An Italian trader has developed a strategy that he uses to trade in the Forex market and to receive signals to buy or sell short-term options. This is a specially selected set of standard indicators that visually show the direction of currency rates and give signals on small timeframes for binary options. Work is being done at the Metatrader terminal.
The author applies this strategy at a pair of Eurodollars in the London and American sessions.
The classic Bollinger Bands indicators with settings of 20 and 120 and the Parabolic on the candlestick chart are used for trading on the hourly timeframe. Stochastic with settings 12,3,3 is used as an input filter
Example of a buy signal. The price is inside the Bollinger Bands, and Parabolic and Stochastic show upward direction. The position is closed when the opposite Parabolic signal appears
Signal for sale. The price bounced off the upper Bollinger 120 band, and Parabolic and Stochastik are showing a downward direction. The position closes when Parabolic changes direction.
A minute chart is used to get signals from binary options with a five-minute expiration. In addition to the above indicators, BBRSI with levels 30 and 70, and stochastics with different parameters have been added. Indicators visually show the signals. Red cells signal Call options and green Put options. In addition, the signal must be confirmed by the BBRSI indicator. For a purchase, the level must be above 70 and for a sale below 30. We also need to keep an eye on the price position relative to the Bollinger Bands.
The author of The Italian jOB strategy states that the percentage of winning transactions is 65-75%.