Hi everyone!
I was wondering how you guys dealt with increasing your capital in trading forex.
I’m consistently profitable now for a while with a relatively small account compared to the capital I’m willing and able to commit (min. 6x my current account).
On purpose I’ve started with a small account to get a grip on trading forex, I’m risking 0.5 and 1% per trade depending on the strategy used with a 1:1.6 average R:R, winning rate roughly 50-55%.
Ofcourse one way is to dump the 6x additional capital in my account and keep trading the way I do, however I’m sure trading this amount of money will influence my emotions and probably therefor my results.
I do feel that I’m still able to improve a lot as a trader, but also think it’s time to increase capital so that I’m getting closer to becoming a full time trader over time.
My question to the people who’re trading for a living, how did you deal with this back then and how did you increase your capital?
How did you keep your emotions in check while doing so and what would you advise me with the experience you have now?
Thanks for taking the time to answer!
Br, Peter
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I’ve always found it useful to focus on process not outcome. So I don’t constantly obsess with return on capital as % per month, or £ made per day or per week, or win rate per week. These things are a distraction from ensuring you follow the process accurately.
My focus is entirely on optimising the right set-up, then finding it, then executing the trade perfectly every time.
Your r:r is realistic, your win rate is good enough and I would definitely stick to1% capital risked per trade.
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Hey Tommor,
Thanks for your answer.
I’m trying to focus as much as possible on the process and keep track on my performance and statistics through a trading journal (excel). This focus you mention together with patience and being selective with my trades actually made the difference for me in becoming profitable in recent months.
Just getting a little anxious with the idea of increasing my capital and dealing with i.e. a losing streak, that the actual money I’m losing will offset my performance and focus as it’s more of a serious amount to me personally.
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those are really good figures
you’re doing very well and very sensibly indeed, by the sound of everything
be aware that if you risk 1% with a win-rate of 50%, you will still definitely - at some point - be about “20 bets down from your high point,” but that’s ok if it’s within your risk-tolerance parameters for the account
i’m not suggesting you’ll ever have 20 consecutive losers, of course, but 1% really is high staking for a 50-55% win-rate; i’d be far more comfortable with the 0.5% you mentioned, myself, but people vary!
good wishes and good luck
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Thanks for your supporting words, appreciate!
Noted your words about risk tolerance, will keep this in mind.
How many trades/months of consistent results is to your opinion reasonable enough for understanding that you can trust on your strategy and increase capital of the account?
Better to add funds gradually or should you trust your system based on an x amount of trade record and put your fears aside?
Tks again!
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big and difficult question!
it all depends on the statistical significance and degree of confidence
i think a good rule of thumb for many methods is 300+ trades but monitored over periods of different market behaviours (as a crude example, if you look at all your trades over a trending market, the system will probably fail when the market’s ranging, and vice-versa)
also a big and difficult question!
also depends on the degree of confidence you have, based on the extent of statistical significance
sorry, not very helpful answers but honest and fair …
both your questions are fully and well answered, with examples, in the book “Profitability and Systematic Trading” by Michael Harris - strongly recommended
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I think i am in a quite similar position right now. I made a “scaling plan” in addition to my trading plan. Each profitable month i increase size according to this plan. So i increase size gradually. I deposit money into my account so that my risk is around 1%, I am not very strict on this one, risk % can be higher if it is at least under 2%.
I personally think that it would be insane to just deposit all my trading capital at once. I feel like me and my strategy have to earn to increase size.
When i am at my maximum deposit the account has to grow by itself to increase size. ideally i would increase size every second month.
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I know… forex remains somewhat of an art, thanks for trying to help out a bit with one of my many struggles and challenges :-). Tks for your recommendation of the book as well, going to look into it. Never tired of reading new interesting content about the market and all it’s aspects.
Keep in touch.
Interesting, I also lean more towards increasing the account gradually and indeed with the concept that results should be leading in earning more funds.
Do you have a specific % in your plan that you add after a winning month?
No, not a specific %. I focus on € risk per trade. It has to be one round number for the whole month. I started with 1€ went on with 5, 10 and i am currently risking 25. Next 50, 100, 200 and 100€ steps after that for a very very long time.
If i have a reasonable red month i pause scaling up. If i have a second red month i will decrease my size to the previous step. if i have a catastrophic drawdown >15R i will immediately jump on 1€ again and wait for the next green month to start with 1% risk again.
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Okay clear, I think it’s a steady approach in increasing size. Keep up the good work 
Hi which broker you are trading? I read a lot of bad reviews about almost all the famous brokers on trustpilot website. Most of them close your account without explanation if you make positive trades for long, eating up your profits + invested money 
Hi Ankiy,
I’ve been using OANDA and recently using FXCM, preference still is OANDA but in Europe they’ve changed from Cyprus to Poland and takes some time before Tradingview is connected again.
I have no bad experiences with them, I also do not think they care too much whether you win or lose your trades. They make money on the amount and size of transactions you make (spread).
For sure stay away from dodgy non-regulated brokers, take the main ones: 9 Best Forex Brokers for 2023 - ForexBrokers.com
Many brokers don’t take clients from India, Onada is one of them, IG also don’t want Indians to trade at their platform. These 2 were my first choice. I am kind of left with Pepperstone, Axi etc
Saxo bank is the option available, but I heard they charge too much fees / commission and too much documentation.
It’s because of Indian law. You’ve been given options of reputable brokers, I think it’s time to pick one or give up. Constantly complaining isn’t going to change the options available to you.
Pepperstone are my broker and they pay out profits. IC Markets did and I’m sure TD365 will too
Thanks for sharing that. It helps me to be positive in my thought process.
Pepperstone to my knowledge is a trustworthy and reputable broker, just pick them and don’t blame the broker for your mistakes. Trade solely on the higher timeframes (4HR+ preferably), then you have less changes to be stopped out prematurely due to spread i.e…
Good luck mate.
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This is interesting. I’ve always thought 1-2% was really good! Def something to consider for me.