Brokerage group Deriv announced the launch of a new set of products on Thursday.
The company calls them ‘Tactical Indices’ and they provide simplified access to different trading strategies.
Each index uses different built-in indicators that determine whether or not to ‘buy’ or ‘sell’. Currently there are four indices, all of which trade on the spot price of silver. However, Deriv said in a statement that it plans on adding more strategies in the first half of next year.
The current indices have different strategies but the main theme that unites them is something akin to a momentum trading strategy based on technical indicators. For example, one strategy is based on the silver price rebounding and another is on it trending downwards.
The structure of the indices is similar to the way rival broker Darwinex provides the trading strategies it offers to investors.
In effect, the strategy is packaged as an index, whose performance Deriv clients can ‘trade’ in. The performance of the index mirrors the underlying logic of the trading strategy.
The end result is arguably more cost effective and less cumbersome, because the end client does not need to constantly trade themselves – they can just track the price of the strategy with one instrument.
“Tactical Indices bridge the gap between complex trading strategies and seamless execution,” said Prakash Bhudia, Head of Product and Growth at Deriv. “We’re empowering traders to harness the power of advanced techniques like trend following and pairs trading while eliminating the barriers of manual intervention and overhead.”
Deriv has been one of the more innovative firms in creating new tradable instruments. Most notably, the firm created ‘crash’ and ‘boom’ indices, which allow clients to trade simulated volatility.
