It's amazing what avid traders can do. These unfortunate people do not need sunlight, they leave their family, forget their friends, but at any moment they can report euro-dollar quotes accurate to the fourth decimal place. However, we should give them their due, because sometimes collective brainpower leads to the birth of something reasonable, very useful and effective. This is roughly how the binary options trading strategy Hubba Hubba, named after its author, appeared.
The scheme is quite non-trivial, since the developer put his subjective trading worldview and personal trading experience into the strategy. Note that the creator himself has been operating this system for about a year and, apparently, quite successfully. If you believe the developer who created this scheme, he no longer remembers the last time he had a day off. Throughout the year, the author spent all his free time from his main job on a thorough study of graphs. Let's see what happened in the end.
Features of using the Hubba Hubba strategy
- Platform: MetaTrader 4
- Currencies: any
- Timeframe: M5
- Expiration: 5 and 15 minutes
- Possibility of application: at any time
- Preferred trading platform: Quotex , PocketOption , Alpari, Binarium .
Description of the strategy
In this scheme, what is important is not strict adherence to the basic rules, but a meaningful understanding of the concept itself. The basic idea on which the strategy is based is as old as time. The point is to look for moments when buyers acquired the maximum they could, or sellers dumped all their assets. In practical application, this makes it possible to predict the moments when the trend (growing/falling quotes) changes its direction.
The system is divided into two parts: trend and flat. During a rapid directional change, the market is characterized by high inertia, so the signal often comes too early. This means that for a trend you should choose a longer expiration time. In a flat, on the contrary, the signal is reflected almost instantly, usually within one candle. The combination of two methods eliminates the scheme from weak points, so it is perfectly adapted for any market conditions.
Indicators used
Magnified Market Price is an indicator that shows the current quote of an asset on the chart.
VCustom3 – on a separate panel, the indicator reflects fluctuations in the stochastic oscillator indicator during the bar. In essence, this is a similarity to a regular stochastic, but slightly adjusted. First, the instrument shows overbought or oversold zones in red or green. Second, the indicator has a built-in sound notification function that notifies you when a signal to open a PUT or CALL option occurs.
Support and Resistance (Barry) – draws support and resistance indicators on the quote chart based on Bill Williams’ fractals. When the next fractal occurs, a key level is fixed, replacing the given indicator obtained in the previous fractal. Due to the peculiarities of calculating fractals, the drawing may change within the framework of the three previous candles.
aFFCal – the tool shows the time remaining until the next news appears. Most traders avoid trading when news is released, so this is an excellent opportunity to pre-think your future trading tactics.
EMA – exponential moving average. Unlike an ordinary moving average, the EMA takes into account the most recent market fluctuations to a greater extent. This makes it possible to quickly respond to momentary fluctuations in quotes, thus reducing the lagged signal error.
Recommendations for opening a deal
1. Wait for a message from the VCustom3 indicator, which, using a standard MT4 alert, will signal the emergence of a favorable trading opportunity. Of course, this is not an instant signal to open a trade, but only notifies you of a potentially good position. Between the alert and the opening of a transaction, it can take from a couple of seconds to several minutes - this depends on the dynamics of changes in the asset quote.
The indicator moving beyond the upper overbought limit creates a good forecast for creating a PUT order. If the indicator goes beyond the lower oversold level, a signal appears to create a CALL order.
After the notification, you should wait until the current candle closes.
2. When the next candle is formed, make sure that the current quote is greater than the moving average for opening a PUT order, and less for a CALL order.
A break through the fractal indicator (displayed as gray pixels on the chart) shows an increase in the trend movement, while a rollback indicates a move into flat. Operating with an exponential moving average and a support/resistance indicator makes it possible to accurately predict the behavior of quotes within a range of 2-3 candles, which is more than enough to make money on binary options. If the previous resistance indicator was broken, we create an order with a closing time in 15 minutes. If the indicator does not go beyond the limit, we buy a 5-minute option.
Conclusion
Often, a favorite hobby can bring a decent income. This is what happened in the case of an American trader who created the Hubba Hubba Style strategy and posted it for public use. Everyday scrupulous study of charts makes it possible to understand the real premises and relationships on which market quotes depend. Considering that the system uses only standard indicators (with a slightly modified appearance), it simply delights in its simplicity and effectiveness. There is reason to think: maybe everything is much simpler than it seems.
We recommend testing all new strategies and indicators for binary options without the risk of losing your main deposit. A good option would be to try them out using risk-free day trading on the financial market from Grand Capital.
Download Hubba Hubba Style strategy files
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