We love to trade 5 minute binary options. Ideally each hour should provide you with 12 trades. Of course it is not possible to trade each 5 minute candle. However in 1 hour you can easily make 5-10 trades if you are experienced. When the trend starts on the 5 minute chart it is very simple. Open each trade in the direction of the trend. We only need 2 charts for this 5 minute binary options strategy: 5 minute and 1 minute. 5 Minute tells us what option to buy whether it is a put or a call while 1 minute gives the price time when to pull the trigger. Now when trading 5 minute binary options you need to be pretty quick. But don’t worry we have done it and we think you too can do it with a little practice. We have easily achieved a winrate above 85% with this strategy. Take a look at the following screenshot.
In the above 5 minute EURUSD chart, you can see the red arrows. These red arrows are the trades that were made in a period of 35 minutes. We try to predict each 5 minute candle looking at the shape of the previous 5 minute candle plus looking at the 2 EMAs and the MACD indicator below. Now look at the M1 chart below.
This is the 1 minute chart that gives the entry signal. Looking at the 5 minute chart we decide in which direction we are going to buy. If the previous candle is bearish we know 80% of the times the next candle will also be bearish. We switch to M1 chart and then find the high where we will enter so that when price starts moving down we end up in the money. In the same manner when the previous candle is bullish the next candle also has got 80% chance to be bullish. This time we look at the M1 chart and try to find the low where we will make the entry so that we end up in the money.So what we are doing is primarily looking at price action and the making our decisions.
Suppose you have $5K in your trading account and you bet $100 on each trade. $100 is 2% of the account equity so you are not risking more than 2% on a single trade. If the broker gives 82% return, betting $100 means you make $82 profit and making 10 winning trades each day will make you $820 profit daily. This is how you are going to achieve this. You will trade 1 hour during the London Market Session and make 5 trades. Then you are going to trade 1 hour during the New York Market Session and make 5 trades daily. That’s it. You don’t need to make 10 trades. 5 trades are enough to make you a profit of $500. So its up to you. With this strategy you can make $500 daily if you trade just 1 hour either during the London or the New York Market Session.
Now you don’t need to start with $5000, you can start with $1000. In this case you will make trade with $20 which gives you a risk level of 2%. Each winning trade should make you a profit of $16.4 and with 5 trades you make daily $83 and in 10 days you have $830.
You can start with $500 or even $100. In case of $500 you make $10 trades and in case of $100 you make $2 trades. In the beginning just don’t withdraw the funds. Let the account equity grow to $1K at least then you can start withdrawing the profits.
The most important thing is risk management. Make sure that you understand the concept of risk management well. There is no need to be greedy and risk more than 2% per trade. Always make sure you only risk 2% of the account equity on a single trade. If you start small with a small capital, don’t worry at all. As explained above in the beginning don’t withdraw the profits and let the account equity grow.
As said above you need to be pretty quick when trading 5 minute binary options. A difference of 1 pip can turn a losing trade into a winner or it can also turn a winner into a losing trade when you make the entry a bit late with price moving 1 pip. But we have done it and we think you also can do it with a little bit of practice. You can also join our Live Trading Room where we trade the binary options daily 1 hour during the London Market Session and 1 hour during the New York Market Session. In our live trading room you can watch our screen and when we say enter a 5 minute put option, you should have your broker platform open and you should immediately enter a put option with expiry 5 minute.