Trading on the financial markets is subject to certain rules and laws, even strictly observing each of them, different traders do not show the same results. This is largely because trading is done by living people with their own temperament and psychology.
By the way, about the last one. In the financial markets, there is even such a concept as the psychology of trading. It is often taught to newcomers in brokerage companies before real trading on the stock exchange begins.
Some traders thrive on risk-taking, engaging in frequent transactions on short timeframes and turbo options. On the other hand, there are those who adopt a more patient approach, waiting for a select few signals that are almost guaranteed to yield profit. For traders with such a mindset, strategies like the “Sniper” strategy have been devised—offering infrequent but remarkably accurate signals. In essence, the diversity in trading styles underscores the dynamic interplay between individual psychology and the strategies employed, showcasing the intricate and nuanced nature of success in financial trading.
How to use the “Sniper” strategies
To determine the position for buying a contract as accurately as possible, the authors of the strategy used three indicators at once – Bollinger Bands, CCI and Stochastic. All these tools are available in most platforms provided by different brokers, including Olymp Trade.
It is recommended to use this strategy on time intervals M15, M30 and H1. It is not suitable for working on turbo options, since there are too many speculative fluctuations on younger timeframes.
Shares and currency pairs can be used as an asset, except for those with low volatility. The strategy is ineffective in the side. It is recommended to use bars or Japanese candles. Set the Bollinger Bands to default, set period 14 for the CCI, set 5; 3; 3 for the Stochastic.
How to trade with the “Sniper” strategy
Before trading you should understand how to read the signals. You will use the Bollinger Bands as a price channel. Consequently, if the price is at the upper limit, it is likely to go down soon, and if it is at the lower limit, then soon it will go up, vice versa.
CCI shows the deviation of the current price from its medium-term value. It is considered that there is a high probability of an upward movement if its line has fallen below the level of -200. On the contrary, a market fall is expected if the indicator’s signal movement is above the 200 level.
Finally, Stochastic indicates future market growth if the lines are in the oversold zone (from 0 to 20). A fall is expected if the indicator stays in the overbought zone (from 80 to 100). For trading with this strategy, look for the signal generated by the crossing of the fast and slow lines within one of these zones.
Now, you are ready to trade with the most accurate signals.
Buy the CALL contract when the price is at the lower Bollinger boundary, the CCI has fallen below -200, and the fast Stochastic line has crossed the slow bottom-up line in the oversold zone.
Purchase PUT option when the price is at the upper Bollinger limit Bands, CCI is above the 200 level, and Stochastic goes down in the overbought zone.
The expiration is equal to three timeframes.
The Sniper strategy reflects the philosophy of patient trading, where practitioners wait for one or two carefully identified signals that are deemed almost certain to result in profit. The “Sniper” strategy’s infrequent nature aligns with the temperament of traders who prioritize accuracy and reliability over the sheer volume of transactions.
As traders navigate the dynamic landscape of financial markets, the “Sniper” strategy stands as a testament to the personalized and nuanced nature of success in trading. It highlights the importance of aligning trading styles with individual psychology, reinforcing the idea that in the ever-evolving world of financial markets, diversity in strategies is not only encouraged but often crucial for achieving consistent and sustainable success.