First, let's talk about how to get at a "free trade"
The initial risk will be 2.5% of the account or $25. With a goal to make $25 or more on the first trade.
If the trade is a loss I will reduce my trade size by half until I regain the $25 loss.
If the trade is good and I earn 25 or more dollars then the next trade is a "free trade" because it requires no risk on my original balance. Which I'm trying to keep above $1,000.
So this is where Reverse Martingale comes into play. Now I have $25ish dollar free trade and that is what will be risked on the next trade. Then you keep doubling up the amount of risk as you earn it until you can not double again due to leverage. My leverage is 50:1 and I generally aim for 20-25+ pips take profit and 20-25 pips stop loss (if the market allows).
Here is a chart showing the martingale effect
I should be able to martingale to $100 risk per trade before leverage becomes a problem. If all 5 trades are profited I will bank the total amount earned so far $200 dollars and start over @ $25. So you earn 20% every 4 or 5 trades.
Quick recap
Trade 1 - Risk $25
Trade 2 - Free Trade $25
Trade 3 - Free Trade $50
Trade 4 - Free Trade $100
Total Profit $200
Trade 5 - Risk $25 - or if you choose to compound interest on the account it would be 2.5%
The initial risk will be 2.5% of the account or $25. With a goal to make $25 or more on the first trade.
If the trade is a loss I will reduce my trade size by half until I regain the $25 loss.
If the trade is good and I earn 25 or more dollars then the next trade is a "free trade" because it requires no risk on my original balance. Which I'm trying to keep above $1,000.
So this is where Reverse Martingale comes into play. Now I have $25ish dollar free trade and that is what will be risked on the next trade. Then you keep doubling up the amount of risk as you earn it until you can not double again due to leverage. My leverage is 50:1 and I generally aim for 20-25+ pips take profit and 20-25 pips stop loss (if the market allows).
Here is a chart showing the martingale effect
Attached Image
I should be able to martingale to $100 risk per trade before leverage becomes a problem. If all 5 trades are profited I will bank the total amount earned so far $200 dollars and start over @ $25. So you earn 20% every 4 or 5 trades.
Quick recap
Trade 1 - Risk $25
Trade 2 - Free Trade $25
Trade 3 - Free Trade $50
Trade 4 - Free Trade $100
Total Profit $200
Trade 5 - Risk $25 - or if you choose to compound interest on the account it would be 2.5%
Attached Image