If you are an investor who likes short-term trades in Olymp Trade, then Confrontation is a trading strategy that you cannot ignore. It is considered a very safe strategy with high efficiency by many professional traders. In this article, I will show you how to use it to make profits when trading Fixed Time Trade in the simplest way.
What is the Confrontation trading strategy?
Confrontation is a trading strategy mainly based on the buying/selling power of the market. Combining it with additional precise signals from the Parabolic indicator, they will give good entry points.
The Confrontation consists of the following 3 indicators:
Bulls Power and Bears Power indicators are key elements of this trading strategy. Because the fluctuations of these factors are possible signals of a trend reversal in the future. Both of these indicators should be used along with other basic indicators for transactions with the highest safety.
Next, the Parabolic indicator is seen as an entry signal. It can help you identify trend stops and reversals. This is an indicator that combines price and time to form future bullish and bearish signals. If you use this indicator when trading in Olymp Trade, you will see pink dots appear on the screen interface.
Why is the Confrontation trading strategy favored by both professional traders and new ones?
There are 2 outstanding advantages that Confrontation brings to investors:
– Safety: that is something experienced traders always focus on. When a trading strategy includes many conditions built by many different indicators, its safety will be very high. This gives you the confidence to decisively place an order when the risk has been kept low. You can try to statisticize how much the win rate of the Confrontation trading strategy is when most users get the result of about 70%.
– Many entry opportunities: when trading with the Confrontation trading strategy, you will have at least 10 entry opportunities per day. It will help you to reach your profit goals in a short amount of time. To maximize your profits, you need to screen out orders with a high probability of winning. It would be great if, within 30 minutes, you can correctly predict 3 orders in a row.
How to trade with the Confrontation trading strategy
This is considered a trading strategy that uses more than 2 technical indicators. However, it is not too difficult to satisfy the conditions to open an order. I will show the conditions so that you can see whether it is difficult or easy to open orders with the Confrontation.
Conditions for setting up this trading strategy:
- The Bulls Power and Bears Power indicators.
- The Parabolic indicator.
- A 1-minute Japanese candlestick chart.
Notes: Observe the 1-minute chart but open orders with a 2-minute expiration time.
Open an “UP” order when: Bull Power and Bear Power both cut the 0 line from below. At the same time, the Parabolic indicator is below the Japanese candlestick chart.
Open a “DOWN” order when: Bull Power and Bear Power both cut the 0 line from above. At the same time, the Parabolic indicator is above the Japanese candlestick chart.
Which capital management method is optimal?
If you manage your risk as a percentage of your total capital, it will be easier to divide your money for placing orders. Let’s say you have $100 divided equally by 10 orders, each order investment will be $10. And you will definitely make a profit of 15% by winning 2 orders. The goal is not too difficult with the Confrontation when there are many opportunities to open orders during the day.
The Confrontation trading strategy has been used by the majority of traders in Olymp Trade and has earned very positive feedback in seeking profits. Do not miss out on this extremely safe trading strategy. It will help you to create a steady stream of profit over the days, weeks, months, and years.
Test the Confrontation trading strategy on your Demo account today. You will certainly be satisfied with it.