The Smart Break Out Strategy Review

[Martin Kay]

Hi guys! Michael has a new review on a binary options trading strategy called ‘Smart Break Out Strategy’. Check it out and comment here is this strategy suck or not suck!

Originally posted by Michael Hodges. Click here for the full review.

The Smart Break Out Strategy is a forex strategy that can be easily adapted to binary options. The strategy is based on daily price movements and seeks to make regular small gains in actively traded currency pairs. The strategy is based on four potential scenarios, one of which will happen each day regardless of other market factors. The author assumes that today’s price will perform in relation to yesterday’s price in one of four ways. First, the price today will break yesterday’s high. Second, the price today will break yesterday’s low. Third, the price today will break both the high and low of yesterday’s action. Fourth, the price today will not break the high or low of yesterday’s action.

My Last Word On The Smart Breakout Strategy

The Smart Breakout Strategy is OK. It’s not awesome and it doesn’t totally suck. It is a simple form of entry picking but leaves a lot to be desired. I’m not sure if this is a good strategy for Forex but it does seem to have relevancy in binary. In forex you have to get a certain number of pips in order to make the trade profitable, in binary you only need one. It could be OK for a beginner who is looking for a good starting place to work on a more complex strategy or for a more advanced trader who already has a solid foundation in technical analysis. For beginners, I would suggest only using this in a demo account until you have a firm grip on trend analysis. For advanced traders this could be a viable form of entry AFTER you have determined trend and potential support/resistance areas for yourself.

[Peter Green]

Very interesting idea, but too simple in my opinion! It will not produce considerable amount of profitable signals and also the problem with the time and options expiration still exists. I think only experienced traders could use it in combination with other indicators and elements.

[Michael Hodges]

Very interesting idea, but too simple in my opinion! It will not produce considerable amount of profitable signals and also the problem with the time and options expiration still exists. I think only experienced traders could use it in combination with other indicators and elements.

thats pretty much what I thought. It is only the beginning of a strategy...something a newbie could use to start developing a personal strategy or that an experienced trader could use along side other indicators...by itself it is just an idea for trading and not a true strategy.

[M.J]

Author actually explained it in a way as if it is really a child's play to pick successful breakouts which leads to winning. Michael is correct in saying that there r a number of ways to identify breakouts but each one has its limitations. Author himself is trying to get new ideas on improving this strategy. In binary options, probability of success can be increased if we apply it as close to expiry as we can. So that even if we r picking a wrong breakout, chances of losing it r less.

[runneroption]

There are really a lot of problems with picking the breakouts exactly when they appear, but that could really works. The shorter the time frame of the binary option is the better are the chances the expected breakout will work. Even if it is false and it reverse after that the option should already been expired in the money! I will try to test this idea live, but before that we have to select the best expiration period. I think 5 or 15 minutes will be good and also some rules about the entry points. I have to select only the best signals, only the breakouts which are really in play, as very often are false signals which then appear to be just noise and not a real breakout. Give your ideas here I will appreciate very much!!!

[vinayakm]

I actually liked this strategy quite a bit. Thanks for sharing.

Of course, I would first need to determine the trend and then the S/R levels, but there are some pretty easy guidelines to follow and this makes it a nice strategy to utilize.