A day by day trading with the candlestick method

This a true story from one of our readers. It dates back to one year. The deposit amount was $1,000. You may think it is not a lot. But there are plenty of beginning traders who don’t have the experience, nor psychological readiness to trade bigger amounts.

So here we are, with $1,000 on the Olymp Trade account. The chosen currency pair is EURUSD and the chart is set for 5-minute interval candles. Trading is generally based on the colors of the candles.

Summary of the 1 candlestick strategy at Olymp Trade

The candlestick method is the trading method that does not require any additional indicators. Your main tool is your eye. You will meticulously watch the chart waiting for a true candle to appear. What is the true candle? It is the one that has a long body and short wicks. Once it is developed, you can enter the trade according to its color.

The candles have two colors, the green, and the reddish ones. Another name for a green candle is a bullish candle, and the red one is used to be called a bearish candle.

You can read more about the strategy based on the candles’ colors in the guide about candle color strategy.

The methodology of November trading

There was a Martingale capital management strategy applied. It says that once the trade has lost, you increase the investment in the next one. In this particular case, the assumption was to open 5 consecutive trades. The disposable amount was $2,000 and you simply won’t be able to open more positions after $1,000 is consumed. VIP status assures a fixed payout rate for the EURUSD currency pair at 82%.

I mentioned before that the initial amount was $1,000. However, as it was November, Olymp Trade held promotion weeks during this month. $1,000 deposit was rewarded with a VIP status and 100% account bonus.

1st trading day, November 5th

There were 6 entry points in total on that day. Some standard ones and the other non-standard.

With the Martingale strategy, getting a profit of 10% per day is not a lot to ask. This day had brought 6 alternating cycles, 1 cycle to the third order and it meant $81.2 gain.

Next trading day on November 6

4 entry points on that day. Just one needed 2 orders, which meant the overall profit for that day was $39,2. Could be better, but you have to take what the market can give you. If there is no clear opportunity to open a position it is better to stay away.

Four trades on November 7

As you can see above 3 trades were simple and brought together $24.6 (3 x 8,2). There was one trade (the third one) that required to run martingale up to the last level. Profit finally appeared with the fifth transaction, so the total profit was 24.6 + 288.8 = $314.4. Very nice, but one more trade could ruin everything. Keep that in mind that this is the risk of martingale money management and this is something you need to be prepared for.

Trades are taken on November 8

Here 2 candle signals created rows of 3 trades, 2 ended in the first trade and one in the second. Together they gave a nice profit of $98,6. At some point, the trading had to be stopped.

Pros and Cons of Trading on Olymp Trade with Martingale Strategy👍👎

• Pros:
  • ✅ Access to a wide range of assets and trading tools
  • ✅ Potential for consistent profits with disciplined trading approach
  • ✅ VIP account benefits and promotions for higher deposit amounts
• Cons:
  • ❌ Higher risks associated with the Martingale strategy
  • ❌ Requires strong emotional control and patience
  • ❌ Not suitable for beginners or those with a low-risk tolerance

The conclusions of the November trading

The results brought by trading 5-minute candles with the Martingale capital management strategy on the Olymp Trade platform were satisfactory. It puts some pressure on the emotional system, though. Mainly because of the number of orders and the Martingale strategy requirements. But this is an efficient way of making money systematically every day.

You need to have emotions under control to trade successfully. Having patience is crucial. Then, with just an hour spent focusing on the chart, and the initial capital of $1000, you have the potential to make good money. Naturally, we cannot forget about the advantages of having a VIP account which helped a lot in the described example.

Have an enjoyable trading experience!

Frequently Asked Questions

• ❓ What is the Martingale capital management strategy?
  • The Martingale strategy is a capital management approach that involves increasing the investment amount after each loss, with the aim of recovering losses and gaining a profit with a single winning trade. It requires strong emotional control and a high-risk tolerance.
• ❓ How does trading based on candlestick colors work?
  • Trading based on candlestick colors involves observing the chart and looking for candles with long bodies and short wicks, called “true candles.” Traders enter a trade based on the color of the true candle, either bullish (green) or bearish (red).
• ❓ What are the advantages of a VIP account on Olymp Trade?
  • VIP accounts on Olymp Trade offer various benefits, such as a fixed payout rate for specific assets, access to additional trading tools, and personalized support from account managers.
• ❓ Is the Martingale strategy suitable for beginner traders?
  • The Martingale strategy is generally not recommended for beginner traders, as it requires a high level of emotional control and risk tolerance. Beginners should start with more conservative trading strategies to gain experience and build confidence before attempting more aggressive approaches like the Martingale strategy.
• ❓ How can I improve my trading skills on Olymp Trade?
  • Improving your trading skills on Olymp Trade involves practicing with a demo account, learning about various trading strategies and indicators, and staying informed about market trends and news. Additionally, participating in trading communities and seeking mentorship can help enhance your trading skills.