The FX VECTOR binary options strategy is a successful combination of a trend indicator, a currency pair scanner, and a control panel for trader convenience. Using the scanner, users can select the most promising assets with the strongest trends in just a few clicks, while the built-in indicator's arrows will prompt the optimal moment to enter trades. We'll explain how to set up this system for binary options trading in this review.
Content:
- Characteristics
- Installation
- Overview and settings
- FX VECTOR Trading Rules
- Specifics of application
- Conclusion
- Download FX VECTOR
Characteristics of the FX VECTOR Binary Options Strategy
- Terminal: MetaTrader 4
- Timeframe: M5
- Expiration: 5 candles
- Option Types: Call/Put
- Built-in indicators: FXVECTOR - Currency POWER.ex4, FXVECTOR - Entry2.ex4, FXVECTOR - Pairs and TF.ex4
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 8:00 - 20:00 (GMT+2)
- Recommended brokers: Quotex, Pocket Option, Alpari, Binarium
Setting Up a Strategy for Binary Options FX VECTOR
The FX VECTOR strategy indicators are installed in MetaTrader 4 using the standard method. First, open the terminal and select "File" → "Open Data Folder" from the top menu. In the window that appears, navigate to the MQL4 → Indicators folder and copy all indicator files there.
If the package contains templates, they need to be moved to the templates folder in the root directory of the terminal.
After this, restart the platform for the new indicators and templates to appear in the list. For more detailed instructions, watch our video:
FX VECTOR Binary Options Strategy Review and Settings
The FX VECTOR strategy includes two indicators — Currency POWER and Entry2 — as well as the Pairs and TF dashboard. The Currency POWER indicator is a classic ranking of currencies by their relative strength.
As the image above shows, at the time of writing, the Japanese yen was leading the market with a relative strength index of 80%. It was followed by the Australian and New Zealand dollars, as well as the Swiss franc, each at 70%. The weakest currency during this period was the US dollar, with a relative strength index of 20%.
It's easy to see from the table that we should be looking for Put option trades on the USDJPY currency pair: we are selling a weak US dollar and buying a strong Japanese yen.
The USDJPY currency pair chart confirms this assumption: the rate has dropped significantly, clearly indicating the prevalence of a bearish trend.
The Entry2 indicator generates signals to open positions, represented by a dot and arrow. A white dot and arrow indicate the purchase of put options, while a blue dot and arrow indicate the purchase of call options.
For easy navigation of currency pairs, an interactive Pairs and TF panel is provided, allowing you to select not only the desired asset, but also the timeframe.
Let's move on to the strategy's basic settings. In the currency pairs leaderboard settings, you can set the display angle, enable or disable sorting, and change the background color.
In the FXVECTOR - Pairs and TF.ex4 indicator settings, specify a list of currency pairs of interest, listing their codes at your broker, separated by semicolons. Please note: some brokers may use prefixes and suffixes in currency symbols. Currency pair names must be entered exactly as they appear in the Market Watch section of the trading terminal.
The Entry2 signal indicator has the fewest settings. The user can only set the number of candles on which this indicator is calculated and enable pop-up messages.
If you'd like to learn more about signal indicators and how to use them correctly in binary options trading, check out our collection of articles on this topic:
- Radar 2022
- SVE Bollinger Band MTF
- "Comet"
- Binary Thunder
It contains a lot of useful materials that will help you better understand the techniques and improve your skills.
FX VECTOR Trading Rules
Trading with this strategy is simple: just wait for the dot with an arrow of the desired color to appear and open a trade in the specified direction.
Opening a Call Option
- We select the strongest currency pair from the rating table.
- We wait for a blue dot and an arrow to appear under the candle.
- At the opening of a new candle, we buy a Call option.
Opening a Put Option
- We select the weakest currency pair from the rating table
- We wait for a white dot and an arrow to appear above the candle.
- At the opening of a new candle, we buy a Put option.
We recommend setting the expiration time to two candles. However, the optimal holding period depends on the specific asset and should be determined by you based on historical data testing results. This approach will help tailor the strategy to the specifics of the chosen instrument and improve its effectiveness.
Specifics of Using the FX VECTOR Binary Options Strategy
A unique feature of the FX VECTOR strategy is its ranking table, calculated using the Currency Power indicator. It shows the strength or weakness of each currency relative to all major currencies. Unlike the familiar RSI oscillator, which analyzes only one currency pair, such as EURUSD, this tool reflects the overall market picture and helps traders quickly identify which currencies are gaining strength and which are losing ground.
This makes it easy to choose an asset that is trending and best suited for opening trades in its direction.
Advantages of the FX Vector Strategy
The strategy's advantages include the simplicity and clarity of its trading signals, as well as the ability to filter them using a currency relative strength rating. This tool serves an analytical function, allowing traders to select the most promising assets for trading. It eliminates the need to monitor dozens of charts simultaneously — all the necessary information is summarized in a compact table.
Disadvantages of the FX Vector Strategy
The system's drawbacks include the lagging nature of its main indicator, Currency Power. It shows which currencies have already become strong or weak, but doesn't reflect future developments. Relying solely on this tool can miss a significant portion of the trend.
Conclusion
The FX VECTOR binary options strategy generates trading signals based on trends determined by the relative strength rating of currency pairs. This approach has both advantages and disadvantages, so relying solely on it is not recommended. The relative strength rating should be considered as part of a comprehensive trading system that integrates fundamental analysis, risk and capital management, and other technical analysis methods into binary options trading.
Before using this strategy in real trading, we recommend testing it on a demo account with a reliable broker. Happy trading!
Download FX VECTOR
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