The financial market is a potential investment channel for those who are passionate about making profits from trading. To make money daily, you need to have a safe strategy following to the trend of the market. In this article, I will show you how to set up and use the Peacock trading strategy in Olymp Trade platform.
What is the Peacock strategy?
Peacock is a trend-following trading strategy that uses technical indicators to determine the current trend and its certainty. Professional traders use the Peacock strategy to predict whether the trend is likely to continue to go up or fall down. After that, they’ll find the entry point with the highest win rate.
How to set up the Peacock strategy in Olymp Trade
As mentioned above, Peacock is a making-money strategy by identifying price movements that are developing in a certain direction.
To set up the Peacock strategy, you need to do the following steps:
- Choose the Aroon indicator
- Choose the Parabolic Sar indicator
Use the default parameters of the Olymp Trade platform. When done, you will have an interface as shown below.
How to enter a trade with Peacock trading strategy
In this strategy, Aroon indicator will play the main role to identify the strength of an uptrend (Aroon Up) and the downtrend (Aroon Down). When one of those two is above 70, it shows us the strength of the uptrend or downtrend.
We can open a trade when the following signals appear:
Open an UP order when the Aroon Up indicator (green) is above the 70 and the Parabolic Sar indicator is below the candlestick chart.
Open a DOWN order when the Aroon Down indicator (red) is above the 70 and the Parabolic Sar indicator is above the candlestick chart.
If you are a new trader in the field of Fixed Time Trade, in addition to learning how to invest, it is equally important to learn how to manage capital effectively.
It’s because Forex investment is always risky. The market is constantly changing, which makes inexperienced traders lose money easily. Therefore, proper planning with your budget is necessary if you want to invest for the long term.
Investments are “one-way”, i.e. once you have made an order, it cannot be withdrawn. And because capital is limited, if you do not manage it closely, then you will most likely have to take a big loss in just a few orders.
Since this is a trend-following strategy, the order volume will decrease at the end of the trade. It’s to reduce losses when the price reverses unexpectedly at the end of a downtrend or uptrend.
Things to note when using this strategy
- Signals will be more accurate when the market is volatile
- The most effective trading time is in the European and American session.
- Choose a currency pair with the payout ratio over 80%
- Avoid trading before and after important economic news is released
Finally, before participating in the live trading, please test it on the Demo account first. If you have 70% winning rate from 3-4 weeks, then it is time to enter the market to look for profits.