Kovabunga Strategy
One of the drawbacks of most strategies is a large number of lagging signals that are useless in practice. The algorithms of such techniques do not have a powerful logical justification, they are only adjusted to the history of quotes. We can say that this is a real abuse of technical analysis, which indicates that this story is repeating itself.
And yet, does options trading give you specifically? What is your profit last month? Is it over $1000? If you plan to receive the main income from trading, do not stop: study the theory, be aware of new products and trends in options, try indicators and strategies and then you can achieve better results.
The professional strategy “Kovabunga” will also become your reliable assistant in trading. This technique is simple and convenient, perfect for options, gives clear signals and allows, following the logic, to earn decent money.
In the financial markets, experienced players know about this strategy, at least every self-respecting professional trader is obliged to try it in work. Its main task is to determine trends, entry and exit points. Trading instruments can be indices, currency pairs, stocks, commodities. Trading takes place on a 15-minute time frame. First of all, market participants like it because of its effectiveness, the fact that they have to think before making a decision.
The logic of the “Kovabunga” strategy
This strategy is trending, it works on a 15-minute timeframe. To generate high-quality signals to buy and sell options, the entry point is worked out simultaneously at once on two intervals: H4 and M15. It is thanks to this layering of charts that false signals will be excluded, the trading process will be calm. When you become more experienced in trading, you can try this strategy in working with several assets, as well as transfer it to additional ones, because it takes about 10 minutes a day to analyze.
The expiration period of the strategy is at least 1 hour (4 candles). The following oscillators are required for the strategy: EMA (5 periods), EMA (10 periods); Stochastic, RSI, MACD. To get started, open MetaTrader 4. If you don’t have this trading terminal, you can download it here.
To set up a strategy, you will need two charts: H4 and M15.
H4 Setup
- In the Indicator List, find the moving average → select exponential in the settings → set the period to 5 → select the green color for this line.
- In the same way, add another moving average, the period of which is 10; The color, for a more convenient perception, is red.
- In the List of Oscillators, find the RSI and Stochastic indicators, add them to the chart without changing the settings (you need to register the level of 50 for the RSI).
If you have done everything correctly, the schedule will take the following form:
Setting up the M15
- Transfer the indicators that have been added to H4.
- Attach the MACD with the basic settings.
If you did everything correctly, the schedule looks like this:
For convenience, you can use a convenient video instruction on how to prepare for the Kovabunga strategy:
The strategy settings are done, now you need to study the trading rules.
Signal to buy a call option
The analysis should always start with H4, because It is very important that the conditions of the strategy are fulfilled on this timeframe, otherwise trading will not give positive results.
- First you need to wait for the sliding ones to intersect and head up.
- Then you need to check that the Stochastic and RSI indicators are also directed upwards. In this case, the signal works for 4 hours until a new candle opens.
- If these conditions are met, we continue the analysis.
M15 chart settings – all of the above conditions are duplicated:
- Both EMA lines, intersecting, increase;
- Stochastic and RSI are pointing upwards.
- Also, the MACD is placed above the zero level, in the positive zone, it should be greater than the previous value.
Note! It is allowed to search for a signal on the M15 segment during the validity period of the 4th candle. If all conditions are met, it is necessary to wait for the control candle to close, then you can enter the purchase. Despite the fact that this technique is effective and profitable, keeping in mind the possible defeat, it is worth investing no more than 2.5% of the deposit in one bet.
In the image below, you can see an example of a high-quality H4 buy signal:
Example of a buy transaction, M15:
Remember that during the release of important news , it is recommended to skip the entrances at the moments when an important event will be released.
Signal to buy a put option
To enter a sell transaction, all of the above conditions must be used in reverse order:
- H4: EMA5 is under EMA10; The stochastic is directed downwards; The RSI line is below the 50 mark.
- M15: EMA5 is under EMA10; Stochastic, moving upwards, is not located in the resale area; the RSI line is below the 50 mark; The MACD is located in the positive area, but is decreasing.
In the image below, you can see an example of a high-quality H4 sell signal:
An example of a sell transaction, M15:
Strategy “Kovabunga” at the broker Olympus Trade
For reliable trading on the Kovabunga strategy, we recommend working with a reliable broker Olympus Trade. The company offers its users the necessary functionality for comfortable trading: a convenient personal account, analytics, an expanded set of indicators, a choice of options and expiration (from a minute to an hour), up-to-date market reviews and an economic calendar. You can get acquainted with the current reviews about Olympus Trade here. You can see what the terminal workspace looks like in the image below.
A detailed review of the Olymp Trade broker is here.
Go to the official website of the broker Olymp Trade here.
In order to buy a
CALL
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option by specifying:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy a
PCI
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses of the broker Olymp Trade
Working with Olymp Trade is not only comfortable, but also profitable, because The broker often holds promotions and bonuses for its clients. Thanks to such opportunities, the chances of earning decent money without investing personal funds in trading increase.
Now the broker offers newcomers to the platform to take advantage of a profitable starting bonus, which will double the deposit. The amount of the bonus depends on the amount deposited (according to the terms of the promotion).
Conclusion
Kovabunga’s strategy as a whole can be considered professional and effective, and most importantly, safe. It is quite reliable, as signals from four indicators are received. This is a technique that you can safely trust.
If you are serious about trading opportunities and plan to make money in the binary market, treat this process as a job, practice and improve. Remember, professionals do not stand still, because trading itself is dynamic. Work without paying attention to the feedback of strangers, eliminate all extraneous noise and tune in to win.
Your first main goal should be to find your own strategy that would bring you about 60-80% profit per month. Having implemented this plan, move on, but you can already congratulate yourself on the fact that you are part of the circle of successful market players.
Tagged with: Binary Options Strategy
