How this script works?
It is a simple price crossunder / crossover (BB) with a confirmation from overbought / oversold signals and a fast . You will see the BB plotted with its confirmations:
(1) a blue circle that plots in the chart when the price is coming back inside the channel (within the )
(2) an orange square that plots in the chart when the is coming back from the overbought or oversold areas
(3) a triangle that could be red or green depending on the confirmation: Red if Down is crossing down Up or green if vice versa.
The strategy will call for long (Call) if:
(1) the price is crossing over the lower band of the , coming back inside the channel
(2) Up is crossing or has crossed above Down
(3) is crossing over the oversold limit
Consequently, the strategy will call for a short (Put) if:
(1) the price is crossing down the upper band of the , coming back inside the channel
(2) Down is crossing or has crossed below Up
(3) is crossing under the overbought limit
You can configure:
1. length (keep it as fast as possible: 3, 4 or 5 are recommended values)
2. The point where Up and Down cross to make the signal valid (50 is by default. It could also be 25 or 75)
3. The length
4. Overbought and Oversold limits (they do not need to be symmetric: you can use 29 and 93, for example)
5. length and standard deviation
6. Number of bars to keep your option open. Depending on the timeframe used, this will determine the time you will keep your binary option open. If you are in a 1 min chart and keep this parameter in 3, then you will need to configure your binary option to expire in 3 minutes.
How to evaluate your backtest?
In Binary Options you only need the success rate, so what I do is that when I am manually updating the parameters I keep my strategy tester window open checking the winning trades vs losing trades ratio ("Percent Profitable"). I personally will only keep an asset monitored looking for signals that day if the Percent Profitable on the backtest of the same day is above 80%.
Regarding the code: it is open, public and free. No need to ask for permission if you want to copy+paste and use it in whole or parts.
Happy pip hunting!