5 Minute Binary Strategy High Win Rate

83% WIN RATE 5 Infinitesimal ULTiMATE Scalping Trading Strategy!

Traders employ a variety of strategies in society to be able to consistently beat the markets and profit — however, there are few methods of trading as constructive as scalping. Scalping refers to a grade of trading that relies on making a series of small profitable trades, focussing on quantity rather than quality in order to boost profits. The main focus of such strategies is to utilise trading volumes rather than performing a lot of complex technical analysis. At that place are several such trading strategies, and i of them has been discussed in this article. Read on to detect out more.

Indicators Explained

At that place are 3 main indicators used in this trading setup, and each of these indicators has been explained below in detail.

EMA

The EMA is simply the exponential moving average of the stock's closing price over a given number of trading sessions. It works in a very similar way to the SMA (Simple Moving Average), except it gives more than priority to more recent data as this is considered to be more relevant than old data. The parameter that y'all have to enter for the EMA is the fourth dimension catamenia. Usually, traders only go long when the current price is in a higher place the EMA, and curt when prices go below the EMA.

MACD

The Moving Average Convergence Divergence or the MACD is a momentum-based indicator that shows the relationship between two unlike EMAs. It is calculated by subtracting the EMA over the larger period from the EMA over the shorter period. This line can so be superimposed over another EMA line (called the signal line) in order to use every bit a buy or sell betoken. Usually, traders go long when the MACD is to a higher place the EMA, and short when the MACD is below the EMA.

RSI

The RSI is a momentum indicator that is used to analyse the stock and place if it is overbought or oversold at any bespeak in time. It does this by monitoring the magnitude of contempo price changes. The RSI is presented as a number betwixt 0 and 100, wherein a number beneath 20 represents an oversold stock (ripe for a long position) and a number in a higher place fourscore represents an overbought stock (ripe for a short).

Settings

For this particular trading setup, the following settings were used on the indicators:

EMA: Iii different EMAs were used in this setup, each with different fourth dimension periods. They were all marked with different-coloured lines:
EMA 1: Period = 9
EMA 2: Period = 55
EMA three: Period = 200
MACD: The point line and the MACD line were disabled, and just the histogram was used. While the original chart was in 5-minute intervals, the MACD histogram was made on a i-minute interval.
RSI: The heart band is emphasized every bit opposed to the overbought (>eighty) and the oversold (<20) bands.

A long position was initiated whenever EMA ane was above EMA 2, which was in plough above EMA iii. In improver to this, the RSI would accept to be above 51 and in that location would accept to be a red tendency that is higher than the average (indicated through the MACD histogram).

A short position was initiated whenever EMA ane was below EMa 2, which was in plow below EMA 3. The RSI nautical chart would have to be below 49, and in addition to this, the MACDE histogram would have to evidence a larger-than-average green band.

These indicators were set to indicate pullbacks in trends. Larger-than-average bands can easily be identified past adding Bollinger bands to the MACD, and a higher-than-average or lower-than-average bar exists whenever a candle touches the Bollinger bands.

The adventure-reward ratio was ready equally 1:2.

Results and Adjustments

Initial Results

After a 5-minute scalping session over the course of three months worth of by information, the overall results were:

Profitability: 112.62% net turn a profit

Number of Trades: 151

% of trades profitable: eighty.79%

Turn a profit gene: 2.022

Drawdown: 11.94%

Adjustments

Some boosted indicators and settings that could be added in order to increase the win charge per unit and reduce the risk employed are:

The RSI lines could be changed to 48 and 52 instead of 49 and 51 to ensure that the RSI has moved by the 50 line.
The ADX indicator could be added to weed out bad trades that would've been made when the trend was about to cease.

Conclusion

Scalping has been proven to be one of the nigh assisting trading strategies out in that location, however, fifty-fifty when you're scalping, you lot need to ensure that you have a high win rate so that the strategy is fruitful and profitable. Using the strategy discussed to a higher place, you lot will be able to profit in both bull and bear markets consistently. Y'all tin even tweak the settings to suit your level of gamble and trading style, finding the right balance between the win charge per unit and the net profit.

Resources:

83% WIN Charge per unit 5 Minute ULTiMATE Scalping Trading Strategy! — YouTube
Exponential Moving Average — Investopedia
Moving Average Convergence Divergence — Investopedia
Relative Strength Index — Investopedia
Strategy on TradingView