Tuesday was my first day of trading at traderush.com. I heard over the weekend – a few days after the fact – that 24option was no longer accepting new U.S. customers and not permitting deposits for existing U.S. clients. I had heard earlier that 24option would exit the market for U.S. clients, but I didn’t realize that it would be so soon. In fact, I spent a day trading with them last week not even knowing. But as a U.S. resident, once I heard that 24option would no longer be a viable broker for me going forward I decided to withdraw all of my funds.
Ultimately I decided to head over to traderush.com. I had made an account at TradeRush nearly two years ago, although this is my first time trading live with them. I briefly considered stockpair.com, but their short-term expiries pay out at only 71%, although I might consider using them if I ever do an end-of-day trade, which pays out at 80%. At TradeRush, I can get 81%, which is about the best out there for brokers who continue to use the fixed-payout scheme, a feature I prefer over the variable-payout system that is becoming more popular on other offshore sites. So for now, TradeRush will be my binary options broker.
Anyway, on to the trades. Due to a tighter than an average trading range the day before, pivot point levels were tighter together for this trading day. I don’t take a whole lot of pivot trades, but two of my three trades for the day came using pivot points as support and resistance levels. Price had been in a downtrend once I started watching the markets around 2AM EST. There was a relatively big move down to support 1 (yellow line) on the 2:15 candle, before holding and coming back up a bit on the next candle. This told me that price was showing some sensitivity to the line and that a re-touch would be a valid call option for me to take. It did re-touch on the 2:25 candle, where I took a call option at 1.33285. It closed out as a four-pip winner.
Price hovered around support 1 for a while before climbing up to the pivot level of 1.33544 (purple line). I did not take any trades at the pivot given price never touched until it blew right through it on 3:45 candle. Even though I like to trade support and resistance, I never trade levels just to trade them. If price climbed up to the pivot point and I automatically took a put option, then I would simply just be trading a line. While trading a pivot point level might give you a slightly better chance of winning a trade than randomly guessing, I always want some sort of confirmatory factor to better the odds of the trade going in my favor. For me, this is a candlestick pattern – waiting for a reject of the price level before taking the trade on the re-touch.
After going through pivot, price traced up almost all the way to the resistance 1 level (green line) of 1.3391 before failing and tapering off a bit. It did eventually get up to resistance 1 on the 4:30 candle where it was rejected strongly. Therefore, I took a put option on the subsequent re-touch of 1.3391 on the 4:35 candle. I was winning the trade nearly the entire time before it closed out against me right at the very end. According to the chart, I should have lost by one-tenth of a pip, but I actually lost the trade by three-tenths of a pip. But my general idea was correct – expecting a drop-off after a big upward move earlier. After the closing candle, price fell off by about fifteen pips in the ten minutes afterward.
I did not take any further resistance 1 trades, but I did take one final trade on the 7:15 candle. This was purely a support and resistance trade, as price had been forming a pretty decent level of support at 1.33705 with touches along that approximate level in three instances within the past couple hours. Price came down and rejected the level on the 7:10 candle and I took a trade on the re-touch on the following candle. The trend, of course, was also up for the morning so I felt confident in this call option set-up. This trade went against me for the majority of the time, but it climbed back up above 1.33705 in the final minutes of the trade for a winner of just over one pip.
As always, please feel free to leave any questions or comments below. All questions are definitely welcomed.