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How to trade the Volatility 75 index on Deriv

/5 min read

The Volatility 75 index, often written V75 or VIX 75, is the most talked about synthetic index on Deriv. It is also the one most often traded without much thought about what makes it different. This is what it actually is and how to build a strategy around it.

What V75 is

The Volatility 75 index is a price series generated continuously by Deriv from a random number process. There is no underlying asset, no company, no currency pair. The number 75 describes the volatility level of the series: how far the price tends to move.

The whole Volatility family runs from 10 to 100 on the same principle. Volatility 10 drifts. Volatility 100 swings hard. V75 sits high on that scale, which is exactly why traders like it: there is enough movement to work with on almost any timeframe.

Two things follow from being synthetic, and both are advantages:

It never closes. No weekend gap, no market holiday, no waiting for London or New York to open. A bot on V75 can run at three in the morning on a Sunday.

Nothing external moves it. There is no interest rate decision to watch, no earnings report, no headline risk. You are trading one well defined process, and the only thing that decides your result is the rule you chose and the settings you set.

The one second variant

Many volatility indices, V75 included, come in a one second version that publishes a tick every second rather than every two. The generating process is the same. What changes is pace.

A bot on the one second index places roughly twice as many trades at the same settings. That is useful when you want a session's worth of data quickly, and it is worth picking deliberately rather than by accident, because your stop loss and take profit will both be reached sooner.

Which contracts suit it

V75's movement is its selling point, so the contracts that use movement are the ones to reach for.

Rise/Fall is the obvious start. You are calling direction over a duration you choose, and on a high volatility index the price actually travels far enough within a few ticks for that call to mean something.

Higher/Lower and Touch/No Touch both depend on price reaching a level. Higher volatility means the barriers you can reach are further out, so the payouts on offer are more interesting than they would be on V10.

Multipliers amplify the move rather than betting on a duration, which suits a market that moves. You set a stop loss and a take profit and let the position run.

Turbos and Vanillas both price off distance travelled, so V75 gives them more to work with than the calmer indices. There is a full explanation of those three if they are new to you.

Digit contracts work on V75 exactly as they work anywhere else, because the last digit is uniform regardless of volatility. If you are trading digits, the volatility level is not the variable that matters; the tick rate is.

Which bots to run on it

On BinaryTick you can point most strategies at V75 from the card, without opening an editor.

Rise / Fall Momentum is the natural fit. It counts consecutive rising or falling ticks and buys continuation once the run reaches your threshold. On a high volatility index those runs are meaningful moves rather than noise around a flat line.

SMA Trend and its mirror SMA Reversion are the pair worth running next. Point both at V75, give them the same period, and let them run side by side on a demo balance. One trades with the average, the other against it. You learn more about V75 in an afternoon of that than from a week of reading charts.

Bollinger Bounce and RSI Reversal both want a market with range to work in, which V75 has.

What does not transfer from real markets

Support and resistance, trend lines and chart patterns describe crowd behaviour, and a synthetic index has no crowd. A level that held three times on V75 held by coincidence.

This is not an argument against indicators. It is an argument for what they are genuinely good at: an indicator on V75 gives you a consistent, testable entry rule, which is precisely what a bot needs. Treat a moving average as a rule you can measure rather than a forecast, and it does real work. That is how every indicator strategy on the platform is built.

Setting up your first V75 session

  1. Sign in with your Deriv account and start on the demo balance.
  2. Pick Rise / Fall Momentum and set its market to Volatility 75.
  3. Leave the martingale multiplier at 1, which is a flat stake.
  4. Set a stop loss and a take profit you are comfortable with, so the session ends in both directions.
  5. Set max losses in a row low enough that you actually see the bot stop once.
  6. Press Run and leave it alone long enough to be boring.

Then change one setting, run it again, and compare. That loop is the entire skill.

Where to trade it

V75 is available on BinaryTick alongside the rest of the Volatility range, Crash and Boom, Step, Jump and Range Break, in the browser on desktop or phone with nothing to install. Every strategy is free to run and every account starts on a demo balance, so you can have a bot trading V75 within a couple of minutes of signing in.

Try any of this on a demo account.

Every strategy on BinaryTick is free to run, and every account starts on a demo balance of virtual funds.

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