Three Ducks Binary Options Trading Strategy
The Three Ducks Trading Strategy is a very fundamental trend-following strategy that is suitable for traders of any level. This strategy utilizes many types of analysis that belong to my preferred list, and it has also been pre-approved by Hammish Raw. With this strategy, you will learn to get your ducks to line up in a row and to earn profits from binary options.
Get Your Ducks In A Row!
Before getting into knowing the ducks, we should take a minute to learn about Hammish Raw first. He is the one that has written the strategies for binary options. Hammish Raw is a long-term successful binary trader who made trading in binary options long before they were internationally traded on the Internet. His website is very informative and contains a great collection of strategies on binary options, just like this one, the Three Ducks Trading Strategy. This strategy is very basic and traders of all types and levels can use it without any difficulty
Three Ducks Trading Strategy
At first, I thought this strategy was another one using the candle principle, three white soldiers/three black crows, and I was horribly wrong. Three Ducks Trading Strategy is a fundamental trend-following strategy that applies the multiple timeframe analysis for short-term trading. This strategy is an outstanding choice for traders of short-term binary options, as signals are taken on charts of 5 minutes and come with the backing of the underlying trends of longer terms. Now you may wonder what the name of the strategy means. What are the Three Ducks? Your three timeframes are the very Three Ducks. Hammish uses charts of 4 hour, 1 hour and 5 minutes, and with only one indicator that is the 60-bar simple moving average.
How Does The Three Ducks Strategy Work
The working principle of this strategy is that it captures the movement of the price in the specified three timeframes. The first timeframe is 4 hour. The underlying trend is bullish if prices on this chart are above the simple moving average. At such point, you turn to the next chart, 1 hour, to confirm the trend. If on this chart, prices also reach above the 60 bar simple moving average, the 4 hour chart is confirmed and then you turn to the chart of 5 minute. If on this chart, the prices also keep the same characteristics and the underlying trend is confirmed, you should take the bullish trading opportunities. However, if prices do not reach above the SMA, you should wait for a crossover. When prices cross over, this is also a signal for buying. For bearish trades, just reverse what I just said. If prices in the 4 hour chart show a bearish trend, you need to turn to the 1 hour to confirm the trend. If in the 1 hour chart, the trend is confirmed, then you need to turn to the 5 minute charts and wait for a signal to buy Puts.
The great thing about this strategy is that it is created by a famous trader who has succeeded with his strategies. It is also clearly explained and presented with details, and it utilizes the multiple timeframe analysis (with clear explanation). The strategy also tries to remove conflicting signals, provides a great choice for trading of short-term binary options and it utilizes many indicators. There are various strategies roaming around the Internet, most of which are just nonsense made up by traders with no name. This Three Ducks Trading Strategy is different from those, since it is introduced by a famous and successful trader – Hammish Raw. Many strategies impose great difficulties for traders as their contents as just confusing. On the contrary, Three Ducks Trading Strategy is very simple, easy to understand and explained into details. The strategy also utilizes the multiple timeframe analysis, which has a great position in many of my personal trading methods. Once again, it utilizes many indicators and it successfully removes conflicting signals.
Can this strategy Fail?
It may, however. It is because nothing is perfect and everything goes into failure one time or another. In trading business, there is no firm guarantee for you. The only possible guarantee is that you will definitely fail at some point in your business. There is no perfect strategy for all the cases, and Three Ducks Trading Strategy is surely not that perfect. Since the strategy starts with the charts of 4 hours, it is very likely that deeper trends will dominate, thus any signals displayed on the daily or weekly charts should be noticed and watched as well.
Hammish once said newbie may not be cut out for this strategy, though I believe he was just too cautious. This strategy is very basic and effective for the trading of short-term binary options, and surely suitable for traders of all skills, even newbies. Stopping newbies from putting their game into short-term binary options with super high risks is impossible, yet I can show them the right way with right strategies to boost their chances of success. I am quite sure many advanced traders have already been utilizing this strategy in one form or another, regardless of whether or not they know about the Three Ducks, or Hammish Raw.