The Skillbox binary options strategy lives up to its name. It generates trading signals based on a precise proprietary indicator. The system's core element is a dynamic price channel, whose boundaries trigger binary options buy signals. Learn how to set it up correctly in this review.
Contents:
- Key Features
- Installation
- Skillbox: Overview and Settings
- Trading Rules
- Specifics of Application
- Conclusion
- Download Skillbox
Key Features of the Skillbox Binary Options Strategy
- Terminal: MetaTrader 4
- Timeframe: M1
- Expiration: 3 candles
- Option types: Call/Put
- Built-in indicators: BAND - belgo trader.ex4
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 08:00–21:00 UTC
- Recommended brokers: Quotex, Pocket Option, Binarium
Installing the Skillbox Binary Options Strategy
The Skillbox strategy indicator is 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 the indicator file there.
If the package contains templates, move them to the templates folder in the root directory of the terminal.
After that, restart the platform so the new indicator and templates appear in the list. For more detailed instructions, watch our video:
Skillbox Indicators: Overview and Settings
The Skillbox binary options strategy is based on the popular mean reversion trading method. This approach involves opening trades on a price rebound from a specific range, which is determined by a technical indicator and takes the current volatility level into account.
In the Skillbox strategy, this indicator is the Band from Belgo Trader. It helps the system determine the so-called "normal" price range within which the price of the analyzed asset should sit in its normal, "quiet" state.
As soon as the asset price approaches one of the Band channel boundaries, constructed based on the standard deviations specified in the settings, a signal in the form of a cross is generated. A red cross is a signal to buy a put option, and a green cross is a signal to buy a call option.
As you might guess, the parameters are configured so that the trading system's signals occur when the price crosses one of the dynamic channel lines. Simply open trades based on the crosses plotted on the chart by the BAND – belgo trader indicator.
If you're considering purchasing trading signals and want to know whether it's worth it, we recommend reading a selection of articles on the topic:
- Should I buy binary options trading signals?
- Pocket Option Signals
- WinOptionSignals Review
- Profitable signals for binary options
Skillbox Trading Rules
The trading rules for this system are very simple, and even a complete novice in binary options trading can handle them. All you need to do is watch for the crosses and react promptly. Let's go through the basic trading rules.
Opening a Call Option
- A green cross appears below the candle.
- At the opening of the next candle, buy a Call option.
Opening a Put Option
- A red cross appears above the candle.
- At the opening of the next candle, buy a Put option.
We recommend setting the expiration time to three candles. However, the optimal holding period depends on the specific asset and should be determined 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 Skillbox Binary Options Strategy
The Skillbox strategy has one peculiarity that should be taken into account when trading binary options. Its trading signals, shown as green and red crosses, may disappear while candlesticks are still forming. This happens because the strategy's code doesn't check for the close of the last bar, and all its logic operates on the current candlestick. As a result, the system's signals may be canceled if the conditions for opening a trade are no longer met.
To avoid issues caused by possible signal cancellation, open trades with this system only at the close of the candle, not when the red and green crosses first appear.
Advantages of the Skillbox Strategy
The advantages of this system include a large number of fairly accurate signals, which allow for active trading throughout the day.
Disadvantages of the Skillbox Strategy
Among the disadvantages, it's worth noting the possibility of signals being canceled due to changing market conditions. This can be easily mitigated by reacting to signals only on candlestick closes.
Conclusion
The Skillbox binary options strategy uses a proprietary indicator to generate trading signals. Despite some inconveniences related to signal cancellations caused by changing market conditions, this system produces a fairly large number of high-quality signals.
Before trading binary options on a live account, it's recommended to test your strategy on a demo account, preferably with a broker offering a low minimum deposit. And, of course, don't forget the basic rules of risk and money management.
Good luck with your trading!
Download Skillbox
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