Sometimes you wonder what can the old-timers of forums for traders. These unfortunate day and night cannot see the light, throw family and friends, but always know course of EURUSD up to the fifth sign. But it is necessary to give them their due, sometimes collective intelligence able to give birth to something very useful and, oddly enough, high-quality and thought out. Thus was born the strategy for binary options
Hubba Hubba Style, named after of its creator.
The system is unique because the author has transferred in a part of his vision of the market and the trading experience. In addition, the author uses it in trading for over a year and seems to have very successfully. According to the trader, who coined this strategy, he has yet did not have a single free day. Within a year, all his spare time spent on laborious study of graphs. What are happened as a result, we now know.
Characteristics of the Hubba Hubba Style system
Platform:
Metatrader4Asset: Any assets
Trading Time: Around the clock
Timeframe: M5
Expiry: 5 or 15 minutes (depending on the character of the signal, read on the article)
Recommended broker:
uTrader,
24optionWorking principle of Hubba Hubba Style system
For this strategy, the main thing is not to follow the formal rules, importantly correct interpretation of the idea itself. The basic idea of the Hubba Hubba Style is as old as the market itself. The essence is to determine when the buyers have bought all they could, or sellers sold everything they had. In practice, this allows you to define the time when the price is going to change its direction.
The strategy is divided into two components: for trend market and for the flat market. During a strong motion of market has a high inertia, because of which signal may arrive too early. That is why, for the trend need to choose a longer period of expiration. In the flat, on the contrary, the signal is fulfilled almost immediately, literally during a single candle. The combination of these two methods eliminates the strategy of weaknesses and makes it almost invulnerable to the different states of the market.
Indicators of Hubba Hubba Style system
Support and Resistance (Barry) – indicator draws on the chart support and resistance levels based on fractals Bill Williams. When new formed fractal generated level, which replaces a level formed by the previous fractal. Due to the specifics of the calculation of fractals, the indicator may be repaint during the last three candles.
EMA – exponential moving average with a period of 21. In comparison with simple moving, EMA attaches greater importance to new data. This enables it to respond more quickly to momentary changes in prices, thereby reducing the time delay of signals.
VCustom3 – indicator in the bottom window shows the dynamics of changes in the values of the stochastic during the bar. In fact, this is an analogue of the standard stochastic, but slightly modified. Firstly, the indicator visually indicates about the intersection of overbought or oversold level, red or green, respectively. Secondly, in the indicator added to the system or sound alerts that notify the trader about the appearance of a buy or sell signal.
aFFCal – indicator displays the time remaining until the next news release. Many traders prefer not trade in the news release period, so you have the opportunity to learn about the output of news on time.
Magnified Market Price – auxiliary indicator that displays on the chart the current price of the asset.
Rules of trade by Hubba Hubba Style
1. Wait until the alert appears by indicator VCustom3 (1). The indicator signals the about appearance of new trading opportunities using the alert. As a rule, it does not serve as an immediate signal for purchase of an option, it only notifies about a potential deal. Between the appearance of alert and in the input position may take from several seconds to several minutes, depending on the speed of movement of the price.
When the indicator is outside upper limit of overbought levels are getting ready for purchase a PUT option. The indicator below the oversold level - a signal to buy a CALL option.
Upon receipt of the alert must wait for the closing of the current candle.
2. At the opening of a new candle check that the price is above the moving average for the PUT option (2), and below the EMA for the CALL option (2).
The breaking level of fractals (gray dot on the graph) is strengthening the trend movement (3), whereas the rebound is consolidation. The combination of the exponential moving average, and indicator of support/resistance levels makes it quite accurately predict the price movement within 2-3 candles, which is more than enough in trading of binary options. Break level of fractals (gray dot on the graph) is strengthening the trend movement, while the rebound is consolidation. The combination of the exponential moving average of the indicator, and support /resistance levels makes it quite accurately predict the price movement within 2-3 candles, which is more than enough to trade binary options. If the previous resistance level has been broken - buy a binary option with a term of expiration of 15 minutes (4). If the level was not broken - expiry 5 minutes.
CALL example with 15 mins expiry:
PUT example with 15 mins expiry (image is enlarged by clicking):
Perhaps I explained very difficult. Here is how the author himself writes:
Wait for VC alert to come on.
Wait for confirmation of a candle before entry. Or look for candle with high probability characteristics like pinbar, bullish engulf and what not.
Then make entry.
If market is trending, go for 15 mins expiry.
If market is ranging, go for 5 mins expiry.
Or depending on the characteristic of the candle to select expiry.
A few more examples of transactions, including transactions with the expiry 5 minutes from the author of the strategy (images is enlarged by clicking):
Sometimes favorite hobby turns into a favorite work. The same happened with the trader from the United States, which created the Hubba Hubba Style and granted open access to it. Daily painstaking analysis of the charts is bearing fruit, and allows you to see the real causes and interrelations that form the price. Given the use of standard tools (except for changes in appearance), the system is simply amazing for its efficiency and makes you wonder. Perhaps all is not as difficult as you thought.
But, as any trading strategy, Hubba Hubba Style has downsides. In particular, its main drawback is the strong unidirectional trends, which may result in appear of false signals, as shown below. However, using the method of Martingale (not recommended), this drawback can be turned into dignity and make the system practically loss-free.
In the archive Hubba_Hubba_Style.rar:
aFFCal.ex4
Magnified Market Price.mq4
Magnified Market Price.ex4
Support and Resistance (Barry) with alerts.mq4
Support and Resistance (Barry) with alerts.ex4
VCustom3.ex4
Hubba.tpl
Source: Download Hubba Hubba Style
