I've been testing a 5-minute strategy for binary options on a demo account for several days now, but so far I have more questions than confidence. I watch the 1-minute chart, wait for a direction to emerge after a couple of candles, and set a five-minute expiry. Sometimes everything looks logical, but the price reverses almost immediately, even though the indicator signal seems sound.
I tried entering after a price breakout and also separately waited for confirmation from the next candle. The second option feels calmer, but there are very few signals, and some of the moves have already passed by. Damn, I can't figure out what matters more for this kind of strategy: the trend direction on a higher timeframe or the reaction to the nearest level. Has anyone traded a similar approach on a demo account? How do you determine the entry point, and how many trades do you test before drawing conclusions?
I tried entering after a price breakout and also separately waited for confirmation from the next candle. The second option feels calmer, but there are very few signals, and some of the moves have already passed by. Damn, I can't figure out what matters more for this kind of strategy: the trend direction on a higher timeframe or the reaction to the nearest level. Has anyone traded a similar approach on a demo account? How do you determine the entry point, and how many trades do you test before drawing conclusions?