Turbos: High-Paced, Tight-Range Directional Bets

Turbo Options are a specialized directional contract where potential profit is high, but risk is managed by an automatically triggered Knock-Out Barrier. They are designed for traders seeking amplified returns on short-term price movements without the complexities of Multipliers.

Directional with Protection:

• Standard directional prediction: Call (Up) or Put (Down)
• Knock-Out Barrier: Automatically triggers instant loss if touched
• Amplified Returns: Tight barriers create high profit potential

Two Contract Types:

• Turbo Call: Predict price will rise, with Knock-Out Barrier set below current price
• Turbo Put: Predict price will fall, with Knock-Out Barrier set above current price

Key Difference from Standard Directional Contracts:

• Barrier Protection: Instant loss cap at knock-out level
• Variable Payout: Determined by barrier distance
• High ROI Potential: Tight barriers amplify returns

The knock-out barrier mechanism creates unique trading dynamics:

For Turbo Call Contracts:

• Knock-Out Barrier set below current price
• Protects downside with instant loss trigger
• Closer barrier = higher payout if successful

For Turbo Put Contracts:

• Knock-Out Barrier set above current price
• Protects upside with instant loss trigger
• Closer barrier = higher payout if successful

Strategic Implication: This contract type rewards traders who can set barriers at technical invalidation points, maximizing payout while managing risk through strategic barrier placement.

The core of the Turbo contract is the relationship between Entry Price, Knock-Out Barrier, and Exit Price.

Knock-Out Barrier:

• Trader-Set: You define the barrier position
• Instant Loss Trigger: If market price touches or crosses barrier at any point
• Risk Management: Acts like automatic stop-loss
• Total Loss: Immediate loss of entire stake on breach

Risk/Reward Calculation:

• Payout determined by barrier distance from entry price
• Closer Barrier: Higher risk of knock-out = Higher payout if successful
• Wider Barrier: Lower risk of knock-out = Lower payout if successful

Strategic Barrier Placement:

• Set at technical invalidation points
• Not arbitrary distance from entry
• Support/resistance levels ideal
• Pattern invalidation points optimal

Win Conditions:

• Price must not touch Knock-Out Barrier
• Trade must be sold manually OR reach fixed expiry time
• Profit calculated based on price difference and barrier amplification

Profit Calculation:

• Based on price difference between Entry and Exit
• Amplified by risk taken (barrier proximity)
• Variable payout, not fixed
• High ROI potential with tight barriers

Loss Condition (Knock-Out):

• Instant, total loss if price touches barrier
• No grace period or partial retention
• Similar to stop-loss but loses entire stake
• Cannot be recovered once knocked out

Exit Options:

• Manual Sell: Lock in profit at any time before expiry
• Fixed Expiry: Allow contract to reach expiry time
• Active Management: Recommended for profit optimization

✅ Turbo Up Success

Price rises + No knock-out = Amplified Profit

❌ Turbo Up Failure

Price touches barrier = Instant Total Loss

Understanding Turbo Up Predictions:

• Success: Price rises without touching knock-out barrier below = Amplified profit based on barrier distance
• Failure: Price touches knock-out barrier at any point = Instant total loss of stake
• Barrier Distance: Closer barrier = Higher payout potential but higher knock-out risk

✅ Turbo Down Success

Price falls + No knock-out = Amplified Profit

❌ Turbo Down Failure

Price touches barrier = Instant Total Loss

Understanding Turbo Down Predictions:

• Success: Price falls without touching knock-out barrier above = Amplified profit based on barrier distance
• Failure: Price touches knock-out barrier at any point = Instant total loss of stake
• Barrier Distance: Closer barrier = Higher payout potential but higher knock-out risk

Duration Strategy:

• Short Durations: For quick directional moves
• Medium Durations: Allow more room for price development
• Fixed Expiry: Unlike Accumulators, has set end time

High ROI Potential:

• Tight Barriers: High payout, high knock-out risk
• Wide Barriers: Low payout, low knock-out risk
• Trader Controls: Direct control over risk/reward ratio
• Amplification Effect: Barrier proximity amplifies returns

Strategic Applications:

• Aggressive breakout trading
• Trend continuation betting
• Rapid reversal plays
• High-ROI short-term strategies

Barrier Distance Impact:

• Close (High Risk): Very high payout, frequent knock-outs
• Medium (Balanced): Moderate payout, manageable risk
• Wide (Conservative): Lower payout, higher success rate

Risk Characteristics:

• Fixed Risk: Limited to initial Stake amount
• High Knock-Out Probability: Tight barriers increase loss likelihood
• Instant Termination: No warning when barrier touched
• Market Noise Sensitivity: Routine fluctuations can trigger knock-out

Risk Management Considerations:

• Technical Barrier Placement: Set at invalidation points
• Not Arbitrary Distance: Use support/resistance levels
• Barrier Too Close: High knock-out from market noise
• Active Monitoring: Watch barrier proximity continuously

High Variable Rewards:

• Very High ROI: Potential returns amplified by tight barriers
• Barrier-Dependent: Payout varies based on distance
• Quick Profits: Short durations allow rapid realization
• Suitable For: Aggressive directional traders

Strategic Advantages:

• Direct control over risk/reward ratio
• Amplified returns without complex multipliers
• Early sell option for profit locking
• Ideal for confirmed breakout moments

Statistical Reality:

• Tight barriers offer high payouts but frequent knock-outs
• Wide barriers reduce knock-out risk but lower payouts
• Sweet spot requires technical analysis
• Success rate depends on barrier placement skill

Sharp Confirmed Continuation:

• Strong Trend: Anticipate sharp, confirmed continuation with minimal pullback
• Tight Barrier: Place knock-out barrier tight to maximize ROI
• Minimal Retracement: Expect no significant pullback
• High Conviction: Strong directional confidence required

Market Conditions:

• Confirmed breakouts
• Strong momentum continuation
• Clear trend direction
• High-volume directional moves

Success Factors:

• Requires breakout confirmation skills
• Benefits from momentum indicators
• Suitable for aggressive traders

Rapid Reversal Trading:

• Strong Reversal Signal: Bet on rapid reversal from old trend
• Tight Barrier: Filters out lingering momentum from old trend
• Invalidation Point: Barrier at point where reversal fails
• Quick Profit: Capture initial reversal momentum

Market Conditions:

• Clear reversal patterns
• Exhaustion signals in old trend
• Support/resistance bounces
• Pattern completion points

Success Factors:

• Requires reversal pattern recognition
• Benefits from technical analysis
• Suitable for pattern traders

Strategy Overview: Wait for consolidation phase to end with clear, strong breakout candle (or spike). Place Turbo Call immediately after spike, setting Knock-Out Barrier just below low of that breakout candle.

Execution Steps:

1. Identify consolidation phase ending
2. Wait for strong green breakout candle/spike
3. Place Turbo Call immediately after spike
4. Set Knock-Out Barrier just below breakout candle low
5. Ensures only strong reversal causes loss

Why It Works:

• Breakout candle low is natural invalidation point
• Strong sustained reversal needed to knock-out
• Captures high returns from confirmed momentum
• Technical barrier placement maximizes success

Step 1: Select Contract Type

• Navigate to Trade → Options → Turbos
• Or find under specialized contract sections
• Select Turbos contract type

Step 2: Select Asset and Direction

• Choose your asset (e.g., Volatility 75 Index)
• Decide on Call (Up) or Put (Down)
• Confirm directional conviction

Step 3: Set the Knock-Out Barrier

• Crucial Step: Select barrier position
• Usually set as offset (e.g., 10 points below for Call)
• Platform displays payout based on barrier distance
• Closer barrier = higher payout displayed

Step 4: Set Duration and Stake

• Choose expiry time (e.g., 5 minutes)
• Enter stake amount
• Review amplified payout potential

Step 5: Execute and Monitor

• Click "Buy Call" or "Buy Put"
• Monitor price relative to barrier continuously
• Sell manually to realize profit before expiry

Pre-Trade Planning:

• Identify technical invalidation point
• Set barrier at support/resistance level
• Plan profit-taking level
• Define exit strategy

During Trade:

• Monitor barrier proximity continuously
• Watch for profit target achievement
• Track price momentum
• Prepare for manual sell

Exit Execution:

• Sell early once comfortable profit achieved
• Don't wait for expiry if profit satisfactory
• Lock in gains, eliminate late-trade reversal risk
• Treat like active position management

Post-Trade Review:

• Analyze barrier placement effectiveness
• Review if knocked out or profitable
• Optimize barrier distance based on results
• Refine technical placement strategy

Common Mistake: Setting barrier based purely on payout without technical reference

Why It Happens:

• Chasing high payout percentages
• Not considering technical levels
• Arbitrary distance from entry

How to Avoid:

• Always place barrier at technical invalidation points
• Reference support/resistance levels
• Use pattern invalidation points
• Barrier touch should mean directional prediction was wrong

Common Mistake: Treating Turbos like standard Rise/Fall and waiting for expiry

Why It Happens:

• Not understanding active management benefits
• Expecting automatic settlement
• Not appreciating late-trade reversal risk

How to Avoid:

• Profit best realized by selling early
• Lock in gains once comfortable distance from barrier
• Eliminate late-trade reversal risk
• Treat as active position, not passive contract

Key Differences:

• Control Method: Barrier distance vs. multiplier factor vs. fixed
• Loss Trigger: Instant knock-out vs. stop-out vs. expiry check
• Payout Type: Variable vs. variable vs. fixed

Objective: Understand the risk/reward trade-off of barrier distance.

Step-by-Step Challenge:

1. Switch to Demo Account and select the Volatility 75 Index

2. Place Two Simultaneous Trades:

   • Trade A - Tight Barrier: Turbo Call with knock-out barrier close to entry (high payout)
   • Trade B - Wide Barrier: Turbo Call with knock-out barrier far from entry (low payout)
   • Use exact same stake and duration for both

3. Observe Price Action:

   • Watch how price movement affects each trade
   • Minor pullback might knock-out tight-barrier trade instantly
   • Wide-barrier trade survives and generates (smaller) profit

4. Compare Outcomes:

   • Record which trade survived
   • Compare profit amounts if both successful
   • Note knock-out timing if applicable

Reflection Questions:

• Did minor pullback knock-out the tight barrier?
• What was the payout difference between the two?
• Which barrier placement was more appropriate for market conditions?
• How do you balance risk vs. reward?

Variation 1: Technical Barrier Placement

• Identify support level on chart
• Place Turbo Call with barrier at support
• Test if technical placement reduces knock-outs
• Compare to arbitrary distance barriers

Variation 2: Early Exit Testing

• Place Turbo trade with medium barrier
• Sell manually at 30% profit
• Compare to letting trade run to expiry
• Track which approach more profitable

Variation 3: Duration Optimization

• Test 1-minute vs. 5-minute vs. 15-minute durations
• Same barrier distance for all
• Track knock-out frequency per duration
• Identify optimal duration for strategy