Joseph Nemeth Strategy
The mathematician with 15 years of trade experience, Joseph Nemeth is an institution in itself in the world of trading. His craving, to delve into the workings of financial markets, has brought him laurels. Joseph Nemeth had an undisputed urge to learn about all markets and to gain better insight on trading variety of financial instruments. During the dotcom bubble, he incurred great losses, which made him realize that the financial reports of companies are not producing real prices, they are being manipulated.
This realization resulted in change of Joseph Nemeth’s reading of the markets and he felt a deep urge to bring the flaws to the surface, so that investors get a true picture of stocks. After undergoing a number of courses to learn the tricks of the trade, Joseph accidentally encountered the “No Loss” trading method. He was able to earn good amount of money from the method but, he felt that spending too much time on the process was not worth; the need was for automation in trading methods. He introduced the trading mechanism, where the traders can themselves handle the automated trading platform, studying the guidelines and profit making methods.
The Binary Options Trading strategy
The trading method is a progression based strategy of Joseph Nemeth, wherein multiple time frames are used. Firstly, we need to find the Primary Direction through a daily or a 4H chart under Heikin Ashi. If the Heiken Ashi is moving in the upward direction, the Primary Direction will also move upwards. After the Primary Direction is identified, we move to the lower time framework to get hold of the trend. The theory is further explained, with a 20 interval exponential moving average framed on an hour or half an hour chart. The price can be concluded with the 20 exponential moving average positions directing up or down. The movement of the trend must be similar to the Primary Direction.
The final thing is to go on for the trade and the movement, which gets captured in a 10 or 15 minutes graph, only when Heiken Ashi candle, is in conformity with the Primary Direction position and the trend. The Heiken Ashi rules further states that for a call entry, the Heiken Ashi candle in a day or four hour time frame has to be bullish, on a 60 minute chart the price remains above the 20 exponential moving average and the slope is inclined upwards. Similarly, on a 15 minute chart the Moving Average Convergence and Divergence strategy is going in the upward direction. Contrarily, in a put strategy, the Heiken Ashi candle shows bearish trend for a day or four hour time frame. The slope also shows the downward position with the Moving Average Convergence and Divergence strategy moving downwards.
The Success of the Strategy
The binary option strategy has not been taken in a very good spirit because of the complications involved. The mantra of joining three time frames together is felt to be quite confusing among beginners, but for people with sound basic knowledge, it is much simpler.
Joseph Nemeth has himself claimed it to be 75% accurate, which helps traders in surpassing market volatility and keeping them sound on the trend.
Keeping in view of its complications, one feels utterly confused whether to use this strategy or not in the purview of its difficulty level. But, overall it has been popular among traders who wish there should be slight modifications to match it up with binary options.