This is a method of a very experienced trader in Olymp Trade. You can try playing with this method. The result of our trial in 2 days is very positive. It proves the efficiency of the method.
The idea of trading an order based on SMA 20 at Olymp Trade
This is an Olymp Trade method based on the color of candles. If you do not understand how to observe candles’ color, you can take a look at this article: Detailed guide to trade in Olymp Trade using candles’ color.
If you don’t know how to set up an SMA 20 in Olymp Trade, you can read this article: How to use SMA indicator to reach 5% profit a day in Olymp Trade.
Time period for the candlestick chart is 10 minutes. Time frame for order is 10 minutes (Set the time for which your forecast 10 minutes). Main pair is EUR/USD, you can play at all time in a day.
Open an UP, when:
When price rises above SMA 20 (market trend is moving upward), candles appear above SMA 20 line, you should focus on UP:
For example, first candle is red, price is moving towards SMA 20, closing candle reaches or intersects the SMA 20. The next candle is green (second candle), price is pulled up (or bounces back after touching the SMA 20 line). When these 2 conditions is fulfilled, open an UP (Bet green candle).
Open a DOWN, when:
When price is below the SMA 20 line (Market trend is downward), candles appear below the SMA 20 lines, you should focus on DOWN:
For example, first candle is green (price goes up to SMA 20). Next candle is red (price touches SMA 20 and reverses), open a DOWN (bet the next candle which will be red).
Detail of the trade on December 4th
With this method, I placed based on 10-minute-candlestick-chart for the pair EUR/USD on December 4th. The main trend of market was upward. Therefore I only focused on the UP. And there was 3 point to place order. These are detailed trading diary:
And the results of the 3 orders:
What make strategy to trade with SMA20 line safe?
We place orders based on trend. Only when price has obvious trend, we can start to trade. Trend acts as a strong indicator and the best indicator in term of technical analysis.
We focus on the DOWN when the trend is downward and vice versa. This is a very efficient way to help you avoid reverse psychological status when trading in Olymp Trade.
How to manage your money in Olymp Trade with this strategy
- For newbie
In our opinion, you just need to invest a stable amount of money. For example, if you have 2000$, you should invest 80$ in each order until you can earn 125$ each day.
- After 1 month trial
After try playing with this strategy and you find that it works effective, you can gradually increase the money you invest. For example: 1st order-lose 80$, increase the investment to 150$ for the 2nd order, if you lose, continue to increase the investment to 350$ for the 3rd order. Depending on you probability of winning, consider the percentage that you lose 3 times continuously to invest money in this way.
Emotional management when trading Olymp Trade
You should check on the price change history, candlestick pattern of EUR/USD in 10 minutes. Focus on the moment price interact with the SMA 20 line. Count the candles and check if the strategy work.
If you feel that the strategy work, you can start trading. Only place order in time and be patient when waiting for the right time. Never use many strategies at the same time.
If you lose 3 times continuously, stop trading, never fall into the vicious of trading to make up for loss.
You should stop when you fulfill your target for a day to prevent yourself from being greedy.
This is all about the strategy with SMA 20. Remember: Less trading is better, the longer time you observe the candlestick chart, the better you can estimate the trend.
Leave comments if you have any question. We will try our best to reply you all.
Wish you success!
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