Advantage and Disadvantage of Turbo Options
Turbo options contracts can be the most exciting and quick mode of trading. They allow for a dynamic increase in trading capital funds. You need to have a high-precision trading system to be able to catch short-term price changes and trade short-term contacts.
So, what are the advantages of binary options trading? They have lighting speed. They are quick! They are exciting! In our in-depth article, we will discuss the pros and cons of one of the most popular types of options as well as share our opinion of a professional trader.
Advantages of Turbo Options
- A quick way of earning money
- Simple technical analysis
- Do not require following and analysis the news
- Works for small timeframes
Disadvantages of Turbo Options
- Works only with highly volatile assets
- Sometimes it is just pure luck, very much like gambling
- Stressful and very risky
That is why many traders prefer turbo options but prefer to exercise caution.
Turbo options are contracts within a few seconds up to 5 minutes. With the right strategy, you can earn a quick profit in no time.
In this article we discuss turbo options trading strategy, based on three popular indicators:
- Awesome Oscillator;
- RSI (the relative strength index)
All these indicators are available in a standard menu of the Pocket Option.
How to set indicators and adjust a chart
As already mentioned above, the suggested strategy is recommended for “fast” contracts. Therefore, the chart must be set for on shorter timeframes, in our case – one minute. You also need to choose the chart type – “Japanese Candlesticks.” To change the settings, go to the menu and click on the chart icon in the terminal and select the desired settings.
Let’s talk about assets. You need to know how to choose wisely. Signals on turbo options strategy are formed quick: up to 10-15 per hour. You need to eliminate the noise. That’s why you need to choose volatile assets: so moving prices from several candles.
For example, you can choose the crypto currency or pairs with EUR/USD or GBP.
You can experiment with the indicator parameters. You can always return to default settings by clicking click on the icon of a pencil in front of the selected indicator.
We recommend the following settings for the parameters :
- Alligator Period Jaw 13, Teeth 5, Lips 3, shift – by default;
- RSI Period 14, level 50 for both zones;
- Awesome Oscillator. Period 5 and 34.
How to Apply Turbo Options Trading Strategy?
You’re your settings are done. Now, you have to wait for the signals to open the transaction. You know that the time frame for turbo options is very short so there are many opportunities for the call. You will find the favorable situation one you have more experience. To find your sweet spot, watch for intersections of the signal line on the RSI oscillator.
Buy the option CALL when the signal line RSI crosses 50 levels on its way up. Yes, it is the right time. Another sweet spot is when on Alligator green crosses the red on its way up and on the Awesome Oscillator you see a zero level stick.
You should look for the reverse signals to make PUT transition. To close, look for RSI moving from top to bottom, Alligator line should move in that same direction and Awesome Oscillator has a candle in the bottom.
Set the expiration period from 1 to 2 minutes.
You need to know how to manage your funds. If you trade in the shorter timeframes and you make a CALL, the contract should not be more 2% of the total funds.
In general, the Pocket Option gives traders all tools and indicators to succeed in turbo options trading. We recommend using all three indicators and figure out your way in the land of plenty. All professional traders suggest avoiding turbo options if you don’t understand the trading principles because then trading turns into gambling.