How to Trade Boom and Crash Indices Successfully

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If you are looking for how to trade boom and crash indices successfully, then this article was written for you. As a rule of thumb, there is no strategy that is 100% perfect, but I will try to share some tips that will guide you in your journey to become a successful trader.

First, what is Boom and Crash Indices?

If you are a newbie , you must have heard of Boom 500, Boom 1000, Crash 1000, and Crash 500. For the sake of clarity, Boom and Crash are ‘synthetic indices ‘ that is found only under the Deriv.com (a binary.com brand) platform.

Don’t be left out, Open a free trading account now by clicking here

With Crash 1000(500) Index, there’s an average drop in the price series that occurs at anytime within 1000(500) ticks.

With Boom 1000 (500) index, there’s an average of one spike in the price series that occurs at anytime within 1000(500) ticks.

How to Trade Boom and Crash Indices Successfully

A number of traders (both expert and beginner) have had issues with the market structure of boom and crash. This is because, unlike the currency pair, boom and crash have been structured to either buy or sell using spikes at an even period of tick.

For instance, when trading either the boom (Boom 500 or Boom 1000) or crash (Crash 500 or 1000) assets, one will observe that the boom market sells by default while the crash assets buy by default. However, when boom markets buy, it buys with long bullish spikes while crash markets sell with long bearish spikes. This characteristic feature makes the boom and crash unique but, also scary for beginner traders (See Figure 1 to 4).

 

How to Trade Boom and Crash

Figure 1: Boom 1000 chart showing a bullish spike.

 

 

How to Trade Boom and Crash

Figure 2: Boom 500 showing the default sell candles.

 

crash 500

Figure 3: Crash 500 chart showing a bearish spike.

 

How to Trade Boom and Crash

Figure 4: Crash 500 chart showing the default bullish buy candles.

 

Develop a Strategy

Like in every forex market, different trading strategies are employed by traders to make profits. This includes scalping, day trading, swing trading, and position trading. As a trader opts for a particular type of trading strategy, foundational factors influencing such a choice include a person’s trading style, trading psychology, exposure, and experience. All these foundational factors anchor on two basic characteristics: Personality and Knowledge.

Trading Boom and Crash, My Story

When I began trading boom and crash markets, I began my trading adventure as a scalper. In fact, in the first year of my trading experience, more than 95% of boom and crash traders that I have been privileged to meet were scalpers. As much as I knew that there were other trading strategies, scalping was the basic trading strategy I felt was suitable for trading boom and crash markets.

This was further confirmed by the way the market was structured (spikes in boom buy and crash sell situations), and also on the low risk to reward ratio when day or swing trading with very small lot sizes. For instance, in currency pair trade, using a lot size of 0.01 for a $100 account is a good risk management decision.

However, trading boom and crash with a lot size of 0.01 is a difficult adventure that will demand more than 100 pips before a trader gets a profit of $1. For that reason, Deriv.com upgraded the lowest lot size of the market from 0.10 to 0.20 to enable profit maximation. In as much as I know that it is a suicidal adventure to trade a 0.20 lot on a $100 account, the market structure is the basic platform for which the default lot was set to 0.20 to enable traders to have a return of $1 for every 5 pips and vice versa.

Generally, scalping the Boom and Crash market tends to be the norm due to the market structure and psychology. For that reason, many traders tend to focus on just lower time frames; precisely, M1 to M15. This rather makes it difficult to convince traders to look away from the spikes (which are so obvious and influencing in lower time frames) and put their focus on the general big picture of the market (the market trend).

However, the boom and crash market can still be ‘day or swing traded‘ if a trader has a good knowledge of the market psychology, price action, and good risk management. In fact, the best way to make profit lies in day trading or swing trading. This is because either of these trading strategies always respect the price action. Figure 5 to 7 shows the price action chart as observed in Crash and Boom markets.

 

How to trade boom and crash

 

Figure 5: Crash 500 chart showing price action chart.

 

Crash 500

Figure 6: Crash 1000 chart showing price action chart.

 

Crash 500 chart showing price action chart.

Figure 7: Crash 500 chart showing price action chart.

From the above setup, it is never wrong to begin trading boom and crash as a scalper but it will be wrong if you continue as a scalper. The aim of trading is not just in making profits but also in the personal development of one’s skill. Hence, as one sets out as a scalper, one should also endeavor to be part of the market’s big picture by improving to a day, swing, and position trading

6 Things to do Now if you want to win in the Crash and Boom Market.

If you are currently struggling in the market, please don’t give up. I blow my account more than 3 times before I finally understand how the market works. Here is what you should learn from me:

1. Price Action is very Important.

I don’t know how to put this, but from now on before taking any trade, try and study the market structure. If you understand the market structure, your success level will increase by 90%. Understanding the Market structure involves identifying price patterns, Candlestick Movement pattern, support and resistance, trend and momentum, Order block then support and demand level – which leaves an important trail on the chart.

If you want to fully understand how to trade crash and boom indices successful, First, mark out all the higher high and Higher lows in the chart; study price action reaction at those point; (you can include a trend indicator e.g., moving average like EMA 200 or Bollinger band (default setting); analyze and trade with proper risk management.

For EMA 200, when price is above the EMA, the trend is up, when the price is below the EMA, the trend is down, in this situation, look for the nearest Double Bottom (to buy) or Double top (to sell).

For Bollinger Band, look for Buy Entry when the price touches the lower Bollinger band and a sell entry when the price touch the upper Bollinger band

2. Beware of Stop Loss hunt

When I started trading Boom and Crash newly, I was a victim of stop loss hunt. If I enter a sell trade on Crash 500 for instance at a double top, the market will push pass that point and I will be force to close in red, but after some minutes the market will reverse back to my entry point before deciding on the next direction. After understanding Stop loss hunt, I began to trade with patience especially when I have clearly study and understand the market structure.

3. Risk Management is Very Important

Know when to close a trade in blue or in red; This is a problem many newbie face; even as an experience and a profitable trader, I still close some trades in red; this is because sometimes, breakout can happen, and once you notice this especially from candlestick formation, minimize your loss and look for the next entry point.

4. Develop a target based trading strategy.

One of the ways you can learn how to trade Crash and Boom and be successful is to develop a strategy that is target based. By Target based,  I mean a Smart Money Concept kind of trading – Having a daily profit target, risk to reward ratio and growing your account to withdraw not for continuous deposit. Your strategy should include lot size, conditions for entering a trade, condition for exiting a trade and how to recover when you close in red.

5. Practice and Patience is Key.

Before trading on your real account, practice first in your demo (if you don’t have a demo account, click here to open one). I study all my strategy first on my demo account at least one full week, monitor the result before trading on my real account.

6. Take Trading as your business.

Trade as if you are investing to make gain, not gambling; because jumping in to get few pips for quick profit can land you in red. Trade only based on Market structure, and your strategy.

 

If you have any questions, drop a comment below this post or kindly subscribe to my YouTube channel @JUVIRTRADES  and be a part of our audience as we take you through the boom and crash market adventure


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174 thoughts on “How to Trade Boom and Crash Indices Successfully”

  1. Good evening sir
    Please I need help trading boom and crash.My account which started with 300 dollars is now 222 dollars . Please any help will be deeply appreciated
    Thanks OJ

    Reply
  2. Please i have lost over $2000 on this scalping method. How can you assist me because I am determined this is what i want do. I have listened to so many youtube strategies in vain

    Reply
  3. I blew my 500usd account today through trading crush 500…i feel like crying right now…can someone with a powerful strategy get in touch with me via whatsapp on +263772408265 or via email [email protected]

    Thankyou.

    Reply
  4. Good evening sir,Am Wilson..I trade on a 100+ live account… Pls I need your help on how to trade properly on crash500 and Boom500….
    +2347062348149-my WhatsApp contact.

    Reply
  5. Good day sir.
    I’m a newbie in forex, still trading with demo and making huge losses. I could really use your help right now.
    Here’s my WhatsApp contact : +2347045144423.
    Thanks a lot

    Reply
  6. Hello guys am mk if you are struggling to trade boom and crash am here to manage your accounts and you can buy my stratergy becouse its 99.99 percent wrkng whatsaap me +264815610861

    Reply
  7. Good day sir, though I have been using demo account in binary.com and I was able to link my binary account to mt5 account but I tried to to switch to real account on mt5 I find it difficult.

    Pls is there any way you can help me out.
    Thanks.

    Reply
  8. I’ve. Jst started trading crAsh n boom I. would really appreciate your help Sir with a strategy on how to trade these two

    Reply
  9. Good day people, I have developed a working strategy for crash and boom that gives u signal of a series of spikes, contact me at +263 777 249 390. I can happily share results

    Reply
  10. Good evening sir
    Please I need help trading boom and crash.My account which started with 300 dollars is now 222 dollars . Please any help will be deeply appreciated
    Thanks all

    Reply
  11. What is d minimum amount in dollar dat j can have in my deriv synthetic accout(real account)to start trading crash and boom.I have less than 10$ but it says ‘not enough money’ when I try to trade with 0.20 lot size.
    My mail is [email protected].
    Send me link to your whatsapp group.

    Reply
  12. I want to learn how to trade on boom and crash. My account which I started with 100 dollar is now 15 dollar. Please help me, my phone no 08023963711

    Reply
  13. i like ur website and plz whats the best time of the week to trade indices like boom and crash and nas100 and vix75 and us30 and etcs?

    Reply
  14. Pls help me I can’t trade boom and crash and make successful trade I can join any strategy group also. ‪+1 (931) 610‑1174‬

    Reply
  15. Any one in kenya and is intrested in learning boom and crash trading (strategy), reach me on 0715860466 (whatsapp) and I will direct you accordingly. Especially those in Nairobi

    Reply
  16. Hi I’m having a good time trading boom and crash but I need to Learn more pleas help. Here is my what’s app number +27655998346

    Reply
  17. I AM INTERESTED IN TRADING BOOM AND CRASH AND OTHERS. BUT I HAVE NO IDEA HOW TO. I NEED HELP. I ALREADY HAVE BINARY.COM ACCOUNT.

    I NEED SERIOUS HELP AND MENTORSHIP.

    WHASSAPP NO: 08035423995

    Reply
  18. Sorry to say these article was not helpful in anyway. The heading of the article was “How to Trade Boom and Crash Indices Successfully”. But the is nothing pointed out on the article that tells how to trade the boom and crash. The article was only all about leman-explanation.

    Reply

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