Trend trading is a strategy that works with a big money flow. This strategy is suitable for small investors because it’s easy to use and has a high winning rate in each trade. In this article, I will show you how to set up and use the Jack Tar trading strategy to follow the market trend and make profits in Olymp Trade.
What is Jack Tar?
Jack Tar is a trend trading strategy that brings high safety to traders. It has an extremely interesting combinations with 3 Simple Moving Average (SMA) indicators. Many experienced traders use Jack Tar to make profits daily in Olymp Trade.
Much of the Jack Tar strategy revolves around the SMA. So let’s find out how to use and get the most out of it.
Rules to remember when using the SMA
To enter a trade based on the SMA, you need to understand the following important basic rule:
– In an uptrend, the price is above the SMA and getting close to it. However, the price still does not close below the SMA. It is a signal to enter a safe UP trade.
– The price rises and closes above the SMA but the SMA is still falling. At this time, you should look for opportunities to place DOWN orders.
– The price is below the SMA but it is still trending up and can’t close the candle above the SMA. Next, it will turn down again. This is a safe signal for a DOWN order.
– The price rises too quickly and tends to return to the SMA which is moving sideways. At this time, consider placing a DOWN order to follow the short-term trend.
How to set up the Jack Tar trading strategy
If you are a VIP member, just go to the strategy section and choose Jack Tar. Otherwise you can manually set up 3 lines: SMA50 (yellow), SMA100 (blue) and SMA200 (red).
After the setup is complete, you will get the interface as shown below
How to trade with the Jack Tar trading strategy
The heart of the Jack Tar strategy lies on the SMA200. It is considered as a strong support or resistance to find entry points when the price is about to touch it. We observe the 1-minute Japanese candlestick chart that will enter an order with an expiration time of 3 minutes.
Open an UP order when the price from above goes down and crosses the SMA50, SMA100 then touches the SMA200 line.
Open a DOWN order when the price from below goes up through the SMA50 and SMA100, then approaches the SMA200.
Capital mangement
To make profits in Fixed Time Trade, you need to pay attention to the capital management. With the same win rate, who has a better management method will gain higher profits.
One thing you need to know is that the farther the trend goes, the easier it is to reverse. Therefore, in order to minimize the risk, you need to reduce the trading volume in later orders. We will have a management method as shown below.
To conclude
Jack Tar is a trend trading strategy, so it is suitable for times when the market has a high volume. Please test it first with a Demo account to understand the favorable timeframe.
Practice a lot before trading for real. That will help you face less risk. Don’t rush into the market after reading this article. I hope you find a way to trade that suits your personality.
Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19
General Risk Notification: trading on the Olymp Trade platform involves high-risk investment. Do not invest funds that you are not prepared to lose. Before you start, we advise that you become familiar with the rules and conditions of trading outlined on our site. Any examples, tips, strategies and instructions on the site do not constitute trading recommendations and are not legally binding. Olymp Trade is a trading platform which operates online. Traders make their decisions independently and this company does not assume responsibility for them. The service contract is concluded in the territory of the sovereign state of Saint Vincent and the Grenadines. The services of the company are provided in the territory of the sovereign state of Saint Vincent and the Grenadines.
