Hello to all readers of Howtotradeblog. During the past time, we have brought you a lot of knowledge as well as trading strategies required to become a professional trader in Olymp Trade. They are knowledge of indicators like RSI, SMA, Bollinger Bands, candlestick patterns such as Morning Star, Hammer, Harami, plus with the guides on how to trade and use them.
Continuing that journey, today, I will bring you complete strategies for trading in Olymp Trade. This is the last step for you to make money trading on your own. Stay tuned to see what I’m going to bring you today.
Trading in Olymp Trade using RSI indicator combined with SMA
The strategy that I am about to share below uses these 2 indicators at the same time to find entry points with the highest accuracy.
Basic setup for trading in Olymp Trade
Basic setups: A 5-minute Japanese candlestick chart. EUR/USD pair. This is a popular currency pair. The price goes quite gentle and is traded by many people. Open orders with an expiration time of 15 minutes.
Next, you need to set up RSI and SMA in Olymp Trade. You can do as follows:
Set up the SMA indicator
In the interface of Olymp Trade, select “Indicator” and then choose “SMA”.
Next, customize the SMA with the parameter of 30.
Set up the RSI indicator
For the RSI indicator, you do the same. Select “Indicator”, search and select “RSI”.
After setting up the 2 indicators, the interface of Olymp Trade will be shown as below.
How to open an order in Olymp Trade using RSI combined with SMA
The basis for opening orders is as follows:
First, I use the SMA30 to determine the price trend. Specifically, when the SMA is pointing up and locating below the price, the market is in an uptrend. When the SMA is pointing down and is above the price, the market is in a downtrend.
As for the RSI, the 50 level is what I want to talk about here. Let’s take a look. When the price is in an uptrend, the RSI is above 50. And when the price is in a downtrend, the RSI will be below 50.
Combining these 2, I have an effective strategy to open orders with RSI and SMA as follows.
+ Open an UP order when the price is in an uptrend. The SMA30 points up. The price hits the SMA and then rebounds. At the same time, the RSI hits the 50 level and then rebounds.
+ Open a DOWN order when the price is in a downtrend. The SMA 30 points down. The price hits the SMA and then falls down. At the same time, the RSI hits the 50 level and then falls down.
Capital management and trading psychology
This is an indispensable part of every trading strategy. It is a fact that no matter how high your strategy win rate is, without good capital management, you will still burn out your account. Please remember that capital management is a must when trading. In this strategy, you can open orders with the Classic capital management method. This means opening orders with fixed capital from 3-5% of the trading balance.
For example, You deposit into Olymp Trade $100. The bonus from the platform is 30%. Now you have a total of $130 in balance. Then you should only allow investing from $4 to $6 per trade.
We have a payout rate of 82% and a win rate of 70%. The profit with this trading strategy is $16 on the deposit of $100. The rate of return is 16%. Every day, you earn $16. Don’t underestimate it because after a month it will be $480.
This is where I want to emphasize on the mentality and discipline when opening orders. There are a few things you need to keep in mind when trading.
- Only open orders with high winning probability which you are willing to trade with your own money.
- Never increase the investment or open consecutive orders. This is the fastest way to burn out your account.
- Don’t be bitter or lose your temper when your trade is at a loss. Please remember that the winning probability of this strategy is only 70%. Just wait! There will be many more opportunities for you to get it back.
- After opening all 10 orders, take a quick analysis of trading history and then turn off the computer to do other things. Do not open the 11th order. You must stay disciplined to make money. Without discipline, you will lose money.
Practice this trading strategy in Olymp Trade on my real account
I have directly tested the strategy using RSI combined with SMA 30 in Olymp Trade. There were 5 opened orders. The result was 4 wins and 1 loss. The win rate reached 80%.
Pros and cons of this trading strategy in Olymp Trade
This is a strategy that I consider to be safe and effective. It is very suitable for beginners also. The win rate can reach up to 80%. It reflects the efficiency that RSI and SMA 30 would bring upon. In one day, there are not too many qualified entries for you. Along with that, the expiration time for each transaction is 15 minutes. Therefore, your account will be very hard to get depleted.
Important notes: It is important to remember to open orders only when the RSI has hit the 50 level and turned back clearly. This is a very good way to filter fake signals to get the most accurate entry points.
The strategy is now available. It is now your showtime. Turn on a Demo account to verify. Make sure you have done well in a Demo account before thinking of depositing for real trading. Leave any questions if you need help. Goodbye!