One of the things I’ve learned from trading Volatility 75 Index is that you must get your entry right, because if not, the draw-down that may come if you pick a wrong trade can affect your equity adversely.
As one of the indices on the Deriv Platform, trading Volatility 75 Index can give you a good return on your investment, so it’s important that you take time to study the market before placing any trade.
As a rule of thumb, you can experiment on Boom and Crash, not on Volatility 75, because any small move or a small change in price can affect your equity adversely.
How to Trade Volatility 75 Index
There is no special way of Volatility 75 Index. The pattern of trading Vol 75 is the same as with currency pairs. Just like currency pairs, the under listed are very important when trading Vol 75:
- Support and Resistance
- Price Action
- Market Structure
How I analyze Vol 75 Index
I start analyzing Vol 75 Index from the daily chart. Analyzing from a daily chart helps me understand the market structure. Personally, I normally use the line chart to study the market, then use Candlestick chart to place trade.
When using the line chart I focus on the closing price, which enables me to understand support and resistance. Once you can spot the major and minor support and resistance in the daily, you can have an idea of the daily trend of the market, then use lower time-frame to spot a perfect entry position for your trade
Fig 1: Vol 75 Indices Line Chart
Fig 2: Vol 75 Indices Candle Stick Chart
My Top 5 rules for Vol 75
- Avoid Consolidation or ranging market
- Look out for the Supply Zone on both the 4 hour and one hour times frame.
- Always use proper risk management strategy (I mostly used 0.001 lot size)
- If you don’t know the trend of the market, don’t place any trade
- Ignore You Tube Forex Celebrity
Volatility moves in a zigzag form, so if you can spot the formation of a ‘W’ based on the market structure you can make money from the market.
I didn’t make much profit on my first week of trading Vol 75, I started making crazy profit after 2 weeks of consistency. The only thing i did was to discover a strategy, test it on the demo, modified it, then use it on my real account.
My fix lot size for Vol 75 is between 0.001 to 0.005, I’ve never gone beyond that, and my results will shock you.
On a final note, for me the best strategy for V75 is Price action, once you understand the market structure, you will enjoy the market