Army 2020

From binaryoption
Jump to navigation Jump to search
Баннер1

```wiki

Army 2020: A Coordinated Binary Options Trading System

Army 2020 is a relatively well-known, yet often misunderstood, approach to trading binary options. It’s not a single indicator or strategy, but rather a structured system combining multiple technical analysis tools, risk management principles, and a defined trading plan. It was popularized in online trading communities around 2020 (hence the name) and aims to provide a more disciplined and potentially profitable method than relying on gut feeling or single indicators. This article will break down the core components of Army 2020, how it's implemented, its strengths and weaknesses, and what a beginner needs to understand before attempting to utilize it.

Core Principles

The foundation of Army 2020 rests on several key principles:

  • Confluence of Indicators: The system doesn’t rely on a single signal. Instead, it seeks confirmation from multiple indicators, increasing the probability of a successful trade. This concept is similar to confirmation bias avoidance, but used constructively.
  • Trend Following: Army 2020 is primarily designed for trading *with* the trend, not against it. Identifying the prevailing trend is the first and arguably most important step. This is a core tenet of many successful trading strategies, including trend trading.
  • Timeframe Hierarchy: The system utilizes a multi-timeframe analysis approach, looking at broader trends on higher timeframes to confirm signals on lower timeframes. This provides a more comprehensive view of the market.
  • Risk Management: Strict risk management rules are integral, including fixed percentage risk per trade and avoiding over-leveraging. Understanding risk-reward ratio is crucial.
  • Discipline & Patience: The system requires strict adherence to the defined rules and patience to wait for high-probability setups. Avoiding impulsive trades is critical.

Components of the Army 2020 System

The typical Army 2020 setup incorporates the following elements. Variations exist, but these are the most commonly referenced:

  • Moving Averages: Two Exponential Moving Averages (EMAs) are typically used: a 20-period EMA and a 50-period EMA. The crossover of these EMAs is a primary signal for trend direction. A 20 EMA crossing *above* the 50 EMA suggests an uptrend, and vice versa. Moving averages are fundamental to technical analysis.
  • Relative Strength Index (RSI): The RSI (typically with settings of 14 periods) is used to identify overbought and oversold conditions. Signals are *not* taken directly from the RSI alone, but rather used as a confirming indicator. An RSI above 70 suggests overbought conditions, while below 30 indicates oversold. See RSI indicator for more detail.
  • Stochastic Oscillator: Similar to the RSI, the Stochastic Oscillator (often using 14-period settings and a smoothing value of 3) helps identify potential reversals. Again, it’s used in conjunction with other indicators. A reading above 80 suggests overbought, and below 20 suggests oversold. Explore Stochastic Oscillator for a deep dive.
  • Bollinger Bands: Bollinger Bands (typically using a 20-period SMA and 2 standard deviations) are used to assess volatility and potential breakout points. Price touching or breaking outside the bands can signal potential trading opportunities. Learn about Bollinger Bands for a detailed explanation.
  • Support and Resistance Levels: Identifying key support levels and resistance levels is crucial for determining potential entry and exit points. These levels are often identified using historical price action.
  • Candlestick Patterns: Recognizing specific candlestick patterns (e.g., engulfing patterns, doji, hammer) can provide additional confirmation of potential reversals or continuations.

Implementing the Army 2020 System

Here's a step-by-step guide to implementing the Army 2020 system for binary options trading:

1. Timeframe Selection: The most common timeframe used is the 15-minute chart, but some traders also use the 5-minute chart for faster signals. Higher timeframes (1-hour, 4-hour) are used for trend identification.

2. Trend Identification: On the higher timeframe (e.g., 1-hour), determine the overall trend using the 20 EMA and 50 EMA. If the 20 EMA is consistently above the 50 EMA, the trend is considered bullish. If the 20 EMA is consistently below the 50 EMA, the trend is bearish.

3. Signal Generation (15-minute chart): 

   *   **Bullish Signal:**
       *   The 20 EMA is above the 50 EMA.
       *   Price is above both EMAs.
       *   RSI is above 50 (not necessarily overbought).
       *   Stochastic Oscillator is crossing above 20.
       *   Price bounces off the lower Bollinger Band.
       *   A bullish candlestick pattern forms.
   *   **Bearish Signal:**
       *   The 20 EMA is below the 50 EMA.
       *   Price is below both EMAs.
       *   RSI is below 50 (not necessarily oversold).
       *   Stochastic Oscillator is crossing below 80.
       *   Price bounces off the upper Bollinger Band.
       *   A bearish candlestick pattern forms.

4. Entry Point: Enter a CALL option (for bullish signals) or a PUT option (for bearish signals) when *all* the above conditions are met. Consider entering on the next candlestick open after confirmation.

5. Expiry Time: A common expiry time is 30 minutes to 1 hour, depending on the asset and market volatility. Shorter expiry times increase risk but offer potentially higher returns. Understanding binary options expiry is essential.

6. Risk Management: Never risk more than 2-5% of your total trading capital on any single trade. This protects your capital from significant losses.

Example Trade Setup (Bullish)

Let's imagine we are trading EUR/USD on the 15-minute chart:

  • On the 1-hour chart, the 20 EMA is above the 50 EMA, indicating an overall uptrend.
  • On the 15-minute chart:
   *   The 20 EMA (15-minute) is above the 50 EMA (15-minute).
   *   The current price is above both EMAs.
   *   The RSI (14) is at 62.
   *   The Stochastic Oscillator is crossing above 20.
   *   The price has just bounced off the lower Bollinger Band.
   *   A bullish engulfing candlestick pattern has formed.

This confluence of signals suggests a high-probability bullish setup. We would enter a CALL option with a 30-minute expiry.

Strengths of Army 2020

  • Reduced False Signals: The confluence of indicators significantly reduces the number of false signals compared to using a single indicator.
  • Clear Trading Rules: The system provides a defined set of rules, minimizing emotional trading and impulsive decisions.
  • Trend Following: Trading with the trend increases the probability of success.
  • Adaptability: The system can be adapted to different assets and timeframes, although optimization may be required.

Weaknesses of Army 2020

  • Lagging Indicators: Many of the indicators used (EMAs, RSI, Stochastic) are lagging indicators, meaning they are based on past price data. This can lead to delayed signals.
  • Whipsaws: During periods of consolidation or choppy market conditions, the system can generate whipsaws – false signals that lead to losing trades.
  • Complexity: The system requires understanding and monitoring multiple indicators, which can be overwhelming for beginners.
  • Not Foolproof: No trading system is guaranteed to be profitable. Losses are inevitable, even with a well-defined system. Understand risk disclosure for binary options.
  • Parameter Optimization: Finding the optimal parameters for each indicator (e.g., EMA periods, RSI overbought/oversold levels) can be time-consuming and requires backtesting.

Backtesting and Optimization

Before trading Army 2020 with real money, it's *crucial* to backtest the system using historical data. This involves applying the system's rules to past price action to see how it would have performed. Backtesting can help identify potential weaknesses and optimize the parameters for different assets and timeframes. Tools for backtesting are widely available.

Risk Management Considerations

  • Fixed Percentage Risk: Always risk a fixed percentage of your capital per trade (e.g., 2-5%).
  • Avoid Over-Leveraging: Binary options offer high leverage, but over-leveraging can amplify losses.
  • Diversification: Don't put all your eggs in one basket. Diversify your trades across different assets.
  • Emotional Control: Stick to the system's rules, even during losing streaks. Avoid chasing losses.
  • Journaling: Keep a detailed trading journal to track your trades, analyze your performance, and identify areas for improvement. The importance of a trading journal cannot be overstated.

Conclusion

Army 2020 is a structured system for trading binary options that emphasizes confluence of indicators, trend following, and strict risk management. While it’s not a guaranteed path to profits, it offers a more disciplined and potentially profitable approach than relying on random trades. Beginners should thoroughly understand the components of the system, practice backtesting, and prioritize risk management before using it with real money. Remember to continuously learn and adapt your strategy based on market conditions. Further exploration of technical analysis and binary options strategies will greatly enhance your understanding and trading performance.

Comparison to Other Strategies
Strategy Complexity Risk Level Time Commitment Key Features Army 2020 Moderate Moderate Moderate Confluence of indicators, trend following, multi-timeframe analysis 60 Second Strategy Low High Low Short expiry times, quick profits/losses Pin Bar Strategy Moderate Moderate Moderate Candlestick pattern recognition, reversal trading News Trading High Very High High Exploiting market volatility after news releases Martingale Strategy Low (in concept) Very High Low Doubling down on losses

```


Recommended Platforms for Binary Options Trading

Platform Features Register
Binomo High profitability, demo account Join now
Pocket Option Social trading, bonuses, demo account Open account
IQ Option Social trading, bonuses, demo account Open account

Start Trading Now

Register at IQ Option (Minimum deposit $10)

Open an account at Pocket Option (Minimum deposit $5)

Join Our Community

Subscribe to our Telegram channel @strategybin to receive: Sign up at the most profitable crypto exchange

⚠️ *Disclaimer: This analysis is provided for informational purposes only and does not constitute financial advice. It is recommended to conduct your own research before making investment decisions.* ⚠️

Баннер
Retrieved from "https://binaryoption.wiki/index.php?title=Army_2020&oldid=66282"