In the financial investment field, we all hear the term trend trading. When you catch the trend, it will help you make a profit easier. This is the point of view that plays a central role in analysis and investment strategies. That’s why in this article I will introduce to you my favorite trend trading strategy called Horizon in Olymp Trade.
What is Horizon strategy?
Horizon is a trend-based trading strategy for profit. It combines Heiken Ashi candlestick charts and indicators to create safe entry points. Many professional traders in Olymp Trade use it as an effective money-making tool.
How to set up the Horizon strategy at Olymp Trade
First you need to choose the candlestick chart which is the Heiken Ashi candlestick. Then set the indicators as follows:
– Simple Moving Average 5
– Simple Moving Average 22
– MACD indicator (as default of the platform)
After setting up the indicators and charts, you have the interface as shown below.
How to open a trade with the Horizon trading strategy
This is an effective way to trade when the market is in the up or downtrend. It doesn’t have much effect when the market goes sideways. So you need to be careful. To have the highest safe entry points, the price must meet the following conditions:
Open an UP order when the Heiken Ashi candlestick chart turns from red to green. At the same time, SMA5 crosses SMA22 from below and MACD also crosses the 0 line from below.
Open a DOWN order when the Heiken Ashi candlestick chart turns from green to red. At the same time, SMA5 crosses SMA22 from above and MACD also crosses the 0 line from above.
How to manage capital with this strategy
The key to profitable trading lies in the capital management. Enter a reasonable money in each order will help you optimize profits.
But very few people know its importance. That why they usually lose and even don’t know where they make the mistakes.
There is a saying that the trend is your friend. If you trade with the trend, the winning rate is higher indeed. With the win rate over 60%, you should use the Classic capital management to maximize your profits.
If you are a safe trader, then you should trade with the trend. And Horizon is a trading strategy that you must try.
However, you shouldn’t use it right away in your real account. Let’s experience it first on the Demo account. And only trade live after you win over 60% in two consecutive weeks.Hope this strategy is the right one for you.