IQ Option trading strategy with Stochastic and Bollinger Band 

There are so many traders who lose money while trading because of lack of an effective trading strategy. The other type of loss making traders are those who are not able to follow their strategy. The traders need to have an effective trading strategy including money management strategy to succeed in Fixed Expiry, Binary Options or Digital Options trading. Here we discuss the usage of Bollinger Band and Stochstic indicator in entering a Fixed Time Trade or Binary Options trade. This Bollinger band IQ Option Strategy can also be used for trading with Olymp trade and Binomo.

It requires highly disciplined approach and careful trading to consistently earn profit in the market while trading with IQ Option, Olymp Trade or Binomo. You must wait for an opportunity and place your trade and exit with a profit. The successful traders in fixed time expiry or digital options just trade 2 to 3 trades in day. They avoid trading in a highly unpredictable market or choppy market. The Stochastic and Bollinger Band strategy discussed here performs better in a ranging market. Hence you must wait for the correct market condition and use the strategy to increase your success rate. 

Trading digital options or Fixed Expiry trades involves risks of losing your capital. However, the successful traders use appropriate money management skills to stay profitable in the long run. It may look difficult task to trade Binary Options profitably, but you can give it a try in a Risk-Free Demo account. If you find it works for you, you can go for a live trading account and trade using this strategy to make profit.

Is it possible to make $100/day by trading IQ Option or Olymp Trade? Well, there is a possibility of making it, if you trade responsibly and follow risk management and money management.

There are many traders who are trading few hours and making money. If you can learn to trade with discipline and some basic chart interpretation skills, you have the potential of earning more than $100 every day.

Bollinger band and Stochastic Indicator for successful trading – IQ Option and Olymp Trade

We combine Bollinger band and Stochastic Oscillator indicator to determine the possible reversal in the market on a 1 minute chart. Here is the trading strategy that describe how to use the Bollinger band and Stochastic oscillator to trade with IQ Option, Olymp Trade and Binomo.

The strategy involves these two free indicators that can be used to trade Binary Options or Fixed Time Trades of  5 minutes expiry. I have used this method to make up to $100 in a few hours on several days, and have lost money on a few occasions too.

Bollinger Band

Bollinger Bands plots the standard deviation above and below a moving average line. The standard deviation forms a band above and below the moving average line. The width of this band narrows when there is low volatility and widens when there is high volatility in the market.

The price of the asset moves between these bands – the upper and lower bands may be considered as the area from where price  is likely to bounce back.

Stochastics Oscillator

Stochastic indicator is a momentum indicator that works by comparing the closing price of an asset over a range of time. The Stochastic indicator’s value above 80 indicates overbought, and below 20 indicates oversold levels in the market. Hence, we use these levels as a possible reversal area and combine it with Bollinger bands to get more accurate results.

Bollinger Bands with Stochastic Oscillator as IQ Option Strategy

We combine the reversal indicating property of Bollinger Bands and Stochastic Oscillator on candlestick chart of the 1-minute time frame for our trading purpose. Let us prepare our chart on the trading platform – 

Configure the chart as follows: 

  • Apply Bollinger Bands and Stochastic Oscillator on the one-minute candlestick chart.  Refer to the screenshot shown above.
  • Wait for the price to touch upper sideband and the Stochastic value above 80, its a time for a reversal. Go for a PUT or DOWN trade with 5 min expiry. See the attached screenshot.
  • If the price touches the lower sideband and  Stochastic is below 20, its a time for a reversal. Go for a CALL or UP trade with 5 minutes expiry. Refer to the attached screenshot.
  • On average I win approximately 8 trades out of 10, giving me a winning rate of 80%. You can view my trades and the winning percentage in the image below.

The traders may use additional indicators to increase the success rate. You can use Support and Resistance lines, and trend direction to filter low probable signals.

There are always chances of losing a trade. Hence don’t invest all your money in a single trade. Invest 5 to 10 percent of your capital in each trade to keep your investment safe.

How to earn $100 per day in Dubai using this strategy?

This trading strategy has the potential to make you up to $100/day by trading few hours in a day. To start working on this strategy, you need to open a demo account with IQ Option, Olymp Trade, or Binomo. Apply this strategy and trade in the Demo Account for a few days until you master the strategy. 

After you have enough practice in a Demo Account, deposit an amount of $200 or more and start trading with $10 or 5% of your deposit amount using this strategy. You should stop trading for the day after you reach your target of $100. You should also stop if you lose 3 consecutive trades. When trading for longer time the efficiency of making correct trading decision goes down, and you are more likely to place bad trades and lose money. Hence, set your target and don’t trade beyond that.

The market becomes choppy during news hours. So, avoid trading during important news hours and when the market is idle. There is no much movement in the idle market, the narrow band of Bollinger band indicator shows the is not enough movement and the market is idle.

I got the following trades in less than an hour and won 8 trades out of 10.

The important things to keep in mind is that,

  • No trade is 100% safe, so don’t risk all your money in a single trade.
  • Apply your strategy in a demo trading account and practice it before you invest.
  • Always trade as per your strategy.
  • Don’t trade if your indicators don’t show you an opportunity.
  • Don’t risk more than 10 percent in any trade.