We all know about martiangle, where you exponentially use bigger lotsizes in order to keep the breakeven point near price when it goes against you.
That is the best way to lose your account.
The same concept, mirrored (opposite!), can instead make incredible returns in a very short time.
So how it works, like this.
Suppose that you have 10k.
First trade, you are going to risk 100 usd, aiming to make 100 (1:1 risk-reward ratio), 50% statistically possibility of achieve the profit, with a proper method such probability can be made much higher.
Now you have 10100usd on your account.
What you are going to do next, is risk 200 usd (100usd risk + 100usd of the previous profit), aiming to make 200usd (1:1 again).
Now you have 10300.
Same again, risk 400, aim for 400.
10700.
again ---> 800 risk 800 reward
11500
again ---> 1600 risk 1600 reward
13100
again ---> 3200 risk 3200 reward
16300
again ---> 6400 risk 6400 reward
22700
again ---> 12800 risk 12800 reward
35500
again ---> 25600 risk 25600 reward
61100
again ---> 51200 risk 52100 reward
113200
Et voila, in around 10 good 1:1 rr trades you have made a 1000% roi.
Now, instead of use a 1:1 reward, you can as well use a 3:1 rr, where you risk 3 to make one, giving you a 77% random probability of success, with a good system it can reach 90% pretty easiliy.
The same, around 10 trades are needed to make such returns.
The key of course is to have a good winning streak.
The worst can happen is that your account will be back on the original position.
Cheers!
That is the best way to lose your account.
The same concept, mirrored (opposite!), can instead make incredible returns in a very short time.
So how it works, like this.
Suppose that you have 10k.
First trade, you are going to risk 100 usd, aiming to make 100 (1:1 risk-reward ratio), 50% statistically possibility of achieve the profit, with a proper method such probability can be made much higher.
Now you have 10100usd on your account.
What you are going to do next, is risk 200 usd (100usd risk + 100usd of the previous profit), aiming to make 200usd (1:1 again).
Now you have 10300.
Same again, risk 400, aim for 400.
10700.
again ---> 800 risk 800 reward
11500
again ---> 1600 risk 1600 reward
13100
again ---> 3200 risk 3200 reward
16300
again ---> 6400 risk 6400 reward
22700
again ---> 12800 risk 12800 reward
35500
again ---> 25600 risk 25600 reward
61100
again ---> 51200 risk 52100 reward
113200
Et voila, in around 10 good 1:1 rr trades you have made a 1000% roi.
Now, instead of use a 1:1 reward, you can as well use a 3:1 rr, where you risk 3 to make one, giving you a 77% random probability of success, with a good system it can reach 90% pretty easiliy.
The same, around 10 trades are needed to make such returns.
The key of course is to have a good winning streak.
The worst can happen is that your account will be back on the original position.
Cheers!