Novice 10 Minute Binary Options Strategy

Tuesday, June 10th, 2014 by Tim Lanoue

When it comes to finding an effective 10 minute strategy for binary options that doesnt require the use of many trading indicators or complex set-ups I personally know from my own experience how difficult it can be.  Especially when you are completely new or have only a few months worth of knowledge, which is why today I am going to provide a very simplistic yet highly accurate 10 minute binary options trading strategy.  One of the best advantages about this 10 minute strategy is that it only requires the use of two indicators, both which are the same type of indicator, a simple moving average.

What are Moving Averages?

Moving averages are an indicator category that represents the average price of an asset of a selected period of time.  For example, these time frames that moving averages can be set on are called periods, periods are a selected duration of time.  So if you have your indicator set at a period of 10 it is set to display the average price of that asset over the past ten days.  If you have a period of 3, then you are seeing the average price of that asset over the past three days and so forth down the line.  There are three types of moving averages and they are: front weighted, exponential, and simple.  The type of moving average that we are using today in this strategy is simple, and they both are set at a period of 3 and 10.

Setting up this strategy is almost as simple as trading with this strategy.  First you need access to a charting solution such as Free Stock Charts or MT4, personally I prefer www.freestockcharts.com just because it is easy to load and get everything setup.  Since this is a ten minute trading strategy we want to make sure that the time frame that we are watching our asset is set for 10 minutes and we want to use this strategy solely on currency pairs.  Any currency pair will do and I prefer to use this strategy during the New York trading session.  All trades placed as well have an expiry time consisting of 5-10 minutes.

Applying the Strategy

In the picture below you can see an example of how this trading strategy would look, as you can see we have our two moving averages, the correct time frame and a currency pair.  The simple moving average line that is set at a period of 3 is our signal line, whenever this simple moving average line crosses with our other moving average line we place a trade in the direction that the yellow line is heading.  So if it crosses our blue line in an upward direction we place a 5-10 minute CALL trade and vice-versa for the other direction.  As you can see below 7 out of 9 trades placed were winners, resulting in a 77% in-the-money.

This strategy is one if personally designed mostly for novice traders but it can be used by traders of all experience levels, I have seen a consistent success rate of 72-79% over the last few of weeks when trying this strategy.  As always if you have any questions please feel free to leave them below and I will make sure to answer them for you! Good luck and happy trading guys!

30 Responses to Novice 10 Minute Binary Options Strategy

Damian Says:

So what kind of currency pairs does it work best with.

Tim Lanoue Says:

Hey Damian,

The currency pairs that I have found the best success with would be what are probably the more popular ones, such as Eur/Usd, Usd/Chf and Usd/Cad.

Hopes this helps you out!

Thanks for your interest and good question!

Tim

Grampa Jack Says:

Thrilled to hear Mike will have a Mikes Signal site. Im getting delivery of a new laptop-Tuesday- just to follow Michaels info. Microsoft,s Silver Light kept shorting out on my old Microsoft Vista operating system. I will sign up next week-after that delivery.

Grace Says:

In your post, you mentioned that the expiry is 5 to 10 min. Is there a indication which to choose? Sometimes five is not enough and other times, ten is too long.

Would changing to 2 and 10 help if the trend changes within the timeframe

Or is it simply the currency pair or market is to volatile at this time

Vishwajeet Pandey Says:

Looks nice. I guess if used with 1 martingale, its accuracy would shoot up to 92.16%.

Sunny Says:

Hi Tim!!

Thank you for posting these strategies. it has helped me to trade with less emotion and instinct thus increasing my overall well being. I am benefiting from it.

I have a question and would like your support. Can you share with us how do you trade using Price Action. I would really want to read your understanding, your implementation, your experience.

Really appreciate it.

Cheers

Tim Lanoue Says:

Hey Sunny,

AhhhhPrice action, the thing about Price Action trading strategy is that it takes a trader with a lot of experience and some common market knowledge in order to benefit from it, but that is just my personal opinion. I have been in this field over 5 years now and I am still learning more about Price Action, it truly is a never-ending learn process, which makes it kind of enjoyable for me. But basically when I trade Price Action, I look for breaks in support levels, I dont play too much with resistance levels just because I found playing support levels often results in a high in-the-money success rate. I am pretty sure there are a few price action trading strategies on here and you can always access Michael Freemans YouTube channel and look at his Price Action trading strategy! I hope this helps you some!

Have a great day Sunny.

Tim

Peter Says:

Hi Tim

I am new on the Binary Trading Systems, i am now busy studying your Novice 10 minute strategy,Why my Moving average graphs on 10 and 3 are always laying close to each other without sharp turning corners when they cross like your example please assist.

Tim Lanoue Says:

Hey Peter,

The only thing that I can think of that may be affecting it would be if the averages were exponential or front weighted, make sure none of them, otherwise it should be working great!

Hope this helps you out man!

Tim

Chris Says:

Tim,

Thanks SO MUCH for this. I am a noob to trading and just blew onto this site 24 hours ago, looking for a simple, basic strategy that would result in some positive results, and this really DELIVERED.

I havent made millions in my first 24 hours or anything, but I did have a 63% in-the-money success rate the first day of using this (some noob mistakes made on my part, not a criticism of the numbers, above).

I feel that you have provided an INCREDIBLE noob guide with this post, and I am VERY grateful for it.

Thanks again.

Ken Ang Says:

appreciate you can teach me how to used and see the chart

Vlad Says:

Will this strategy work on 15 minutes trades?

Michael Freeman Says:

Hi Vlad! Of course! Its a great strategy for 5-15 minutes, short-term trades..avoiding trading the 10 minute binary options strategy on 30 minutes and more. or on 60 seconds trades. Cheers! Mike

Leyaka Says:

Hi Michael and Tim,

Two questions:

1. for 5 minutes trading shall I also change the length of the candle to 5 minutes right?

2. when to enter, when the candle below the crossing of the 2 averages is finished?

Thanks!

Craig Says:

Hi, heres a dumb question from a beginner, how do you set to trade for between 5-10 mins, it appears theres the speed trading for 60-120 secs option then the classic which on currency pairs usually lasts for the hour.

Any help would be appreciated.

Tim Lanoue Says:

Hey Craig,

You most likely will have to use the Classic Style Option of trading, and having to use expiry times that consist between 4 minutes to 15 minutes, these expiry times expire at certain clock hours, example: 12:00, 12:15, 12:30, 12:45, 1:00, 1:15, 1:30, 1:45, 2:00, 2:15 and so on and so on. Unless your broker has an OptionBuilder tab then you can easily set up you own expiry times. The last option available that may work for you would be if the Short-Term or Turbo Options trading styles have an expiry time setting of 5 minutes. Those are the trading styles you need to look for and you should be good to go!

Hope this helps!

Tim

kostas77 Says:

Hi.I am new with binary options and i have an account with stockpair.I am using your 10 min.strategy exactly as you say but it is not going that well for me.How about some more tips?

Tim Lanoue Says:

Hey Kostas77,

If I were you I would make sure that you have proper set up established first off, then I would check what time of day you are using this trading strategy. Last week we had Christmas so the markets were all over the place so that be part of the reason along with New Years coming up as well, so this week may be a little shakey as well. Last tip I can provide you when using this trading strategy is to make sure you are using the recommended expiry time.

Best of luck and happy trading!

Tim

Napoleon Justo Says:

Hello Tim,

Thanks a lot for such a great strategy. Its so easy to understand. I tried it on a demo account on spotoption which is the site that Michael posted about. I tried it 3 times and all of them were ITM. Ill keep on practicing your strategy and soon Ill switch to a real account. I plan on joining Mikes Autotrader and do a few ones myself following your strategy. Once again. Thanks a lot.

Luba Says:

after putting this into practice, 5 out of 6 trades were in the $. very happy with this, This is just so simple to use. I have found the trick is to be set up and as soon as the line crosses get in!

THANKS MIKE!

Wilson Says:

@luba what is your expiry

luba Says:

by practising I have found it depends on which broker you use .I have been using trade rush with this the trade is usually between 10 and 15 min and sometime 18 min. The thing with trade rush is they wont let me in the trade once the time starts going under 10 minutes, which is a bit of a bummer.

So, I am trying interactive option as well. I think 7 t0 10 min trade would be ideal. I have found when that line crosses either get in or if the time is too long, dont.

I have used trade rush cause I can do $10.00 trades to start. I did practice on a demo account first.

odri Says:

Being a novice trader Im immensely grateful to have stumbled onto this website. Great articles providing excellent learning material.

Dimitris Says:

Used it from yesterday and had 100% success so far! (10/10). Works very good for 7-10-15 minutes. Thank you very very much!

Joseph Diiriyeh Says:

Please could you help me with how to set up the chart for novice 10 minutes strategy.I have been trying but couldnt.

Also on the freestockchart, there are ads on the right hand side that chart that i always to do away with them but do not know how to that.

Thanks for your assistance.

Tim Lanoue Says:

Hey Joseph,

Could you send me an email at: lanouet92@gmail.com and tell me more about your problem please, I camt really tell what your problem is with what you just explained. Thanks and hope to hear from you!

Tim Lanoue

toni Says:

If I examine the charts only, it doesnt seem to be working.

Am I looking something wrong?

Wery often these two lines are really close together it happens very often that the yellow,line seems to be bopping up or down, just as it has touched the blue line. So it mean that if I had put a bet on this one, I had lost.

Tim Lanoue Says:

Hey Toni,

Well this strategy is almost 7 months ago so strategies that you see now are probably more gear towards what you need to keep up with the changing markets. But no reason why it shouldnt work still, I am going to go out on a limb as say maybe there is a set up problem, check your periods for moving averages and make sure you have the correct time frame along with an appropriate asset. Please let me know if you have any questions!

Tim

Terry Says:

Hi,

Very impressed on this strat as it is simple but very effective. Thank you so much.

One question.

When should we enter after both SMA were crossed? Is it the opening of the next candle? Or we enter immediately after we saw SMAs crossed?

Thanks for your advice.

Tim Lanoue Says:

Hey Terry,

Thank you very much for your compliments! I am glad you were able to come across a strategy that was able to help you out!

It really depends on the style of trader that you are Are you more aggressive or passive. If you are more aggressive then no I would say that this strategy is effective enough that you wouldnt need too However, if you are more passive then you can wait for a second candle to form after the two SMAs cross and if it is heading in the direction we are predicting then you can place a trade, it is more of a confirmation really and is really effective as well. It all depends on what type of trader you are! Hope this helps you out!

Tim

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