Can you double your account equity in a day? In this post, we are going to discuss the Double in a Day Forex Strategy. We just need a 100 pip move to double our account equity in 0ne day. Take a look at the following screenshot.
The red down arrow shows the start of the move. When price bounces up or down from the EMA55 on the H1 chart, you have a solid 100-200 pip move. Suppose we have $1000 in our account. Can we turn $1000 into $2000 with this trade while keeping the risk low? Let’s see.
Three one hour candles are finding strong resistance at 1.58025 level. So we make an entry. Our entry is at the close of the third one hour candle at 1.57932 and the stop loss is 1.58050. We enter the market with 0.3 lot. Our risk is 8 pips or just $24. $24 translates into a risk of 2.4% which is excellent. The crux is to find low risk entry with this Double in a Day Forex Strategy
The down red arrow shows the second entry. We move the stop loss to high of the second bearish for the first position at 1.57758 and open a new position with 0.3 lot at 1.57592. The first position is now in profit of 18 pips while the second position has a risk of 16 pips. So even if the price reverses and hits the stop loss, we will end up with a profit of 2 pips. So essentially our trade is now risk free.
We open a new position at 1.57520 and move the stop loss to the high of the previous candle which is 1.57698. Now the first position is in profit of 24 pips. The second position is having a risk of 10 pips while the third position has a risk of 17 pips. So our overall risk is now 27-24=3 pips pips or just 0.3%.
We open a new position with 0.3 lot 1.57430 and move the stop loss to 1.57625. Now the first position is with a profit of 31 pips. The second position is with a risk of 3 pips. The third position is with a risk of 10 pips and the fourth position is with a risk of 19 pips. So the total profit is 31 pips while the total risk is 22 pips. We are in a net profit of 31-22=9 pips. You see we have made the whole trade risk free now. We close the trade at 1.56827.
Profit for the first position is 110 pips or $330. The profit for the second position is 79 pips or $228. The profit for the third position is 70 pips or $210 while the profit for the fourth position is 61 pips or $183. Total profit is $330+$228+$210+$180=$948.
So we have almost doubled our account equity in just 1 day with this almost RISK FREE Double in a Day Forex Strategy. We started with a risk of 2.4% and after that our trade become RISK FREE. So you can see the most important part in this strategy is the entry and then opening new positions in such a way that our risk is never more than 2.4%. In the example our risk was 2.4% in the start and after that there was no risk.