We offer you three strategies using the terminal of our favorite and very reliable broker – Olymp Trade. In the previous articles we discussed both the Olymp Trade terminal and the terminal indicators. And now we offer three strategies for profitable options trading.
Note. There is no strategy which will give you 100% positive signals. The goal of any strategy is to give you enough signals that the overall ratio of positive trades is more than unprofitable. This is already a sign of the effectiveness of strategies! And do not forget to check all the strategies on different parameters, time frames and trading assets!
- Strategy with two Moving Averages and Parabolic SAR Indicators.
We need two exponential moving, one with a period of 5 – it will be fast. The second with a period of 13 – it will be slower. If necessary, you can change the settings yourself. In the Olymp Trade terminal you can do all of it very simply and clearly. Next, we need the Parabolic SAR Indicator with a period of 0.01. Like in our diagram. Our indicators are conveniently located right along with the asset price and we can see everything perfectly. What do we pay attention to?
Separately, the two moving averages give us a clear moment to make a trade, but we want to reduce the number of false entry points, so we add the Parabolic SAR Indicator. Now we have to make sure that we get two signals at once. The first is the intersection of moving averages, and the second is the confirmation of Parabolic. Parabolic should go in the same direction as the moving intersections.
We do not advise you to add a third and fourth indicator – they could completely confuse you! And don’t forget to review and test strategies before real use!
- The second strategy also uses two indicators – Awesome Oscillator (AO) and Stochastic. The first indicator with standard parameters shows the moments of changing the direction of asset movement. The second indicator – confirming – to filter out the points of false entry into the transaction. Both indicators in this strategy are used with the “default settings”
We pay attention to the points of intersection of the zero level of the AO indicator. Next, we look at how the Stochastic behaves at this moment, if it moves in one direction with the direction of intersection, it is a good confirmation signal. So we can look at the next moment: if Stochastic crosses the line 30 from the bottom up and the AO indicator also moves up – this is a double confirmation, which is a good buy signal. Note, that in the Olymp Trade terminal everything looks very clear and convenient, even for a novice user it will be easy to understand everything!
Just a good signal will be if the stochastic falls from the bottom up, crossing the mark 70. In this case, we look at the AO indicator and if it also starts moving down (changing color from red to green) or crosses zero from top to bottom – then this is a wonderful signal – open a down trade!
But do not forget to test all strategies before real use!
- And there is another strategy using again two indicators of the trading terminal of the reliable broker Olymp Trade. What do we need this time? Bollinger Bands and RSI Indicator. Indicators parameters are standard.
There is a great opportunity to follow the movement of the asset. The price is within a certain channel and sometimes either touches its walls and pushes in the opposite direction, or goes beyond the channel and returns to it and goes in the opposite direction. We are looking for these moments. And then, when we find a touch or exit out of the channel, we pay attention to the RSI indicator, it should confirm our observations. If the price returns to the channel and goes up, then the RSI indicator should also go up. Ideally if it crosses the mark 30 from the bottom up. Well, if the price returns to the channel from above, then the RSI indicator should also have a downward direction. It would also be ideal if it crosses the mark 70 while from top to bottom. After waiting for two signals at the same time, we will be able to weed out false entry points!
Well, perhaps that’s all that we wanted to discuss in this article! Safely register with the reliable broker Olymp Trade. And start testing strategies and exploring the exciting and profitable options trading opportunity!
All the best and see you in Olymp Trade!