I’m testing a strategy for binary options with fractals and Chaos Band on a demo account, but I’m confused about the entry timing. When a fractal appears outside the channel, I wait for the next candle to close and take a trade in the direction of the reversal. It seems fine in a calm market, but during a sharp move the signal is often already too late.
I tried entering immediately after the fractal appeared—there are more trades, but the noise is also brutal. The timeframe is M1, and the expiration is two candles. Maybe I should only consider fractals after the band has been touched, rather than every fractal in a row? How do you filter them out? So far, I’m getting too many unnecessary entries, although the idea itself is clear.
I tried entering immediately after the fractal appeared—there are more trades, but the noise is also brutal. The timeframe is M1, and the expiration is two candles. Maybe I should only consider fractals after the band has been touched, rather than every fractal in a row? How do you filter them out? So far, I’m getting too many unnecessary entries, although the idea itself is clear.