Working With Profit Percentage on IronTrade

Have you ever wondered how does a percentage of profit work? Or how do we choose the Asset of the day? And how to work with the profit percentage on the platform? If you did, then this article is for you. It will give you an in-depth presentation of the following things:

1) The usage of a profit percentage and how does the attribution of a profit percentage to an asset work.

2) The usage of the "Asset of the day" on the platform and how it works.

3) The main strategies to work with a profit percentage.

I. Percentage of profit depends on various market conditions, especially on the price fluctuations (volatility) at a specific moment: the higher volatility - the higher percentage of profit.

Picture 1. The percentage of profit for various assets.

In picture 1 we can see that the most volatile asset is GBPCHF. According to the theory of evaluation the options, if the volatility raises, the option position rises in price. If the volatility goes down, then the option position becomes cheaper. It is possible to trade profitably during both scenarios.

Falling volatility:

Stochastic and Bollinger lines have a higher level of signals accuracy if the percentage is equal to 40%-60% as we can see in picture 2.

Picture 2

Picture 2. Falling volatility for the asset, Stochastics (5,3,3) with the levels of 20 and 80, and Bollinger lines (14,2) with the default settings.

Raising volatility:

RSI and Moving Average (SMA) generally have a higher level of signals accuracy if the percentage is equal to 63%-83% as we can see in picture 3.

Picture 3

Picture 3. Raising volatility for the asset, RSI (14) indicators with default settings and levels of 30 and 70.

II. The asset of the day represents a period when the volatility of an asset is at its historical maximums. If the volatility is higher, then it is possible to set up an increased return rate of +3% for the whole day. I.e., if normally the return rate is 80%, then if it is set up as "the asset of the day", it becomes 83%. See this example in picture 4.

• The maximum return rate for the asset of the day is 85%.
• The rate remains increased during the whole day.

Picture 4. Example of how the profit percentage changes when the "Asset of the day" is turned on

Our analytics in the News section consider fundamental and technical characteristics of assets. More than 54% of these trading signals are accurate. It gives an advantage for long-term planning and allows traders to make money on various assets.

To sum it up:

• The asset of the day depends on the volatility and increases the initial percentage profit by 3% for the whole day.
• If the percentage profit is within the 40-60% range, then the best strategies are the ones that are based on Bollinger lines and Stochastic.
• If the percentage profit is within the 63-83% range, then the best strategies are the ones that are based on RSI and Moving Average (SMA).
• All the analytics from our News section help you to create your strategy during the periods of market uncertainty, and generally, it is quite profitable.