The “Derrick” options trading system

For effective work on the futures market we offer a highly effective strategy called “Derrick.” The principles and algorithms of analysis for this method of trading make it possible to make a profit on the financial market in the most stable mode possible. At the same time, the system is characterized by its very simple mode of operation, its understandability, even for beginners to trading, and also its versatility, which gives investors the opportunity to trade on any asset of the financial market. The “Derrick” strategy could be the most effective way to earn a stable profit for many traders.

How does the strategy work?

The technical principle of generation of trading forecasts and signals for registering trades using the “Derrick” system is based on the use of a specific set of automatic indicators. For this reason, the system requires a specialized technical service with access to the necessary analysis tools. There are two options for these resources – MT4 or our analytics section at our blog. As the most convenient one, we recommend the last one. No special software is required to use it, and at the same time it is equipped for the use of any indicator tools for trading and market analysis.

So, after selecting your auxiliary resource, open the chart of the asset you would like to trade, switch the chart to the M1 timeframe and apply the following set of services to it:

• Double EMA – when setting the indicator, change the market evaluation period in its settings – we need to evaluate the trend parameters based on data from 25 candles. Thus, on the minimum timeframe we will be able to determine trend movements on the market over a relatively long range.
• CM_DI_Plus_Minus_V1 – this technical tool is necessary to determine the impulses of the market. It will help us obtain information about possible levels of change in trend movement and market sentiment.
• MACD – and, of course, we need a system for filtering false trading signals for our strategy. As such an instrument, we will use the MACD standard oscillator service

After completing the configurations and settings of the chart, you will get the following kind of technical markup on your operating chart:

 

 

In addition to the technical service for trading on the strategy, a trading platform for futures trading will be required. Using a third-party resource for technical analysis of the market makes this system completely universal regarding the choice of terminal. However, for effective trading and investment security, we recommend using a professional operator. As a great example of such a trading platform, we suggest considering the companies from our TOP.

Strategy signals

For CALL trades, we apply the following set of signals:

• The liquidity chart intersects the level of the Double EMA trend indicator upwards
• The CM_DI_Plus_Minus_V1 service shows a break in the trend movement by intersecting the red level with its green moving upwards, and the background of the indicator has changed its color to green.
• The MACD filter oscillator generates its standard signal in the form of  divergence of its lines upwards

 

 

For PUT trades, we apply the following set of signals:

• The liquidity chart intersects the level of the Double EMA trend indicator downwards
• The CM_DI_Plus_Minus_V1 service shows a break in the trend movement by intersecting the red level with its green moving downwards, and the background of the indicator has changed its color to red.
• The MACD filter oscillator generates its standard signal in the form of  divergence of its lines downwards

 

 

Expiration

When using the system on a minute period on the trading chart of the asset, it is recommended to use trades with expirations in the range of 5 to 15 minutes. The calculation of a specific range of trade expiration should take into account the level of volatility of the instrument at that moment.

Money management

To reduce losses from trading and the level of risks, follow these simple rules of contract cost restrictions for the trading system:

• On a minimum-size trading account, use futures contracts with the initial amount of cost
• When trading with a large amount of capital, it is recommended to use trades with a cost level of no more than 5% of the amount of funds available for trading

 

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“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”