This is an article shared by a reader of Olymp Trade Club. This article just discusses the method, not attached any specific entry points or the amount of money. But because the author wants to share his own trading method to receive your reviews, so we still upload it.
Trade with Out Bands candlestick method in Olymp Trade
There are 3 things you need to pay attention:
- This is a 5-minute candlestick method (trade in Olymp Trade following the candlesticks’ color: Up = green, Down = red). It means when the signal candlestick closes => open orders => bet the color of the next candlestick (the time expiration of an order = the time of a candlestick = 5 minutes)
- Trading method: Out Bands candlesticks. It means when the signal candlestick closes at 2/3 outside of the Bollinger Bands, or closes completely outside the bands => Open reversal orders. To learn more details, please see this article: How to trade with Out Bands candlestick in Olymp Trade.
- Capital management method: Martingale. Deposit $20 when trading. If lose, increase money. 1st: $2, 2nd: $5 and 3rd: $13.
Ok! Now we will review entry points on August 13 in Olymp Trade. With 5-minute Japanese candlesticks chart and the familiar currency pair EUR/USD.
Trading time frame in the morning in Olymp Trade
- EUR / USD at 7:20 am. The price was in a downward trend.
1st: The signal candlesticks closed at 2/3 outside of the band. Betted the candlestick green. Win.
2st: The price continued to fall. The red candlestick closed 2/3 outside of the lower band. Betted the next candlestick green. Win.
- EUR / USD at 9:30 am. The price was still in a downward trend.
3rd: The price continued to drop. A red candlestick closed at 2/3 outside of the band. Betted green for the next candlestick.
4th. The price still decreased. The candlestick closed at 2/3 outside of the band. Betted the next candlestick green. Lost.
5th: Increased money after losing order 4. The whole candlestick closed outside the band. Betted the next candlestick green. Win.
Trading time frame in the afternoon in Olymp Trade
6th: The price exceeded the upper band. A green candlestick closed at 2/3 outside of the band. Betted the next candlestick red.
7th: The price exceeded the band again. The green candlestick was outside of the band. Betted red for the next candlestick.
8th: The price was out of the upper band again. The green candlestick closed at 2/3 outside the band. Betted the next candlestick red. Won.
Trading time frame in the evening in Olymp Trade
9th: The price started to exceed the upper band. The green candlestick closed at 2/3 outside the band. Betted red on the next candlestick. Lost.
10th: Another candlestick closed outside the band. Increased money. And betted the next candlestick red. Still lost.
11th: Again, a candlestick closed 2/3 outside the band. Increased money for the last time. And betted the next candlestick red. Won.
It must be said that this is a standard cycle according to martingale capital management. For those who are new to this capital management method, it is very vulnerable to your psychologies.
Losing streak can harm your brain and you may probably burn the account for the next order if losing at this 3rd. This is one of the biggest weaknesses of Out Band candlesticks method. You have to be really careful when using it.
Almost all, the Out Bands candlesticks method is quite right at the morning time frame with EUR/USD. If the market does not have any shocking news, it is clear that there will be an immediate adjustment after the price exceeds bands. This is the basis to open a reversal order of this trading method.
Next, if you use Martingale, then save it for the morning orders (except Monday) when you have calmness + market support. In the afternoon, the market fluctuates quickly and sometimes only moves in one direction. If you use Martingale capital management, it’s easy to burn all of your profit + account.
The winning probability of the Out Bands candlesticks method in Olymp Trade is 9/14 ~ 65% (more than 50%). This is not very important if you lose the last orders. Martingale, even if there is a high chance of winning, will still burn the account as usual. Therefore, although the method is easy, it is not suitable for newbies.
Note: This article is written by the reader. The image is circled including the signal candlesticks + entry points.
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