This is a 1 hour forex strategy that is set and forget. We have combined forex with binary options in this 1 hour forex strategy. So let’s discuss this strategy in detail. Take a look at the M15 chart below of GBPUSD.
Did you see a pattern on the above screenshot that is repeating again and again? Look above or below each red arrow in the above screenshot and you will find a special pattern. Did you see whenever a bullish candle is followed by a bearish candle, the next 2 candles are bearish. In the same manner whenever a bearish candle is followed by a bullish candle the next 2 candles are bullish. So whenever you spot this pattern in which a bullish candle is followed by a bearish candle, you can buy a put option with expiry 30 minutes. In the same manner whenever you find a bearish candle followed by a bullish candle, you can buy a call option with expiry 30 minutes. Now take a look at this 15 minute chart of EURUSD below.
In the above screenshot, you can once again find this pattern repeating again and again. Whenever a bullish candle is followed by a bearish candle, the next 2 candles are bearish and in the same manner whenever a bearish candle is followed by a bullish candle, you will find the next 2 candles bullish. So when you find a bullish candle followed by a bearish candle, buy a put option with expiry 30 minutes and in the same manner when you find a bearish candle followed by a bullish candle, buy a call option with expiry 30 minutes.
Important question? Does this pattern work on M30? This pattern works very well on M15 but not that well on M30. You can check it. Once you enter into a 30 minute trade, it is set and forget. Either you win or you lose. So you can enter 5-10 trades in a short span on 60 minutes with this strategy and then enjoy the rest of the day. Practice this strategy on the demo account first. If you lose one trade, don’t try to double up and use martingale. Just make the next 2 trades with care and you will recover the loss.
Don’t risk more than 2% of the account equity on the single trade. If you have $100 in your account, it means you should open the trade with $2 only. You will get a return of $3.50. So your profit will be $1.50. You only need to make 5 trades daily to make a return of 7% which should be sufficient for you. If you make 10 trades daily, you can make a return of 15% daily with this strategy. This is what you can do. You can trade for 1 hour in the morning and make 5 trades. In the night you can again trade for one hour and make another 5 trades and you are all set to make a return of above 10% daily with this simple 1 hour strategy.
Unlike a forex strategy where you have to take care of the profit target also, in this strategy you just need to make the entry right and rest is all set and forget.