BINARY OPTIONS MENTOR USER MANUAL
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1 BINARY OPTIONS MENTOR USER MANUAL Version 1.4 Introduction : Welcome to Binary Options Mentor!! We provide you herewith a system of alerts with arrows for binary options. This system works for all timeframes and all pairs. We recommend to use the signals with timeframes higher than 5 minutes. The signals can also be used for 60 seconds trades but signals are less reliable. To use the signal you don't need to have good knowledge about trading techniques if you follow the rules given in the present document. The signals we provide are very reliable, if you keep with rules given hereafter you can expect 70% up to 95% success rate!!
2 Interpretation : It is important to understand that each arrow gives an indication about a possible reverse in the market. Nevertheless it does not mean that you can enter a trade with each and every arrow the system gives you. To be effective it is highly important to take into account the location of the arrow (near support / resistance), and the direction of the trend. It is important for binary options to trade pairs that are trending. There are some strategies to trade binary options in ranging markets but this is not the purpose of the system exposed in the present document. So before starting to trade, please check on upper timeframes if market is trending. For instance look a H1 timeframe if you are going to trade M5 timeframe.
3 Arrows : There are 3 types of arrows : yellow, purple and white. -Yellow arrows inform you in advance of a possible reversal of price direction. These arrows can appear 1 to 3 bars in advance before the real move. -Purple arrows : these arrows do not appear very often but are very reliable. When a purple arrow appear, it is most probable that the next bar will be in the direction indicated by the arrow. -White arrows : these arrows confirm a reversal of price direction. These arrows can be used if the indicated price move does not happen to fast. If price moves fast you could be lagging and it would be dangerous to enter a trade. All arrows are to be used with the next bar. You have to enter your trade at the beginning of the next bar. The system gives you first an audio alert, you can prepare your trade on your platform, as the new bar begins if the arrow is confirmed (still visible on the screen) then you can enter your trade. We confirm you that the system never repaints. Not all arrows will work out but all confirmed arrows will stay on the screen.
4 Strategies with the trend : Arrows can all be used safely in the direction of the trend (direction of MA 20, blue line). We recommend to use only arrows when there are located near MA 20, when a pullback appears during the trend. In this case you can enter a trade with expiration of 1 bar or 3 to 5 bars. For instance, if you trade with chart of M5, you can enter a 5 minutes trade or a 30 minutes trade. As you can see we have 9 alerts on this screen but only 2 comply with the rules. These to trades are successful. The second signal is better then the first one because with have a confluence of resistances (Fibo level and MA 20). To trade the first signal, it would have been better to wait for the bar to close below the MA 20. One arrow is in the direction of the trend, but this is a bad entry since there is no resistance (MA, Bollinger, Fibo) to stop the price movement.
5 Strategies against the trend : The system we provide can also be used successfully entering against the trade. The most recommended arrows for this purpose are purple arrows. Yellow or white arrows can also be used but are less reliable. With purple arrows you can use expiration of 1 bar. It means that you are trading with a M5 chart then you will enter a 5 minute trade. With white and yellow arrows we suggest if you want to trade the reversal to use expiration of 3 bars. For instance, with M5 chart use 15 minutes expiration. In this example the 2 purple arrows are against the trend but the next bar would have been a successful trade.
6 3 bars easy strategy The 3 bars strategy is a very basic strategy that can produce decent results. In the 3 bars strategy we enter with the 1st arrow that the system gives us. We enter all trades with expiration of 3 bars. For instance expiration of 15 minutes with chart of 5M. The only filter is to not enter trades when the bar giving the signal is in the same direction as the signal and price already has moved too far. In the following example we have : -4 good signals -2 bad signals -2 invalid signals So as you see we can expect about 65% success rate with this strategy. I checked this strategy with other pairs and came to the same results (27 trades, 18 won, 9 lost).
7
8 Best conditions : We recommend to enter trade near MA support or near a Bollinger band. Bollinger bands, supports and resistances acts as rejection zones. So it is more secure to start a trade from this areas and to follow the trend. Take care with Bollinger bands if the bands are broken by the bar. It means that momentum is high and it is difficult to predict when the reverse will come. It is very dangerous to try to enter a trade at this time in the opposite direction. If you want to trade against the trend, purple arrows are the most reliable. Worst conditions : Do no enter trades in the following cases : -News will be soon released or has just been released. Make a break of 5 to 30 minutes before and after the news and see how the news impact price action. -The bar is near a support / resistance ahead of the direction you want to enter. This support / resistance will go against you and will make the trade difficult even if the system gives you an alert, -Market is ranging, there is no clear direction of price action, -Market is unstable, bars have long wicks. It means that something is happening in the market (expecting a news release for instance), so please stay away and wait for better conditions. Money management : People often focus on the strategy. For sure it is important to have a good strategy but it is even more important to have a good money management if you want to stay alive in the market. You should never trade more than 2% to 5% of your capital. It means that minimal conditions have to put no more than 10 USD to 25 USD on each trade with a 500 USD account. If you see that market conditions are difficult reduce your investment on each trade. If you have several trades in a row that fail, call it a day, revise your strategy or maybe market conditions are not good and tomorrow will be better. Don't waste your capital.
9 If your are new to binary options maybe you are excited and want to trade. But overtrading is a bad habit to be successful. Make 1 to 3 trades each day. I also recommend no to enter many trades at the same time. If you put 5% of your capital on 3 different trades then your exposure is of 15% of your capital. If something you did not foresee in the market happens, then you could lose your 3 trades even if the setup were good. Brokers : Not all broker are equals. Each broker has its own expiration and its own pairs. Some brokers also have withdrawal issues. So look for information in the forums on the Internet before choosing a broker. We recommend 24Options, especially if you want to make 1M, 2M and 5M trades. Free signals : If you want to use our signals for free for one month please open an account with one of our recommended brokers, fund your account and send us your account opening confirmation. Support : Our purpose is to help you win money and educate you so that you can use our system properly and successfully. The system we provide does not repaint so if the trade fails you can analyze your chart to understand why. If you have lots of bad alerts (which is very uncommon), please contact us via skype so that we can investigate together why your trade failed. The reversal indicator is a service managed by ITC LLC ITC LLC 2915 Ogletown Road DE NEWARK United States of America Please visit our website for further information : You can contact us by mail mentor@itc-america.com
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