EA: Hubba Hubba Strategy for Binary Options
I have made an expert advisor based on the Hubba Hubba Strategy for Forex Binary Options Trading.
This is an amazing strategy that was originally published on BinaryOptionsEdge forum I think. But I found it on FXProSystems:
It’s got a really good explanation. If you don’t know about the strategy, I suggest you read it on FXProSystems or on BinaryOptionsEdge:
Hubba Hubba Strategy
- An indicator called VCustom3 will give an overbought or oversold signal. Overbought means price will soon start going down so be ready to SELL and oversold means be ready to BUY.
- Another indicator called “Support and Resistance (Barry)” draws S/R lines. For BUY, price should cross the base support and for sell price should cross the upper resistance.
- Another indicator draws the Moving Average. For BUY candle open price should be below the MA and for SELL it should be above.
If all these conditions meet then open a BUY or SELL. So I wrote an expert advisor that does just that. But I found that by using just these conditions it was giving me a maybe 50% win-rate. I tested it on EURUSD and USDJPY backtesting in MT4. This was because even if the trend was mostly bearish it could still open a BUY and fail and vice-versa. Hubba Hubba strategy is awesome when used manually because we can see these patterns and an expert trader will use his gut.
So I wrote 2 functions to help me find Bullis/Bearish Trends:
This uses an Indicator called Bulls-vs-Bears helps analyze whether the Bull or Bear trend is winning.
Found it here:
This will study the past 2 candles and if they indicate a bearish trend it will go ahead with the SELL and vice-versa.
So, I started getting a 65-68% win-rate. But I know that for Binary Options even this is not enough.
I had more success combining the 2 strategies but I was getting very very few signals with that.
In EA, on lines 600 and 643, you can comment/un-comment to change the strategies.
//isBullish = AnalysePreviousPriceAction(OP_BUY); isBullish = AnalyseTrend(OP_BUY);
//isBearish = AnalysePreviousPriceAction(OP_SELL); isBearish = AnalyseTrend(OP_SELL);
Run the EA on M5 or M15 timeframes. For testing it out, I have written code that will create a CSV file here:
It will also create .gif image files in the same folder in case of a loss with a red arrow pointing the loss section. This is just so you can see which strategies work and which don’t 🙂
Inputs: Martingale inputs, BO_Expiry_Bars (after how many bars you need it to expire). E.g. On M5 chart if you set this to 3, it should expire in 15-minutes. By default it’s 1.
I recommend you to keep MaxOpenTrades to 1 as this might open multiple trades for BUY or SELL as the VCustom3 indicator can give overbought/sold for multiple consecutive bars.
I’m sharing my EA and would love for you guys to test it out. I haven’t had much time to backtest it over different charts and different timeframes. So far I have mostly used EURUSD and USDJPY for M5.
I really recommend that you use it on a DEMO account and not a real LIVE account!
I’ll update this post as I keep refining my strategy. I also hope that you guys could give me suggestions that I could try out to up my win-rate.
Let’s make this EA awesome together!
Many thanks for reading and I hope you enjoyed the post.