Algobit Trading Strategies:
SIGNAL BASED TRADING - FOUR SIMPLE STRATEGIES
Algobit is a great signal tool by itself and you can get great results just by following the signals. However, to get even better trading results and guarantee your profit it is recommended to follow some basic trading strategies. On this page you can find two very simple and effective strategies I have collected, which will help you filter out only the best algobit signals and make even more winning trades.
STRATEGY 1 - FILTERING THE TRADES WITH CHARTS
The easiest way to filter the signals and decide when to enter the trades is simply by watching the price chart. Below are listed the examples of when to make the trades to get more winning results. There are only three types of basic price movement patterns you should learn to recognize and enter the trades suggested by the signals accordingly.
EXAMPLE 1 - UP TREND
You will recognize an UP TREND when you see the price is consistently moving upwards. If you are getting the UP SIGNAL you can enter the trade UP in any position in an UP TREND. If you are getting a DOWN SIGNAL you should wait until the up trend stops and the price moves into 'consolidation area' or ranging market. You will recognize this when you see the price is forming lower highs in comparison to the highest high that was formed. After this happens it is a good position to trade DOWN. See the example below.
EXAMPLE 2 - DOWN TREND
You will recognize a DOWN TREND when you see the price is consistently moving downwards. If you are getting the DOWN SIGNAL you can enter the trade DOWN in any position in a DOWN TREND. If you are getting an UP SIGNAL you should wait until the up trend stops and the price moves into 'consolidation area' or ranging market. You will recognize this when you see the price is forming higher lows in comparison to the lowest low that was formed. After this happens it is a good position to trade UP. See the example below.
EXAMPLE 3 - RANGING MARKET
RANGING MARKET is formed when the price movement reaches the top or bottom level and enters the consolidation area. You can recognize the ranging market when you see the price jumping up and down without a clear movement to either of the directions. This is one of the best and most profitable situations that occurs in 30% of the time. If you are getting a DOWN SIGNAL trade DOWN when the price is HIGH. If you are getting an UP SIGNAL trade UP when the price is LOW. See the example below.
STRATEGY 2 - DOUBLING UP THE TRADES
One of the favorite and simple strategies is do double up on out-of-the-money trades. The idea is to double-up the losing trade with another trade in the same direction if the initial trade is likely to close out of the money. The strategy works better if you have more funds on your trading account. If your trading account is lower than $500 it is advised not to double up your trades more than three times in a row.
STRATEGY 3 - MINIMUM RISK AND DOUBLE PROFIT
One of the more advanced trading strategies is to secure your initial trade with the trade in the opposite direction. In this case you will ensure that at least one of the trades will be successful and you will minimize the risk since at least one of the trades will be a successful one. If both trades will be successful you will double your profits. This strategy works best with ranging markets.
EXAMPLE:
You enter your first trade UP with $10 investment and 5 minutes expiry. After 3 minutes you see that the trade is 'in the green' so you make another trade. This time you trade DOWN with 2 minutes expiry, so both trades will close at the same time. If the price moves out of the trading zone defined by your two entry points at least one of the trades will be successful, so you have just a minimum loss. In case that the price closes in the area defined by your two entry positions you will get a DOUBLE RETURN on your trades because both of the trades will be successful.
EXAMPLE:
You enter your first trade UP with $10 investment and 5 minutes expiry. After 3 minutes you see that the trade is 'in the green' so you make another trade. This time you trade DOWN with 2 minutes expiry, so both trades will close at the same time. If the price moves out of the trading zone defined by your two entry points at least one of the trades will be successful, so you have just a minimum loss. In case that the price closes in the area defined by your two entry positions you will get a DOUBLE RETURN on your trades because both of the trades will be successful.
YOUR NEXT STEP TOWARDS PROFIT:
You can effectively apply personalized strategies with Real Binary Options Robot as well.
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