Are you looking for a proven strategy that can make you upwards of KES 30,000 per month on Olymp Trade?
You are in the right place. Because in this article, I will reveal how you can consistently make over KES 30,000 per month trading on Olymp Trade using the TLS strategy.
What is the TLS strategy?
TLS stands for Trend, Level, Signal.
It is a trading model used by 90% of Olymp Trade traders, and for a good reason. TLS strategy works like a charm.
Ideally, to have a successful trading position on Olymp Trade, three things must align:
You must first identify the underlying trend (market bias), identify key levels, which can either be support or resistance levels.
Once you have the two elements, you are missing one thing:
Look for a trading signal, and your trading strategy will be complete. As such, you can open a position and be on your way to making over KES 30K per month trading.
As you can already guess, the TLS strategy removes the guesswork from your trading day and give you confidence that you are going to achieve your target.
To make this strategy easy to digest, I will walk you through each of the building blocks briefly. Later, I will show you real-life examples of TLS strategy in action on Olymp Trade.
Finding Trend on the TLS Strategy.
You are not completely new to this term. But here is my addition to what you already know:
If you want an easy trading career, do not trade against the trend.
Because your losses are minimized when you are riding a trend as compared to when you are trading against it.
Think of it as going against a fast-moving train.
In case of anything, if you are moving in the same direction, the damages won’t be catastrophic. I can’t say the same if you are going in the opposite direction.
All you have to know is that, in any financial market, there are three types of trends:
- Bullish trend – this is when the prices are moving up. How do you know? Well, the current high is bigger than the previous highs. To identify a bullish trend, draw a trendline. It should be going up.
- Bearish trend – this is when the prices are dropping. And shown on the chart by troughs getting lower than the previous ones. If you draw a trend line joining these troughs, you will see a declining angle (slope).
- Sideways market – you can say this is when the market is in equilibrium. It is not trending up or down, just ‘there.’ Here, no one is in control of the market. Additionally, the sideways trend can be seen when the price action is happening within the support and resistance levels. It cannot break any of the lines.
As we have mentioned, for TLS strategy on Olymp Trade to work, you must first identify the prevailing trend: if it is a bullish, bearish, or sideways trend.
Let’s move to the next condition: identifying visible levels.
Levels (support and resistance)
So, what are the levels we are talking about?
Well, support is the lowest price point where the asset has a higher probability of reversing when it approaches.
This level is plotted on the chart by a horizontal line linking together at least who troughs (lowest price points at a given time).
Another possible level is resistance.
Resistance is the highest price range where the asset has a high chance of reversing when it approaches it.
Basically, this is the highest price achieved by the asset at a given time.
This level is plotted on the chart by joining together at least two peaks (highest price points).
Now you understand what levels are on TLS strategy. Moving on to the last piece of the puzzle:
Signals on Olymp Trade.
Once you have identified the prevailing trend and drawn levels accordingly, the next thing you need is an entry signal.
What this tells you is it is now ripe to open a trade position.
When it comes to TLS strategy on Olymp Trade, there are a ton of trading signals in form of special candle shapes/patterns. And whenever you see them, you instantly know what is coming next.
In our case here, during an uptrend, the following candle patterns act as entry signal:
- Bullish Pinbar.
- Morning star candle.
- Dragonfly Doji.
- Hammer candle, etc.
Using any of the above candle patterns as an entry signal gives you a high probability of winning.
On the flip side, for a downtrend, look out for the following candle shapes:
- Tombstone candle.
- Evening star candle.
- Bearish Pinbar candle, etc.
When these patterns appear, the downtrend is more likely to continue. See pictures of all candlestick patterns here.
Putting All Pieces of the TLS Strategy Together.
With the deep understanding of the building blocks of TLS strategy, this is how it all comes together:
Ideally, you first identify whether the trend is upward or downward (use the trendline here). Once you do, draw either support or resistance levels on the chart depending on the trend direction. And for it to be a valid level, the price must have previously tested it.
Finally, you need a trigger: a signal to enter a trade position. Here, be on the lookout of the candle patterns we discussed above.
Additionally, TLS strategy is best used on liquid assets. For this reason, I recommend you try it on the EUR/USD currency pair
Let’s look at an example before moving on.
Example of TLS strategy on Olymp Trade
Look at the EUR/USD 10 chart below, what do you see?
An uptrend, right?
So, to tick our checklist, we have to draw a support level on the chart. And remember, support or resistance level don’t have to be horizontal.
The yellow line is the support level.
As you can see, it’s been tested over three times.
Now, we have to look for the entry signal. And since this is a bullish trend, we are looking for a large-bodied candle, pinbar, or any pattern we had mentioned earlier.
Here’s the entry signal:
The first one is showing a full body candle, giving us an entry signal.
The second is a three outside candle pattern.
As you can see, if you had captured these signals, you would have made some money because the trend continued up.
How to manage your money to give you over KES 30K per month trading only once per day.
The money management strategy I want to show is the only way that will transform your initial account balance to over KES 30,000 at the end of the month.
Because if you will practice the TLS strategy and master it, you will experience a series of wins on Olymp Trade.
Once you win, if you properly manage the profit, you can end up with over KES 30,000 in your trading account.
Ideally, you have to invest only the profit.
Let me explain.
If you invest KES 1,000 with a payout of 80%, if you win, you get KES 1800 in your account (KES 800 being the profit) and if you lose, your account goes back to zero.
When you win, open another trade not with whole 1800, but only profit, 800.
If you are trading 3-4 times per day, this is what your money management should look like:
|Payout of 80%||Capital||If you Win||If you Lose||Profit in your account|
|1st Trade||KES 1000||1800||1000||0|
|2nd Trade||KES 800||1440||800||1000|
|3rd Trade||KES 640||1024||640||1800|
|4th Trade||KES 512||921.6||512||KES 2440|
Executing only four trades per day, by the week, your account should be KES 9760 richer. Repeat that for the next 4 weeks and by the end of the month, you have over 30K in your account.
Isn’t that easy?
Not so fast.
TLS strategy on Olymp Trade will bring you these results only if you have a certain trading mindset.
Managing your emotions to succeed with the TLS Strategy.
You see, your emotions are the number one enemy in managing trading capital. If you allow them to run around freely, you will lose a lot of money and trade opportunities.
As such, here are some guidelines to help you achieve your goals:
- If you lose 3 consecutive trades, temporarily close your computer and phone and go for a walk. Why? Because panic will set in and thoughts of placing multiple trades to ‘recover’ your losses come in.
- Do not place multiple trades at a go.
- Trade with the EUR/USD currency pair.
- If you find 4 consecutive wins, do not place the 5th At this point, you are overconfident and more likely to make mistakes
- No more than 4 trades in a single day and not more than KES 1500 profits per trade. Past that you are greedy and you will return everything you’ve won.
If you take one thing from this section, take this:
Patience is the key ingredient. It is the only ingredient you will need to succeed. Once you inculcate it in your trading system, summon the skills you just learned here and place the trade.