If you are a trader who prefers to open long-term orders with a little patience in trading, I am sure you will make money by applying the Double SMAs strategy in IQ Option. Trend trading is a highly secure strategy that many investors use. It is fully exploited by the Double SMAs strategy which I am about to share with you.
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Video on making $318 of profits using the Double SMAs strategy
Why should we trade using Double SMAs?
If you are a person using a single SMA to trade, it can be difficult to spot signals of a trend reversal. Opening a long-term order at the end of a trend with a possible reversal at any time is very risky. Therefore, it is necessary to combine additional indicators to support the recognition of trends that are about to reverse. This is to avoid entering a trade at the end of a downtrend or uptrend.
SMA30 is for identifying a trend change in the short term. It helps traders to recognize the price action as fast as possible.
SMA50 is for identifying trends of an asset in the long term.
With the combination of short and long-term trend lines, all defects are limited. Looking at it, traders will understand at what stage the trend is. Is it convenient for trading or not?
Capital management
For signals that bring high win rates when using the Double SMAs strategy, you can apply many capital management methods that bring the most profit when used. But for absolute safety, we should use the classic capital management method (balanced investment).
Balanced investments will help you grow your account in the most stable way. It also helps you to be aware of the risks before trading.
Limit negative psychology
Most traders who trade in IQ Option prefer a trading time frame of 1-5 minutes. The shorter the trading time frames are, the less time you have to prepare. Therefore, you can easily make mistakes such as later or earlier entry points, lacking conditions to open an order, etc. This puts your trading position in an unfavorable situation. But when using the Double SMAs strategy to open long-term orders, it is a different story. You will get many advantages as follows:
Avoid momentary fluctuations
When trading long-term, the fluctuation of the price is relatively large. Therefore, you don’t seem to have to worry about market shocks. This can be considered the horror of short-term trades when it turns winning into losing in just a few seconds.
This not only makes sense in terms of amplitude but also in terms of time. With short term trading, you often lose money due to the rapid fluctuations of the market. But when trading long-term, you won’t be affected much when that volatility occurs.
Reduce the pressure of transactions
Surely, you will not be able to deny the stress when you open orders or watch the money in your account fluctuating. With long term trading, you can dramatically reduce it.
You do not have much pressure to place orders correctly every second. Instead, you can place an order sooner or later than the specified time without affecting the results much.
Volatility when you trade in the long term is so slow that you will have time to adapt to it. Thereby, you can reduce stress. Besides, the time to observe the chart as well as analyze the chart will not be much and your mind will have more time to rest.
Avoid over-trading
In short-term trading, you have a very fast order opening speed, creating a large number of orders in a short time. Some highly disciplined traders set their own strict principles. They trade for a set amount of time and then stop in order to avoid over-trading. However, very few people can do so.
For the rest, whether they win or lose, they are easy to get into over-trading due to their inability to control their emotions. If you lose, you want to recover the loss. If you win, you want to win more. The result is you are constantly dragged into the market.
Therefore, long-term trading can be a viable remedy for over-trading.
How to open orders with the Double SMAs trading strategy
Conditions: A 5-minute Japanese candlestick chart. Set up SMA30 (short-term), SMA50 (medium-term) indicators.
Open a HIGHER order when: The SMA30 (red) crosses the SMA50 (purple) from below.
Explanation: When the SMA30 crosses the SMA50 from below, it signals that an uptrend will be formed in the near future. We can open a long-term HIGHER order safely as soon as they intersect.
Open a LOWER order when: The SMA30 crosses the SMA50 from above.
Explanation: When the SMA30 crosses the SMA50 from above, it is a signal that the downtrend is about to form. Open a long-term LOWER order when the two SMAs intersect.
In conclusion
Using the Double SMAs strategy, the win rate can increase by up to 80%. If you need specific examples, you can watch our instruction video on trading with real money and withdrawing profits to the account. Trade with a Demo account first to understand how to place an order using this strategy. Try to feel the trend best before trading with real money. I wish you successful transactions.
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The post Earn $318 Of Profits With The Strategy Using Double SMAs In IQ Option appeared first on How To Trade Blog.
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