How To Trade Synthetic Indices
ABOUT US :
Indices Investment Group was founded in February 2019, by a group of young professional Indices Traders. We specialize in Synthetic Indices Trading, providing market analysis, accurate profitable trading signals and trading systems.
What Are Synthetic Indices?
Synthetic Indices are markets that are simulated. They behave like real monetary market however their behavior is created from the use of randomly generated numbers, through a computer programme .For transparency issues, a broker is unable to have an effect on or predict which numbers will be generated and hence is unable to cheat the market.
As of time of writing, there is only one broker that provides synthetic indices on different trading platforms. Deriv.com also widely known as Binary.com provides a various number of synthetic indices. You can trade synthetic indices on MT5, Options , and auto trade using the trading bot for options provided by the broker which you can tweak according to your strategy.
Types Of Synthetic Indices We Trade
- Volatility Indices
The Volatility Index (VIX) is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market. When sentiment reaches one extreme or the other, the market typically reverses course. (source : investing answers)
Volatility Indices can be traded by using technical analysis in combination with technical tools to analyse price movement.
2. Crash & Boom Indices
Crash & Boom Indices are synthetic indices, which are markets that tick based on simulation from stocks. Crash 500 Index, on average price drops (crashes) in the price series every 500 ticks, Crash 1000 Index , on average price drops in the price series every 1000 ticks and vice versa for Boom 500 Index as well as Boom 1000 Index. It is not difficult to predict price movement of crash 500 index, you can apply technical analysis strategies to predict price movement. All synthetic indices are not affected by fundamentals , which makes them a lot easier to just apply technical tools to analyse. See the below example of price chart analysis using technical analysis to predict price movement.
See Example Below :
As you can see from the above image, we predicted that price will go up by just spotting the major support zone (marked by 2 blue circles)..
As per the previous analysis we predicted that price will go up, since it had touched the major support zone (marked by 2 blue circles).. Price went up as per our analysis.
OUR SERVICES
At Indices Investment Group we provide proven and profitable trading strategies to trade synthetic indices. Our Indices Fund System,generates trading signals with alerts on MT5. The Indices Fund System scans price action patterns that are highly accurate. Example of price action patterns that Volatility Index, Crash & Boom Indices make are Head and Shoulders Pattern ( Reversal & Continuation), W Pattern (Reversal) & M Pattern (Reversal) .
See Example of our Indices Fund System in action :
The system sends trade signals directly to your MT5 platform, trades are generated every time price completes a reversal pattern. Our subscribers took the signal and made good profit.
See Proof Below :
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