Easiest PROFITABLE MACD Strategy for Binary Options! (Backtested)
FULL TRANSCRIPT
I just opened this deal for $500. If the
price is above the opening level, in 3
minutes, I will make a profit of
$480. I used this simple strategy from
my subscriber in which he has been
steadily earning for half a year at this
point. And he was able to increase his
capital from $500 to
$3,000. And in this video, we will
analyze the strategy in great detail.
And after watching it, you will be able
to apply it right away. And now let's
wait for this deal to close and start
[Music]
[Applause]
[Music]
analyzing. So today we have a strategy
based on a combination of three
indicators namely parabolics, MACD and
100 EMA. We will analyze them in great
detail all the features of all the
indicators and figure out how to combine
them to get a strategy with a good win
rate and of course we will back test the
strategy as always and at the end of the
video I will switch to quotex and
conduct a session using the strategy.
But before we start I would like to
remind you that many of the viewers who
are watching this video right now are
still not subscribed. So what are you
doing? What are you doing? So if this
video turns out to be useful, do not
forget to subscribe so you won't miss
any of the new videos. But now let's get
finally started. So the first indicator
that we need is of course MACD moving
average conversions divergence. Let's
add it to our chart and let's talk about
it of course. So MACD indicator is
basically needed to find momentum. It
helps to find price reversal points on
the chart and of course it predicts it
quite well you know and this indicator
consists of four elements. So the green
line, this is a MACD line. It's a fast
MACD line, fast signal. Then we have
signal line which is a red one. This is
a slow signal and this is a slower
moving average. It need it's needed to
smoon the noises on the chart. You see
that on the chart it's like jagged but
the line on the MACD is really really
soft. And two last elements is histogram
that basically shows correlation between
green and a red line. the bigger
difference between them, the bigger the
place between them, the higher the
histogram is going to grow. Or if the
difference between them is really really
small, the histogram is going to go down
and it's going to get smaller.
Basically, in most cases, you don't
really need it. You don't really need
histogram. The most important thing is
uh the fourth element, the line zero.
This is the center of histogram. And it
makes a lot of sense for you to
understand when you need or don't need
to enter into a deal. Let me explain.
And first of all, of course, let's see
how the signal from MACD looks like. So,
for example, right here. Here we see a
obvious signal for an upward trend. So,
the green line crosses the red one from
the bottom up and this crossover happens
lower than the level of zero. And that
basically means that uh we would get
this signal and the deal would be closed
in black. And a signal for a downward
trend is completely like same but vice
versa. The green line crosses the red
one quot is dancing around. So the green
line crosses the red one from the up to
bottom and this crossover happens higher
than the level of zero. And logical
question here now what do we do if we
see a signal for a downward trend? For
example, right here we see it on the
chart. The green one crosses the red one
from the bottom or from up to bottom. Uh
but the histogram is completely
different. Then you need to completely
ignore the signal. And when we have
noises like that, we also uh ignore
signals from MACD indicator. So
generally simple and easy to understand
indicator, right? But the problem is
that it still gives you a lot of bad
signals. uh huge percent of losses if
you use only MACD and basically that's
connected uh that sometimes the price
consolidating when huge like trend
movements don't happen MACD is going to
give you a lot of false signals that's
why we need another indicator to find
those trends and trade in the moments
where we can get the most money to
filter signals with MACD we also need
two other indicators that I told you
about so this is parable like SAR with
standard settings. But the only thing I
don't like I don't like the green uh
chart and green dots. So I make it blue.
And of course moving average with a
period of oh 100. And the type is going
to be exponential moving average. If you
don't know what moving average is, it's
really simple. Let me tell you. Moving
average is basically the same chart but
it's just in one line. And the period uh
is basically the candlesticks that
you're looking at. So let's choose one
period of one. It's going to be right at
each candlestick, right? Period of two
is going to show us the needle uh
between the previous candlestick and the
current candlestick open, not opening
but closing. Uh five period is going to
show us difference between like five
candlesticks. In our case, basically we
are using a period of 100. This is a
really really big smoothing. And let me
explain why we need that. Basically,
it's really simple. Again, thanks to
this indicator, we can find global
trends easily. Uh right here, for
example, we see obvious downtrend. Uh it
is located under the moving average and
that tells us that there is good
movement downwards with impulse
movements downwards obviously and small
corrections upwards. And with this
indicator again, everything is really
simple. Well rule, if the price is lower
than exponential moving average, that
means we are in a downtrend. And we are
only working with deals for a downward
trend. And if we're going to open deals
for an upward trend, we're going to work
against the trend, which is bad idea. I
told you about this many times. But of
course, some of them can close in uh
black and we can get the money, but
statistically, you're going to lose
more. So uh if the exponential moving
average is under the chart that means
this is a deal for an upward trend
completely ignoring all the deals for a
downward trend. And what comes to
parabolic star or parabolic star doesn't
matter it's like the same as uh
parabolic in reverse you know it shows
us this definite micro movements of the
price. So if moving average with a
period of 100 smoothests everything but
parabolic actually shows us like all the
movements all the movements upwards and
downwards indicator is also really
really simple when the price is going to
a new phase. So for example right here
the chart moved to a phase of growth the
little dots are forming uh under the
chart and when it's dropping the dots
are going to be forming on the top. If
we're talking about downtrend, we see
really, really long impulse movements
downwards and small correctional
movements upwards, which is of course
obvious. Again, obvious everything is
obvious. And the rule is really simple.
If the dot is under the chart, dots, not
one, all of them, we are opening deals
for an upward trend. If the dots are up
uh upwards above the trend, then we're
opening deals for a downward trend. So
now we have our MACD and two more
indicators. Let's get trading and let's
use it in one beautiful strategy. All
righty. So I am on trading view. I added
all the indicators and we have MACD,
parabolics and of course exponential
moving average with a period of 100. So
let's see how all of this is going to
work together in one strategy. First of
all, what are we looking for? We're
looking at MACD as first things first.
And in this case we see that MACD shows
us crossover lower than the uh level of
zero right here. And we are looking at
deal for an upward trend one. Two we
need to see if the price is higher than
our exponential moving average. In this
case obviously yes the price is higher.
We have second signal for an upward
trend. And third uh is where we're
looking at power star and the dots are
lower than the chart and we have all
three confirmation for opening a deal
for an app would trend. So buy and we
going to do let's see how this deal
would be closed if it was a real
situation. So we chose three bars for
now. I'm working with 3 minute
expiration time. uh and let's see what
going to happen and obviously oh my god
the price rose and of course at this
moment right here in this candlestick
the deal would be closed in black so
deal for an downward trend everything is
the same but vice versa we see that MACD
is higher than the
histogram and also we're looking at
purple XR we have dots above the chart
above the candlesticks and also the
price is lower than the level of moving
average. So, of course, from this point,
we are going to enter into a deal for 3
minutes. Choosing three bars as always.
And let's see. Let's see if the deal
would be clo opened right here. Let's
put it here. Sell. We're selling now.
And let's see what's going to happen in
3 minutes. One, two, three, and wo. The
price dropped and the deal is closed in
black. Before we move on to back
testing, I would like to remind you that
if you want to learn how to trade
competently, I have my online academy
where you not only receive exclusive
lessons, but also support from me and
your supervisor along the way. You can
also find like-minded people among
hundreds of students in our chat. And in
general, if you are ready to start
trading with us, text me on Telegram,
the link to which is as always in the
description box down below. All right,
so we talked about the rules and now
let's get to back testing and see how
the strategy works on a real market. In
this case, we're going to use historical
data of euro and American dollar
currency pair. And right here, I'm going
to put all the stats of one and lost
deals. For example, this is number one.
We see crossover lower than the level of
zero. We see the parabolic dots are
lower than the chart and the chart is
higher than our moving average. So right
here in this point we would enter into a
deal for an upward trend and 3 minutes
later the price would be lower and the
deal would be lost and this is a loss
number one which is by the way funny
because globally the movement of the
price is correct by how we judged it.
But in this case we were probably not
lucky. So, now let's start the back
testing. And I hope I'm not going to
waste all day on that.
[Music]
Well, the back testing is over and here
are the results of 100 trades. 64 of
them were closed with a win and 34 with
a loss. And that is if we open each
trade for $100 with an average payout of
80% our profit would be
$1,720. And given the simplicity of the
strategy, I think this is not a bad
thing. All right guys, we are finally on
Codeex and we can start our session. So
the platform is ready. Time frame 1
minute, expiration time is 3 minutes and
money that I'm using today is going to
be $200. It's around like 2% of my
balance. Indicators are already here.
Moving average with 100 period parab
with normal settings with
0.02 and 0.2. And MACD is also with
standard settings. And now let's wait
for me to find the first entry point and
start it finally.
[Music]
All right guys, so the first deal is
going to be on the currency pair
CHFGP deal for a downward trend. And
what do we see here? So here we see the
public is higher than our chart and of
course the price went uh lower than 100
EMA and MACD also shows us crossover. It
showed us somewhere here from this
candlestick as far as I understand. But
at that moment, the price was higher
than 100 EMA. And now since it's broke
this level, we can enter into this deal.
So let's wait for it to close and see
how the session started
[Music]
today. All righty, guys. So, the
beginning is good. The session started
with
$158 in profit. We had this like micro
pullback on these two candlesticks, but
the deal is still closed in black. Let's
continue and try to find another entry
point. All right, guys. So, we finally
got the deal and we got it from the
first point of public sar. So right now
we see that the price is lower than EMA
with 100 period. We see our first dot of
parabolic and liquor silver on MACD
happened on the previous candlestick
actually. And we opened the second deal
uh just like the first one for a
downward trend. So, let's wait and
see. All righty. All righty. Second deal
is also closed in black. Actually, guys,
it looks amazing, but I'm afraid that
you're going to get like the impression
that this strategy is going to be like
that all the
time. We will see. We will see how the
session is going to go. But you still
need to understand this strategy also
gives losses. You need to remember that.
And I'm just afraid that beginners going
to think that the strategy is like 100%
win rate. That doesn't exist. That
doesn't exist. So I will try to find
everything that's possible. And I hope
today is not going to be the day where
I'm going to lose the last deal. But
let's see. Let's see how it's going to
end.
[Music]
Oh, by the way guys, see uh we can
actually look at this example right
here. We have crossover from MAC D, but
it's a little bit higher than the
histogram, but it's like the level of
zero is right there, just right there.
And the crossover is like a little bit
teeny teeny bit higher. Is it worth it
to go into a deal for an upward trend?
Debatable. Uh generally I think that
there is a huge difference uh if the
crossover is going to be on
0.00000000005
or all of the zeros and one. There is
not big of a difference but you need to
be careful with that. Basically the
student uh that gave me this strategy he
doesn't open deals on in situations like
that but I think that's that's actually
acceptable. Why not? Why
[Music]
not? Guys, look at this situation right
here on your CHF. If we had deal, uh, we
would have the deal, but the signal
happened a bit in the past. I think the
price right now is a little bit too low
and we lost the moment where we could
ride the trend. So, I'm not going to do
that. But again, really good
setup guys. Look at this situation. This
is our third entry point. We have all
the confirmation. We have crossover from
MACD higher than the histogram. We have
on the second dot of we entered into a
deal and the price is of course lower
than 100 EMA. And let's see how this is
going to work right now with price
action. From the point of view of price
action, I don't like this uh deal cuz
this it's kind of like a consolidation.
So the price can go to either way and we
had this breakthrough. But we have 3
minutes to see what's going to happen.
So let's see. Oh, what's going to
happen?
Okay guys, we have a couple of seconds
before this deal is going to be closed
and it's closed and we lost the
money. So, what should I
do? Should I I like the strategy and I
trust it enough. So, I'm going to work
with one step of martingale. I think
that's a great decision. And interesting
situation right here. Maybe we should
enter into a second do right here. I'll
move on to something else. It's just
because I like the win rate here. It's
85%. Uh, and all the rest of the
currency pairs are quite low.
So, should I or should I not? I don't
know. I'll think. I'll think. Maybe I'll
find something else. But if not, I'll
come back
[Music]
there. Okay. Okay, guys. Last deal. It's
a little bit dangerous after such a huge
red candlestick because there might be a
little correction, but it didn't follow
on the next candlestick. So, I hope
everything's going to be okay. So, right
now, we see crossover of MACD higher
than the histogram. We see our dots of
parabolic, parabolic, whatever you wish.
And of course, the price is under 100
EMA. So now we have to wait for 3
minutes and see how it's going to
[Music]
end. All right, guys. So the last deal
is closed in black. So the final result
is three deals closed in black and one
closed in red. And taking into account
the fact that we blocked the
unprofitable deal with Marting Gale, the
final profit came out to
$442. Not too bad. And now guys, if the
video turned out to be useful, do not
forget to smash that like button and
subscribe to the channel, of course. And
by the way, there is a playlist with
other strategies that I use to conduct
100 deals back testing on. You can watch
those. But that's going to be it for us
for today. Thank you so so much for
watching and I will see you in the next
one. Bye-bye.
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