💫 Summary
This video provides a complete guide on how to trade the volatility 75 index, including calculating stop losses and a simple strategy for making consistent profits. The strategy involves using the RSI indicator and the 21 EMA to identify trends and enter trades.
✨ Highlights📊 Transcript
This section explains what the Volatility 75 Index is and why it is popular among traders.
Volatility 75 Index is a computer-generated index provided by Derive in their simulated synthetic indices market.
Traders like it because it allows for small lot sizes and can be traded with less than five dollars in the account.
Many traders don't know how to calculate stop losses and take profits when trading Volatility 75 Index.
The video will show a simple way to do position sizing when trading Volatility 75 Index.
To calculate the amount of money at risk in a trade, multiply the number of points from the entry to the stop loss by the lot size.
Points are used instead of pips in this strategy.
The number of points from the entry to the stop loss is calculated by measuring the distance on the chart.
Multiply the number of points by the lot size to determine the amount of money at risk.
This calculation can be used to trade any account size.
This section explains the use of RSI indicator to identify trends and entries in the Volatility 75 Index strategy.
RSI indicator helps detect trends based on overbought and oversold conditions.
Levels 50 and 50 are used in RSI to catch a strong trend.
Crossing above 50 indicates an uptrend, while going below 50 indicates a downtrend.
The strategy involves waiting for the RSI to cross above the level 50 and the market to cross above the 21 period moving average to enter a strong buy position.
Use the 21 EMA as confirmation for the buy signal.
Set the stop loss below the 21 period moving average.
Set the take profit at two times, three times, or four times the risk.
This section explains the strategy of waiting for RSI to cross above or below the level 50 and the market to cross above or below the 21 EMA before placing trades.
RSI crossing below level 50 indicates a sell trade.
Market closing below the 21 EMA confirms the sell trade.
RSI crossing above level 50 indicates a buy trade.
Market crossing above the 21 EMA confirms the buy trade.
00:00this video is a complete guide on how to
00:02trade volatility 75 index so in the next
00:05five to ten minutes you are going to
00:07understand what volatility 75 index is
00:10all about how to calculate your stop
00:12losses when trading flat rate 75 index
00:14and most importantly I'm gonna show you
00:16a simple strategy that I've been using
00:18that you can use to make over hundreds
00:21or thousands of dollars every week in
00:23the market trading for at least 75 index
00:26so I will see you after the disclaimer
00:33so let's start off by answering what is
00:36volatility 75 index in 2075 index is an
00:40index that is provided by derive in
00:42their simulated synthetic indices market
00:44so there if you've got this synthetic
00:47indices that mimic real world markets
00:49and these indices are not controlled or
00:52are not affected by news or volume or
00:55whatever these indices are computer
00:57generated so you can trade them based on
01:00technical analysis only so volatility 75
01:03index is one of these indices and it's
01:05one of the Traders favorites why because
01:07I think there's two reasons for that
01:09number one for 375 index allows you to
01:13use a very small load size of about
01:160.001 which is the Nano load to have the
01:19smallest margin which means if you're
01:21trading based once for at least 75 index
01:24you can trade it with less than five
01:26dollars or even a dollar in your account
01:28but but there is one thing that most
01:31Traders don't know what to do when they
01:33trade differently 75 index which is to
01:36calculate your stop losses and take
01:37profits most Traders just go into the
01:40market and they Place their trade but
01:42they don't know how much are they
01:43risking pay each and they've ever trade
01:45so to do that I'm gonna show you a very
01:48simple way today for you to do position
01:50sizing when trading of at least 75 index
01:53it's very very simple when you're
01:55trading currencies you want to know the
01:57amount of Pips that is from your entry
01:59to where you want to put your stop
02:01losses but when you're trading for 2075
02:04indices or other synthetic indices you
02:07are not using Pips here you are just
02:08using points so all you need to do is
02:11calculate the
02:12points from your entry to where you want
02:15to put your stop losses and then you
02:18multiply that by your load sizes right
02:21and it's very very easy let me show you
02:23how to do that so let's say right on
02:25this Market I want to buy here where the
02:27Buy trade is and I want to put my stop
02:29loss below this is one which is right
02:31here and what I just do here is we will
02:35just go ahead and grab this cross here
02:37through here once I grab this cross here
02:39too I want to measure how many points
02:42are there from my entry to my stop
02:44losses so to measure that I'm gonna
02:45click that and I'm gonna drag it to
02:48where my stop loss is so if I click here
02:51and if I drag down to this one you can
02:54see that from my entry point to where my
02:57my line is where I want to put my stop
02:58loss my number of points is
03:021743 points right so for me to know how
03:06much money is this in dollars the only
03:08thing that I need to do is multiply this
03:12143 by my load sizes so if I use this
03:17load size is right here which is 0.001
03:19multiplied by
03:221743 I am going to get a total of
03:261.74 so if I had to end at the smallest
03:29load size here and put my stop loss here
03:31the amount of money that I'm risking
03:33here is
03:341.74 cents the same thing goes for the
03:37take profit but in this case you can see
03:40if I know exactly how many how much
03:42money is this I can trade any account
03:45size because if I have ten dollars I can
03:47put the smallest load size in this big
03:49move right here can be worth
03:511.74 cents now let me go ahead and give
03:55you a very simple strategy that I've
03:57been using to trade for 2075 and I
04:00promise you if you use this strategy
04:01correctly I've big tested it and I've
04:03been trading you can make hundreds or
04:05thousands of dollars of course results
04:08are not typical but if you do the same
04:10thing that I'm gonna show you here you
04:12are going to make a lot of money in the
04:14market since 4975 index is very volatile
04:17we don't want to be using a trend
04:19reversal strategies that we have been
04:21using on other markets in this case we
04:23just want to catch an existing move and
04:26then we want to follow it right so we'll
04:29use two indicators the one for Trend
04:31identification and the other one for
04:33entries the first indicator that we are
04:35going to use is the RSI right here in
04:38the RSI indicator going to help us to
04:41detect the trade and I'd be thinking
04:43okay does the RSI shows you the trend or
04:47whatever the others I can show you a
04:50trend but in a way of saying if the
04:52market is overbought am I going to
04:56reverse that market or am I going to
04:58oppose that market definitely you don't
05:00want to oppose that market why because
05:02for the market to go overboard it simply
05:04means there is more buying pressure more
05:06people are buying in the trend is going
05:08stronger and stronger and stronger and
05:11if the market is going oversold it means
05:13sellers are getting more control and the
05:18market is going into a downtrend and the
05:20downtrend might continue so what you're
05:22going to do here is you're going to put
05:23the other SI on the charts and for the
05:25for the zones of the RSI you're going to
05:28use period 14 and they are going to use
05:30levels 50 and 50. we don't use the 90 10
05:34or 20 80 or the 37 they're going to use
05:37level 50 and 50. and the reason why we
05:40are going to use this is because we want
05:42to catch a strong Trend the way that we
05:45catch a strong Trend here is to say if
05:47the market or if the other SI is
05:50crossing above the over above the 50
05:53zone right here the market is likely in
05:56an uptrend right if the other SI is
05:59built is going below the level 50 it
06:02means the market is going into a strong
06:06downtrend so here's how we get our buy
06:09trades so the buy trades that we get
06:11here is we want to look into this market
06:13and we want to wait for the other SI to
06:15cross above the level 50. as to buy in
06:18this Zone we want another confirmation
06:21and the confirmation that we are going
06:22to use here is the very simple 21 EMA
06:25here if I go to my indicators and if I
06:28go to my moving average you are going to
06:29see this is period 21 this is uh two
06:33pixels and I'm gonna apply this is a
06:35simple moving average you can change
06:37this to exponential but is the same so
06:40here we are going to use the symbol or
06:43the exponential moving average so what
06:45you want to do here is we want to wait
06:47for the other SI to go and cross above
06:50the level 50. so if the RSA RSI goes and
06:54Crosses above the level 50
06:57the next thing we are looking at we are
06:58looking at our actual Market if our
07:01actual Market also goes ahead and
07:03Crosses above the level 21 moving
07:07average that simply means we are going
07:09into a strong buy position so in this
07:12case you can see I bought right here
07:13after the RSI crosses the level 50 and
07:17also you can see that the market crosses
07:20above the 21 period moving average and
07:23then you buy there your stop loss needs
07:26to be below this 21 period moving
07:29average so for the stop loss I'll just
07:31take this stop loss button here I'll
07:33just drag it below the and then I'm
07:35gonna go ahead and modify this position
07:39so the take profit here is not
07:41complicated what you do for the take
07:43profit is you just want to do two times
07:45the risk if you are risking 1.74 as I
07:49said here I'm just gonna need to make
07:51about four dollars in profits because I
07:53want two times the risk or three times
07:55the risk as you can see from this said
07:57after this crossover the risi and the
08:00market crossing the 21 period EMA there
08:03is more chances that the market will go
08:05up for a very long period of time so you
08:08can do two times the risk three times
08:10the risk or sometimes you can do four
08:12times your risk right so let me show you
08:15more examples of how this trade uh how
08:18you would get more trades with this
08:21strategy here you can see that the RSI
08:24cross is below the level 50. the RSI
08:26cross is below the level 50 right here
08:29the market was going into a sale trade
08:32right and also want to confirm by seeing
08:34the market going and closing below the
08:3721 EMA which happens right around this
08:40zone right here which is exactly where
08:43you were going to sell at this point and
08:45after that you can see that the market
08:47went on to move lower and lower and
08:50lower right so you just want to wait for
08:52the for the RSI to cross above the level
08:5550. once the RSI crosses above the level
08:5850 you want to look for buy trades but
09:01before you buy here once you see this
09:03crossover you want to also wait for the
09:06market to cross above the 21 EMA and if
09:09that happens you can place a high
09:11probability trade and then you buy and
09:14then you expect to make money trading
09:16this over at least 75 in the if you want
09:19to get a step-by-step guide on how to
09:21trade this strategy I've made a full
09:24article on our website trading with you can go ahead and check out
09:29that article I will leave the link in
09:32the description below you're going to
09:33see a lot of examples and you're going
09:35to see also step by step how to insert
09:38these indicators and how to trade this
09:41strategy so this strategy was only a
09:43five minute time frame but you can use
09:45any time frame that you want I guess and
09:48you can test it before you start using
09:50it but so far I've been using this
09:52strategy and it has been profitable for
09:54me so make sure you don't fall behind
09:57just go and try this strategy and see
09:59what happens if you want to learn how to
10:01grow a small account check out our small
10:04ebook that is popping up on the screen
10:06that is going to give you a step-by-step
10:08guide a blueprint of what you need to do
10:11to trade a small account this book is
10:14filled with strategies and tactics go
10:16ahead and check it out and it's almost
10:18free I'll leave the link in the
10:20description also so I will see you in
10:22the next video
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FAQs about This YouTube Video

1. What is the volatility 75 index?

The volatility 75 index is a synthetic index that represents the implied volatility of the S&P 500 options. It measures the market's expectation of future volatility and is often used by traders to speculate on the market's volatility.

2. How can I calculate stop losses when trading the volatility 75 index?

To calculate stop losses when trading the volatility 75 index, you can use the average true range (ATR) indicator to determine the volatility of the market. You can then set your stop loss based on a percentage of the ATR value to account for market fluctuations.

3. What is the RSI indicator and how is it used in trading the volatility 75 index?

The RSI (Relative Strength Index) is a momentum oscillator that measures the speed and change of price movements. In trading the volatility 75 index, the RSI can be used to identify overbought or oversold conditions, which can help traders make buy or sell decisions.

4. What is the 21 EMA and how is it used in the trading strategy for the volatility 75 index?

The 21 EMA (Exponential Moving Average) is a popular technical indicator that smooths out price data to identify trends. In the trading strategy for the volatility 75 index, the 21 EMA can be used to confirm the trend direction and provide entry and exit signals.

5. How can I make consistent profits when trading the volatility 75 index?

To make consistent profits when trading the volatility 75 index, it's important to have a well-defined trading strategy, manage risk effectively, and stay disciplined. Using the RSI indicator and the 21 EMA as part of a simple strategy can help identify profitable trade opportunities.

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