How to scale up a forex business

Trading Discussion Risk Management Practices
1

Hi all !

I´m a profitable trader but i struggle to increase my profitability while keeping the risk controlable
Any ideas on how to maximize profits without increasing the risk ?

2

You are giving us little information to work with. Can you tell us a bit more how you trade?

3

I trade small percentage of my total account mainly because i can have 10 to 20 trades open at once and i have to have suficient funds to not risk a margin call.
I make 30% to 40% a year.
My issue is : There are years that i could afford to increase my risk but there are other years that are more tough and not recommended to increase my trades. I like it safe.
Is there any way to scale my profits without increasing to much the risk ?

4

Thanks,

First things that pops up in my mind is strategy diversification and revising your exit strategy. One strategy doesn’t apply to the market all the time. Last year I noticed a contraction in EURUSD. I knew that one of my strategies is not very effective at those times, so I switched. This made me more profitable.

Also it may help to have a way to determine sooner if a entry will not be profitable, try to include that knowledge.

These are two suggestions to inspire you. Ofcourse there are more: more room to manouvre, cut losses sooner, late trades run longer, takeprofits based on patterns instead of fixed distances (TP above a resistance line isn’t always very smart :)) and so on.

Regards,

Toekan

5

Thank you very much for giving your thoughts on my problem.
I already have strategy diversification . I use one for trending and one for ranging.
I was thinking more in a way of scaling up using some kind of Money management strategy rather than messing with my rules of entry/exit .
But i will for sure analise the tips you gave me.

6

You can scale a forex business by trading other people’s money via managed accounts, signals or copy trading (not recommended) or through a service like the one Darwinex offers.

Think about it, if you want to expand a grocery store business - you can optimize time and again,make it run as smoothly as possible, but with just one store you won’t get very far.