SuperTrend + Stochastic Strategy for Binary Options: Entering on a Pullback to the Trend Line

SuperTrend + Stochastic: a simple strategy that gives great entry points on Pocket Option

A two-indicator strategy the channel's author used to trade and has come back to: SuperTrend sets the direction and draws a dynamic level, the Stochastic shows where the move is overheated. The entry is on a pullback to the SuperTrend line when the oscillator is in the opposite zone. Below are the idea, the settings from the screen, the rules table, what counts as an acceptable poke through the line and a breakdown of a real-account session: seven trades and +$760 in the first ten minutes of the recording.

The idea of the strategy

The two indicators share the work. SuperTrend paints its line green in an upward move and red in a downward one, and the line itself works as a dynamic level: in an uptrend it is support under price, in a downtrend resistance above it. The Stochastic shows overbought and oversold and says when the pullback to the line has run out of steam.

We look not for a trend reversal but for a pullback from its line. Price in an upward move corrects down, reaches the green SuperTrend line, the Stochastic is in the oversold zone at that moment and starts crossing up. That is a buy. In a downward move it is the mirror image: an approach to the red line from below, the Stochastic overbought, a sell. Reversals are not guessed by eye; the oscillator shows them.

Situations where both indicators point the same way do not qualify: a downward SuperTrend with the Stochastic oversold is a continuation of the fall, not an entry.

Settings

The 70 and 30 bands are the only thing changed in the Stochastic: the signal arrives a candle earlier than with 80 and 20. The other parameters are defaults.

Entry rules

About the Buy/Sell badge: when price pokes slightly beyond the line, SuperTrend changes colour and draws a label. If the candle body returns at once, it is a "break" of the indicator, not of the level, and the entry is still possible. If the level is broken confidently, the strategy stays silent.

The trade manager and recoveries

The session opens in the trade manager: the "Martingale" strategy, first trade $150, multiplier 2.2, six steps, a 90% payout for the calculation. The manager fills in the amount of the next trade itself and writes every trade into the trader's journal; the trader only has to watch the chart. The step table on screen: $150, $330, $726, $1,597.20, $3,513.84 and $7,730.45, required balance $14,047.49.

The recovery rule from the video: no more than one recovery per asset, and preferably on another asset altogether in a different situation. A recovery on the same chart easily lands in an extended move, and that is always a risk. If there is a loss and no new situation, the trade stays a loss: chasing "on emotion" to punish the market is explicitly forbidden in the video, because it is the market that will do the punishing.

Breakdown of the session from the video

1. A sell at the red line with the Stochastic crossing down, but a late entry. A loss, a recovery on the next candle from the same situation is a win.
2. EUR/HUF, a buy on a correction to the green line with a cross out of the lower zone. A loss, no recovery taken: the situation is gone.
3. A buy on the approach to SuperTrend with the Stochastic oversold. A win, and a second trade in the same place after the cross is a win too.
4. A buy after a touch of the line in an upward move, a Buy badge. A loss, then a $330 recovery against the author's own rule about the amount is a win.

At this point the journal shows 7 trades, +$760.02, a 57% win rate, 4 wins and 3 losses in the first ten minutes. Then the video adds two more examples: a buy with a gap at the candle open and a recovery after a poke through the line, then a sell at the level in overbought with a recovery. Both were recovered with a win. The result of the recording: 11 trades, +$1,054.02, a 55% win rate, 6 wins and 5 losses.

This is the result of the recording, not the expected return. Almost half of the trades closed as losses, and the profit came from recoveries at coefficient 2.2 on a $150 base. What such a series costs at your bankroll is shown by the martingale calculator, and how many losses in a row to expect at a 55% win rate is calculated by the drawdown calculator. The rule from the video that matters more than the settings: made a little, get out. The longer the session, the higher the chance of landing in a dangerous situation.

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