Hi guys, i’m gonna try something that you’l probably call silly but what the hell!
So i’m starting on a forex account with €220 and 500:1 leverage, I was doing some calculations and if i can increase my account my 10% per day for 10 weeks ( just before Christmas the account would be on 30K)
This would mean an increase of 62.5 % per week.
I don’t care if this doesn’t happen and it probably won’t, i just want to know how much i would increase my lot size by every day.
If i could have 2 successful trades a day that each made me 6 pips how much should i be risking at the start and would 12 pips a day be enough to increase my account by 10%?
Any help appreciated.
Thanks,
Finno
Rather than someone telling you or telling you: it’s silly and waste of time, never happen, great idea will happen, why not figure it out for yourself and learn some more along the way? Open a demo account deposit the 220, use leverage of 500:1 pick a currency pair and trade. If you do it yourself this way, you be practicing your trading method, learning your platform, be able to ask more precise questions and learn more about planning.
I trade live but at any one time, I have 3+ demo accounts running with different plans. Keep a log of what works, what didn’t and why and what you’ll do different if anything next time.
I forgot to add that what you’re thinking about is similar to how I trade. I have a 90 day goal of increasing my bankroll by a certain %. I have a daily goal to increase my account balance by a certain %. I don’t use a risk vs reward ratio per trade, but a list of probabilities that will increase my balance by a certain % as opposed to reducing my capital by a certain %
I wish you the best of luck on this endeavor but I hope you’re ready to lose that €220. Looks a lot like gambling from here. Don’t do it lol. Buy something good for yourself instead. You’ll feel better by Christmas.
Thanks for replies, I have had demos accounts before, I trade mainly thru binary options and can achieve 70-75% ITM positions most weeks for the last 2 months,
I have a good trading strategy and most importantly disicpline. Finding 2 trades a day that would get me 6 pips each would not be the problem i would imagine. I am not not very familiar with forex or cfd type trading,
So i how much would i want to be risking per trade to make 10% per day, and would this be a % of my balance or total margin?
Thanks for advice gp
Finno, I have seen many just like you who come here with predetermined results.10% in a day is practically too high; but the crazier part is the 220 Euros.
You may have done it in a demo, but certainly not with 220 as the starting balance.
My message is: good luck with this!
In my opinion, which doesn’t mean much at the best of times, any monthly gain of 25% or greater cannot be maintained over extended consecutive months. Not only have I previously tried myself and failed, but I’ve seen numerous other traders attempt the same goal, not only on this forum, but also on live accounts through myfxbook (i’m talking of real money accounts, and not demo) Sure it’s possible to get a few months in a row, maybe even half a year, but at some point the draw-down will kick in, and heavily.
To make matters worse, you’re talking of a scalping method, where the pip value of the pair you are trading has an inflated monetary value. You said 12 pips will equal 10%, slippage will kill your account.
It’s nice looking at these compounded gains on paper, but in reality it just can’t be done, not from a retail point of view anyway. Trading is a game of technological advancements from a commercial point of view, they create their edge by receiving data before everyone else (milliseconds) and employ complex algorithms to run programmed strategies. Is it unfair that they see the chart data before you do, or that they can see the effect of news before you do…well spend a few million on your hardware and software and your server location and you can compete on the same level. In all honesty, that example is more geared towards higher frequency trading (HFT), yet my point remains…I’ve yet to see a trader of any type gain 20% or greater per month for a minimum of twelve consecutive months.
The warning bells always go off when someone starts calculating what they can do with all that leverage!
Just because your broker offers 500:1 does not mean you should use it. FXCM did a study a few years back that showed traders who used high leverage had something in common - a legacy of blown accounts. Traders who used little of the leverage offered them had a much higher chance of being profitable after 12 months.
But going back to your question about how much to increase your lot size every day - this would be evident if you were practising risk management. The fact that you have to ask…
Forex Money Management Here’s a calculator that will help with your plan. You can plug in different % of your account balance as well as different leverages. As far as leverage goes I don’t know if 500:1 is to high. Myself I use 25:1, but I know other traders who use more as well as less. But knowing what you’ve written so far, and not knowing anymore about you and your trade plan I would suggest you use the calculator and maybe rethink the leverage. As far as 10% on your account balance daily long term anything is possible, that’s what’s so great about trading. But everyday for 3 months, not very likely.
Good Luck
Gp
Hey gp00053 thanks for the link. This tool will come in to be very handy. I’ve been working this out myself with a good old fashion pen and paper until now, but now I can just plug the numbers in here. Thanks again.
Er…hope the question is hypothetical? Given the risk, would suggest that you start off with a lower leverage…and as for the risk, no more than one or two % - but good luck and keep us posted…