Building Customized IndicatorsBuilding Customized Indicators or EAs for Binary Options Trading

There are many different methods and strategies for trading Forex, CFDs and Binary Options. The method presented below involves the development of customized strategies. These strategies can be applied either:

(i) manually via the use of a custom indicator, or

(ii) automatically via the use of an Expert Advisor

 

How to Create a Customized Indicator or an Expert Advisor (Robot) for trading exclusively Binary Options

In order to create our custom strategies, we are going to use the web app ExpertAdvisor Builder. This app requires no install, no programming skills, and it is really free for creating indicators. If you want to build Expert Advisors (robots) you have to pay a one-time fee.

 

Note: The same web application can be used for creating EAs or indicators for MT4, MT5, and Tradestation in order to trade Forex and CFDs.

 

(i) Creating Custom Indicators and Expert Advisors for Binary Options

 

Trading binary options using your own indicators can give birth to your own trading system. The web app ExpertAdvisor Builder offers an extremely easy-to-use interface for creating indicators and you can use it for free. You can create an indicator based on tens of different variables and even create your own alert system which is extremely helpful.

Example

In our example, we are going to create signals based on MACD (12,26,9)

A popular bullish/bearish indication is when MACD signal line crosses above or below the MACD baseline in the H1/H4/D1 timeframes. Therefore, we are going to build an indicator that will alert us only when these particular conditions are met.

In the following image, you can see how easy it gets to create those conditions (1,2,3).

Creating Custom Indicator based on MACD

In order to create signals for both bullish and bearish markets based on MACD conditions you just have to create two different indicators. You can build much more sophisticated indicators by combining more complex conditions.

» Expert Advisor Builder Website (register for free)

Requirements

The only requirement to create and use your new indicator is to have the MT4 platform installed in your PC. You can do that by opening a simple demo account with a Forex Broker, or you can open a real account and never fund it. So you can use the MT4 platform for free.

Choose any broker just for download and use the MT4 platform:

» Download MT4 from IC MARKETS (register for free)

» Download MT4 from FXCC (register for free)

» Download MT4 from IronFx (register for free)

 

Easy Steps for Creating / Using your Custom Indicator on MT4

Here is all you have to do in some easy steps:

(1) Register an Account with ExpertAdvisor Builder only for creating indicators (free)

(2) Create your custom indicator and export the file (.MQL4 form)

(3) Open a real account with any MT4 broker without funding it (free)

(4) Copy the MQL4 file into your MT4 install at the folder 'Indicators' {Instalation Folder → MQL4 folder → INDICATORS folder}

(5) Now open MT4 platform and go to any chart (if you press ctrl-M you see all assets)

(6) As you have opened a chart view go to menu page 'INSERT' then select 'INDICATORS' and finally select 'CUSTOM INDICATORS', your indicator is there just click it

(7) Now your indicator is applied to that particular chart showing arrows each time your trading conditions are met, or even creating alerts (sound alerts, etc.)

 

Extremely easy and extremely helpful no matter if you trade Forex or binary options.

 

(ii) Building Expert Advisors for Trading Binary Options

 

The implementation of a trading strategy requires some particular trading conditions. Usually, these conditions are met rarely during a trading day. Therefore, binary options traders must devote many hours daily in order to meet these perfect market conditions. This problem can be solved now given that your binary options broker support MT4. The solution is the development of an Automated Strategy which is called an Expert Advisor.

The web app we are going to use for creating Eas is the same as before and does require any programming skills. The software can be used for free in order to create indicators but in order to build EAs, you have to pay a one-time fee ($97).

Requirements

The only requirement is that your binary options broker supports the MT4 platform. If this is true then you can proceed with registering with Expert Advisor Builder.

» Expert Advisor Builder (create an EA and run it on MT4)

 

Specifications of the Expert Advisor Builder App for Creating Binary Trading EAs

The application is designed as an easy tool for converting ideas into automated trading systems. There is absolutely no need for programming skills.

The application develops Expert Advisors for trading any asset (Forex Currencies, Stocks, Indices, Gold, Oil, etc.). There are many tutorials in the EA builder website that can help traders solve any kind of problem.

■ Free application for creating custom indicators

■ 97USD for creating Expert Advisors

You can start with the free application (custom, indicators) and then upgrade to EA building.

Important Functions

  • Use tens of different Indicators and Variables

  • Full Money-Management control

  • Insert complex Time preferences

  • Customize Position Sizing

  • Apply Martingale / Anti-Martingale techniques

 

Example of an Automated Binary Options Trading Strategy

In the following example, we are building an automated breakout strategy with EA Builder. The exact same example is found in the ExpertAdvisor Builder website with more details. You can find it in the Tutorials area.

Structuring the new EA

You can add a great variety of trading variables, in the following example we use:

1. Price (Bid), Crosses Above, Resistance

2. Time Interval of 12 hours

3. Fixed time of the day

4. Time Interval ends at 10 o'clock

5. We want to draw the resistance on the chart

6. In the end, click OK

Automated Binary Options Trading Strategy

Then click on the "BO" icon to change the order to Binary Option and after setting the Binary Options Expiry Time.

Expiry Time is set to be 1 hour.

The concept behind this strategy is that when the price breaks through a significant level (support or resistance), it will likely continue in the same direction for at least 1 more hour.

The exact opposite conditions can be applied to selling the market. If the price crosses below support then the system will open a new position with the same expiry time.

As the number of trades is not limited yet, the same order could be sent many times. In order to avoid this situation, we can send the next order to the following day. This can be done by checking “Next Open Trade After Time Of The Day” at 10 o'clock, which is the exact time when the interval ends.

After, we set the right Money Management. In the example, the invested money is just 10 USD.

That is all, the Source is ready, copy the source, and compile it for MT4 (.MQ4 or .EX4).

The final file must be placed to MT4 install: {Instalation Folder → MQL4 folder → EXPERTS folder}

Open / Restart the MetaTrader platform, and follow these steps:

  1. Activate the Automated Trading Option (in the center of the TopMenu)
  2. Go to the chart view you want (i.e. EURUSD) to apply your new EA
  3. Press Ctrl-N and the navigation windows will appear (left of your main screen).
  4. Click on the name of the new Expert Advisor from the navigation menu (it is found under the 'EXPERT ADVISORS'.

And from now on, your EA will automatically open a long or short trade position each time the price breaks through major levels of support or resistance.

This is how you can implement any trading idea into an Expert Advisor for trading Binary Options given that your binary options broker supports MT4.

» Expert Advisor Builder Website

 

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Customized Indicators or EAs (Robots) for Binary Options Trading

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