Tactical Indices are proprietary synthetic indices on Deriv that provide automated exposure to predefined, indicator-based trading strategies. Each index applies a specific set of technical rules—such as those based on the Relative Strength Index (RSI)—to an underlying market and adjusts exposure automatically when predefined conditions are met. This allows traders to access systematic, rules-based trading logic without manually analysing charts, placing frequent trades, or managing multiple positions.
By embedding strategy execution directly into the index structure, Tactical Indices translate technical signals into price movements that reflect the performance of the underlying strategy over time.
Quick summary
- Tactical Indices are synthetic indices that automatically apply technical indicator-based trading rules.
- Each index adjusts exposure based on predefined signals, such as RSI trend or reversal conditions.
- The first indices launched are RSI-based and cover markets such as silver and major forex pairs.
- Built-in amplification increases sensitivity to market movements, affecting both gains and losses.
- Tactical Indices are available exclusively on Deriv and can be tested using a demo account.
What are Tactical Indices?
Tactical Indices are engineered to mirror the outcomes of algorithmic trading strategies rather than the raw price movement of an asset alone. Each index tracks an underlying market—such as silver or a major currency pair—but its price behaviour is driven by how a predefined strategy responds to technical indicator signals.
When the embedded indicator meets specific conditions, the index increases, reduces, or reverses exposure according to its rules. These adjustments are reflected directly in the index price, providing a simplified way to trade strategy performance rather than executing individual trades manually.
Key characteristics of Tactical Indices:
- Predefined trading rules: Strategies are based on established technical indicators such as RSI, with additional indicators planned.
- Automated execution: Signals are acted on automatically, without discretionary decision-making.
- Exposure adjustment: Index sensitivity changes in response to signals, rather than remaining static.
- Synthetic structure: Price movements reflect strategy logic applied to the underlying market.
This design allows traders to engage with quantitative trading concepts without coding or managing multiple positions.
How Tactical Indices work
Each Tactical Index follows a structured process that links market data to strategy outcomes.
The execution process
- Market tracking
The index continuously monitors its underlying market, such as silver or a forex pair. - Signal evaluation
A technical indicator, such as RSI, is applied to identify predefined conditions (for example, trend strength or overbought and oversold levels). - Exposure adjustment
When a signal is triggered, the index modifies its exposure according to its rules. This may involve increasing sensitivity to price movements, reducing exposure, or positioning for reversals. - Index price movement
Changes in exposure directly affect how the index price responds to subsequent market movements.
Because this process is automated, execution occurs consistently and without emotional bias.
Example: silver RSI trend-based Tactical Index
A silver RSI trend-based Tactical Index applies RSI signals to determine whether the market is establishing a sustained upward or downward trend.
If silver enters a strong uptrend and RSI confirms sustained momentum, the index increases exposure. As a result, upward price movements in silver have a larger effect on the index price. If silver reverses, losses may also be magnified due to the same mechanism.
This illustrates how Tactical Indices translate indicator signals into amplified price behaviour rather than simple price tracking.
Why trade Tactical Indices?
Tactical Indices are designed to simplify access to systematic trading strategies while preserving transparency around how those strategies behave.
Key advantages
Automated strategy execution
Technical signals are interpreted and applied automatically, removing the need for constant chart monitoring.
Consistent rule application
All decisions follow predefined rules, reducing discretionary bias and inconsistent execution.
Amplified responsiveness
Built-in amplification increases responsiveness to market movements, which can enhance returns in favourable conditions and increase losses when conditions deteriorate.
Lower operational complexity
Instead of managing multiple trades, traders gain exposure through a single index position.
Broad accessibility
The indices are structured to be usable by traders with varying levels of experience.
RSI Tactical Indices explained
RSI Tactical Indices are the first category available and are built around variations of RSI-based logic.
How RSI logic drives the index
- Signal interpretation
RSI readings are used to identify trend strength, momentum shifts, or potential reversals. - Rule-based response
When RSI conditions are met, the index adjusts exposure according to its predefined strategy. - Performance reflection
Over time, the index price reflects how effectively the RSI strategy performs under prevailing market conditions.
Traders can take long or short positions based on their expectations of how the strategy itself will perform, rather than manually applying RSI signals trade by trade.
Types of RSI Tactical Indices
Trend-following RSI indices
These indices are designed to benefit from sustained directional moves.
Such indices may perform well in strongly trending markets but can underperform during range-bound conditions.
Mean-reverting RSI indices
These indices focus on corrections and reversals.
These strategies are more sensitive to short-term reversals and may be affected by prolonged trends.
Market coverage
RSI Tactical Indices currently cover the following markets, with additional assets planned:
Tactical Indices vs manual trading
This comparison highlights how Tactical Indices package strategy execution into a single instrument.
Risks and considerations
Tactical Indices are not risk-free instruments and require careful evaluation.
- Amplification affects both directions: Gains and losses are magnified as exposure changes.
- Market regime sensitivity: Strategies may perform differently in trending versus ranging markets.
- No performance guarantees: Past behaviour does not predict future outcomes.
- Strategy understanding required: Traders should review each index’s rules before trading.
Understanding how each strategy behaves across market conditions is essential before committing capital. For more information about effective risk management strategies, read our guide on volatility risk management.
Getting started with Tactical Indices on Deriv
To begin exploring Tactical Indices:
- Review available indices and their strategy rules on Deriv.
- Use a demo account to observe index behaviour under different market conditions.
- Transition gradually to live trading once familiar with strategy dynamics.
- Refer to Deriv educational resources for indicator explanations and risk management guidance.
Tactical Indices provide a structured way to engage with automated, indicator-driven trading strategies while maintaining transparency around how those strategies operate.
Quiz
Which of these is a major benefit of Tactical Indices?
FAQs
