In this post, we discuss a very simple strategy that you can use over and over again to double your account with just 1 trade. The crux is to find a low risk entry and then we enter a few positions and double the account with just one trade. This strategy works best with pairs like EUR/USD that provide you with low risk entries of 10-20 pips. Take a look at the following EUR/USD M30 chart.
In the above screenshot, you can see a bearish divergence appearing on EUR/USD M30 chart. We make our first entry just below the first red arrow on the close of the third candle after the divergence pattern. Our entry price is 1.28554. The stop loss is 1.28654. Our risk is 0nly 10 pips. We will enter a second position after a few candles when the price has moved sufficiently in our favor. Our 2 more candles just below the second red arrow we open the second position.Our entry price this time is 1.28500 and we move the stop loss to both the positions to 1.28600. Our total risk is now 5+10=15 pips. That’s it.
Suppose we had $250 in our account. We opened the first position with 0.07 lots and the second position also with 0.07 lots. If the stop loss is hit, we lost 15 pips or $10.5 which comes out to around 4% risk. Now look at the following EUR/USD H1 chart.
EUR/USD has fallen 50 pips just below the red arrow in the above screenshot. We open the third position with 0.07 lot and move the stop loss to 1.2810. Our entry for the third position is 1.28000. Now we are in profit. Even if the stop loss gets hit we don’t lose anything rather we make 85 pips. EUR/USD has falls around 150 pips when we close the three positions. Our profit is 155+150+100=405 pips. We make $280 in this trade. Our risk was only $10.5 so you can see with just 1 trade we have more than doubled the account.