The strategy for trading the Deriv VIX75 Index is comprehensive, focusing on profitability through understanding, analysis, and management. The strategy begins with developing a robust trading plan, emphasizing the importance of familiarizing oneself with VIX75 market dynamics and setting financial goals supported by a detailed entry and exit strategy. For instance, you might decide on a scalping approach for quick trades based on market movements. This preparation phase encourages continuous market analysis and adherence to trading regulations.
Incorporating technical analysis is essential for informed trading decisions. By using tools like the Relative Strength Index and Bollinger Bands, traders can gauge market conditions and identify potential entry and exit points. The strategy underscores the importance of regularly updating one's technical analysis framework. For example, utilizing moving averages can help in understanding market momentum, ensuring trades align with market trends.
Effective risk management is the third pillar of this strategy, advising traders to determine risk-reward ratios and set stop-loss levels to preserve capital. The plan promotes maintaining a trading journal and learning from past trades to improve future performance. Diversification is encouraged to mitigate risks, with a focus on disciplined capital allocation. For example, limiting the amount of capital at risk per trade can safeguard against sudden market movements.
The strategies
⛳️ Strategy 1: Develop a robust trading plan
- Research and understand the VIX75 market and its volatility characteristics
- Set clear financial goals and risk management parameters
- Choose a trading platform that supports VIX75 trading
- Define your preferred trading style (e.g., scalping, day trading)
- Create a detailed entry and exit strategy for trades
- Establish criteria for position sizing and leverage usage
- Plan for regular strategy reviews and adjustments
- Ensure compliance with trading regulations and platform requirements
- Identify key news events that could affect VIX75
- Allocate time for continuous learning and market analysis
⛳️ Strategy 2: Use technical analysis for trading decisions
- Familiarise with technical analysis tools and indicators
- Identify key support and resistance levels on the VIX75 chart
- Utilise moving averages to understand market momentum
- Apply the Relative Strength Index (RSI) to assess overbought or oversold conditions
- Use Bollinger Bands to evaluate market volatility
- Incorporate the Average True Range (ATR) to manage stop-loss levels
- Backtest technical analysis strategies on historical data
- Regularly update and refine your technical analysis framework
- Monitor trading indicators for entry and exit signals
- Combine multiple technical indicators to confirm trading decisions
⛳️ Strategy 3: Implement effective risk management
- Determine an appropriate risk-reward ratio for each trade
- Set strict stop-loss and take-profit levels
- Limit the maximum percentage of capital at risk per trade
- Diversify trades to mitigate risk exposure
- Regularly review and adjust risk management strategies
- Maintain a trading journal to track and analyse trades
- Avoid over-leverage and excessive position sizing
- Learn from past trading mistakes to improve risk management
- Stay disciplined and stick to your risk management plan
- Allocate sufficient capital to withstand market volatility
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
