Volatility 75 Index Brokers

When all the conditions for sell or buy are met on M15, draw a straight line to mark out the anticipated reversal point. 

After drawing a line on M15, move to M5 for further confirmation. Take the following actions if you see any of the following on M5:

Scenario 1
All the conditions met on M15 are also met M5
Action: Mark as HIGH POTENTIAL SET UP.

Scenario 2

All the conditions met on M15 are not met on M5
Action: DISCARD TRADE IMMEDIATELY AND WAIT FOR ANOTHER SIGNAL ON M15.

Scenario 3

All the conditions met on M15 are about to be met on M5
Action: WAIT PATIENTLY FOR COMPLETE SIGNAL FORMATION ON M5 BEFORE ENTERING.

In the case of Scenario 1, you must carry out the following simple analysis before entering your trade:

Switch to M30 and H1 timeframes to check if the price is moving in a direction opposite to your short-term prediction. 

If it is, DON’T ENTER A TRADE. This is because a strong fake reversal might occur which will most likely hit your stop loss.

Example:
The conditions for SELL have been met on M15 and confirmed on M5. But when you checked M30 and H1, you noticed that the BUYING POWER is high. 

This means price might not respect the signal and move along with the trend instead. To detect the trend direction on both M30 and H1, you will check the crossover on Stochastic Oscillator and MACD histogram formation.

BUY BIAS: Stochastic Blue line crosses the Red and moves upward, while the MACD predicts an upward movement.

SELL BIAS: Stochastic Blue line crosses the Red and moves downward, while the MACD predicts a downward movement. If all these conditions are met, you can safely enter your trade on M5.

HOW TO ENTER A TRADE
1.  All trades should be executed and monitored on M5 only.

2. Before entering a trade, decide on the lot size to use depending on the size of your account. (We have a different guide on that)
3. In this strategy, we won’t be making use of Instant Execution option, instead, we will make use of Stop Orders (SELL STOP or BUY STOP). This will prevent us from entering the market too soon.

4. When all your signals have formed on all timeframes, switch to M5 and place a STOP ORDER few PIPS below (For a SELL TRADE) or above (For a BUY TRADE).

5. Stop loss should be placed a few pips above the highest or lowest candlestick (depending on the type of trade). Note that there is always a possibility of a retest before final movement.

WARNING: ALWAYS SET STOPLOSS AND DON’T USE A LOT SIZE THAT IS BIGGER THAN YOUR ACCOUNT SIZE!

WHEN TO EXIT A TRADE.

There are methods you can use to determine when the movement is done.

1. The Bollinger Band
✓ Price reaches the middle band or
✓ Price reaches the last band

2. The Stochastic Oscillator
✓ The blue Stochastic line touches the opposite level e.g. For a SELL trade, the line moves from 80 level and approaches 20. Vice versa for BUY.

3. Constant PIP target per trade
✓ I personally target 100 pips per trade irrespective of the movement. This 1000.0000 points per trade based on observation.
✓ You must monitor 1 and 2 to determine when to opt out of a trade prematurely.

There is a separate guide on how to calculate the number of pips on Volatility 75 Index. Study it well.

RULES

1. Don’t be greedy. Make use of stop-loss and appropriate lot size.
2. Your total opened positions should be equivalent to your normal lot size
depending on your capital.
3. Have a daily profit target to eliminate greed or overtrading.
4. If a signal is not complete, don’t trade it.
5. If you are not confident with the strategy, don’t trade it.
6. Make sure you read up articles on all indicators during your back-testing period.
7. Don’t trade an amount you can’t afford to lose.
8. Be confident in yourself as a trader.
9. If you are a new trader and you are not familiar with any of the terms mentioned above, please Google them out or register for a foundation training program.
10.Trading is risky irrespective of the strategy. This strategy works for me and my students, I hope it works for you also.

REGISTER FOR A TRADING ACCOUNT TO GET STARTED!