Alternative Approaches to Risk Management – Analysis and Forecasting – February 27, 2024
Below this post you can download the setup file that I personally use to switch accounts using EA Dragon Blaze.
Please read this post before using set files and understand that this is not financial advice.
We all know that preserving capital is the most important part of trading. However, I have been experimenting with a different approach to doubling my account deposits in the shortest amount of time using a high risk/reward system. I try to find a system that has an expected win/loss ratio of at least 3:1. This means I can double my account and withdraw my profits 3 times, each time blowing my account.
For this approach to work, you’re making sure you’re using a very small account size relative to your available capital, because sometimes you can blow out three accounts in a row. Sometimes I double my account six times in a row before losing one. If that scenario plays out, we will slightly increase our deposit size. In this way, you slowly increase the amount of funds available for this particular risky strategy.
This type of deal is not for everyone. It’s hard to lose three or four accounts in a row and find the courage to deposit once again. Of course, this strategy is closer to gambling than a traditional form of long-term trading, but as long as there’s an edge, I’ll do it. Exploit it.
So if you want to try a similar approach, please fully understand that risk and trading are games of chance. Just because you have a system with a 50% win rate doesn’t mean you will win 50 out of 100 trades. Even if you use a system with a 50% win rate, you could still lose your first 99 wins.
I believe that using a grid system that provides very accurate entry signals increases your chances of withdrawing more money than you deposit. At least that was the case until now.
I personally deposit at least $500 into a 1:1000 leverage account to ensure sufficient margin. If you have less capital to trade, you would use a cent account. A deposit of 50$ gives you a margin of 5000 and is more than enough.
Here you can see a small example of two sets starting with a deposit of 500$. With the first set we achieved a quadruple doubling in about 4 months before losing the account. Of course, I will withdraw every time my account doubles. With the other set, your account starts at $500 and reaches 10,000 before your account is lost, multiplying it by almost 20x.
Remember, this is not financial advice! And I won’t answer individual questions about how you can use this set or what else you can tweak. This is just to explain what I’m doing. If you decide to try a similar approach, good luck. However, you do so at your own risk.
