tradeacademy

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Table of Contents Introduction .................................................................... .......................................................................................................................................... ........................................................................ .. 3 Trading language ................................................................................ ................................................................................................................................. ................................................. 3 What you need to start trading .............................................................................................. .............................................................................................................. ................ 3 Getting Started ....................................................................... .................................................................................................................................... ............................................................. 4 Rules.............................................................................................................. .................................................................................................................................................... ...................................... 5 Software Interface .............................................................................................................. .............................................................................................................................. ................ 5 Placing Your First Trade .......................................................................................................................... .......................................................................................................................... 7 Trade Preparation ............................................................................................................................... ............................................................................................................................... 7 Chart Setup ..................................................................... ........................................................................................................................................... ........................................................................ .. 9 Candlestick Design .......................................................................................................................... .......................................................................................................................... 9 Mobile Setup ................................................................................................................ ......................................................................................................................................... ......................... 11 Step 1: Chose a currency pair (any) .............................................................................................. .............................................................................................. 11 11 Step 2: Change the plot style to 1minute candlesticks .............................................................. ................................................................. ... 13 Step 3: Add Bollinger Bands with Period 20 and Deviation 2 ....................................................... ....................................................... 15 PC Setup ................................................................................................................................................ ................................................................................................................................................ 18 Step 1: Chose a currency pair (any) .............................................................................................. .............................................................................................. 18 18 Step 2: Change the plot style to 1minute candlesticks .............................................................. ................................................................. ... 20 Step 3: Add Bollinger Bands with Period 20 and Deviation 2 ....................................................... 23 Trade Signals ......................................................................................................................................... ......................................................................................................................................... 25 Putt Trade ................................................................... ......................................................................................................................................... ...................................................................... 25 Call Trade .................................................................... .......................................................................................................................................... ...................................................................... 26 Dealing with losses.................................................................. ............................................................................................................................ .......................................................... 27 Worst Markets to trade. ............................................................ ....................................................................................................................... ........................................................... 29 Market Hours .................................................................................................................................... .................................................................................................................................... 30 Best Markets to Trade.......................................... Trade............................................................................................................. ................................................................................. .............. 31 Conclusion......................................................................................................... ............................................................................................................................................. .................................... 32

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Introduction This is a manual that l am creating for first time or amateur traders. But the method of trading described here can also be implemented by professional traders. I’m not a good trader, however, using these simple tools and technique l managed to make a decent amount of profit.

To avoid making this document too long let me get straight to the point. Your curious how l make money online. I use Binary options to make a few extra dollars. In computer language binary means ones and zeros. In the old day’s programs day’s programs were made using binary code, code consisting of only ones and zeros. With binary options there are two decisions you have to make. Determine if the market is going to go up or down in the next few minutes or months. And from your prediction there can only be two outcomes, either you make a profit or a loss.

Trading language Before you begin l must arm you with a few trading terms you need to know. You can google if you want a deeper understanding 1. Put - it’s a it’s a sell option or prediction that the market will go down 2. Call – Call – it’s a it’s a buy option or prediction that the market will rise 3. Candle Sticks - graphical representation of the opening price and closing price of an asset over a specified period of time 4. Bollinger Bands - trade indicator that shows when w hen an asset is over bought or over sold 5. Bullish - a market that’s in a strong up trend 6. Bearish - a market that’s in a strong down trend 7. In The Money - when you win a trade 8. Out of The Money - when u loss a trade 9. PIP - The unit of measurement to express the change in value between two currencies

What you need to start trading 1. First thing that you need when you want to be a successful trader is a watch. Yes, a watch, a digital watch to be exact. Later on your going to understand how and why you need it.

2. Sign up with a binary options broker of your choice. I personally use IQOPTION as my broker. There are lots of brokers out there like 24Option, BankDeBinary, CherryTrade and so on but not all of them have great deals like IQOPTION. With IQOPTION your minimum deposit to start trading is only $10 and for 24Option its $250. With IQOPTION you can invest $1 per trade where as in 24Option its $25 per trade.

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If you want to register with IQOPTION click on the link below. By clicking on that link you will get a free demo account to practice trading before you put real money. And we get to be on the same team.

3. If you have register using the link above, then you will have a demo account with $1000. $1000. IQOPTION has both a pc and mobile platform. Download on the links below.

Getting Started You have everything set up and your staring at you IQOPTION platform. All you can see is a line moving up and down. When your trading you will be trying to predict where that line is going to end up, either higher than the point you set or lower.

You might be wondering why not many people do it if it’s that it’s that simple. The answer is because many traders go into trades without a strategy. You will find someone placing a trade in a particular direction for a certain time but if you ask them why they did that they won’t have won’t have an answer to it.

I have told you the basics of binary options trading and l have recommended the platform to trade on, the only thing left is to give you the best strategy to use. Please note that the strategy l’l’m giving is the one l currently use and its working for me very well.

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Rules Before l tell you the strategy there are a few rules you need to follow and follow strictly. 1. Stick to the strategy no matter what!!!!!!! 2. Don’t be Don’t be greedy putting more than 2% of your account balance on a single trade

Software Interface Pc Version

Mobile Version

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Best platform to use between PC version or Mobile Platform all comes down to personal preference. Mobile version is simplified and l noticed that it takes trades faster than the PC version. When it comes to 60 second trading every second counts. You will understand why if you read on.

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Placing Your First Trade You use the Call or Put button to place a trade. Call if u think the currency pair will go up or Put if you think it will go down. You can specify the amount you want to place on a single trade. Minimum trade is $1 and maximum should be over $1 000 000 000. You can switch between the demo account and your real account at any time by clicking on your balance. Using your demo account just play around with the interface and get familiar with the controls.

Trade Preparation If you have placed a few trades to get used to the interface, then that’s great. Now let me tell you the strategy I use to make a profit. Before l used this strategy my profits were not consistent and l made a few loses but after using this strategy l’m now more confident in my trading and l’m starting to feel like a real life broker working at Wall Street.

For our strategy we are going to use an indicator called Bollinger bands. This indicator is available on, most if not all, trading platform. If you didn’t use IQOPTION as your broker, you can use the link below to see stock charts with the indicator. This website only works on PC.

In order to make my document short you can google about how Bollinger bands do their t heir calculation in the background. Best part is John Bollinger, the creator of the indicator is still alive and has a lot of webinars on YouTube where he talks about the indicator. Link below.

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In short, Bollinger bands show us when an asset is overbought or oversold. If an asset is overbought that means people are likely going to sell. If its oversold the opposite happens. So we are going to try identify these overbought and oversold zones then place our 60 second trade. We will be making 2 big assumptions,  

that the market has reached its peak and will reverse

So that means all the time we will be trading in the opposite direction of where the market was headed.

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Chart Setup Here are the juicy details now. Every trader has a chart set up they t hey are comfortable comfortable with. Before l place a trade l make sure my chart setup is what l want it to be. Here are the chart settings 1. Chose a currency pair (any) 2. Change the plot style to 1minute candlesticks 3. Add Bollinger Bands with Period 20 and Deviation 2

Candlestick Design

CANDLESTICKS

LINE CHART

I avoid the Line chart because it shows me only the market direction. Candle sticks were originally used by Japanese traders and they were later adopted by traders all over the world. Here is the structure of a candle stick and notice the level of detail you can get from a single candlestick. Click on pic below for detailed video.

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1-minute candlestick will show:    

opening price highest price reached lowest price reached and closing price; of an asset for a 1-minute period.

So a candlestick is produced every minute. 5 candlesticks mean it’s a period of 5-minutes. 5-minutes.

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Mobile Setup Step 1: Chose a currency pair (any)

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You should see something like the pic above

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Step 2: Change the plot style to 1minute candlesticks

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You have successfully turned your chat into 1-minute candlesticks. Disable Auto-scaling Auto-scaling because it will automatically change your settings if you zoom in the chat.

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Step 3: Add Bollinger Bands with Period 20 and Deviation 2

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Bollinger band Period should be 20 and Deviation 2. It’s important to put these exact settings. This settings. This mean our Bollinger Bands will be looking at the previous 20 candlesticks to do their calculation.

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You should be able to see three lines on your 1-minute 1 -minute candlestick candlestick chart. The top line shows you a currency is overbought and the bottom line shows when it’s oversold.

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PC Setup Step 1: Chose a currency pair (any)

We will be doing Turbo trades. These are trade that have expiry times less than 5 minutes.

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You should have a screen as above. The tab title will take the name of the currency pair. In this case EUR/USD. You can have as many tabs as you want with different currency pairs if you are a swing trader.

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Step 2: Change the plot style to 1minute candlesticks

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You have successfully made a 1-minute candlestick chart.

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Step 3: Add Bollinger Bands with Period 20 and Deviation 2

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Change Period to 20 Then click Apply. That means our Bollinger Bands will be doing their calculation based on the previous 20 candlesticks.

Your chart should look like the one above. Bollinger bands are those 3 colored lines that are moving along with our candlesticks.

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Trade Signals When you have done all the chart setups now we need to know what to look for. This is the important part and understanding this is vital. Remembering the structure of a candlestick is important here. Have your digital watch ready and before you use it make sure you synchronize it so that when your watch second hits 00 a new candlestick on the chart will be starting to form. To get the timing just right I place a trade in my demo account account in which ever direction. Then when that trade either hits 60 sec or when it expires, l reset the seconds on my digital watch. That way l know that when my watch hits 00 seconds that will be the opening of a new candlestick.

Putt Trade If a green candlestick breaks and closes above the upper Bollinger band, we place a Putt trade for 60 seconds. In the chart you can see that the green candlestick that’s before my red arrow broke and closed above the upper Bollinger Band. As soon as that green candle closes we place a 60 second Putt. That digital watch will come in handy to time when to enter into your trade. Remember we are using a 1-minute candlestick chart so that that means if our trade candle is red we will be “In The Money”. In the example we would’ve won that trade.

Another good example. The higher the green candlestick closes from the upper Bollinger Band the better

NOTE: Trade expiry time will be 60 seconds or less unless you specify you want your trade to expire NOTE: after more that 60seconds

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Call Trade If a red candlestick breaks and closes below the lower Bollinger Band, we place a Call for 60 seconds. Trade Call when a Red candlestick closes below the lower Bollinger Band. Making a 60 second Call would’ve expired “In the Money” Your digital watch should be near so that you place your trade when the second hits “00”

Another good example of a Call Trade

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Dealing with losses The market doesn’t always go our way because a lot of factors beyond our control come into play when a chart moves a single pip. Our strategy will not make you win 100% of the trades you make, however, it increases win to loss ratio. What do you do when the Bollinger Band strategy fails? Here is what l suggest, Martingale.

Martingale is a strategy that requires you to double your initial trade amount on the next trade and when we win the trade we go back to our initial investment of $1. If you see a signal then you place a trade and loss, you enter another trade soon after that losing trade in the same direction but you double the amount on the second trade. This is key to managing your losses. Here is a diagram of how l apply Martingale strategy.

Assuming that your trading EUR/USD with a payout of 86%

Trade Number

Investment Amount $1 $3 $8 $18 $30

1st 2nd 3rd 4th 5th

Return $1.86 $5.58 $14.88 $33.48 $56.10

The advantages and disadvantages of this strategy are very clear.

Advantage   

If you win the next trade you get back the money you lost plus profit. That would mean your success rate will be 100% You might rarely go up to the fifth trade without winning

Disadvantage 

Limited to the size of your account balance.

So if you make more than 7 failed trades using martingale you might wipe out your account. In a bad situation where l’ve l’ve lost 4 consecutive trade l place a 5th trade of $30 in the opposite direction. This is because l would’ve rrealized ealized that after a candlestick closed below or above the Bollinger Bollinger Bands the chart would’ve gone into a trend. Let trend. Let me try to explain using a live l ive chart.

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2 1

3

4 5 6

On the Chart above candlestick 1 closed above the upper Bollinger Band so a 60 second Putt trade of $1 on the start of candlestick 2, and the trade would’ve expired “In the Money”

A few minutes later another potential trading point appeared appeared on the candlestick l marked “3”. It broke and closed below the lower Bollinger Band so that’s a signal that we should make a $1 Call trade for 60 seconds. When l see a candlestick cutting the Bollinger bands l look at my watch and get ready to enter a trade. Following our strategy, we we would’ve placed a Call trade on candlestick “4”. When you place a 60 second trade don’t look don’t look away from your trading screen and hope when the trade expires you will be in the money. Watch the trade. As soon as you place a $1 trade immediately increase the amount to $3 such that if i f your trade expires Out of the Money, you instantly place the $3 trade in the same direction the exact second the previous trade expires. In the case above immediately place another Call for 60 seconds but invest an amount of $3. Candlestick “5” would’ve been our second Call trade, and it would’ve lost again again because the candle is red. Our account will be down by $4 now and we will need to recover that lost money fast. We immediately place another 60 second Call trade but with an amount of $8. Trade will be on candlestick “6” and that would’ve been a winning trade. That means we will get back all the money we lost in the previous 2 trades as well as the profit we would’ve gotten from those 2 losing trades and profit from the third trade.

In a case where you have lost 4 consecutive trades you should make a fifth 60 second trade of $30 in the opposite direction. If you lost 4 Putt trade the fifth will be a Call trade. Chances are high that you traded when the market was getting into a trend so but trading with the trend you might recover your losses.

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Worst Markets to trade. Indecisive Markets Or Markets in Consolidation Characterized by:  

Long candlestick upper and lower shadows Candlesticks moving in almost a straight line for a long period of time.

Such a market can break into a trend any second. The break out could be a continuation of the previous trend or it could mean the t he market wants to reverse and go the opposite direction of the previous trend. tr end.

Short Candlesticks Characterized by: 

Obviously a series of very short candlesticks

Short candlesticks mean there is low trade volume in the market. Not many people will be Buying or Selling when you see this. Avoid trading when you see this. Trade safe. If you win a trade in such a market you will win by a few pips and that t hat kind of risk is what we want to eliminate.

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Trending Markets Characterized by: 

Movement of candlesticks strongly moving in 1 direction.

If one colour of candlestick is dominating your screen, then that means that market is in a trend. Our strategy utilizes reversals so you can lose all your money waiting for a reversal that’s not going to happen.

Market Hours Don’t trade during London, New York, Sydney and Tokyo lunch times. There are market hours when people can trade. When you trade during lunch there will be low volume in t he market and trades will be risky. Click on the link below for more information.

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Best Markets to Trade Long Candlesticks

Long candlesticks represent a lot of activity in i n the market and it’s a good thing. Long candlesticks mean we will win by a lot of pips. If the market moves far away from the point we placed our trade in the direction that we said it will go then our hearts will relax a little before the trade expires.

Ranged Markets

Ranged Market is one where the Bollinger Bands are moving horizontally and the candlesticks are moving within the upper and lower Band margins. Be happy when you see such a market. Page 31 of 32

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Conclusion Time the entry of your trade, stick to the strategy and manage your losses. Put those three things together and you will find that trading doesn’t always end up with you having an account balance of 64cents.

This strategy will not work if you deposit $10 into your trading account because $10 will not allow you to effectively use the Martingale strategy. The Martingale strategy is key for account money management. management. I suggest an initial deposit of $108. That much money allows you to go up to the t he 5th trade. Worst case scenario is that you loss all 5 trades tr ades on your first attempt at trading. Chances of that happening are very slim but the possibility is there. On baddays’ bad days’ l l usually win on the 3rd trade of $8, only placed the 5th trade of $30 once ever since l started using this strategy.

During the making of this document most of the snap shots l took from my live account. Notice how my balance is always increasing in each snap shot. That’s That’s how  how good this strategy is. Happy trading guys. Hope this document helps you towards financial freedom.

If you have any questions, contact me:

+263782209270

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