Fractal Binary Trading Strategy

Discussion in 'Advanced Options Strategies' started by Lily, Sep 21, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    What is Fractal Binary Trading Strategy?

    In this strategy we use a combination of averages and fractals which indicates the possibility of a future trend. Fractal binary trading strategy is suitable for 15-minute and higher time frames. 1.png
    The strategy may be applied on all currency pairs, commodities, indices, stock and futures contracts. We use two indicators in this strategy i.e. Alligator and Fractals.

    How To Trade Fractal Binary Trading Strategy?

    The three average lines of the Alligator indicator cross over, and the values of the fractal pair should converge more than the pair that preceded them. Once this condition is met, then you may enter a High/Above/Call/Up position when a candlestick appears which is over the fractal rate of the peak by 30 pips.

    Similarly, you can enter a Low/Below/Put/Down position when a candlestick appears which is under the fractal rate of the trough by 30 pips.

    Practical Demonstration

    First of all you will need to insert Fractals and Alligator indicators on chart. This may be done by selecting Insert option from the menu bar and choosing Bill Williams in the sub-menu as demonstrated in the following graphic.


    You will need to configure Alligator indicator with these settings:

    Jaws Periods: 13
    Teeth Period: 8
    Lips Period: 5
    Shift: 8
    Shift: 5
    Shift: 3
    Method: Smoothed
    Apply to: Median Price (HL/2)

    As demonstrated in the following graphic;


    Now consider the following example. You can see that Alligator lines crossed over while the Fractal Pair (1.5149 & 1.5295) converged (printing a lower high and higher low) as compared to the preceding Fractal pair (1.5123 & 1.5335) as demonstrated in the following chart;


    We entered a High/Above/Call position when a candlestick appeared which was over the fractal rate of the peak by 30 pips as shown in the following chart;


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