Everybody can find his or her own interesting and profitable strategies among many existing trading strategies. If you are trading in the medium range and if you already use a wide range of instruments available at the Pocket Option, we suggest you pay attention to the Cobra strategy. It will help you trade any currency following clear signals and make good money.
Let us discuss this strategy in more details by defining its requirements and application.
Cobra Strategy Characteristics
Cobra Strategy is a medium-term trading algorithm that fits any currency pair. Signals are generated in a small amount: they are accurate and that’s why you can get a high rate of return on transactions.
The central rule to the whole system is trade in the direction of the trend!
The rule reduces our risk dramatically by limiting us to trades that already have the momentum of the market behind them.
It is a trend-oriented strategy so it identifies only the signals that correspond to the market trend. It limits risks benefiting from market momentum.
Key features of the Cobra strategy:
- the underlying asset is a currency pair;
- the period is 1 hour;
- the term for the execution of contracts is set for 4 hours;
- no need to use martingale.
The trading system is based on two simple indicators that are part of standard tools in the Pocket Option platform:
- RSI indicator – level 50, period 14;
- Stochastic Oscillator – levels 20 and 80, parameters 14, 5 and 3.
As an additional tool, you can use the middle line MA for 72 hours. If the price chart is above the moving average, then the trend is moving up and bullish deals should be made if below it, then the market goes down and it is important to take bearish positions.
Call Options Trading
The purchase of a call binary option is carried out under the following conditions:
- The chart is located above 72;
- Stochastic Oscillator crosses level 20 from the bottom up;
- RSI line rises above level 50, it is moving up.
Cobra Advice
But remember this is a short term trending system, so when I say we only trade in the direction of the trend, I mean we trade in the direction the market has been moving over the last 3 days, broken down over 72 hours on the 1-hour charts. So we use a 72-period Moving Average line (MA) as a guide to tell us the direction of the current short-term trend.
Cobra Strategy Strong Points
The strategy works great, thereby providing the ability to capture good profits. It uses a combination of indicators to identify market trends so you buy an option with minimal risk and max financial benefits as part of intraday trading with currency pairs. Signals are obvious and clear.
An important feature is the accuracy of signals. It plays into the hands of the traders. An accurate signal allows you to generate effective trading solutions.
Cobra Strategy Weak Points
Traders need a well-developed platform with a wide range of indicators and settings. The only advanced platform can deliver results. Not all traders have access to the required software tools.
However, Pocket Option gives traders a wide range of tools and instruments. The platform is equipped with all the necessary tools allowing traders to finetune almost any settings for the selected asset.
Conclusion
The Cobra strategy for electronic contracts is suitable for trading in the medium term. It is easily adapted and used to achieve good financial results.
