PSAR-Raptor is an excellent trading strategy that helps traders to earn money consistently. The system is called so due to the fact that user must find the jump points of Parabolic indicator.
Tactics work well with short-term options and during intraday trading. This system allows traders to earn on currencies, stocks and stock indexes. PSAR-Raptor has proven itself well while working with M1 and M5 timeframes.
Strategy description
If a trader watches the market for some time, he will be able to detect several patterns regarding PSAR and Stochastic indicators. Strategy developers recommend using the M1 timeframe for trading electronic contracts. The expiration period of a binary option should be 5 minutes to work with M1 or 30 minutes if the trader makes deals with an M5 timeframe.
If desired, users can try to work with other timeframes. When the scale of chart increases, the number of transactions will be less, but the accuracy of signals and percentage of profitable contracts per unit of time will increase. In any case, the term of electronic contract must be equal to 5-10 time intervals, which are used to view the currency or stock chart.
Stochastic indicator settings (14;3;2), Parabolic (0.02).
Trading assets: stocks, fund indices and currency pairs.
Indicators for making deals: Parabolic SAR and Stochastic.
Trading Rules
Buying a CALL-option:
If a trader sees that points of Parabolic SAR indicator are moving under the price, and the Stochastic indicator lines are moving from zone (0-20) upwards after crossing, he needs to buy a CALL-option. If lines of Stochastic indicator did not go below level 20, then the signal is weak.
Zone 0-20 is called the oversold zone. After a decline in this area, the price will start to grow rapidly, on which the trader can earn.
Buying a PUT-contract:
An electronic PUT contract helps market members make money on falling prices. If a trader sees that points of parabolic instrument have moved above the price of underlying asset, and the Stochastic oscillator lines leave the zone, then he needs to buy an electronic PUT contract.
Users need to watch the price behaviour in real time. If a trader will wait for results of this option after opening a trading position, then his profit will be from 65 to 96%, if the forecast is correct on the Pocket Option platform.
User should not buy one option for more than 5-10% of the total capital. Currency pairs are actively changing, fluctuating within a day in a fairly wide range. Traders should not excitement or experiencing negative emotions while trading, since this affects the results of trade. Speculator who risks may lose money, despite a good strategy.
Professionals do not put more than 1-2% on one option, as comfort and emotional stability are important in the trading process. Administration of the Pocket Option terminal recommends that novice traders invest in 10-20 positions so that there is an opportunity for manoeuvring when trading binary contracts on stock exchange.
Summary
Testing the PSAR-Raptor strategy, traders are convinced of its effectiveness. The percentage of successful deals reaches 85%, but can vary in the range from 80 to 90%. It depends on current situation on electronic contract exchange.
In 4 hours of trading, a market participant can make from 10 to 47 trading positions. Trading with a risk of 2% of capital, a trader can earn from 30 to 95% per day. This depends on volatility of underlying asset chosen.
