What purposes drive you to enter the financial market? They’re to make a profit and move on to financial freedom, right? That’s not wrong but almost all beginners enter the market with the get-rich-quick idea, which causes them to lose a lot of money. That is also what prevents you from reaching the final destination of your trading journey because in the short term almost no one can correctly predict the direction of the market. Therefore, in this article, I will help you “get rich slowly” with the Pivot Points Levels Trend strategy in IQ Option when trading time is calculated in days.
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What is Pivot Points Levels Trend?
Pivot Points Levels Trend is a highly effective trend-following strategy because it takes advantage of the strong push of the crowd in one direction. You will bring in more profits if you catch a long trend. More specifically, with this strategy, you will have time to place orders until the end of the day, giving you more time to work without having to look at the chart continuously.
How to set up Pivot Points Levels Trend strategy
First, you will go to the “Indicator” section, then select “Moving Averages” and click on “Moving Average”.
Change the “Type” to EMA and adjusted the “Period” to 50 and 200 respectively.
Finally, select the default MACD indicator of IQ Option at “Indicator” -> “Popular” -> “MACD”.
After completing the setup you will get the following chart.
How to trade with Pivot Points Levels Trend strategy
To be consistent in the trading process, we will have the following rules.
- Trade in all major currency pairs included in IQ Option’s list.
- The candlestick chart is H1 but the expiration time will be the end of the day.
- Do not trade when there is about to be volatile news.
- Only trade when there is a trend.
The trend is bullish when the EMA50 is above the EMA200, i.e. EMA50 > EMA200.
The trend is bearish when the EMA50 is EMA200, i.e. EMA50 < EMA200.
Open a HIGHER order on the next candle when there is a bullish trend (EMA50 > EMA200). At the same time, the MACD intersects from below the bars and moves up, signaling an imminent bullish reversal.
Open a LOWER order at the candles right after the bearish trend (EMA50 < EMA200). At the same time, the MACD indicator intersects from the top and moves down.
Capital management strategy
Managing money to optimize profits is equally important as a strategy but few traders pay attention to it. Because the Pivot Points Levels Trend strategy has a trading time of the day, at most 5 orders will be opened each week according to the rules set out at the beginning of the article. To solve the problem of opening a few orders but still earning money regularly, Martingale capital management is the most reasonable choice.
For example, in a week, you can only trade 5 orders so the first order will be $10. If the first order loses, the second order will double to $20. And so on until the 5th order with the maximum entry amount will be $ 280. If you win any trade, you can also cover the loss of all previous ones. Once you win, return to the first level of 20$.
In my opinion, the above management will help you feel comfortable about expecting stable profits during the week. Moreover, the increase in the amount of each lost order is not too much when there is only a maximum of 5 orders, thereby creating a comfortable mind when trading and not being pressured by losing.
Conclusion
With high security and extremely comfortable trading time, the Pivot Points Levels Trend strategy will be a lifesaver for busy traders who do not have time to constantly monitor charts. However, to have a stable profitable performance, you need to understand how to use Martingale. Otherwise, your profits will not be stable when only entering a maximum of 5 orders per week.
Please use your IQ Option DEMO account to test it carefully before going to trade with real money. Wishing you success in your trading journey.
Register IQ Option and Get Free $10,000 Risk warning: Your capital might be at risk.