The 60 seconds expiration strategy has become increasingly popular among traders. More and more traders are opting for this strategy since it allows them to make a lot of profit within a short period.
This strategy is all about having the contract expiry time set to 60 seconds. The trader uses the information at their disposal to either purchase a call or puts option, hoping the underlying conditions do not change before the contract expires.
How the 60 Seconds Expire Strategy Works
The 60 seconds trading strategy, also called the 1-minute trading strategy, works similarly to other trading strategies. However, in this case, a trader only has 60 seconds to execute a trade.
Traders using this strategy need to have fast decision-making behavior because the trade expires within 60 seconds. During the 60 seconds, a trader will purchase a call option (if they anticipate the asset price will go up) or a put option for low prices. Usually, the clock will start when a trader executes the trade and ends immediately on the sixtieth second.
When using this strategy, traders need to mark support and resistance level. This allows the trader to validate the robustness of the price level further. In the end, the trader can lower volumes of trades taking in return for higher accuracy trades.
When should this Strategy be used?
Trading can be a complicated endeavor for a trader who does not understand what works where. Traders need to conduct intensive research on any strategy or tools before using them for their trade.
The 60 seconds expiration strategy is quite helpful for short-term traders and high-frequency traders. High-frequency traders are those traders that conduct multiple trades in a single day, while short-term traders are those that prefer trade options with less expiration period. The strategy is also ideal for small market movements allowing the trader to make the most of the opportunity before the trends reverse. Another perfect situation to use this strategy is when dealing with highly volatile assets such as cryptocurrencies.
Notably, this strategy is not ideal for beginners, long-term traders, traders who depend on trading signals, and those interested in higher payouts.
This strategy can be traded through two main options. These include using indicators and without indicators.
60 Second Expire Strategy using Indicators
One common indicator among traders is the RSI (Relative Strength Index). This indicator provides traders with advanced features that make it possible to see possible changes in a trend. The indicator has two differentiated fields – overbought and oversold. For example, if the curve of a graph strongly leaves the oversold zone in the bottom-up direction, the trader can purchase a call option. On the other hand, the reverse is also true.
Another indicator to consider is the Moving Average Convergence Divergence (MACD). The MACD Indicator allows the trader to measure momentum that is associated with trends.
Other important indicator include the Ichimoku, the moving average, and the Bollinger Bands indicator.
The 60 Seconds Expire Strategy without Indicators.
This method entails using trend lines. In this case, traders wait for the line to rebound three times before starting a trade.
Traders can choose different strategies ranging from 5 seconds expiration strategy to long expiration dates like months when it comes to prediction markets.
However, traders choose the 60-second strategy for several advantages it brings to the table. Firstly, it is easy to trade, allowing a trader access to various markets during different sessions.
A trader can make several trades within an hour. For instance, a trader executing a 30 minutes strategy can only execute two in an hour, while the 60-second strategy can make 40-50 trades an hour.
The 60 seconds expiration strategy also provides traders with increased profit rates by leveraging strong price movements. This allows traders to take advantage of market trends before they start to reverse. This also opens up other profitable conditions, including bonuses, absence of commission, and a wide variety of assets. Traders also enjoy a wide selection of instruments and platforms.
This strategy also reduces the time spent on trading. A trader can execute all the trades they want within minutes, freeing up time for research or other pending activities.
Lastly, since the trader can execute multiple trades, this strategy helps them gain trading experience. Through repeated trading actions, traders can also correct their trading mistakes within a short period.
While this trading strategy provides a string of benefits, it is more or less a risky strategy. The first downside to this strategy is that an equal possibility of losses accompanies the high potential of making profits.
When using the 60 second expire strategy, it is complicated to guess the exact movements in the market. In addition, by allowing traders to overtrade, the strategy lowers their ability to make high-quality trades.