The most important thing when trading forex is that we need to predict the direction of the market. The points are most likely to reverse or continue the trend in the most accurate way. From there, find the order points that are suitable for the trading method that you are using to make a profit.
In this article I would like to introduce to you an extremely effective Rodeo trading strategy. It will help you identify the trend when trading Fixed Time Trade in Olymp Trade.
What is Rodeo strategy?
Rodeo is a trading strategy that combines the oscillator (Stochastic) with the momentum indicator (MACD) on the Heiken Ashi candlestick chart to find highly accurate trend-following entry points. Especially, this strategy is only circulated internally by Olymp Trade. Only Expert members can receive references.
How to set up Rodeo trading strategy in Olymp Trade
To set up the Rodeo, you first need to switch to the Heiken Ashi candlestick chart. Then go to the indicator to choose the Stochastic and MACD indicator.
In the MACD indicator, you will hide the MACD and Signal lines, convert the Histogram into the Area chart.
After completing the above steps, you will get the interface as shown below.
How to open an order with Rodeo trading strategy
The safety of a strategy that needs few conditions to enter the order is usually not very high. With the Rodeo strategy, you need to satisfy 3 conditions to open a trade. That helps to eliminate most of the noise signals in order to increase safety and reduce risk for traders when using this strategy.
Open an UP order when the Heiken Ashi candlestick chart turns from red to green. At the same time, the Stochastic indicator is moving up from below the 20 and the MACD indicator is also going up from below the 0.
Open a DOWN order when the Heiken Ashi candlestick chart turns from green to red. At the same time, the Stochastic indicator is moving down from above the 80 and the MACD indicator is also going down from above the 0.
How to manage capital effectively with Rodeo
When using the strategy with a high win rate like Rodeo, the compound interest capital management method (Snowball) will be the best choice for you. The profits you get will be well worth the time spent waiting for the best opportunities from the market.
You can multiply your account with just 4 consecutive winning trades. That’s not too difficult for a high win rate strategy like Rodeo.
For example, in the first order, you invest $50 and win (payout 80%), which will receive a total of profit and capital are $90. Next to the second order, you will invest $90 including profit + capital. If you win, you will get $162. Just continue to take profit and capital to invest in the next order until the end of the cycle (usually 4).
It’s amazing that you can 10 times your capital when you win 4 orders in a row.
Rodeo is a very safe strategy when trading Fixed Time. However, you need to be patient and wait for the market to meet the strategy’s requirements. In order not to lose money unreasonably, you should practice on a Demo account. Only do real trading after you have good results for several weeks.