[B]Let’s say you have a $50,000 mini demo account, and you want to blow the whole thing as quickly as possible.[/B]

The following system is designed to:

[ul]

[li]over-trade

[/li]

[li] use too much leverage

[/li]

[li] trade against the trend

[/li]

[li] cut profits short

[/li]

[li] let losses run

[/li][/ul]

[B]If you know how to code robots, write one which will make an endless sequence of trades in GBP/JPY, as follows:[/B]

[B]1[/B]. If the previous trade was LONG and was stopped out, OR if the previous trade was SHORT and was limited out,

then the next trade is to be entered LONG.

[B]2.[/B] If the previous trade was SHORT and was stopped out, OR if the previous trade was LONG and was limited out,

then the next trade is to be entered SHORT.

[B]3.[/B] Position size = 48 x account balance / GBP/USD price, rounded UP to the next whole number of mini-lots.

[B]4.[/B] TP = 8 pips

[B]5.[/B] SL = 15 pips

[B]6.[/B] Each trade is to be entered on a MARKET ORDER, including STOP and LIMIT.

[B]7.[/B] As soon as a trade is closed, the next trade is to be entered.

[B]Comments:[/B]

The GBP/JPY is selected because it tends to be a mover; that is, when ranging it tends to be volatile,

and when trending it tends to make substantial moves.

Steps 1 and 2 ensure that the robot always trades AGAINST the trend (in the event that a trend has developed).

Step 3 maintains approximately 5.6% risk on each trade (see example, below)

Step 4 limits profit to 1 pip (assuming a 7-pip spread) whenever the robot accidently makes a profit.

Step 5 lets losses run to 15 pips. This gives the GBP/JPY virtually no breathing room, and ensures that the GBP/JPY

does NOT do a lot of backing-and-filling (and, thus, wasting time) before hitting its stop-loss.

[B]Risk calculation examples:[/B]

Your initial account balance is $50,000.

You must trade in increments of 10,000 GBP (mini-lots of GBP/JPY).

Let’s say that the current price of the GBP/USD is 1.5500

Your first position is determined as follows:

```
P = 48 x $50,000 / 1.5500 = 1,548,387 GBP = 154.8 mini-lots = 155 mini-lots (rounded UP)
```

Next, we determine the pip-value for this trade, as follows:

GBP/JPY pip-value = $100 / USD/JPY price, per pip per mini-lot.

Let’s say that the current price of the USD/JPY is 83.000

Then, GBP/JPY pip-value = $100 / 83.000, per pip per mini-lot = $1.20 per pip per mini-lot (rounded to the nearest cent)

For your 155-mini-lot position, total pip-value = 155 x $1.20 = $186.00 per pip

Risk on this trade = $186.00 per pip x 15 pip stop-loss = $2,790.

Risk Percentage = $2,790 risk / $50,000 account balance = 5.58%

Note: this percentage will vary slightly, from trade to trade, due to rounding up the number of mini-lots traded each time.

Let’s say that the first trade is a loser. Loss = 15 pips = $2,790. Account balance is now $47,210.

The next trade will be in the same direction as the losing trade just closed.

For convenience, let’s say that the GBP/USD is still 1.5500, and the USD/JPY is still 83.000

Position size is: P = 48 x $47,210 / 1.5500 = 1,461,987 GBP = 146.2 mini-lots = 147 mini-lots (rounded UP)

GBP/JPY pip-value = $1.20, per pip per mini-lot, as before.

For your 147 mini-lot position, total pip-value = 147 x $1.20 = $176.40

Risk on this trade = $176.40 per pip x 15 pip stop-loss = $2,646.

Risk Percentage = $2,646 risk / $47,210 account balance = 5.6%