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How I Trade Volatility 100 Using the 3-Line Strategy

How I Trade Volatility 100 Using the 3-Line Strategy

If you’ve traded Volatility 100 for any length of time, you already know the truth: this market doesn’t forgive impatience. Volatility 100 moves all day, every day. That’s what attracts people to it. It’s also why many traders lose money quickly—too many trades, too much guessing, not enough structure. After going through indicators, signals, and different “systems,” I ended up doing the opposite. I simplified everything. Today, I trade Volatility 100 using just three lines. And it’s enough.

If you’re new to Volatility 100, starting with a Deriv demo account makes it easier to understand how price reacts at these levels

Why I Keep It Simple on Volatility 100

Volatility 100 isn’t driven by news or economic events. There’s no CPI, no interest-rate announcement, no surprise headline. Price reacts to levels.

Most losses happen when traders:

I used to do the same. The moment things changed was when I stopped asking “Where is price going?” and started asking “Where is price reacting?”

The 3-Line Strategy Explained

At the start of every trading day, I draw only three levels on Volatility 100:

  1. Yesterday’s High
  2. Yesterday’s Low
  3. The midpoint between them

That’s the entire setup. Those three lines guide every decision I make for the day.

How I Set It Up Each Day

I switch my chart to Daily (24h) and look at the previous day.

If you want to practice how to trade properly, start with a free Deriv demo account

Once that’s done, I don’t adjust the levels again.
I let price come to me.

How I Actually Trade the Levels

Here’s the key thing:
I don’t trade levels. I trade reactions.

When Price Reaches Yesterday’s High

If Volatility 100 moves into the previous day’s high, I don’t rush to sell.

I wait.

I want to see:

Once the market shows me that buyers are struggling, I look for a sell.

When Price Reaches Yesterday’s Low

Same idea, opposite side.

When price reaches yesterday’s low, I don’t buy immediately.

I wait for:

Only then do I consider a buy.

The Midpoint Rule (This Saves Accounts)

If price is around the midpoint, I do nothing.

No buying.
No selling.
No “maybe.”

The midpoint is where emotions take over and accounts slowly bleed.
Waiting is part of the strategy.

Timeframes I Use

This works whether you’re new to Volatility 100 or you’ve been trading it for years.

Risk Management

I keep this simple too:

The goal isn’t to win every trade.
It’s to stay consistent and disciplined.

Why This Works on Volatility 100

Volatility 100 respects structure more than indicators.

Previous day highs and lows act like magnets.
Price tests them, reacts, and moves.

When you stop forcing trades and start waiting for price to show its hand, trading becomes calmer—and more controlled.

Final Thoughts

If Volatility 100 has been stressful for you, try doing less, not more.

Draw three lines.
Wait for price.
Trade the reaction.

That’s how I trade Volatility 100 using the 3-Line Strategy.

Risk Disclaimer

Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.

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