IQ Option Strategies

IQ Option is a well-known broker for binary options trading. However, not all strategies work for every kind of trading, and IQ Option traders often find it difficult to come up with the best strategy. The number of indicators available on the broker’s platform also raises the doubt because they allow a multitude of configurations, creating thousands of strategies. To figure out the best strategy, you need to consider the trading products and the market. It is also important to analysethe trends and news.

 

 

 

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

 

 

Types of IQ Option Strategy

There are several trading strategies that you can apply for binary options trading on IQ Option, such as

 

60 Seconds IQ Option Strategy

Before you get into 60 seconds strategy for profit, you must know about the risks. Traders generally do not trade 60 seconds options because the pay-out is poor comparatively. It is also more difficult to be as precise with these trades as the 15-minute trades because of the inherent level of noise on the 60 seconds chart. In other words, when you choose this strategy, you deal with a very small amount of price data compressed in each candlestick. Moreover, 60 seconds price action is comparatively inconsequential in the grand scheme of things. However, it is still completely possible to make trading decisions regarding what may happen to the price movement in the next 60 seconds.

The basic 60 seconds strategy goes something like this

You need to look for support and resistance levels in the market where short-term bounces can take place. Fibonacci retracement levels and pivot points can be specifically useful, as much as they are while trading long-term assets on different timeframes.

You can take trade set-ups on the first touch of the level. While trading assets having a high level of noise compressed in the trade outcome, you may consider taking a higher volume of trades because they can be beneficial for you.

However, since the noise in each 60 seconds trade is already so high, trading in higher volume can actually work in your favour as it helps to even out the accurate fluctuations coming out from the trading of short-term instruments.

You can understand it better with a baseball analogy. A hitter that generally maintains a batting average of .300 may go through a ten-game stretch where they only bat .100. In another scenario, they may hit .450 in that same span. However, over the course of a 100+ game session, we can expect that with sufficient at-bats, their true skill level regarding hitting will be revealed accurately. It is a “Regression to the mean” concept.

If you trade 60 seconds options and only take one or two trades in a 4-hour session, it is being super conservative, and chances are that you will have to wait for a very long time before your true trading skill is revealed in front of you.

It can be possible that you do not have an effective strategic approach to 60 seconds options. It is unfortunate if you go over a month of trading this instrument before realizing it after your profit curve begins to take its appropriate shape. With this in mind, you must not overtrade by taking set-ups that are not actually there. It is even worse than choosing no trade.

Finally, never trade all touches of support and resistance blindly. You may keep on considering price action such as candlestick types and formations, momentum, trend direction, and similar things coming with personal exposure to how your preferred markets behave. At the same time, proceed with your trading education to become better continually.

Here is a series of detailed examples of 60 seconds tradesfrom Monday for you to understand the strategy better.

1. 1.32817 had been high in the morning and formed an area of resistance. The trader took a put option on the 1:54 candle on the first re-touch of 1.32817. This trade was a win.
2. This trade was also a win and it was similar to the first trade. Here, the trader took a put option on the re-touch of 1.32817.
3. The trader took a third put option at 1.32817. Price went above the trader’s level and created a new daily high. So, this trade was lost.
4. Price formed a new daily low at 1.32715 and then retraced up to 1.32761 before it came back down. The trader took a call option of the re-touch of 1.32715 and won this trade.

 

 

Momentum Trading Strategy

The momentum trading strategy is easy to understand, but implementing it is not always easy. When you are following this strategy, you must wait for the asset to show rapid movement before you can open the deal. The move can be in any direction because you can open both short and long positions.

The trader must watch the technical and fundamental factors closely because both can trigger massive price movements. When it comes to publicly traded companies, you may go for both earnings reports and major news; because both events can change stock prices a lot. Technical factors are also very important for currencies and cryptocurrencies. Strong upward and downward trends are able to start with no fundamental explanation.

It is a wise decision to use stop-loss orders if you want to protect your account from sizable losses. By placing a stop-loss, you can have the deal be closed automatically if the price moves in the opposite direction. It helps you to manage your risks better.

 

 

Scalping Strategy

One of the basic things about trading you should always keep in mind is that many small wins are just as good as one huge win. When you trade according to the scalping strategy, you have to set buy and sell thresholds before opening the deal and watching the price of the asset move in the expected direction. Remember that deals can be very short when you use the scalping strategy. They can be as short as just a few seconds. Scalpers must be prepared to act fast and they must also be ready to make financially important decisions instantly. Another important point is that fundamental analysis holds no place in scalping because of the extremely short timeframes.

 

 

 

Pullback Trading Strategy

Pullback traders usually find an asset that can be a company stock or an ETF with an established positive trend. After that, they wait for the asset to move in the opposite direction. Take note that it should not be an emerging negative trend but a short-lived retracement. You may consider opening a long position when the retracement is close to die and you can expect the price action to go up once again. Traders can do the same on a negative trend. You can wait for a downward trend to show limited upward movement and consider opening a short position when the price goes at its local maximum.

 

Breakout Trading Strategy

You must already know about support and resistance levels. Breakout trading strategy is one of those strategies that aim to put support and resistance levels to good use. Generally, when the price of an asset reaches a specific threshold where it cannot surpass, it is called the resistance and the asset price retraces back and trades at lower levels. However, according to many technical experts, when the price is able to go above the resistance level, you can expect its upward rally to be continued. Take note that the price action can sometimes move freely above and below the resistance level where the breakout trading strategy does not work.

 

Binary Options Trading Patterns

Binary options are divided into two types by the IQ Option platform. One of them is the standard options with an expiration time up to 1 month. The second one is the turbo options or 60 seconds that are used most. The 60 seconds strategy is explained earlier in the article in detail.

Here, you also have to configure your indicators and charts so the strategies are compatible with the expiration time you want to have; be it the binary strategy or the 60 seconds strategy.

 

 

FAQ:

1. How do you successfully trade with IQ Option?

To successfully trade with IQ Option, you must come up with the trading strategies that work best for the assets you are trading. After that, you must practice your strategies on a demo account before getting into live trading.

2. What is the best strategy for binary options?

You may go with the 60 seconds strategy if you are trading binary options as it is a pretty decent strategy. Other strategies you may try are momentum trading, scalping, breakout trading, and pullback trading.

3. Can you get rich from binary options?

You must not forget about the risks associated with it. With the right strategy and patience, you can make many small profits, make you lose a high amount of money.

 

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK