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Deriv Crash 500 Index Strategy for Maximum Profits

Reading Time: 2 minutes

Deriv synthetic pair- Crash 500 Index moves in a specific pattern. If you open the chart, you will see a series of small bull candles followed by a long bearish candle representing the ‘crash’. 
When a short bull candle occurs, the market keeps moving upward with small ticks. Upon crashing with a long bear candle, it moves many ticks down. 

This means that it rises one by one step but falls 5 to 6 or sometimes even 10 steps. 

But here’s the best thing about multiplier:

  • The multiplier trading style at Deriv helps you trade with a controlled risk of leverage of 100% to 400%. 
  • If you invest $1 to $10 stake it is recommended to use x100. Multiplier’s benefit is that you can add take profit, and stop loss as per your need.

Quick Scalping Strategy

Add Ichimoku Kinkohyo indicator to the chart. Observe whether the Ichimoku cloud (kumo) is bearish or bullish. It is impossible to predict when the crash will occur in the chart with a long down candle.  Here the strategy is to open order for an up trade after the down candle appears. 

Deriv Crash 500 Index Strategyr

We have closed the trade after 3 consecutive bullish green bars. It is better and of course safer to not wait for more. 

Money Management Tip:

Close after 3 consecutive bullish bars from the last long bearish candle.

Never invest a large amount of money here. It resembles gambling since it’s a synthetic pair. Additionally, always keep your risk-reward ratio in mind while trading. With the Deriv Crash 500 Index, the risk always is higher than the reward. Therefore 1-2 trades per day is enough to keep a consent small profit every day. 

Small profits are always better than huge losses. If your trade gets hit by a crash candle, then you will lose a chunk of your investment, and that will keep you in the loop to trade more to recover your losses, where you can lose even more money. Hence, stick to small trade targets for consistent profit. 

Long-Term Trade (Advanced)

Holding the trade for more than 3 consecutive bars.

The strategy is to use the Ichimoku Kinkohyo indicator to track the trend closely. When the candlestick is below both the Tenkan and Kijun sen lines, and also below the Ichimoku Kumo,  then the market indicates a strong bearish trend and vice versa for a bullish trend.

Deriv Crash 500 Muliplier trading

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With the example above you can see, that the market has moved above Tenkan Sen, Kijun Sen, and also the Ichimoku cloud. Therefore it indicates a bullish signal. Now irrespective of a crash long bear candle, or small green bull candle, you can trade ‘UP’ here just like traditional spot trading. Next, when a long bearish candle appears, and that candle closes below the Tenkan sen, and Kijun sen, it indicates a correction or could be the end of a nice long uptrend. Hence you can close the trade there. It will give you enough profits as shown in the picture. 

This advanced way to trade the Crash 500 index is comparatively more profitable, and less risky than the 1st strategy. This is because here you can set proper stop loss and earn more than your risk. Here your risk-reward ratio will be quite good which is highly recommended for a high-quality trade.

Which method did you like the most? Have you tried some other methods? Share with us in the comment section below.

Happy Trading!

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