If you are a trader trading on financial markets then you may consider yourself a soldier in a war. Those who are not well equipped will be killed early. To survive long in the war, the preparation is very important. In this article, I will share my preparations before participating in “Fixed Time Trade” in Olymp Trade with the T.L.S trading strategy.
- 1 T.L.S trading strategy (Trend, Level, Signal)
- 2 The method of capital management
- 3 The trading psychology
- 4 Review entry points using the T.L.S strategy in Olymp Trade on April 2, 2020
- 5 Review trading orders using the T.L.S strategy in Olymp Trade on April 3, 2020
- 6 In conclusion
T.L.S trading strategy (Trend, Level, Signal)
This is an effective trading method drawn from my own trading process. If all 3 conditions are met, then you can open orders.
“Trend” is a word that traders have heard at least once on the path of financial transactions. If you want to survive in the market, then you should go in the same direction as the trend. Imagine as you are going in the same direction as a train (trend). If something goes wrong, the damage will not be too great. But if you go against the train (trend), you will surely lose even your life.
There are 3 types of trends as follows:
Bullish trend: To determine the bullish trend in the most simple and effective way, just connect the peaks and troughs together. If the next peak and trough are higher than the previous peak and trough respectively, then the bullish trend is confirmed.
Bearish trend: To identify the bearish trend, also connect the peaks and troughs together. If the next peak and trough are lower than the previous peak and trough respectively, then the bearish trend is created.
Sideways: This is the time when the market is struggling. The sellers have no advantage and the buyers also do not control the situation. Now, the price will go sideways. It cannot break the important resistance to form an uptrend. It also cannot penetrate the support to create a downtrend.
The trend goes first. Let’s identify the trend before continuing to find a safe entry point. Remember that carefully.
(ii) Levels (Resistance/Support)
Resistance is the highest price zone where the price touches and has a high possibility of reversing.
Support is the lowest price zone where the price can hardly penetrate and tends to rebound.
Notes: Resistance and support will switch together if an important resistance level is broken through and becomes a support level. In contrast, a support level will become a resistance level if it is penetrated.
These are special candles or highly accurate candlestick patterns recognized by experienced traders. For myself, I just like continuation patterns of a trend. Because at that time, If I open an order, my probability of winning is at the highest level.
If the trend is up, then the entry signals such as Dragonfly Doji candle, Bullish Pinbar candle, Hammer candle, Morning Star candle patterns, etc., are safe ones for entering a trade in Olymp Trade.
If the trend is down and the signals such as Evening Star candle, Tombstone candle, Bearish Pinbar candle patterns, etc. appear, then the prices will likely continue to decline. All you need to do now is to look for entry points and open “DOWN” orders following the trend.
The method of capital management
The classic method (balanced investment) is the risk management one I have chosen. Why? Simply because it is suitable for the T.L.S trading strategy, which I have learned from my trading process. And according to my own statistics, the winning rate is about 60 – 75%. Then, combining the T.L.S trading strategy with the Classic capital management method will be profitable, not much, but stable.
The trading psychology
In trading, emotions are things to be put aside. However, when it comes to practice, it will not be as simple as said. To limit the outbreak of emotions, set your own principles and limits that you should not overcome. Discipline will keep your mind stable in a volatile market.
– Maximum of 5 trading orders in a day. The investment for each order is $50. The highest accepted risk level is $250.
– Even if you win 4 consecutive orders, never open the 5th order. Because in a series of winning, your psychology is a bit called overconfidence, considering yourself a person who can predict the next direction of the market. Believe me, the 5th order will have a high probability of losing.
– If the losing chain lasts for 3 orders, you should temporarily shut down your computer or phone and not to trade anymore. Because the thought to recover the losses and to open many orders continuously will start to appear in your head. Turn off your PC, get up and do other things to avoid stuffing (opening many orders at once) which may result in burning out your balance.
– Only open an “UP” order in the uptrend, whereas open a “DOWN” order in a downtrend.
– Never stuff orders.
– Do not trade when there is news of strong fluctuations, preferably 30 minutes before and after the news release.
– Only deposit the right amount for 5 transactions in a day.
– Only trade with the EUR/USD pair.
So now we have three basic conditions to become a successful financial trader in Olymp Trade.
Review entry points using the T.L.S strategy in Olymp Trade on April 2, 2020
Order 1: Bullish trend + support zone + the price tested the level it just broke (pull-back candle) => Opened an “UP” order and won. Received a profit of 82% of the investment.
Order 2: Bullish trend + support zone + the candle tested the support the second time (entered the trade right after the signal candle closed) => Opened an “UP” order and won. Received a profit of 82% of the investment.
Before going through order 3, I will analyze a little about my way of thinking about the market. Before the signal candle of candle 3, there was a hammer candle tested the support level which was eligible to open an “UP” order there. However, at that moment, I didn’t open an order. Because as per my principles, when the level has already been tested for the third time, the probability of it being broken is very high.
Order 3: Bullish trend: + support zone + bullish Marubozu candles with lower wick only and no upper wick (this indicated a strong bullish force or so-called a “Break out” price. There is a high probability that the price will continue to rise.) => Opened an “UP” order and won. Received a profit of 82% of the investment.
Order 4: Bullish trend + support zone + the Doji candle tested the level the second time => Opened an “UP” order and won. Received a profit of 82% of the investment.
Here, the principle of 4 consecutive winnings has been triggered. I shut down my PC and finished my transaction day. I am pretty sure that if I opened the 5th order, the winning rate would be very low. So I shut down my PC from here. There is no need in returning the profit to the market.
Review trading orders using the T.L.S strategy in Olymp Trade on April 3, 2020
Because I traded before 10:00 am, so the current pay-out was just only 70%.
Order 1: Bullish trend + support zone + the test candle appeared at the level the price just passed => Opened an “UP” order and won. Received a profit of 70% of the investment.
Order 2: Bullish trend + support zone + the candle tested the level the second time => Opened an “UP” order and won. Received a profit of 70% of the investment.
Order 3: Bullish trend + support zone + Bullish Marubozu candles with lower wick only and no upper wick (this indicated a strong bullish force) => Opened an “UP” order and won. Received a profit of 70% of the investment.
Order 4: Bullish trend + support zone + Morning Star candlestick pattern indicated a continuation of bullish trend => Opened an “UP” order and won. Received a profit of 70% of the investment.
It has been an absolutely wonderful week for me. This is a game of probability so I can win 10 orders continuously. But still, there is a possibility that I may lose 20 orders consecutively. So winning and losing shouldn’t matter as long as you don’t go beyond your limits.
Notes: This is my own share of the T.L.S trading strategy. If you trade this way and happen to be at risk, you should be solely responsible for your decisions. Try it on a demo account until you can make a stable profit before thinking about trading with real money. I myself have trained in the financial market and have come up with my own trading strategy. So I understand how to use, manage capital, and control my emotions in the safest way.
At the end of the week, withdraw the money to your bank account to protect your capital and profit as well as to prepare for reinvestment in the following week.
So a comfortable weekend has come after a busy week at work. The financial trading in Olymp Trade is just for free time to earn extra income to cover living expenses. So I’m not serious about the pressure to make a profit. If it were possible, I would earn little extra living expenses. As long as the principles I set out are followed, this is a great success in trading.
Next week, I plan to deposit the amount of profit, after deducting a little to reward myself, in a saving account for easy tracking and statistics.