hello guys.
If I think the market will be bullish for a long period and I want to take advantage of it would it be more profitable to make multiple broker accounts to take advantage of the leverage ?
I would be increasing my position each week.
If I have the same leverage and start with one account with 1000 pounds , would it be more profitable on the long run if I used 4 accounts starting at 250 pounds?
Many thanks
Good question and I have no real clue to the answer in actual mathematical proofs.
I do trade in multiple accounts one account id for scalping the EURO/London open another is for Scalping the NY open, One for overnight/intraday trades and one for long-term trades. Each has a varying degree of equity which makes the comparison more difficult. I also have some very strict cash management rules but apply them equally in each account.
That said I only started this segregation 11/1/2018 but my initial finde=ing is the intraday account has consistently the highest daily equity growth and my scalping accounts are consistent the daily equity curve of each is less.
At months end I will check my bias to see the why.
Thanks for your reply.
I’m rattling my head about it but I think it comes down to the amount you have at risk.
I was thinking that if I opened like 5 accounts with different brokers that I would have more profit because of leverage. I’m still confused.
you would need someone that can add better than I.
I only do it for my record keeping in my trading diary.
My logic says one larger account is better as you then have a great deal more freedom for trade and cash management. If you trade 1% of your account on a 100K it is much larger than 1% on 25K.
Conversely, if you’re not a consistently profitable trader you can lose more gambling.
Leverage is the increased buying power that is available to margin account holders. Essentially, leverage allows you to pay less than full price for a trade, giving you the ability to enter larger positions than would be possible with your account funds alone.You should increase your position every week.
Your information is too little for any real analysis to be made.
Some questions
Let’s assume leverage of 1:50 and a 1 mini lot
Case 1: £1000
After a 1000 pip profit you make £1000
Note: margin call will arise after -800 pips without a SL if you don’t manually close.
Case 2: £250 ×4
After 1000 pip profit you make £5000
Note: margin call will arise after -50 pips for each account.
Splitting your account into 4 to maximize profit will also maximize the risk.
Stop thinking it…