Exploring the Oscar’s Grind strategy in Deriv Bot

This article was updated on 17 January 2024

The Oscar's Grind strategy is designed to potentially gain a modest yet steady profit in each trading session. This strategy splits trades into sessions and has three principles.

Trade parameters

• Initial stake: The amount you pay to enter a trade.
• Profit threshold: The bot will stop trading if your total profit exceeds this amount.
• Loss threshold: The bot will stop trading if your total loss exceeds this amount.

Principle 1: The strategy aims to potentially make one unit of profit per session

The table above demonstrates this principle by showing that when a successful trade occurs and meets the target of one unit of potential profit, which is 1 USD in this example, the session ends. If trading continues, a new session will begin.

Principle 2: The stake only increases when a loss trade is followed by a successful trade

The table illustrates this principle in the second session. After a trade resulting in a loss in round 4, followed by a successful trade in round 5, the stake will increase to 2 USD for round 6. This is in line with the strategy’s rule of raising the stake only after a loss is followed by a successful trade.

Principle 3: The stake adjusts to the gap size between the current loss and the target profit for the session.

In round 7, the stake is adjusted downwards from 2 USD to 1 USD, to meet the target profit of 1 USD.

The stake adjustment: target session profit (1 USD) - current session profit (0 USD) = 1 USD

The second session concludes upon reaching the aim of one unit of potential profit per session, equivalent to 1 USD. If trading continues, a new session will commence again. 

Profit and loss thresholds

With Deriv Bot, traders can set the profit and loss thresholds to secure potential profits and limit potential losses. This means the trading bot will automatically stop when the profit or loss threshold is reached. This form of risk management can potentially boost successful trades whilst limiting the impact of loss. For example, if a trader sets the profit threshold at 100 USD and the strategy exceeds 100 USD of profit from all trades, then the bot will stop running.

Summary

The Oscar's Grind strategy provides a disciplined approach for incremental gains through systematic stake progression. When integrated into Deriv Bot with proper risk management, like profit or loss thresholds, it offers traders a potentially powerful automated trading technique. However, traders should thoroughly assess their risk tolerance and try trading on a demo account to familiarise themselves with the strategy before trading with real funds.