Deriv Tactical Indices Innovation Transforming Online Trading

Deriv is making waves with its Tactical Indices innovation, revolutionizing online trading. In an interview with Prakash Bhudia, Head of Product and Growth, we learned how these indices simplify complex strategies. This innovation is making trading more accessible and efficient for traders of all levels. 

Tactical Indices are designed to make trading more accessible, especially for individuals with busy schedules who cannot constantly monitor the markets. By combining popular financial indices with widely used technical indicators, Deriv allows traders to express their market view through a single position. For example, suppose a trader expects a pullback in the price of silver. In that case, they can use the RSI Silver Pullback Index to capitalize on this potential downturn without tracking RSI levels or managing multiple positions. 

These indices appeal to traders who want to implement technical strategies without spending significant time on manual analysis. Prakash explains that the goal is to simplify technical trading by allowing users to focus on their market view while the index automatically handles the strategy. Each Tactical Index is linked to a theoretical trading portfolio that follows a specific approach. The index’s price rises or falls based on the strategy’s performance, enabling traders to speculate whether the plan will succeed. 

Deriv Tactical Indices Innovation Transforming Online Trading

Deriv’s Tactical Indices amplify the primary market view, often outperforming the underlying market when the strategy succeeds. Deriv launched its inaugural Tactical Indices using the Relative Strength Index (RSI) and silver, featuring four key strategies: Trend Up, Trend Down, Pullback, and Rebound. Each strategy captures market momentum under different conditions, offering traders unique opportunities to capitalize on market movements.

For instance, the Trend Down Index gained 15% during a silver price drop post-US elections, while the Pullback Index saw a 16% return during a brief decline in silver prices after US employment data. Deriv plans to expand its Tactical Indices offering by incorporating other technical indicators such as MACD, Bollinger Bands, and strategies focused on pairs trading. The company’s larger vision is to build a suite of strategy indices that cover various market dynamics and assets, providing traders with powerful tools to execute sophisticated strategies through a single instrument. 

With over 25 years in the online trading industry, Deriv continues to push boundaries, innovating and adapting to meet the evolving needs of traders worldwide. However, Prakash quickly reminds us that trading always carries inherent risks, and traders should be mindful before diving in.

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