Trading strategies
Explore practical techniques to help you plan, analyse and improve your trades.
Our library of trading strategy articles is designed to help you strengthen your market approach. Discover how different strategies can be applied across asset classes, and how to adapt to changing market conditions.
Volatility doesn't discriminate. But it can punish the unprepared.
Stops getting hit on moves that reverse within minutes. Premiums on short-dated options climbing. And the yen no longer behaving as the reliable hedge it once was.
For traders across Asia, navigating this environment means asking harder questions about risk, timing, and the assumptions baked into strategies built for calmer markets.
1. How do I trade VIX CFDs during a geopolitical shock?
The CBOE Volatility Index (VIX) measures the market’s expectation of 30-day implied volatility on the S&P 500. It is often called the “fear gauge.” During geopolitical shocks such as the current Iran escalations, sanctions announcements, and surprise central bank actions, the VIX can spike sharply and quickly.
What makes VIX CFDs different in a shock
VIX itself is not directly tradeable. VIX CFDs are typically priced off VIX futures, which means they carry contango drag in normal conditions.
During a geopolitical shock, several things can happen at once
- Spot VIX may spike immediately while near-term futures lag, creating a disconnect.
- Spreads on VIX CFDs can widen significantly as liquidity thins.
- Margin requirements may change intraday as broker risk models adjust.
- VIX tends to mean-revert after spikes, so timing and duration are critical.
What this means for Asian-hours traders
Asian market hours mean many geopolitical events can break while local traders are active or just starting their session.
A shock that hits during Tokyo hours may already be priced into VIX futures before Sydney opens.
Some traders use VIX CFD positions as a short-term hedge against equity portfolios rather than a directional trade. Others trade the reversion (the move back toward historical averages once the initial spike fades). Both approaches carry distinct risks, and neither guarantees a specific outcome.
2. Why are my 0DTE options premiums so expensive right now?
Zero days-to-expiry (0DTE) options expire on the same day they are traded. They have become one of the fastest-growing segments of the options market, now representing more than 57% of daily S&P 500 options volume according to Cboe global markets data.
For Asian-based participants accessing US options markets, elevated premiums during volatile periods can feel like mispricing, but usually reflects structural pricing factors.
Why premiums spike
Options pricing is driven by intrinsic value and time value. For 0DTE options, there is almost no time value left, which might suggest they should be cheap but the implied volatility component compensates for that.
When uncertainty increases, sellers may demand greater compensation for the risk of sharp intraday moves.
This can be reflected in
- Higher implied volatility inputs.
- Wider bid-ask spreads.
- Faster adjustments in delta and gamma hedging.
In higher-VIX environments, hedging flows can contribute to short-term feedback loops in the underlying index. This can amplify price swings, particularly around key levels.
What this means for Asian-hours traders
Many 0DTE options contracts see their most active pricing and hedging flows during US trading hours. Entering positions during the Asian session may mean facing stale pricing or wider spreads.
If you are seeing expensive premiums, it may reflect the market accurately pricing the risk of a large same-day move. Whether that premium is worth paying depends on your view of the likely intraday range and your risk tolerance, not on the absolute dollar figure alone.
3. How do I adjust my algorithmic trading bot for a high-VIX environment?
Many algorithmic trading systems are built on parameters calibrated during lower-volatility regimes. When VIX spikes, those parameters can become outdated quickly.
The regime mismatch problem
Most trading algorithms use historical data to set position sizes, stop distances, and entry thresholds. That data reflects the conditions during which the system was tested. If VIX moves from 15 to 35, the statistical assumptions underpinning those settings may no longer hold.
Common failure modes in high-VIX environments include
- Stops triggered repeatedly by noise before the intended directional move occurs.
- Position sizing based on fixed-dollar risk, which becomes relatively small compared to actual intraday ranges.
- Correlation assumptions between assets breaking down.
- Slippage on execution that erodes edge.
Approaches some algorithmic traders consider
Rather than running a single fixed set of parameters, some systems incorporate a volatility regime filter. This is a real-time check on VIX or ATR that triggers a switch to different settings when conditions shift.
Approach adjustments that some traders review in high-VIX environments
- Widen stop distances proportionally to ATR to reduce noise-driven exits.
- Reduce position size to maintain constant dollar risk relative to wider expected ranges.
- Add a VIX threshold above which the system pauses or moves to paper trading mode.
- Reduce the number of simultaneous positions, as correlations tend to rise during market stress.
No adjustment eliminates risk. Backtesting new parameters on historical high-VIX periods can provide some indication of likely performance, though past conditions are not a reliable guide to future outcomes.
4. Is the Japanese Yen (JPY) still a reliable safe-haven trade?
During periods of global risk aversion, capital has historically flowed into JPY as investors unwind carry trades and seek lower-volatility holdings. However, the reliability of this dynamic has become more conditional.
Why has the yen historically moved as a safe haven?
Japan’s historically low interest rates made JPY the funding currency of choice for carry trades and when risk-off sentiment hits, those trades unwind quickly, creating demand for yen.
Additionally, Japan’s large net foreign asset position means Japanese investors tend to repatriate capital during crises, further supporting JPY.
What has changed
The Bank of Japan’s shift away from ultra-loose monetary policy in recent years has complicated the traditional safe-haven dynamic.
As Japanese interest rates rise:
- The scale of carry trade positioning may change.
- USD/JPY can become more sensitive to interest rate spreads.
- BoJ communication and domestic inflation data may influence JPY independently of global risk appetite.
The yen can still behave as a safe haven, particularly during sharp equity sell-offs. But it may respond more slowly or inconsistently compared to earlier cycles when the policy divergence between Japan and the rest of the world was more extreme.
What to watch
For traders monitoring JPY as a safe-haven signal, BoJ meeting dates, Japanese CPI releases, and real-time US-Japan rate spread data have become more relevant inputs than they were a few years ago.
5. How do I avoid ‘whipsawing’ on energy CFDs?
Whipsawing describes the experience of entering a trade in one direction, getting stopped out as the price reverses, then watching the price move back in the original direction.
Energy CFDs, particularly crude oil, are especially prone to this in volatile markets. And for traders in Asia, the combination of thin liquidity during local hours and sensitivity to geopolitical headlines can make this particularly challenging.
Why energy CFDs whipsaw
Crude oil is sensitive to a wide range of headline drivers: OPEC+ production decisions, US inventory data, geopolitical supply disruptions, and currency moves.
In high-volatility environments, the market can react strongly to each headline before reversing when the next one arrives.
- Price spikes on a headline, stops are triggered on short positions.
- Traders re-enter long, expecting continuation.
- A second headline or profit-taking reverses the move.
- Long stops are hit. The cycle repeats.
Approaches traders may consider to manage whipsaw risk
Some traders choose to change their risk controls in volatile conditions (for example, reviewing stop placement relative to volatility measures). However these may increase losses; execution and slippage risks can rise sharply in fast markets
Other approaches that some traders review:
- Avoid trading crude oil CFDs in the 30 minutes before and after major scheduled data releases.
- Use a longer timeframe chart to identify the prevailing trend before entering on a shorter timeframe, reducing the chance of trading against larger institutional flows.
- Scale into positions in stages rather than committing full size on initial entry.
- Monitor open interest and volume to distinguish between moves with genuine participation and low-liquidity fakeouts.
Whipsawing cannot be eliminated entirely in volatile energy markets. The goal of risk management in these conditions is not to predict which moves will hold, but to ensure that losses on false moves are smaller than gains when a genuine directional move follows.
Practical considerations for volatile Asian markets
Asian markets carry structural characteristics that interact with volatility differently from US or European markets:
- Thinner liquidity during local hours can exaggerate moves on thin volume, particularly in energy and FX CFDs.
- Events in China, including PMI releases, trade data, and PBOC policy signals, can move regional indices.
- BoJ policy decisions have become a more active driver of JPY and Nikkei volatility in recent years.
- Overnight gaps from US session moves are a persistent structural risk for traders unable to monitor positions around the clock.
- Margin requirements on leveraged products can change at short notice during high-VIX periods.
Frequently asked questions about volatility in Asian markets
What does a high VIX reading mean for Asian equity indices?
VIX measures expected volatility on the S&P 500, but elevated readings typically reflect global risk aversion that flows across markets. Asian indices such as the Nikkei 225, Hang Seng, and ASX 200 can often see increased volatility and negative correlation with sharp VIX spikes.
Can 0DTE options be traded during Asian hours?
Access depends on the platform and the specific instrument. US equity index 0DTE options are most actively priced during US trading hours. Asian traders may face wider spreads and less representative pricing outside those hours.
Are algorithmic trading strategies inherently riskier in high-volatility conditions?
Strategies calibrated during low-volatility periods may perform differently in high-VIX environments. Regular review of parameters against current market conditions is prudent for any systematic approach.
Has the JPY safe-haven trade changed permanently?
The Bank of Japan’s policy normalisation has introduced new dynamics, but JPY has continued to strengthen during some risk-off episodes. It may be more conditional on the nature of the shock and the BoJ’s concurrent posture.
What is the best way to set stops on energy CFDs in high-volatility conditions?
There is no universally best method. Many traders reference ATR to calibrate stop distances to prevailing conditions rather than using fixed levels. This does not guarantee exit at the desired price and does not eliminate whipsaw risk.
Position accumulation is to increase exposure to a currency pair, by adding a second (or more) position in the same trading direction. Although on the surface the opportunity to increase potential return is attractive, there are also risks that MUST be at the forefront of your thinking. Are you ready to accumulate?
Before considering position accumulation to your trading behaviour, it is worth considering two important aspects. This is not a strategy for the trader beginners, but rather when other systems are already in place such as a written trading plan that includes statements that reference risk management approaches, particularly that of appropriate position sizing and clear exit approaches. Also, logically, as you are potentially increasing exposure with this approach, it is not only having a trading plan that is important, but also a record of follow through with that plan.
We know disciplined trading is a challenge for some, so if this is something you are battling with than master this first. Why a profitable position only? It is crucial that this is one of the rules of any system you choose to develop.
Accumulating into a losing position (akin to ‘dollar cost averaging)’ should be considered a very high-risk strategy. The essence of this approach is that at each accumulation point, as you increase exposure, you manage the additional risk by moving a stop on previous positions at each accumulation point. Your position accumulation system As with any aspect of trading behaviour, a measurable set of statements that dictate your actions as part of your trading plan should be developed with reference to your position accumulation.
These statements may include as a minimum: a. Under what market circumstances you would consider accumulating e,g. strong uptrend confirmed across multiple timeframes. b. What technical signals are you going to use to signal the time to accumulate (e.g. if into a long position break of a key point, subsequent to confirmation of continued uptrend after a retracement. c.
Your trail-stop process e.g. at each accumulation point for all previously opened positions -all opened positions should be treated as one re, exit point. d. Position sizing e.g. accumulate no more than the original position, meaning if you enter 5 mini-lots initially that is the maximum you can add on each accumulation. e. Your maximum exposure e.g. 2 standard lots f.
Other exit points or reason to delay/refrain from accumulating further e.g. economic data. Once your system is complete then it should be tested prospectively, and amended as appropriate, prior to implanting in the reality of your trading practice. We trust this review of position accumulating will help in your choice as to whether to integrate this into your trading strategy and of course, some of the considerations that are worth exploring.
Discover the key MT4 tips and tricks to make you a power user The MetaTrader 4 (MT4 Platform) is arguably the world’s most popular electronic trading platform used by retail FX traders and professional fund managers alike. It was first released by MetaQuotes Software in 2005, and GO Markets was the first Australian Forex broker to offer it to their clients in 2006. Most of you reading this have a basic understanding of how to use the MT4 trading platform, for example, opening & closing a trade, placing a stop loss and loading your favourite indicators onto your charts.
Today I would like to share with you a few MT4 tips and tricks you may not be aware of. After servicing MT4 clients for over 10 years, these are our top 7 useful MT4 tips and tricks. Creating a Chart Template on MT4.
If you’re a trader that uses technical analysis, you probably use more than one indicator to determine your trades. A template allows you to overlay predefined indicators to a chart. Creating a template allows traders to load these predefined indicators, instead of having to set-up the indicators again each time you open a new chart.
For example, you can create a template which shows MACD, Momentum and RSI and use it on other charts. » Open a new chart. » Apply all the indicators you wish to use on that chart. » Right click on the chart. A drop down menu will appear. » Click on “Template”, then “Save Template”. » Name the Template, and then click on to “Save”. » To load your predefined indicators on a new chart, you can go back to the “Template” option and left click on “Load Template”. Here is a tutorial showing you how to do this: Saving a Profile on MT4 Once you set the layout of your platform, you then have the ability to save its profile.
Saving a profile is different to saving a template as it encompasses the complete layout or view of your MT4 platform. Profiles offer an easy way of working with groups of charts. When saving a profile, each chart with its settings is placed exactly in the same location where it was before.
All changes in all chart windows of the given list are automatically saved in the current profile. This differs from creating a template, where predefined indicators are saved on a single chart. » Set up a group of charts on your trading platform that you would like to work with » Go to File (top left-hand corner of the platform) » Choose “Profile” on the drop down menu » Then choose “Save As” on sub drop down menu » Name the new profile » To load your new profile, you can go back to the “Profile” option and left click on “Load Profile”. Here is a tutorial showing you how to do this Printing Out a Trading Statement Historical trades can be easily accessed by clicking on the “Account History” tab within the Terminal window.
Clients can get access to their full trade history or can choose custom or specific periods. For tax purposes, we get a number of our clients calling up to request a print out of their statement, not realising they can do this themselves. Follow the instructions below, hit print at the end and you can then send it to your accountant.
It really is that simple. Here’s how: » Go to Account History. » Choose desired period. » Right click anywhere in Account History. A drop down menu will appear. » Choose either “Save as Report” or “Save as Detailed Report”. » Then either right click and “Save as” or “Print”. » Note: Balance shown will always be the current balance.
Historical balances are not provided on MT4. Viewing Profit in Points, Terms Currency or Base Currency As a default, the profit and loss are viewed within the Terminal window as the Base (Deposit) Currency. For example, if your trading account is in AUD, and you were trading EURUSD, the profit & loss will automatically be shown in AUD.
However, you also have the option to view your profit & loss in Points or the Terms Currency. » Go to the Terminal Window. » Right click anywhere within the Terminal Window. A drop down menu will appear. » Hover your mouse over ‘Profit’ and a sub menu will also appear. » You then will be given a choice to view your profit in either Points, Terms Currency or Deposit Currency). » Note: To work out the number of pips form the Point figure, simply divide by 10. For example, 76 points equals 7.6 pips.
One Click Trading For those traders whose strategy involves placing trades in a timely and efficient manner, you now have the option of One Click Trading, reducing the time required to place a trade. Currently, the default mode for placing a trade on MT4 is a two-step process. The first step is bringing up a trade order window.
The second step is to select an appropriate order type, its parameters and confirm your order submission by clicking either Buy, Sell, Place, Modify or Close buttons depending on the order type selected and your trading intentions. Using this default, your order will not be submitted until you have completed both of the above steps. MetaTrader's One Click Trading mode for order submission ("One-click trading") is a one-step process.
Using the One Click Trading mode, your order will be submitted when you: Single-click either bid (SELL) or ask (BUY) rate buttons either: » On the Trading tab in the Market Watch window » On the One Click Trading panel of a chart » On close pending orders or delete stop levels on the Trade tab of the Terminal window There will be no subsequent confirmation prompt for you to click. You will not be able to withdraw or change your order once you click. You can activate or deactivate One Click Trading mode on the Trade tab or Options window of the terminal.
Chart Scrolling to the Left If you’re new to MT4, you may find it difficult to scroll your charts to the left of your screen (i.e. to look at historical data). You may experience the chart jumping to right and reverting back to the current price action. To prevent this from happening, simply ensure the following icon on your tool bar is not enabled.
With the left arrow key on your keyboard, you are now able to easily scroll back to look at historical data on your chart, without it continually jumping to the most recent price action. When you are new to MT4, this can be very frustrating, especially when you are looking to backtest a trading idea or system. MetaTrader 4 Short Cut Keys There are several shortcut keys that can be used to make navigating on the MT4 platform easier and more efficient.
Below are the most common ones: » Left Arrow – Chart scrolling to the left » Right Arrow – Chart scrolling to the right » F1 – Opens “User Guide” » F2 – Opens “History Centre” window » F8 – Opens the chart setup window » F9 – Opens the “New Order” window » F11 – Enable or Disable the full-screen mode » F12 – Move the chart by one bar to the left » Shift/F12 - Move the chart by one bar to the right » Home – Move the chart to the start point » End – Move the chart to the end point So there you have our top 7 MetaTrader (MT4) tips and tricks. As mentioned at the start, there are many more common tips, but we wanted to run with some of the less obvious ones that our clients have found to be extremely useful. For more on trading Forex check out our Forex Trading Education Centre, MetaTrader 4 Tutorials, or open a free MetaTrader 4 demo account.
Please note that trading Forex and Derivatives carries a high level of risk, including the risk of losing substantially more than your initial investment. Also, you do not own or have any rights to the underlying assets. You should only trade if you can afford to carry these risks.
Our offer is not designed to alter or modify any individual’s risk preference or encourage individuals to trade in a manner inconsistent with their own trading strategies. Rom Revita | Sales Manager Rom is the Sales Manager at Go Markets Pty Ltd and manages the day-to-day running of the Sales, Support and Marketing teams. He has been with the company since 2013 and is also one of our two appointed Responsible Managers, helping to ensure that the company follows all AFSL regulatory requirements.
Rom has extensive financial markets experience and originally comes from an equities & derivatives trading background. He has served on the Trading & Sales Desk with several large broking houses, and now specialises in Margin FX and CFDs.
One Emotional Discipline: This is the precise reason why not everyone can trade. Understanding the fundamentals of the market is not beyond you and learning a technical system that provides an edge in the market is certainly not hugely challenging. However learning the skill of emotional discipline is the greatest profit making skill great traders have.
To develop the emotional discipline that all great traders have takes time and it takes a lot of patience but it can be done. There are 3 things that can help you develop the emotional discipline required. » Most budding forex traders in my experience trade too much resulting in a “duck hunter” approach rather than a “sniper” approach. The result is they trade emotionally instead of logically following a specific trading plan.
Over many years I have seen forex traders substantially improve their trading results by simply trading less. » One thing you need as a trader is time, time to learn the skill of trading and being able to stay in the game without blowing your trading account. Nobody makes it in this business without experiencing trading losses however you need to fail gracefully and this means losing small and winning bigger. » Rather than looking at your forex trades in a win-loss fashion consider looking at your trade results in blocks of 10 trades. Trading is a numbers game and if you have a specific currency trading plan that has an edge then you have a historical probability of success, you just need to see it through and play the system properly.
The system or your results cannot be measured over one, two or even three forex trades. Great trades understand the numbers game over time and it allows them to develop the emotional discipline. Two Focus: Think about someone that you know to be successful and wealthy.
There is a strong possibility that person achieved their success and wealth from being a specialist in one field. Steve Jobs was successful at building computers, Richard Branson made his first fortune selling records, Rupert Murdoch made his fortune selling Newspapers, George Soros made his fortune trading currencies and Warren Buffett made his fortune buying companies on the stock market. They applied incredible focus to the business they were in and initially did not diversify.
It was this single-minded focus on one thing that drove them to the success and yes many of them have diversified since. But they focused on one thing to start with. So I believe you will improve your probability of trading success by focusing on one market and becoming a specialist in that market.
It will allow you to focus intently on what is driving that market, it will allow you to focus on becoming the detective that you need to be and it will allow you to likely find value in a market before everyone else has figured out what you are considering buying is a good idea. Consider focusing on one market and become your own master of that market and you will likely improve the chances of your success. Watch your inbox for the link to join Senior Currency Analyst and Sky News Money host Andrew Barnett for weekly free live currency coaching sessions.
They are at 7pm AEST every Wednesday. Andrew Barnett | Director / Senior Currency Analyst Andrew Barnett is a regular Sky News Money Channel Guest and one Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Connect with Andrew: Email