I think if an ea managed to correctly hit 10% of all market fluctuations on one instrument without making a loss, then yeah it would probably making much more than that.
I'VE NEVER SEEN THIS
Before we begin, just know, this is all simple in
theory, but difficult in practice.
2) Affordable Risk
Start off with whatever you consider
For the sake of this thread we will just say $50.
3) The Mental Attitude
You have to treat it like digging a hole to find the
buried treasure. Wins make the hole deeper.Losses make the walls of the hole
4) Don't Think of the Money, Think About Net Winning Trades (NWT)
When you use a 50% stop loss and 100% take profit, a
losing trade will only cause you to lose the profit you made on the last trade.
When you scale your leverage down to compensate for the loss, a winning trade
will get you back to where you were before the last trade.
This is why you shouldn't think about the money, but
think about the Net Winning Trades (NWT).
What is a NWT? It simply means how many more wins you
have had than losses.
5) 9 NWT = 100,000% Gain
If you have 9 Net Winning Trades, scaling up after
each trade, you will make a 100,000% gain.
9 NWT examples
9 wins 0 losses
18 wins and 9 losses
30 wins and 21 losses
50 wins and 41 losses
150 wins and 141 losses
You get the point? As long as you get those 9 Net Winning Trades, you will make
a 100,000% gain.
6) The Math
T1 -Balance $100 - Risk $50 - Take Profit $100
T2 -Balance $200 - Risk $100 - Take Profit $200
T3 -Balance $400 - Risk $200 - Take Profit $400
T4 -Balance $800 - Risk $400 - Take Profit $800
T5 -Balance $1600 - Risk $800 - Take Profit $1600
T6 -Balance $3200 - Risk $1600 - Take Profit $3200
T7 -Balance $6400 - Risk $3200 - Take Profit $6400
T8 -Balance $12800 - Risk $6400 - Take Profit $12800
T9 -Balance $25600 - Risk $12800 - Take Profit $25600
7) Stop Loss and Leverage
This should be pretty self evident but here it goes
If you use 300:1 leverage, 17 pips is your stop loss.
Your target is 34 pips.
If you use 200:1 leverage, 25 pips is your stop loss.
Your target is 50 pips.
If you use 100:1 leverage, 50 pips is your stop loss.
Your target is 100 pips.
If you use 50:1 leverage, 100 pips is your stop loss.
Your target is 200 pips.
8) Image #1 - Digging for Treasure (Net Winning Trades Concept
9) Image #2 - Example of a 200,000% gain in 4 days of swing trade the 30
minute time frame
10) What to do after making $50,000
After reaching $50,000 (or whatever you feel comfortable with), you should
start trading lower leverage and lower risks. Here is what I would do, but you can
do whatever you want.
a) assuming i made the $50,000 profits in 1 year or
less, i would be taxed and only have $35,000 to $40,000 remaining (unless tax
b) i would take the $40,000 and attempt +to make 20%
gains every month, which would give me around $400,000 at the year end, and
after taxes i would have roughly $300,000 remaining.
c) now i would reduce my leverage by HALF, and trade
the exact same way i traded the year previous. i would aim for 10% gains per
month, and at the year end, my profits would be $600,000 with a total balance
about $900,000. after taxes remaining balance would be about $750,000
d) the next year i would aim for 6% per month, and
double my money by year end to $1.5 mil. repeat for next 5 years and retire
(semi retire, i would still trade weekly charts, just no scalping, probably
more stock and commodity investments to be honest)
Using 1:4 RISK REWARD and initial stop loss of $25
balance = $50, giving two attempts to get going.
Risk = 50%
Reward = 300%
first trade risk $25
Win = $150
Win = $450
Win = $675
Win = $2025
Loss = $~1000
Win = $3000
Win = $9000
Loss = $4500
Win = $~13000
Win = $39000
Win = $117000
9 wins, 3
The order of
the wins and losses doesn't matter.
Also consider if you use a 1:4 risk/reward ratio -- very
Risk $25 initial
with only 8 net wins?
oh actually, you must consider that a loss using this strategy
is not as large to the overall account balance, as a loss using the 1:2 risk
Yes that is another way you could do it
Another is to withdraw 50% of the total account balance after every two wins in
Using a 50% risk and 100% tp, this would effectively make your loss 25% instead
of 50%, if you withdraw before the loss.
Account ------ Bank
$100 -------- $100
$200 --------- $300
$800 ---------- $1500
$1600 -------- $3100
$3200 ------- $6300
Slower and more conservative, but gets the job done.
Can a good strategy make 1000USD to 1 billion USD in 5 years?
Yes. It can.
Compound profit makes faster
but predictions are predictions not confirmations :) think about it :)
we want safe side not fast growth side
Only Possibal to make 1 B is to good Management . but without SL you can lost all you invest plus profit amount .
Depend on you Idea and management
1000 Million have 1 Billion
and dear also remember that 1000 into 10 lack make 1 Million
long thought are good but i real way,s ...... if you lose cap you lose you Time .... not a sing thousand dollar
there is no need to argue whether this is possible or not.
we can simply do the Math.
runtime: 5 Years, or 1825 Days.
start: 1000 $
stop: 1.000.000.000 $
For Tan Phan Ngoc to reach 1.000.000.000 in 5 years,
He has to make at least 547945 $ profit every day.
You decide if that is realistic or not, especially when starting with as little as 1K $
If you have start capital 1000 $ .You need 30 pips per day with 1:20 leverage .
1.First Month Trade with 0.1 lot gain 500$ =1500$
2.Next month trade with 0.2 lot gain 1000$=2500$
3.Next month trade with 0.3 lot gain 1500$=4000$
4.Next month trade with 0.4 lot gain 2000$=6000$
5.Next month trade with 0.6 lot gain 3000$=9000$
6.Next month trade with 0.9 lot gain 4500$= 13500$
and so on this rule
after 60 months your balance up to any value you needed.