Optencis
No strategy wins every trade, and none wins without risk. A binary options strategy is simply a set of rules written in advance: which asset, at what time, in which direction, with which expiry and for how much. Its only real test is whether, over many trades, it wins more often than your break-even win rate. This guide sums up the main approaches, the ones to avoid, and how to test yours.
The bar every strategy must clear
A win pays less than 100% of the amount, a loss costs 100%. At a 92% payout, you need to win 52.1% of your trades just to break even; at 80%, 55.6%. A strategy that wins 51% of the time loses money, however good it looks on a few trades. Check the bar for your payout with our break-even calculator.
The main strategies at a glance
| Strategy | The idea | Best conditions | Main pitfall |
|---|---|---|---|
| Trend following | Trade in the direction of the current trend | Active market, clear highs and lows | Entering at the end of a move |
| Support and resistance | Expect a bounce at a level where the price turned before | Calm market, well-tested levels | Levels break, especially on news |
| Breakout | Trade the move when the price leaves a range | After a quiet period, at session openings | False breakouts that come straight back |
| News trading | Trade the direction confirmed after a major release | Real-market assets, high-impact releases | Trading the first, chaotic seconds |
| Indicator-based | Use an indicator to confirm a setup | As a filter, with one or two indicators | Treating an indicator as a signal on its own |
Trend following
When the highs and lows keep rising, the trend is up; when they keep falling, it is down. Trend following means waiting for a small pullback, then trading in the direction of the trend, with an expiry of a few candles. It works best in active sessions and fails in sideways markets. Learn to read the trend with our guide on how to read a candlestick chart.
Support and resistance
A support is a level where the price has stopped falling and turned up several times; a resistance, the opposite. The idea is to expect a bounce when the price returns to a clear level, ideally confirmed by a candle with a long wick. The more often a level has held, the more it is watched, and the more violent the move when it finally breaks. Our free lesson Read any chart in three questions shows how to draw them.
Breakouts
After a quiet period, the price often leaves its range with a strong move. A breakout strategy waits for a candle to close clearly beyond the range, then trades in that direction. Narrowing Bollinger Bands often come before such moves. The risk is the false breakout that comes straight back into the range: waiting for the candle to close filters many of them.
News trading
Major releases (inflation, jobs, central bank decisions) move real-market assets more in minutes than in hours. The reasonable approach is to wait 5 to 15 minutes after the release, then trade in the direction the market has confirmed, with a longer expiry. See trading the news in binary options.
Indicators as a filter
Moving averages, RSI, MACD or Bollinger Bands can confirm what the chart shows: a trend, a stretched market, a calm before a move. Use one or two, from different families, and never trade an indicator reading on its own. See the most useful indicators and their limits.
Strategies to avoid
- The martingale: doubling after each loss turns a normal losing streak into the loss of the account. See our martingale simulator.
- “Guaranteed” signals and robots: if they really won, their sellers would not need to sell them. See our lesson Spot false promises, keep your capital.
- Trades of a few seconds: on such short durations, the result is mostly chance. See which trade duration to choose.
- Chart patterns on OTC assets: their price comes from the platform, not from the real market. See what changes with OTC.
What makes any strategy hold up
- A fixed, small amount: 1 to 2% of your capital per trade, and a daily stop. See our guide to money management.
- An expiry that fits the setup: about 3 to 5 candles of the timeframe you analyse.
- The right hours: the sessions when your asset’s market is active. See the market hours.
- Written rules: if you cannot write your entry rule in one sentence, it is not a rule yet.
How to test a strategy
- Write your rules: asset, hours, setup, direction, expiry, amount.
- Apply them on the demo account, without changing them along the way.
- Note every trade in a trading journal.
- After at least 100 trades, compare your win rate with your break-even.
- Above it: move to small real amounts. Below it: change one rule, and test again.
Frequently asked questions
What is the best binary options strategy?
There is no best strategy for everyone. The best one for you is a simple set of rules you can apply consistently and that, over at least 100 trades, wins more often than your break-even win rate.
Is there a strategy that wins every time?
No. Every strategy has losing trades and losing streaks. Anyone promising a strategy that always wins is selling something.
Does the martingale strategy work?
No. It recovers small losses, but a normal losing streak makes the amounts explode and empties the account.
How many trades do I need to test a strategy?
At least 100 with the same rules. Fewer trades leave too much room for luck, in both directions.
Our free course takes you from the basics to a 30-day plan: start with your 30-day plan. Binary options are high-risk products: you can lose all the money you invest.
