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5 strategies and tactics for Deriv Trading

What is Deriv Trading strategy?

Team success often hinges on the ability to develop and implement effective strategies and tactics. It's a bit like playing chess, except that you have more than 1 player on each side.

Crafting the perfect Deriv Trading strategy can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.

Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.

How to write your own Deriv Trading strategy with AI

While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI generator below or our more complete goal-setting system to generate your own strategies.

Deriv Trading strategy examples

You will find in the next section many different Deriv Trading tactics. We've included action items in our templates to make it as actionable as possible.

Strategies and tactics for developing a deriv trading analysis tool

  • ⛳️ Strategy 1: Conduct market research

    • Identify the primary sources of market volatility data
    • Analyse existing deriv trading tools for features and shortcomings
    • Gather feedback from potential users on tool requirements
    • Research industry trends to anticipate future needs
    • Consult with trading experts for insights on critical metrics
    • Evaluate regulatory requirements for market data usage
    • Identify gaps in data coverage and potential data providers
    • Compile a list of essential features based on user needs
    • Investigate emerging technologies that could enhance the tool
    • Prepare a report summarising research findings and recommendations

  • ⛳️ Strategy 2: Develop tool architecture

    • Outline the core functionality of the tool
    • Design a scalable system architecture to handle large data volumes
    • Select appropriate programming languages and frameworks
    • Create a data model for tracking volatility and other metrics
    • Develop algorithms for real-time data processing
    • Design a user-friendly interface with customisable dashboards
    • Ensure system security and compliance with data protection standards
    • Plan for integration with existing trading platforms
    • Develop a testing strategy to ensure reliability and performance
    • Prepare a project timeline with milestones and deliverables

  • ⛳️ Strategy 3: Implement and launch the tool

    • Build the tool according to the architectural plan
    • Integrate data feeds from identified market sources
    • Develop a backend system for efficient data management
    • Test the tool with trading professionals and gather feedback
    • Iterate and implement improvements based on user feedback
    • Conduct a beta launch with selected users for comprehensive testing
    • Set up a customer support and maintenance system
    • Develop user guides and training materials
    • Promote the tool through targeted marketing campaigns
    • Gather post-launch user feedback and plan for future updates
market-volatilityderiv-tradingtrading-expertssoftware-developersresearch-and-developmentmarketing-and-support
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Strategies and tactics for entering the derivatives trading market

  • ⛳️ Strategy 1: Understand derivatives fundamentals

    • Research and learn about various derivatives such as futures, options, and swaps
    • Enroll in an online course or workshop focusing on derivatives trading
    • Read books and articles by renowned traders and authors on derivatives
    • Join forums or discussion groups related to derivatives trading to stay updated
    • Study the financial markets and how derivatives are utilised within them
    • Understand the risks and rewards associated with derivatives trading
    • Familiarise yourself with the terminology used in derivatives trading
    • Attend seminars or webinars from experienced derivatives traders
    • Utilise educational platforms to get insights on derivatives trading strategies
    • Keep updated with market news related to derivatives trading

  • ⛳️ Strategy 2: Develop a trading plan

    • Define your financial goals and risk tolerance for derivatives trading
    • Choose the types of derivatives you want to focus on trading
    • Create a budget for the initial investing capital in derivatives
    • Draft a time-bound plan with milestones and periodic reviews
    • Develop a strategy for entry and exit points in trades
    • Decide on a leverage ratio that aligns with your risk appetite
    • Plan for diversifying your trading positions to mitigate risks
    • Use trading simulators or demo accounts to practice your plan
    • Set a schedule for monitoring and analysing your trades
    • Establish a system for regular reflection and adjustment of your strategy

  • ⛳️ Strategy 3: Engage with technology and tools

    • Research and select a reliable online trading platform
    • Utilise analytical tools to assess the market trends for derivatives
    • Leverage charting tools to understand price movements and patterns
    • Implement trading bots or automated systems if suitable for your strategy
    • Use mobile trading apps for convenient monitoring and trading
    • Explore backtesting software to test the viability of your strategies
    • Set up alerts and notifications for significant market changes
    • Draft a routine for data analysis and integrating findings into your strategy
    • Utilise portfolio tracking tools to manage your derivatives positions
    • Seek out community feedback on tools and technology options to refine choices
derivativestradingtraderfinancial-analysttrading-strategy-teamfinancial-research-team
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Strategies and tactics for trading the Deriv VIX75 Index

  • ⛳️ 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
tradingrisk-managementtraderanalystrisk-management-teamtrading-strategy-team
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Strategies and tactics for optimising stealth robot trading

  • ⛳️ Strategy 1: Enhance algorithm precision

    • Review and refine trading algorithm parameters for higher precision
    • Backtest the algorithm with historical data to ensure robustness
    • Incorporate machine learning to adapt to market conditions
    • Implement stop-loss limits to minimise losses
    • Adjust technical indicators for better signal accuracy
    • Set up alerts for algorithm performance deviations
    • Regularly update the algorithm with new market data
    • Review trades weekly to identify error patterns
    • Develop a feedback loop for continuous improvement
    • Test algorithm in a demo account before live deployment

  • ⛳️ Strategy 2: Diversify trading strategy

    • Identify multiple markets to apply the robot beyond one asset
    • Develop different trading strategies for varied market conditions
    • Backtest alternative strategies for comparative analysis
    • Consider using hedging techniques to manage risks
    • Set different risk/reward ratios for each strategy
    • Monitor correlation between different trading strategies
    • Rotate trading strategies based on market behaviour
    • Regularly assess effectiveness of diversified strategies
    • Implement a dynamic risk assessment model
    • Test portfolio of strategies in simulation environment

  • ⛳️ Strategy 3: Strengthen risk management protocols

    • Set a maximum daily loss limit to protect capital
    • Use position sizing techniques to manage trading size
    • Regularly assess risk management policies for improvements
    • Incorporate a tiered risk alert system
    • Develop contingency plans for unexpected market events
    • Track historical drawdowns to inform risk settings
    • Adjust leverage usage to reduce risk exposure
    • Implement capital preservation strategies
    • Educate team on risk management best practices
    • Review and update risk management protocols monthly
algorithm-precisionrisk-managementdata-scientistrisk-manageralgorithm-development-teamtrading-strategy-team
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Strategies and tactics for identifying Entry and Exit Points in Deriv Trading

  • ⛳️ Strategy 1: Use technical analysis

    • Learn key technical indicators such as moving averages, RSI, and MACD
    • Determine the historical performance of selected indicators
    • Set up trading charts using appropriate time frames for analysis
    • Identify bullish and bearish signals from the chosen indicators
    • Develop rules for entering trades based on indicator signals
    • Establish stop-loss limits aligned with your risk tolerance
    • Set profit-taking levels using technical resistance and support levels
    • Backtest the strategy using historical data to assess effectiveness
    • Regularly update and validate indicators based on market changes
    • Continuously monitor market conditions and adjust the strategy as needed

  • ⛳️ Strategy 2: Apply fundamental analysis

    • Stay informed on relevant economic announcements and reports
    • Calendar key events that could impact the market
    • Analyse the financial health of assets or commodities you're trading
    • Correlate economic indicators with asset price movement
    • Monitor major economic trends affecting the market
    • Use fundamental insights to anticipate longer-term movements
    • Build a watchlist of assets influenced by recent news
    • Determine entry points after significant news announcements
    • Identify potential exit points based on expected news impacts dissipating
    • Continuously update your fundamental analysis with new information

  • ⛳️ Strategy 3: Implement a risk management plan

    • Determine your acceptable level of risk for each trade
    • Use a risk-reward ratio to assess potential trades
    • Implement systematic entry points with set criteria
    • Establish stop-loss orders to limit potential losses
    • Utilise trailing stops to protect gains in profitable trades
    • Diversify trading across different assets to reduce risk
    • Assess risk factors associated with different trading environments
    • Prepare contingency plans for unexpected market movements
    • Regularly evaluate trade outcomes to refine risk management strategies
    • Use simulation trading to test risk management strategies before live application
technical-analysisrisk-managementtraderanalysttrading-teamrisk-management-team
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How to track your Deriv Trading strategies and tactics

Having a plan is one thing, sticking to it is another.

Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.

A tool like Tability can also help you by combining AI and goal-setting to keep you on track.

More strategies recently published

We have more templates to help you draft your team goals and OKRs.

Planning resources

OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:

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