OFS Trading System for binary options trading

The free e-book of the OFS Trading System has initially been written for online forex trading, but it appeared that this trading system is also very suitable for binary options trading. In this article I’ll demonstrate how to use the OFS Trading System in case of binary options trading.

The OFS Trading System originally is a trend trading system, in case of which each time the same patterns are being traded. These patterns are comprehensively explained in the free e-book of the OFS Trading System. To be able to also use the OFS Trading System while practicing online binary options trading, we’ll have to choose the right expiration time as well as the right timeframe.

The expiration time in case of online binary options trading

In case of forex trading you’ll gain profit when the price has reached your take profit level. In case of online binary options trading you’ll gain profit when the price, while the expiration time is ended, is lower or higher than the price was at the moment you opened a position.

It’s very important that you should keep this distinction in mind. So in case of online binary options it’s definitely not the intention to reach a certain price level. Even if the difference is only 1 pip at your advantage, it will be already sufficient enough to gain profit!

Instead of aiming at a take profit level, like in case of online forex trading, in case of online binary options trading it’s much more important to aim at an expiration time, which corresponds with the trading setups according to the OFS Trading System.

At this it’s important that a trade has enough room to develop itself. I’ll show this to you using the following example:

OFS Trading System binary options

On the above shown figure you can see a trading setup on a 5 minutes chart according to the OFS Trading System. The black horizontal line indicates the entry for this setup. At the closing of candlestick 1 we have an entry according to the OFS Trading System.

In case of binary options at this point it’s important to determine the right expiration time. Candlestick number 1 is going to close at 11.10 hours and on that moment you can make a choice out of the expiration terms 11.15, 11.30 and 12.00 hours.

You might rather compare the expiration term in case of binary options trading with the stop loss in case of forex trading and the purpose of this expiration term is to grant a trade enough moving space. If in case of this example you should have chosen for an expiration term of 11:15 hours, you would have had a pretty big chance that you would have closed your position suffering a loss. In this example the difference with the entry was negligible, however candlestick number 3 (which closes at 11:15) could just as well had been closed above the horizontal line.

In this situation it would have been better to choose the 11.30 hours expiration time. This term equals candlestick number 3 and as you can see the price was closing well below the entry.

So take good care that, while determining an expiration term, a trade is going to get sufficient moving space!

The most suitable timeframe in case of online binary options trading

In case of forex trading you can employ the OFS Trading System on all timeframes. In case of online binary options trading this will depend on the number of available expiration terms.

For instance Banc de Binary offers a large choice when it’s about expiration terms. In case of contracts from $1 up to $100 you can make a choice out of 4 expiration terms, namely 15 minutes, 30 minutes, one hour and at the end of the day. When you’re trading contracts as from $100, then you’ll have by means of the so-called Option Builder a fully free choice when it’s about terms of expiration.

As you have been learning in the meantime, in case of binary options it’s quite important to choose the right term of expiration in order to grant a trade enough moving space. Consequently you ought to base the choice regarding timeframe on the available expiration terms.

Binary options contracts lower than $100

In case of contracts which are lower than $100, it’s sensible to use the 5 minutes chart at most in order to go looking for trading setups according to the OFS Trading System. It so happens that you’ll consequently be able to choose out of expiration terms, which are sufficient to give a trade enough room to develop itself.

Binary options contracts as from $100

In this case you can determine the expiration term, with an accuracy amounting up to 5 minutes at least, till a maximum of 23 hours. In this case you can use the OFS Trading System up to and including the 4 hours chart and consequently you’ll have a much more wider range to choose.

Conclusion:

The OFS Trading System is very suitable for online binary options trading if you’ll take choosing the right expiration times as well as the right timeframe into account. Apart from that the employment of this trading system does not differ a lot from online forex trading. As it happens judging a trend and determining the right entry moment just remain the same.

You can also choose to employ the extensive version of the OFS Trading System in case of online binary options trading. Also in this case counts that you’ll have to give a trade sufficient moving space by choosing the proper expiration term.

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