Binary options strategy Mandrake System

The Mandrake System binary options strategy is based on histogram indicators , which have several types of signals and allow you to buy options both based on the current movement and during reversals.

The advantage of this strategy is that all indicators are compactly collected at the bottom of the chart, which allows you to more clearly see candlestick formations that can be used to further confirm the analysis of the strategy.

Characteristics of the strategy for binary options Mandrake System

• Terminal: MetaTrader 4 .
• Time frame: M1-H4.
• Expiration: 3 candles or 5 candles.
• Types of options: Call/Put.
• Indicators: MA_Angle, Mandrake iTrend1, Mandrake RSI, Mandrake Stochastic.
• Trading instruments: any.
• Trading hours: 8:00-18:00.
• Recommended brokers: Quotex , PocketOption , Binarium .

Installing Mandrake System Binary Options Strategy Indicators in MT4

Indicators are installed as standard in the MetaTrader 4 terminal.

MetaTrader 4 instructions for installing indicators:

Since there are four types of indicators in the strategy, setting up each one can take a lot of time, and therefore the best option would be to install strategies using a template, which can be downloaded at the end of the article.

The essence and rules of trading using the Mandrake System binary options strategy

The Mandrake System strategy does not imply identifying a trend and working on it , since signals from indicators can be received both by movement and at the moment of a market reversal. Therefore, this strategy will be useful especially for beginners, since to buy options you will simply need to follow the signals without conducting additional analysis.

But before you start trading, it’s worth understanding the principle of operation of the indicators that are included in this strategy, and first let’s look at the EMA Angle indicator:

This histogram is painted in different colors, and at first it may seem that in this way the indicator generates signals for buying options, but this is not the case. In fact, the red and blue bars of the histogram signal that the current movement is approaching a climax and that a reversal is likely to follow.

In the example below you can see that when the bars turn blue, this signals the possible end of an upward movement, and when they turn red, this signals the possible end of a downward movement:

Of course, there are exceptions to this rule, for example, in moments of a strong trend and, as can be seen from the example, despite the blue bars, the upward movement still continued:

If we talk about other indicators, their colors are standard and a change in color indicates that you need to buy a Call or Put option.

The first type of signals according to the strategy for binary options Mandrake System

As mentioned earlier, there can be two types of signals according to the Mandrake System strategy, but they are all based on the EMA Angle indicator.

The first type of signals involves the indicator crossing the zero level, so to buy Call options you need to:

1. The EMA Angle indicator crossed the zero level from bottom to top.
2. The Mandrake iTrend1 indicator was blue.
3. The Mandrake RSI indicator was blue or light blue.
4. The Mandrake Stochastic indicator was blue or light blue.

To purchase Put options you need to:

1. The EMA Angle indicator crossed the zero level from top to bottom.
2. The Mandrake iTrend1 indicator was red.
3. The Mandrake RSI indicator was red or pink.
4. The Mandrake Stochastic indicator was red or pink.

The second type of signals according to the strategy for binary options Mandrake System

The second type of signals is the simplest, but carries higher risks and is an aggressive trading option. To buy Call options using such signals you need to:

1. The EMA Angle indicator changed the color of the histogram bars from red to gray.

To purchase Put options you need to:

1. The EMA Angle indicator changed the color of the histogram bars from blue to gray.

In this case, you can ignore other indicators, but it is worth remembering that to trade using such signals, expiration should not exceed three candles.

Examples of trading using the Mandrake System binary options strategy

Let's look at examples of trading using the first and second types of signals on the M5 time frame and the EUR/JPY currency pair.

Opening a Call Option

The Call option could be purchased after the first type of signal appeared:

Please note that it is better to make a trade after the candle closes. In this case, profit would be brought by expiration of both three candles and five candles.

Opening a Put option

The Put option in this case could be bought based on the second type of signal, and note that the colors of the other indicators do not matter:

And despite the fact that an expiration of even five candles could bring profit, a better option would be to buy an option with an expiration of up to three candles.

Conclusion

The Mandrake System binary options strategy, due to its simple trading rules, will be most useful for beginners, but it is worth using two types of rules in trading simultaneously only if you strictly follow the rules of money management and risk management . This approach will allow you to protect your capital as much as possible from losses, even during a long period of unprofitable transactions.

Also important in trading is a trusted broker, who can be found in our rating of binary options brokers . We wish you profitable transactions!

Download indicators and template for the Mandrake System strategy

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Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.

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