The Tigger Factor – a highly effective method for options trading

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The “Tigger Factor” – a highly effective method for options trading

This technique is somewhat different from the majority of the most popular indicator trading systems. The “Tigger Factor” method has 87% efficiency, which opens up big opportunities for private investors on the binary market, as it provides dynamic growth of account capital with relatively low risk.

Requirements for the “Tigger Factor” method

Special custom types of professional auto analysis tools are used for the “Tigger Factor” method, and they are capable of assessing a wide range of parameters of price “behavior.” These tools, as they are not available on platforms from companies on the current options market, can be found at our “Analytics” section ( we will need live chart for using this trading method). After searching for and finding the asset you want, add the following auto indicators to its “live” quotes:

• The STARC Bands auto indicator;

• And the tool that gave its name to the technique – the Trend Tigger Factor.

Set the quote time frame to M1. The template field should end up looking as follows:

Since we do not analyze directly on the terminal, we will need to find the fastest and most reliable platform with the most accurate quotes and instantaneous opening of contracts. Platforms that are positioned closer to top will work optimally in this regard. It is a well-known and proven options operator which provides the following on its platform:

• FMRRC protection, which makes it possible to feel confident when working on the national segment of the options market;

• More than 80 types of different high profitability assets;

• Trading with “Turbo” and standard contracts;

• A choice of expiration terms starting at 1 minute;

• Accurate quotes from an outside trading service;

• Instant opening of trades;

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• No pauses or hangs;

• $10 for a starting account, $1 for the minimum contract;

• Technical support 24/7.

Expirations

In the system testing mode, it was determined that the optimal time for contracts to operate using the “Tigger Factor” method on the Binomo platform is from 5 to 15 minutes when using the M1 time frame of the price chart. When using those parameters, the method brings the highest amounts of profit.

Signals of the “Tigger Factor” method

Trades are to be opened UP when these signals from the auto indicators of the “Tigger Factor” method are recorded:

• On the STARC Bands auto indicator there is an intersection in an upward direction of its dotted line with the price of the asset;

• The AK Trend ID auto indicator line which is moving in an upward direction changes its color to green;

• The Trend Tigger Factor auto indicator uses its moving to intersect the critical lower level upwards:

After noting these movements from the auto indicators of the “Tigger Factor” method on the template field, proceed instantly to the platform you prepared in advance and trade UP:

Trades are to be opened DOWN when these signals from the auto indicators of the “Tigger Factor” method are recorded:

• On the STARC Bands auto indicator there is an intersection in a downward direction of its dotted line with the price of the asset;

• The AK Trend ID auto indicator line which is moving in a downward direction changes its color to red;

• The Trend Tigger Factor auto indicator uses it’s moving to intersect the critical upper level downwards:

After noting these movements from the auto indicators of the “Tigger Factor” method on the template field, proceed instantly to the platform you prepared in advance and trade DOWN:

Money management

Thus, a safe mode of trading on the exchange when using the “Tigger Factor” method can be achieved by applying the standard principles of money management. As for differences in the sizes of the account capital of private investors on the options market, the principles of capital management under various financial conditions will vary as follows:

• If you have not yet managed to “get very far” with the minimum amount of account capital, which is set on the most of platforms at 10 US dollars, then you should use apply only minimal trades worth 1 US dollar for some time.

• When the account has grown, or if it initially amounted to more than $100, the size of trades can fluctuate up to 5% of the volume of funds in the investor’s personal account.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Options Trading Strategies: A Guide for Beginners

Options are conditional derivative contracts that allow buyers of the contracts (option holders) to buy or sell a security at a chosen price. Option buyers are charged an amount called a “premium” by the sellers for such a right. Should market prices be unfavorable for option holders, they will let the option expire worthless, thus ensuring the losses are not higher than the premium. In contrast, option sellers (option writers) assume greater risk than the option buyers, which is why they demand this premium.

Options are divided into “call” and “put” options. With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price. With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price.

Why Trade Options Rather Than a Direct Asset?

There are some advantages to trading options. The Chicago Board of Options Exchange (CBOE) is the largest such exchange in the world, offering options on a wide variety of single stocks, ETFs and indexes. Traders can construct option strategies ranging from buying or selling a single option to very complex ones that involve multiple simultaneous option positions.

The following are basic option strategies for beginners.

Buying Calls (Long Call)

This is the preferred strategy for traders who:

  • Are “bullish” or confident on a particular stock, ETF or index and want to limit risk
  • Want to utilize leverage to take advantage of rising prices

Options are leveraged instruments, i.e., they allow traders to amplify the benefit by risking smaller amounts than would otherwise be required if trading the underlying asset itself. A standard option contract on a stock controls 100 shares of the underlying security.

Suppose a trader wants to invest $5,000 in Apple (AAPL), trading around $165 per share. With this amount, he or she can purchase 30 shares for $4,950. Suppose then that the price of the stock increases by 10% to $181.50 over the next month. Ignoring any brokerage, commission or transaction fees, the trader’s portfolio will rise to $5,445, leaving the trader with a net dollar return of $495, or 10% on the capital invested.

Now, let’s say a call option on the stock with a strike price of $165 that expires about a month from now costs $5.50 per share or $550 per contract. Given the trader’s available investment budget, he or she can buy nine options for a cost of $4,950. Because the option contract controls 100 shares, the trader is effectively making a deal on 900 shares. If the stock price increases 10% to $181.50 at expiration, the option will expire in the money and be worth $16.50 per share ($181.50-$165 strike), or $14,850 on 900 shares. That’s a net dollar return of $9,990, or 200% on the capital invested, a much larger return compared to trading the underlying asset directly. (For related reading, see “Should an Investor Hold or Exercise an Option?”)

Risk/Reward: The trader’s potential loss from a long call is limited to the premium paid. Potential profit is unlimited, as the option payoff will increase along with the underlying asset price until expiration, and there is theoretically no limit to how high it can go.

The 8 Best Options Trading Platforms of 2020

From beginner solutions to expert portfolios

We are committed to researching, testing, and recommending the best products. We may receive commissions from purchases made after visiting links within our content. Learn more about our review process.

Options trading is a somewhat high-risk area of the investment world where you can pay for the option to buy or sell a specific security at a set price on a future date. Based on fluctuations in market prices for those securities, the value of options rises and falls until their maturity date.

If you want to trade options, you’ll need an account with a brokerage that supports options. Each platform is unique and has its own pros and cons, so it is best to understand what you want in an options account and platform before you get started. Follow along to learn more about the best options trading platforms and which may be best suited for your options trading needs.

Best Overall: TD Ameritrade

TD Ameritrade takes the top spot in this ranking thanks to a combination of reasonable pricing, excellent beginner resources, and a top-of-the-line trading platform that works well for experts and professional traders. No matter where you are in your options trading journey, TD Ameritrade has something for everyone.

Trades at TD Ameritrade cost $6.95 per trade plus $0.75 cents per contract. There is no account minimum. The site offers a current promotion where you get 60 days of commission-free equity, ETF, and options trades with a deposit of $3,000 or more. You get additional bonuses with larger opening deposits.

Beginners have a wide range of resources that are great for options and other investing and trading strategies. For expert traders, the Think or Swim platform gives you Wall Street quality at a Main Street price.

Best for No Commission: Robinhood

You can’t get cheaper than free. While some professional traders are not happy with how trades are handled and processed at Robinhood, it is an excellent platform for beginners to get started with less risk. With no trading fee, you can buy and sell options without risking anything more than your initial investment.

Robinhood is a web-first platform and it doesn’t offer much when it comes to education and research tools. But if you read a book on options and want to try your hand as a hobbyist, Robinhood can certainly handle your needs.

Robinhood also offers commission-free stock trades, ETFs, a limited number of cryptocurrencies, and a limited number of ADRs (American Depository Receipts — a type of stock listing in the US for a foreign company). Because it is mobile first, it offers great real-time notifications for investments and trades on the platform.

Best for Experts: TradeStation

TradeStation started as a software company for traders, and even though it has grown over time, it has held true to its initial trading principles. If you want professional data and high-speed trade execution on an expert-level platform, TradeStation is a great choice.

TradeStation charges $5 per trade plus $0.50 cents per contract. However, it also offers unbundled and per-contract pricing. Professional and high-volume traders may do better with the flat rate cost of $1 per contract instead of the base + per contract fee most brokerages charge.

While it doesn’t offer as much for beginner traders and new traders, you could host a family office or business portfolio on TradeStation with no problems. In fact, its tools are so good it sells many of them for a fee to professional investors with accounts at other brokers. With an active account at TradeStation, you get those tools for free. Just beware the minimum $2,000 balance or five trades per year to avoid a $95 annual account fee.

Best for New Traders: Charles Schwab

Charles Schwab delivers an all around great experience with excellent customer service. Once you open a new account, trades are $.95 each plus $0.65 cents per contract. First-time clients get 500 commission-free trades for two years when you deposit $100,000 or more in a new account.

Schwab offers above-average research and education offerings. It also gives you a very good platform for trading on desktop, web, and mobile. Even outside of options, it is one of the best overall brokerages for a wide range of investing and trading needs.

With the large library of educational and research content, you can enter the high-speed options trading world with your eyes wide open to the risks and opportunities. That said, the competitive costs and quality trading platforms make it a worthy consideration for even the most experienced traders. Accounts require a $1,000 minimum to access options trading.

Best for Low Costs and No Minimums: Ally Invest

Ally Invest is another low-cost brokerage best known for its cousin Ally Bank. Like the bank, Ally Invest offers an easy-to-understand and low-fee brokerage lineup. Trades are $4.95 each plus $0.65 cents per contract. There is no account minimum. With a current promotion, you can get up to $3,500 bonus cash depending on the size of your deposit.

You can start with a low investment to learn more about Ally without worrying about big minimum balances or fees. But even some more experienced traders will be happy with the low costs and a wide range of services geared toward option traders.

Highlights include a powerful trading platform and valuable charts, data, and analytics to help you build your options trading strategy. In the world of discount brokerages, you can’t always take the value of a broker from its trading fees. At Ally, that’s certainly the case.

Best Per-Trade Fees: Interactive Brokers

If you are an active trader who prefers making frequent, small trades, Interactive Brokers may be the best fit. There is no pre-trade fee and options commissions are $0.70 cents per contract. High volume traders can qualify for lower pricing down to $0.15 cents per contract with 100,000+ contracts per month. This brokerage also offers pricing that is attractive to active stock and ETF traders. Different pricing applies to non-US options.

This brokerage is not good for passive investors with few trades per year or a large balance. The account requires a hefty $100,000 minimum balance or $10 in commissions per month to avoid an activity fee. The activity fee is the difference between your trading commissions and $10 per month to total a $10 minimum monthly charge. The account charges a higher $20 minimum if you don’t keep at least $2,000 in equities in the account.

If you do have the appetite for at least $10 in trades per month and/or can satisfy that $100,000 minimum, Interactive Brokers has excellent trading platforms. These tools include a natural language bot that will place orders based on your instructions and a professional-grade desktop platform.

Best Tiered Pricing: Lightspeed

Lightspeed is a brokerage with a focus on active and experienced traders. Lightspeed charges $0 per trade and $0.60 cents per contract with a $1 minimum per trade. Tiered pricing starts at 500+ contracts per month. Depending on your volume, discounted rates range from $0.20 cents at 100,000+ contracts per month to $0.50 cents at 500 to 2,000 contracts per month.

Lightspeed offers professional-grade trading platforms. The options platform is known as Livevol X and offers integrated order execution, analysis, customized layouts, historical data analytics, and other useful features. Like competing platforms, you can manage most common account needs right in the desktop, web, or mobile-based platform.

This brokerage is not as beginner friendly as others on our list, so you should look elsewhere if you are brand-new to options trading. But if you are experienced and want expert tools, you can find everything to whet your appetite at Lightspeed. With low pricing for high-volume options traders, you might find it the right home for your options brokerage needs.

Best Binary Options Brokers 2020:
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    Binarium

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  • Binomo
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    Good Choice For Experienced Traders!!!

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