlankВ» on the live rate chart:

If you have completed everything as per the instructions, then you should see a rate chart like the one depicted here:

STRATEGY INDICATORS

* Moving Average (РњРђ) is a simple trading indicator which shows the direction of the trend

* QQE are services with various setups which pin point changes in trend directions

Trading Platform

Using a third-party technical resource for analysis allows you to perform the strategy correctly on any terminal. However, in order to get a high level of trading security and optimal working conditions on the market, we recommend using only licensed companies with good reputations. Specifically, we would recommend using Binomo as an example. The company has been ranked highly for many years, and provides all the technical indicators needed for trading and offers the most attractive financial terms for working on the market.

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  • Binarium
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    Perfect for beginners!
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  • Binomo
    Binomo

    Good choice for experienced traders!

TRADING SIGNALS

For BUYING options:

* The service’s Moving Average QQE with a frequency of 6 (in the upper indicator window) crossing over level 50

* A Moving Average QQE with a frequency of 60 crossing above

* On the rate chart a cluster of green lines cross over the pink MA

* The price candle closes above the pink MA

After the signal’s candle closes BUY:

For SELLING options:

* A Moving Average QQE with a period of 6 (in the upper indicator window) crossing under level 50

* A Moving Average QQE with a period of 60 crossing below

* On the rate chart a cluster of green lines cross under the pink MA

* The price candle closes below the pink MA

After the signal’s candle closes, SELL:

APPLICABLE CONTRACTS

This trading strategy was thought up to use for rates with short lifespans. Therefore, use “Turbo” contracts with expiration periods up to 300 seconds, or traditional futures rates with contract life spans up to 45 minutes. During this, it is vital to choose a chart rate timeframe for analysis, where the price expiration period forms no more than 4 candles, ideally M5 and higher.

PROFITABILITY AND MONEY MANAGEMENT

As you understand, it’s hard to discern how profitable any strategy is, therefore we’ll give some examples of average indicators, which the strategy shows when trading with simple futures rates. On average, the strategy produces a profit on 8 out of 10 contracts. With regular trading activity, this means you can grow your deposit 85-100% in a week. Turning a profit trading on the futures market is directly dependent on a trader’s ability to correctly manage their capital. There’s nothing magical about it, just don’t use more than 3% of your total capital when placing a contact.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

A scalping strategy for options

The format of scalping on options is a fairly common way of making a profit in this area of the market. The speed of trading and its high profitability results are the main factors that attract people to this method of trading. Today we will consider the effectiveness of high-speed trading, as well as a few practical examples of scalping strategies for futures contracts that could become highly effective tools for predicting the market using short-term contracts.

How reliable is the scalping strategy for options?

The question of reliability and effectiveness of this strategy for scalping on the market is primarily related to the effectiveness of the trading signals of the system, as well as the correct risk management. In addition, the reliability of this scalping strategy is tied to the professional level of the trading terminal and the parameters of the trading conditions that are available on the operator’s platform. By picking the right technical and trading parameters for the scalping strategy you can get fairly stable and high results using this trading format. Here are a set of recommendations that contribute to the effectiveness of scalping on options:

• Use platforms for trading from professional companies — in this regard, we recommend the terminal for futures trading from the our brokers rating, where you will find all the necessary technical indicators for scalping, as well as a set of highly effective forecasting tools
• Carefully and accurately calculate the risks when registering trading positions. The correct ratio of the cost of the trade to the volume of capital will help you avoid critical losses and drawdown in your account
• To conduct trading in scalping mode, use a system with an efficiency level of at least 85% and maximum universality for all underlying assets

This list of recommendations will allow you to engage in high-frequency trading in a safe and profitable mode.

Scalping indicators for options

Market professionals recommend using technical indicators that are capable of generating signals on fast impulse changes in the price of an asset as forecast indicators for scalping trades on the futures market. In this case, the main trend indicators work perfectly, and they can be found on the many platforms:

This set of forecasting tools will allow you to build universal strategies for scalping on electronic options.

A scalping strategy for futures trades – practice

For our first practical example of a strategy for scalping on the financial market, we will show a system that uses a combination of settings of two trend indicators. This format of generating technical signals allows you to best assess the current market situation on the asset chart and opens up the possibility of determining the points of price quotes where the chart reverses to build corrections or new trends. So, let’s set the following technical forecasting tools on the asset quotes:

• EMA Indicators with technical parameters 10, 20, 30
• 2 MACD indicators — 50/75/9 and the standard configuration

We will use turbo trades with an expiration period of 120 to 240 seconds, and we will register the positions when we receive the following signals from the indicators:

• EMA Indicators – a beam of movings reverses upwards on the chart after convergence in one point
• Indicator MACD 50/75/9 – the lines intersect upwards
• Standard MACD – the movings intersect level 0 upwards

Signals for trades DOWN will have the reverse building configuration. This scalping strategy format has a technical signal efficiency ratio of 90% and allows you to make the most stable earnings for short-term trading. It should be noted that the risk management parameters for this system are of the classic parameters – the maximum amount of trading funds for one trade should not exceed 3% of the total amount of capital.

Scalping in 1 minute

The next scalping strategy format for electronic options is designed to work with contracts that have the minimum expiration period of 1 minute. Here, trend indicators are also used with subtle settings parameters, allowing for the formation of two types of trading signals for turbo contracts. In this way, we will achieve high cyclicity of our technical signals and increase profit opportunities for scalping since this operating approach makes it possible to register contract packages. So, let’s install the following instruments on the trading chart:

• SMA 5 and 10 indicators — we use blue for the moving with a five-minute period of building, for the second technical tool we use the standard coloring.
• MACD indicator – standard

To register trades UP with expirations of 1 minute, we use the following types of technical indicator signals:

Signal for the 1st type:

• The technical movings of the MACD indicator intersect upwards
• The blue lines of the SMA indicator intersect the second moving upwards

Signal for the 2nd type:

• The MACD oscillator lines intersect level 0 upwards
• The SMA indicator movings diverge upwards on the chart without intersecting

Using these signals, you can register up to 40 trades with short-term options in one hour, of which 90% will close with a profitable result. This factor will make it possible for you to earn up to 300% per week on options scalping.

Let’s sum up — scalping with futures trades using the correct mode of risk management and in combination with an effective trading system is the most rapid way to increase your account balance.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

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