The Ben s Strategy Guide for Binary Trading What is the Ben s strategy? This strategy was created by the Fx Learning members to help them get into trading with 'the trend'. You would naturally think the first person to share this strategy was called Ben, but in truth the first person who shared it wished to remain anonymous, so Jamie simply called it 'Ben s Strategy'.
With the old BD 4.0 you had to change quite a few of the settings just to get the charts to look like the above example. So to simplify things we altered the Buy/Sell zone settings so that the BD would gave us one powerful moving average (green line). The rules were simple; take a buy trade when the price was below the green line and take a sell trade when the price was above the green line. Now this was a really good strategy because it was simple and it helped beginners learn what a trend was without getting confused. As time went on further improvements were made and then Jamie decided to add a 100 simple moving average to create a Buy/Sell zone. Now this was a game changer for this strategy because it made it super clear as to what signal arrow met the rules. With 'Ben s strategy' you see in the BD 5.0, is the final version of this strategy and we believe it s the most powerful version of them all. In fact the BD 5.0 was created purely to incorporate this strategy. To those trading Binary, we would recommend to learn this strategy first. It s the simplest and easiest to learn and yet still delivers consistent profits if traded correctly.
How to setup the Ben s Strategy To Setup up the Ben s strategy is simple as all the hard work has already been done for you. All you have to do is change the buttons on your BD 5.0 to look like this. Once your buttons look like this then you are set to go.
What are the rules? As this strategy involves just two price lines and a signal arrow it is simple and easy to follow. This is a trending strategy, so we need to be trading currency pairs that are trending. The whole point is to wait for the price to pull back to our zone area, wait for a signal arrow to appear and then get into a trade with the trend. Simple!
What this strategy is doing is getting us into trading with the trend when a pullback has occurred, so its important to trade a currency pair that is trending. From the chart above you can see a perfect example of a trending currency pair with a pullback. It doesn t matter which way a pair is trending, it will always pullback or breath. This is where retail traders like us will get into a trade. I have drawn a red arrow on the picture where a trader would enter the market.
Now let s see a similar example using the Ben s Strategy.
In this example, you can see the currency pair is trending up. It doesn t matter if the currency is trending up or down, it will always pullback at some point. This is actually a perfect example of the 'Ben s strategy', but we understand setups like this won t be that easy to spot on a live chart. Can you see how the Binary Destroyer gave a green signal arrow to confirm the price is heading up? This would be our confirmation to get into a trade with the trend. When trading this strategy we can t simply use the arrows to indicate a trade. We also need to wait for the signal candle to be in-between the lines and also the RSI to be overbought or sold. You can see how all those rules were met on the chart and how it s now a perfect setup. Always trade a currency pair that is trending. Rules Wait for a signal candle to be in-between the two moving averages. RSI must be over bought or sold.
We do not use the Trend Dash for this strategy so you can either delete it or leave it on your charts. Some traders will use it, but if you are a beginner, looking at the different time frames and which direction they are moving may confuse you. In this case we recommend that you delete it. Time Frames and expiry times The BD 5.0 was built around price action so you can use this strategy on any time frame. If you are trading Binary, we would recommend you use the 1 or 5 minute time frames. The 1 minute time frame can move very fast as each candle stick represents 1 minute so if you find you are getting frustrated with fast pace trading, move over to the 5 minute charts. Expiry times can vary as each trader will find some more successful than others. This is a table of what we recommend for each time frame as some brokers may offer different options. 1 minute time frame 10-30 minute expiry 5 minute time frame 15 minute 1 hour expiry You will also notice some traders stacking trades with different expiry times. This is perfectly fine, but if you do this, make a note of what works best for you.
When trading Binary with this strategy it s important we stick to one time frame to stop confusion. I m sure you will be aware of the need to check higher time frames to understand how to read the markets, but if you are a beginner then we advise you to stick to one time frame until you are more confident. As you are trading Binary we either win or lose so it doesn t matter whether it is by 1 pip or 100 pips, A WIN IS A WIN! Because of this, it is not necessary to check the higher time frames to see the overall trend. You trade what you see and not what you think! Powerful words, and so true. As a beginner you need to keep trading as simple as possible. Stick to one time frame and trade what you see off that time frame.
Good Trade / Bad Trade
In the above chart you can see three trades and only one of them is perfect. The trade inside the rectangle is the perfect setup. I will explain why. Out of the three trades on the chart this has the met all the rules. 1. Price is in-between the price lines 2. RSI over bought When I say a perfect setup I mean this has the highest probability of a winning trade but it isn't necessarily going to be a 100% winner. We are trading the currency market so we have to accept that not all trades will win, as a trader all we need to do is have an edge (win more than you lose) and BD 5.0 and 'Ben's strategy' gives you that. The other two trades that I have circled in the picture are also trades that some of our members would also take even though they don t meet all the rules. I m showing you this because more experienced traders may take these kind of trades and I ll explain why. Even though the RSI is not oversold the signal arrow is still in between the price lines and the trend is still heading up and a more experienced trader may get into a trade based on this. If you're confused a little, let me show you an example of a bad trade and then you can see the difference.
Bad Trade
The chart above is actually the same currency pair and picture as before. I have circled the two trades as before. I have now drawn a rectangle around the Bad trade at the top of this currency pair. There are a number of reasons why this is a Bad trade and we will go through them now. Firstly, go back to the Good trade chart and notice how the price lines are all heading up? A perfect sign that the market is still trending up. Notice in the Bad trade, the price lines are starting to get closer together? This is a sign the currency pair is slowing down and starting to change direction. When this happens we DON T get into any trades. Remember this is a trending strategy so we only trade currency pairs that are trending.
Can you see on the chart how the price lines get closer and closer together until they cross over? In other terms the currency pair is trending up until it reversed and started trending down. Another reason why it is a Bad trade is that the signal candle was crossing the Price Lines, making it an invalid trade. Good Trade Bad Trade It doesn t matter where the arrow appears, what matters is the arrow candle (signal candle). That candle has to be in between the price lines with space on either side. If the candle is touching the price line or half in, half out, DON T TAKE THE TRADE. That is a risky trade and it doesn t meet our rules.
Remember we trade what we see not what we think. The price lines will move over time, but we only trade what we see in front of us and if the signal arrow does not meet our rules at the time then we don t take the trade. TOP TIP The white price line confirms to us which way the market is trending. If the white price line is below the green price line then it is an uptrend so we take call trades. If the white price line is above the green price line then it is a downtrend so we take sell trades
Live Trading Now let's see some live trading using this strategy and the difference between a good and bad trade on a live market. Please follow the link https://vimeo.com/295267633/3db1dadc2d Review Hopefully you will now understand the basics of this strategy. Its important you make notes of this in your trading journey, starting first with a copy of the rules so they will remind you at all times of sensible and profitable trading practise. Firstly we only want to trade currency pairs that are trending. How do we check that? We look at the direction of the Price Lines and which direction they are heading. We check there is space between the Price Lines.
How do we check that? We make sure there is enough space between the green and white price lines. Remember if the price lines look like they are getting closer together, then the currency pair is slowing down and no longer trending. We don t trade when it s like that White line above the green line we take sell trades White line below the green line we take buy trades Does the signal arrow meet our rules? When you think a trade has appeared, make sure the signal candle is in between the price lines. If it is touching the price lines or half in, half out, we don t take the trade. I would recommend you follow our Demo plan for a month using this strategy before going live. Good luck!