Hey traders , this thread is about an Aggressive money management strategy that i'm gonna explain a little bit further . just a quick summary of my trading background , because i know that many traders will come here giving me advice about using proper and normal money management .
I have a +7 years of trading experience , ive been a loser the first 2 years then went to breakeven stage and then i started making consistent profit . right now i have my normal account which i use a very solid risk management ( 1-2 % per trade ) , but i decided to go for an aggressive style because of my lack of enough capital and also because i know the strategy i'm about to explain is absolutely doable .
i'm not going into details about the entry and exit strategy , i have 6 trading strategies in my trading arsenal , ive worked on them backtested and forward tested them on real accounts for years , they work pretty well for me , i'm here to talk about the money management :
the rules :
1 - i risk 50$ of my 500$ account in every trade until ive doubled the account
2- if i get some losers , i wont reduce the lot size , i will keep placing 50 $
3- if i get winners , i also will keep placing 50 $ until i get a 100% profit
i will have 9 arrows which is somehow impossible for me and my experience to get 9 consecutive losing trade .
worst scenario is having 8 losing trades , one after another , at the first of the road , but even then i still can place a 50 $ trade ( because of the broker leverage ) . but if i get 9 consecutive losing trades then i will face a margin call ( i wont be able to place 50 $ then , i must place less than 50 $ so in my opinion , that's a margin call )
I will start trading this on a 500$ demo account from right now to gain some experience and learn the unknowns . whenever i was able to double the account i will invest 500$ on a real account .
Ill post my trading results right here , not the entry and exit things , i don't talk about strategy here as i mentioned before , i believe you all have a proper and solid one for yourself .
i appreciate any comment and thought , feel free to write your opinions , i'm open to hear your thought on this .
Thank you
I have a +7 years of trading experience , ive been a loser the first 2 years then went to breakeven stage and then i started making consistent profit . right now i have my normal account which i use a very solid risk management ( 1-2 % per trade ) , but i decided to go for an aggressive style because of my lack of enough capital and also because i know the strategy i'm about to explain is absolutely doable .
i'm not going into details about the entry and exit strategy , i have 6 trading strategies in my trading arsenal , ive worked on them backtested and forward tested them on real accounts for years , they work pretty well for me , i'm here to talk about the money management :
the rules :
1 - i risk 50$ of my 500$ account in every trade until ive doubled the account
2- if i get some losers , i wont reduce the lot size , i will keep placing 50 $
3- if i get winners , i also will keep placing 50 $ until i get a 100% profit
i will have 9 arrows which is somehow impossible for me and my experience to get 9 consecutive losing trade .
worst scenario is having 8 losing trades , one after another , at the first of the road , but even then i still can place a 50 $ trade ( because of the broker leverage ) . but if i get 9 consecutive losing trades then i will face a margin call ( i wont be able to place 50 $ then , i must place less than 50 $ so in my opinion , that's a margin call )
I will start trading this on a 500$ demo account from right now to gain some experience and learn the unknowns . whenever i was able to double the account i will invest 500$ on a real account .
Ill post my trading results right here , not the entry and exit things , i don't talk about strategy here as i mentioned before , i believe you all have a proper and solid one for yourself .
i appreciate any comment and thought , feel free to write your opinions , i'm open to hear your thought on this .
Thank you