OlympTrade - Whether we can trust this broker or not?

#51
I heard that trading the news is ptofitable (I mean, you don't need to avoid them). Some people write on forums, that trading the news – is their main strategy and it’s pretty effective. What you think about that?
I tried that. To tell the truth, the statistic sample of my trades is a bit too small to finalize the conclusions. But here is what I've found. The essence of the strategy is that you have to open two trades in opposite directions before the important news release. Then, when the price starts moving in accordance with the factual numbers issued in the release, you have to close one of the trades with partial loss on it, but let the other position win at expiration time. I used 10 minutes expiration. Made 12*2 trades with $3 bet each. My total resulting profit was around $10. So on the one hand it worked. On the other hand I found it very difficult to identify when its time to close a so-called loser and let the profit run on the opposite one. If I'm not mistaken, 3 times out of 12 I closed both positions with loss. It turned out that the volatility increases so much after the news release, that price starts jumping in opposite directions. You think that it goes up, close the short trade but then suddenly price drops and keeps falling. Moreover, I found this strategy to be very stressful. Potentially, if you can formalize the rules when you are to sell the "wrong" option with a small loss, stress can be relieved significantly. This can also be beneficial for strategy overall, cause it can help increase the number of correct decisions. But for now don't know exactly how to deal with this problem.
 
#52
Thank you for sharing your experience! This is very interesting indeed. Probably this is necessary to formalize how many pips the price must go in a certain direction before you close the loser. Or it must be certain time. Or a combination of two of these.
 
#54
I heard about the Binary Gambit strategy for the news trading. It was even on the Olymp Trade channel. As far as I understood, it’s strategy exactly for the options. Does anybody use it, could you share your impressions?
Funny I ran into this question. The name of the strategy was not familiar to me, but after I learned about it I was like: "Wow, this is pretty much how I trade options myself!"
I thought that was my personal innovative strategy, in fact, lol. Should have known that best ideas are likely to have been implemented already by someone else.
About half of my trades at Olymp are done with this strategy. Guys above have mentioned the main difficulty there. Once you sell losing option you've got to be quite sure that it is the losing one.
 
#55
Lol, markets don't like arrogance. Hope you weren't too disappointed. So what about results? I assume that if half of your trades is done this way, this means it makes sense implementing the strategy?
 
#56
Ahah-ha, I'll have to get over it. Sure enough, the strategy is profitable in my case. To my regret, I can't really explain how I make the final decision about closing the trade. I think someone would call my trading style "intuitive", but it feels like a flash of light in my head: time to close! Can't say the flashlight is correct 100% of the time, but it does help.
What I mean.. Olymp is doing a great job educating its' customers. They even revealed my "holy grail" of options trading. But if you lack experience you won't be able to profit with none of the strategies, neither Binary Gambit, nor any other system or indicator.
 
#57
Thanks for sharing your experience. I do hope that your story won't mislead newbies by showing them that you can trade intuitively with profits. This is a direct path to losing your deposit. I'm not saying you can't trade like that. I'm just saying that this is not correct to compare the so-called intuition of a newbie with "intuition"of a treder who spent 10 000 hours observing charts.
 
#58
Exactly! I did spent years observing charts and I lost too much money before I came to the understanding of markets that I've got now. Thanks for pointing that out. I didn't realize someone could interpret my strategy as an easy path to success.
 
#59
By the way, I'm kinds trying to find out what would be the best indicator to add to the discussed strategy with two opposite option trades. My broker unfortunately has got only a limited number of indies in the platform, but I bet I can use some other service to backtest the results is we come up with the desired indicator. According to descriptions I found at Olymp's website, Alligator might be applicable to identify the start of a trend movement. Anyone tried using that on Olymp platform? I'm not so familiar with it so would appreciate an independent opinion.
 
#60
Don't see why you need to stay with the broker if the platform they've got does not supply you with necessary chart analysis tools?
Alligator is just one of trend analysis indicators. To tell the truth I don't see a great use in trend indicators once you trade options. I mean it's good for you to buy on the rising market and sell on the falling. It generally increases you chances to win significantly. Just a matter of probabilities. But personally I prefer identifying the trend on my own, without any indicators. Might be different for forex trading.
 

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