Night trading is ignored by most investors on the binary market in our region for purely physiological reasons, but this options trading time offers many advantages and is one of the most profitable methods of trading. Today we will look at the advantages of trading at night, offer a justification for the attractiveness of night trading, and provide several technical recommendations to increase the effectiveness of trading operations at night.
So, if you are a night owl and can devote a few quiet hours to trading, you can get the most optimal conditions for making a profit. What do we see on the market during this period? It is quite simple - a decrease in quote activity, the best forecastability of price fluctuations, and an excellent choice of trading assets. The reason for the decline in market activity lies in the flatness of financial and statistical indicators. Nighttime is when the Asian stock exchange is in session, where few investors work and usually trade in small volumes, which does not allow for quotes to move with the maximum level of price volatility. As for forecasting, everything here lines up with the first parameter - sluggish chart movements with clear price channels and wavelike fluctuations make it possible to determine the levels of trading quote reversals with maximum accuracy and efficiency. Thus, the investor gets the most favorable conditions for trading with options bets.
Night trading - the best underlying assets
For nighttime binary options operations, any financial instrument will work, but investors still consider currency pairs the main assets for trading. It is recommended to trade on the following underlying assets: the Australian, New Zealand, and Canadian dollar, and of course, pairs with the US dollar, and the British pound. Quite productive assets for night trading are gold and oil. The reason for this choice is connected to the overwhelming majority of cases where there is a high degree of forecastability of the asset markets and high liquidity of binary options - from 65 to 87%. Thus, you can get the best possible trading results.
Binary options trading at night - technical requirements for the terminal
In this regard, the investor will need a platform with the highest quality analysis tools and services for trading. In general, the emphasis when selecting a platform should be put on the stability of the trading terminal, the speed of processing contracts, and the choice of assets and technical tools for market analysis. The best terminal for night trading could be considered, for example, the platform from the Binomo broker, where market players receive the following set of trading services:
Night trading - trading strategies
Now let's look at a few examples of the most effective strategies for options trading at night. It should be noted right away that the lowest possible market volatility mentioned above makes channel trading strategies the most attractive, since the wavelike movements of quotes in limited price ranges allow you to register the maximum number of well-predicted contacts and, accordingly, to obtain the best possible financial results. Against this backdrop, the first example of an effective strategy for night trading is a channel system based on the use of a special chart service called "Channel". To work with this strategy, connect the maxima and minima of the trading quotes using the semi-automatic tool from the Binomo terminal's toolset, and you'll get a clear channel for price movement of the asset, which will allow you to place bets on the market in two directions:
In this forecasting mode, the use of options with expiration periods of 120 to 300 seconds is recommended. Thus, within an hour, you can place up to 20 successful bets and significantly increase your operating capital.
The following example of a trading strategy is also a channel one, but it uses an automatic mode of building dynamic channels with the help of the Bollinger Bands indicator.
Install the standard Bollinger Bands indicator on the minute building period on your operating chart. As a result, you will see the following market assessment template:
Here, we register contracts from the indicator's moving averages which act as the boundaries of the channel. This instrumental approach to trading allows you to achieve effective trading with profitable options at the level of up to 90%.
Considering the main parameters for binary options trading at night, the simplicity and efficiency of night trading strategies, as well as the potential financial increases in capital, it can be safely said that this time for options trading is the most productive for investors.
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