Combining a variety of analysis services allows you to create trading strategies that are sometimes completely amazing in terms of performance, which show themselves perfectly in the options market. Today we offer you the “Snares” system, which in its work uses three high-tech analysis services, on the basis of which signals are generated with efficiency at the level of up to 87% of effective trading contracts. Using the principles of this strategy, you get the opportunity to work on any financial asset, including cryptocurrency instruments, at all trading sessions and discover very attractive prospects in terms of making a profit.
Set up strategy services
Let’s start studying the system – for this we first need to create a strategy script from a set of special analysis services. To this end, open the online service tradingview.com. This information resource offers a complete set of assets for trading, as well as the largest selection of technical indicators in the public domain.
After registering an account, open the asset for trading, transfer the technical chart to the M1 timeframe and set the following list of market trend analysis services on its field:
- CM_ Pivot Bands V1 is a technological derivative of the classic Bollinger indicator. In this case, we get an expanded range of evaluated indicators, a more advanced algorithm for forming a price channel on the asset chart, as well as the most correct reaction of the indicator to reversals of quote trends in a narrow time frame for market assessment. Thus, the channel service will allow us to maximize the accuracy of technical signals and strategy forecasts
- Ehlers MESSA Adaptive Moving Average is an indicator that uses the most advanced adapted mode for calculating moving averages. In this format, the moving averages allow you to get information about the market trend based on the widest set of indicators. In this way, we will complement the work of an effective channel service and get the most accurate signals for trading.
- FX Sniper: T3-CCI is another non-standard indicator, which is an oscillator with a high level of reaction to the most minimal reversals of quotes. This resource will act as an indicator filter of false signals for trading, which is necessary to achieve maximum performance indicators of the strategy
In finished form, the script of the “Snares” system on the technical chart has the following format:
As you can see, we get a rather confusing tangle of lines on the asset chart, but when studying the signals of the system, everything will become extremely clear and accessible to you.
System Signals
To work with options to increase the price of an asset, use a set of indicators in the following format:
- On the technical chart of the asset, the quotes, the green moving average of the CM_ Pivot Bands V1 indicator, as well as the red and purple lines of the Ehlers MESSA Adaptive Moving Average service, connected at one point, and then made an upward reversal
- On the FX Sniper: T3-CCI oscillator filter, the trend movement line of the market crossed the technical level of the scale upwards
To work with options for a fall in the price of an asset, use a set of indicators in the following format:
- On the technical chart of the asset, quotes, the green moving average of the CM_ Pivot Bands V1 indicator, as well as the red and purple lines of the Ehlers MESSA Adaptive Moving Average service, connected at one point, and then made a downward reversal
- On the FX Sniper: T3-CCI oscillator filter, the line of trend movement of the market crossed the technical level of the scale down
Expiration
The maturity period of rates is set taking into account the indicator of the timeframe of the asset chart, so on the minute period it is optimal to work with contracts for 5 minutes – 15 minutes, on the M5 frame it is recommended to use rates for 30 minutes . In this way, we can combine both market valuation time frames and options with a variety of maturity periods. As a result, there is an excellent opportunity to diversify and hedge the risks of rates.
Money management
When making each specific market rate, it is necessary to calculate the optimal level of risks. It takes into account the volatility of the market at the moment, and the level of profitability of the option, and the amount of trading capital. In any case, the optimal indicator is the level of the cost of the bet no more than 5% of the amount of your account. When working with a series of bets, it is recommended to use no more than 10-15% of the capital.
