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Binary Options Strategy Tester

EMA Rainbow Strategy for binary options

Blue moving average is on top and golden is on the bottom.This strategy uses only one indicator and that is good old Moving Average which you may have already used and know about it. We will use three EMA (Exponential Moving Average) set to 6, 14 and 26 colored differently to determine the trend and find opportunities to open high/low trades. We are using M5 timeframe and place trades with 15 minute expiration times.

How to setup the chart

Timeframe: M5
Template: EMA Rainbow Strategy (Download from tinyupload)

How this strategy works

EMA Strategy how to recognize trend

EMA Strategy how to trade
Graphical representation of trading using this strategy

When to open trades

Buying CALL option:

  • Blue indicator moving average is on top and golden is on the bottom.
  • Price moves to violet moving average from the top and crosses it. If one of two other candles rises and crosses above violet moving average again, we buy 15 minute CALL.

Buying PUT option:

  • Golden moving average is on top and blue is on the bottom.
  • Price moves to violet moving average from the bottom and crosses it. If one of two other candles declines and crosses below violet moving average, we buy 15 minute PUT.

How does this strategy look like

EMA Rainbow Strategy
4 / 5 Successful trades means 80% profit!

Try this strategy on a demo account

This strategy can be easily tested on demo account. Open demo account for binary option trading here (binary option demo account) and you can start trading on a demo account immediately. For example, broker topoption offers demo account only after initial deposit

Strategy video

This guy on a video below shows how to use this strategy, so enjoy.

On the video below, made by the broker IQ Option the same strategy is used.

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  1. Wow, Bret ablosutely awesome post. And it’s definitely great for a rookie like me about to graduate from college to read something like this. I really took a lot from your rant on theory and the current industry. I’ll keep this all in mind as I progress further down the road. Thanks for putting out great content.- Brendon

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