- This is only to be traded with $1000 of throw away money. That may sound irresponsible, but I routinely have big sales in some personal business dealings that allow me this luxury… I realize this is not possible for everyone. But still, it may be worth demoing to train your mind how to deal with it emotionally.
- The set-ups, signals, or systems are not important here. I don’t care how you trade. To be honest, I don’t know what approach I would take yet. This thread is more about riding a lucky streak to glory.
- Ok – this will be a ten trade process… and we are going to assume we are right 10x in a row. The stop loss would be set at 100, as well as the take profit. Let the criticisms fly!!! Alright, so I’d deposit $1000. I would only trade a USD/xxx pair, or AUD/USD or NZD/USD… basically a pair in which I could trade a full lot or 10 mini’s with only $1000 in the account (check with broker to see if I would have a minimum margin, in which case, I may need to deposit a little more $$$).
- Using whatever method you employ, start trading one full lot for every $1000 in your account, shooting to double your account with every trade (100 pip take profit).
- Trade #1 - $1000 increased to $2000
- Trade #2 - $2000 increased to $4000 – pull $1000 for another shot when this scheme fails (unless of course you win 10x in a row)
- Trade #3 - $3000 increased to $6000
- Trade #4 - $6000 increased to $12,000 - pull $4000 for another 4 shots when this scheme fails (unless of course you win another 6x in a row)
- Trade #5 - $8000 increased to $16,000
- Trade #6 - $16,000 increased to $32,000
- Trade #7 - $32,000 increased to $64,000
- Trade #8 - $64,000 increased to $128,000 – pull $28,000 for another 28 shots when this scheme fails (unless of course, you win 2 more times in a row!)
- Trade #9 - $100,000 increased to $200,000 - pull $100,000 for another 100 shots when this scheme fails (unless of course you win 1 more in a row!)
- Trade #10 - $100,000 increased to $200,000
- BANK IT!!! …or bank it anywhere along the progression, depending on your situation… this is personally, where I’d bank it
- End result after 10 successful trades in a row: $200,000 in the bank (minus fees, commissions, slippage, etc.) and $133,000 of play money to give it another 133 tries at duplicating it! In essence, if you are right twice, you bank $1000 and have another shot at doing this again. 4 times, and you'll have 5 more shots. If you are right 8 times, you will have 33 more shots, and if you are right 9 times, you will have 133 shots at getting to $200,000.
In summary, like I warned, it is a crazy dream to think this is regularly possible… but any successful trader knows that their perfectly disciplined system has produced longer streaks than this… even with a better risk to reward ratio than 1:1. If anything, a 1:1 r/r should help this scheme out as compared to say, a 1:3 system. Again, this is just a shot at being right 10x in a row, and by no means is a long term system. For an experienced veteran, this may be possible to wait for perfect set-ups over the course of a year. NEWBIES and DREAMERS: THIS IS THE WORST EXAMPLE OF MONEY MANAGEMENT YOU WILL EVER SEE… NOT TO MENTION A NEGATIVE EXPECTANCY SYSTEM!!! Reread the capitalized line as many times as necessary.
I open myself to public humiliation and scrutiny. Let it begin…