If you are looking for a new strategy, the presented “to the point” trading strategy can become your “dark horse” in the race for profit and success. The experts claim that it has 80% efficiency, which is extremely good for the market of electronic contracts.
The “To the point” strategy is based on Parabolic SAR and ADX. The combination is not accidental but complementary. It is a perfect match. If you are a trader, you should know both Expert Advisors are included in the list of standard tools from Pocket Option. Thus, you only need to open the terminal and place them on the chart.
Trading platform setup
The parabolic SAR indicator is used by traders to determine trend direction and potential reversals in price. The indicator uses a trailing stop and reverse method called “SAR”, or stop and reverse, to identify suitable exit and entry points. Traders also refer to the indicator as to the parabolic stop and reverse, parabolic SAR, or PSAR.
The parabolic SAR indicator appears on a chart as a series of dots, either above or below an asset’s price, depending on the direction the price is moving. You need to choose a highly volatile asset. We recommend starting with currency pairs like EUR/USD or GBP/USD, later you can try stocks and cryptocurrencies.
You should choose Japanese Candlesticks chart type. Even though you can set any timeframe but given that we work on binary options, it is not advisable to trade on a long-term basis. However, each trader has his own approach.
The Parabolic SAR is a set of dots below or above the chart depending on the trend.
ADX oscillator consists of three lines and located under the price chart in a separate window.
Even though the ADX oscillator is often used to determine the strength of the trend, in the Point Strategy, its role will be different.
The Parabolic SAR parameters are set with the minimum acceleration of 0.01 and the maximum acceleration of 0.2. We do not change the ADX settings.
How to trade the “To the Point” Strategy?
It is worth noting that the system got its name for a reason. It is the particular point in the Parabolic indicator that will be a signal to buy a contract, and ADX is used to confirm it. By the way, as mentioned above, we will not use the oscillator to measure the strength of the movement, so we do not need its main line. Instead, in the work on this system, auxiliary moving +Di and -Di will be used. So, the workspace is set up and you can proceed to trading. The CALL option according to the “To the point” system is acquired when the “Parabolic” breaks through the rising candle, and the newly formed point is located under the chart. As a confirmation of the signal, the intersection of the +Di and -Di lines from bottom to top is used.
For the PUT option, the situation should be exactly the opposite.
The expiration period should not be less than the time of formation of 2 candles.
Because the main and confirming signals are used in the “To the point” strategy, the Martingale principle cannot be applied in trading. Traders can set stop loss orders for better money management.
