Discuss OlympTrade.com

[Enayess]

Yes, options trading is really doing better these days. And I think I know the reason for that.
There is definitely more chaos on the charts these days. Trends change faster, I mean intraday the price can change the direction many times. For forex traders it’s now more difficult to ride the trend, buy in the morning, close profits in the evening. Price does so many false breakouts!

 

[Etedus12]

That’s true. But this still does not explain why options trading got easier

 

[Enayess]

Yeah, right Forgot to tell the point.
So there are two hypothesis that can explain the phenomenon of my recent success. The first one is rather egocentric: “Whoopee, I finally broker the market code and learnt to make money with trading!”
The second theory sounds more like a reasonable explanation.
When I just started trading with Olymp, many of my predictions for options trading were correct, but price didn’t hurry to move where I expected it to move to. So options used to expire near the entry point and then only the price would move in a certain direction. Now price bumps of the levels faster and stronger, so that even 1 minute options are capable of yielding profits.

 

[Etedus12]

Hmm, that really is a reasonable point. It took me a long while to teach myself to avoid 1 minute timeframes. Looks like I might need to reconsider the rule

 

[Purekiller]

Few months ago I switched to 1 hour expiration fixed time trading with Olymp. What I can tell for sure is that first it was very difficult. I was constantly sitting next to computer and hypnotizing the charts. It wasn’t the best tactic cuz I kept closing trades too early, so the small wins didn’t cover the costs of full losses. It got better in a month or so, when I stopped changing the decisions within an hour. And when I started going away from computer.

 

[Etedus12]

Good to know. Did it get better in terms of reward?

 

[Purekiller]

I increased the risks per trade proportionally. If I was making 10-20 trades a day previously, with 1-hour expiration I make only 1-2 trades using pending orders. Now I have a lot of free time and spend 30 minutes for analysis and 5 more minutes to enter the pending orders. 1-2 out of 5 get filled. Profits increased and these are not only the profits from trading. I’ve got a couple of extra hours in a schedule as well. I think profits increased because hourly timeframes are easier to read. At least I hope so.

 

[7Bulletin]

This is exactly how this should work! Upper timeframes really have got a better predictability. Congratulations!

 

[Talar]

Markets change a lot and a trader must be flexible. It can be true for now that upper timeframes are yielding better results, but it might change in future. Next year trends might change, volatility might change, and you will have to be redevelop or tune your strategy again.

 

[Purekiller]

That probably is true, yet, its difficult to see the exact moment when this tuning is needed. Moreover, I do suspect that better predicitbility of upper timeframes is kind of a fundamental thing that will always work. I can clearly see that when I use the levels from upper timeframes, there is always some kind of a market reaction there. I mean I might be wrong in my prediction. For example I'd expect a bounce down of some resistance. Sometimes the forecast is correct, sometimes its not. But at times when its not correct, the price moves strongly ABOVE this support and support becomes a new resistance. I didn't notice that much on 1 minute charts.