Strategy for binary options, Forex and CFD - Magic Breakout - a strategy based on two indicators that helps determine the best moment to open a trade up or down.

Minimum Time Frame and expiration time

• Time Frame: M5
• Expiration time: 30 minutes (6 candles)

Recommended Time Frame and Expiration Time

• Time Frame: M5
• Expiration time: 30 minutes (6 candles)

Magic Breakout strategy indicators

• Moving Average
• CCI

Risk management

Trade is carried out with a fixed amount not exceeding 5% of the trade balance. You should not trade during the release of important economic news.

Magic Breakout strategy: signal to increase

• The price was above the wave of three lines for some time
• The price returned to the wave and after some time again rose above the lines
• The CCI line rose above the level of +100, if at least 5 candles before that the line was below +100
• Enter when the next candle opens

Magic Breakout strategy: downward signal

• The price was below the wave of three lines for some time
• The price returned to the wave and after some time dropped below the lines again
• The CCI line has dropped below the -100 level, if at least 5 candles before the line was above -100
• Enter when the next candle opens

Trading on Forex and CFD

• Before starting trading, it is recommended to test the strategy on a demo account (open at least 3-5 trades)
• The trade is opened after receiving a signal from the trading strategy
• The ratio of Take Profit to Stop Loss should be 3:1 (for one unit of possible loss there should be 3 units of potential profit)
• The time frame of trading is not important - minute charts are suitable for scalping, hourly or daily charts are suitable for long-term trading
• Take Profit to Stop Loss levels are set depending on the selected time frame
• The strategy will show false signals on minute charts during the release of important economic news - trade on higher time frames or choose a different time for trading