Skip to main content

Navigator Trading Strategy

Current market make options trading more attractive than ever. Todays market makes it an excellent time to seek out brokers who specialize in options trading. Options give investors the right but not the obligation to buy or sell an asset at a set price on or before a certain date.

Trend following strategies, when followed correctly of course, are the safest and arguably the most profitable trading strategies out there. They perform best when used over the long-term, as trends take weeks and months to develop, and may potentially last for years or even decades. Most trading strategies are build on trends, reversals and corrections. Most experienced traders love trading on the reversal of the current trend or a rebound from a strong level. It makes sense if you remember one simple trading rule: no price movement can last forever. You will see a correction sooner or later. All you need is a Navigator to be able to predict the moment of reversal.

The Navigator strategy is based on signals from two popular oscillators: CCI and RSI.

It is known to be the most commonly used indicator and showcases an oversold or overbought condition in the market that is temporary. The RSI value of more than 70 shows an overbought market, while a value lower than 30 shows an oversold market. You can find both tools in the Pocket Option terminal. Pocket Option Trading Platform has very competitive fees for trading options. Unlike most brokers, Pocket Option does not charge commission for closing positions, resulting in its very competitive fees for options trading.

How to set up your trading terminal

The Navigator strategy works better on the lower timeframes. The statistical results show that  timeframe M5 is the most effective one.

There is no need to invent a bicycle. You have just follow the rules of the strategy, and execute a trade on a reversal or correction of the current trend. When you choose to trade on longer timeframes, you will have to wait for the right moment for much longer time. As a result, the number of transactions, as well as the size of the profit, will decrease many times.

So, the the timeframe is M5. Let us set the chart type and choose the asset. We will go for Japanese and we are free to choose any asset to trade. No limits.

Now, you should install CCI and RSI on the chart with default settings. Remember that both tools are oscillators located in separate windows under the chart.

Trading with the Navigator Strategy

How to understand the trending or reversing markets? In fact, it is not difficult. Even new traders know about overbought (when the demand is high) and oversold (when the offer is high) markets. In both cases, the market will try to balance and reverse the price.

You need to be attentive and look for signals the above-mentioned oscillators.

So, the CALL option should be bought when the CCI signal line is below -200 and the RSI is below 30.

Contrary, the PUT contract is bought when the lines of the CCI and RSI indicators rise above the levels of 200 and 70, respectively.

One thing should be clarified: the two oscillators indicate the readiness of the market to turn around, and not the moment of the turn. Therefore, the expiration time should not be less than the time of formation of 5-7 candles.

Experienced traders manage to achieve 80% profitability with the Navigator Strategy, however even they remember about wise risk management.

Leave a Reply

Your email address will not be published. Required fields are marked *