Identifying and following the trend to trade is the common goal of all Fixed Time Trade traders when participating in the forex market in Olymp Trade. However, doing that is not easy. A lot of traders still have a hard time grasping the current trends of the market. Therefore, in this article, I will review for you an extremely comprehensive Mountain Stream trading strategy that both identifies the trend and provides safe entry points.
Review the Mountain Stream trading strategy
Currency pairs: EUR/USD, USD/JPY.
Balanced capital management. Enter each order with 200$.
Order 1: The price started to fall when the WMA indicator turns down from above. Below the ADX indicator, the -DI (red line) is above the +DI (green line). All conditions of the Mountain Stream trading strategy has met to open a 3 min DOWN order.
Order 2: There was a signal to open a safe UP order. The WMA indicator was rising from below. And the +DI is above the -DI together with the Hammer candlestick showing strong increasing force.
Order 3: The price increased when the WMA rises from below and the +DI was above the -DI. Those were the signals to enter an UP trade safely.
Order 4: The price decreased when the WMA was falling from above and the -DI was above the +DI. These satisfied 2 conditions to open a DOWN trade with a high probability of winning.
Order 5: At the USD/JPY currency pair on July 15, the price fell when the WMA was moving down from above and the -DI was above the +DI. This was the opportunity to place a reasonable DOWN order.
A good trade is better than a big one in Mountain Stream strategy
One of the biggest mistakes new traders often make is trading with too much volume.
If you trade with a volume more than 50% of your total amount, I am sure you will burn the account with just a few losing trades. When you are entering the forex market as a new comer, just trade small and learn from your mistakes.
A new trader should make a trade with his or her smallest amount. It’s to learn about your own advantages, disadvantages and the trading strategy you are using.
Confidence should only come after you have a stable profit for a long time. Trading with big volume is often a sign of arrogance and the results will not be very good.
Trading volume is like a volume rocker to your emotions and ego. And you don’t want an inside voice to influence your trading decisions. Therefore, a small trading will help you avoid the “noise” of emotions and find the entry point with the highest probability of winning.
Learn to manage capital methodically with a certain trading strategy
Trading volume is one of the important factors determining the long-term success of an investor on the trading path. This is not only for new traders but for all of us. A good trader is about the one who does a good job of capital management, not wins a lot.
Before trading, you should have an own trading strategy and make sure that it has some advantages. Then you start with a small volume and gradually increase over time as you get good results. You need to consider the average loss per trade to predict worst-case scenarios when you increase the volume.
Trade better before you trade bigger. Master the smaller trade before going into the bigger one. If you trade big from the start, your trading fees will be much more expensive than learning with a smaller account, or demo trading.
Successful traders don’t sit in front of the chart wondering what to do because they have created their own trading strategy. They just wait for the combination of signals to enter the trade with the highest probability of winning.
Therefore, after you have read through the Mountain Stream trading strategy review, test it with a demo account to learn about it in detail. Never use a trading strategy with real money in the first place, unless you have tested it many times and got good results.