2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Many traders, especially beginners, often do not have enough funds to properly invest. The main principle of risk management is that no more than 2% of the deposit should be invested in one transaction during intraday trading. With such mathematics, it will be possible to drain the deposit only due to the lack of a strategy as such. But what if the investor starts trading with $50 and the broker's minimum bet is $1? You need to overclock the deposit. This is not uncommon in Forex.
Definition
Acceleration of a deposit is a process of increasing initial capital in a short time. This is not a strategy, but a high-risk approach to trading. The increase continues until the required amount of funds is on the account and it will be possible to continue trading with minimal risk.
Swing capital is not possible for everyone. This is not a stable buildup of funds. It will not work to increase the deposit from 10 to 100 dollars. It doesn't matter what specific market we are talking about. The overclocking technique works the same on binary options and Forex.
Only numbers
Manybeginners dream of earning in the market, if not millions, then at least thousands of dollars by investing a couple of hundred. In practice, a good strategy gives 15-20% profit per month. That is, with a deposit of $100 per month, you can earn $15-20. And this is with good market volatility. Therefore, trading on "Forex" should start with 500-1000 dollars. If there are no such funds, you can try to increase the deposit yourself. However, this approach comes with risks. History knows several real cases of deposit increase: Chen Likui, Larry William, Elena Pryakhina. These people in a few weeks of work increased the initial capital at times, using price orders and support levels.
What do you need?
All deposit overclocking systems operate subject to a number of conditions.
1. You need to have time. To make transactions more often, you need to monitor the market for 8 hours in a row. Persons with permanent employment do not have such an opportunity. You should use hourly timeframes correctly and enter a trade before and after the main work. The daily chart is easier to analyze. But due to stops, the acceleration of the deposit will last longer.
2. To increase the deposit, you do not need a lot of funds if you use leverage in trading. The minimum deposit depends on the average stop value in the chosen strategy. For example, in the EUR/USD pair, the stop level is 30 pips. To open a deal with a volume of 0, 1, you need to have 3 dollars. Even with the maximum risk management rules, it is impossible to invest more than 10% of the deposit in one transaction. ATIn this example, it's $30. The resulting amount should be multiplied by two more, so that in case of a drawdown of the deposit, you can reduce the volume.
3. Trading on any market should be done with a strategy worked out in advance on a demo account. Only after gaining the skills to increase the deposit, you can open a real account. It should be remembered that the standard drawdown of 20% increases to 70% when the lot is increased by 5 times.
Each trader should have a deposit overclocking strategy. What do you want? Earn a living by trading? Then start investing with $200, increase the deposit by 3 times, withdraw half of the profit and repeat the above scheme. If a trader is interested in bladeless trading, for which there are not enough funds, then it is better to start with investments in PAMM accounts and learn in the market at the same time. Upon reaching the desired level of skills, you can proceed to self-raising funds.
Conditions
Understanding the market and a profitable strategy are important, but not all. To facilitate the task, you must:
- Trading during high market volatility so that asset quotes do not stand still. The European and American sessions are best suited for this.
- Find a good broker. The higher the percentage of profit for profitable transactions, the faster it will be possible to increase capital. Recommended values are 75-80%.
- Choose a broker with a minimum bet of $1.
- Do not trade during important news releases. Before trading, please readwith economic calendar. Opening deals in anticipation of the release of important news threatens to drain capital. Moments like this are best experienced. Since no strategy can predict the action of participants in the market after the release of important news with a greater degree of probability.
Approaches
All working trading systems for overclocking a deposit can be conditionally divided into the following groups:
- Martingale strategy and Expert Advisors trading on a similar principle. It will be discussed in more detail later.
- Averaging strategies - opening a deal in the opposite direction from the closing level of the previous candle. Even a small price rollback is enough to make a profit. But with a strong trend, such strategies will lead to a drain on the deposit.
- Scalping strategies and order grids can be distinguished among others. With a strong trend, trading on a one-minute chart will also lead to a loss of the deposit. Order grids clutter up the workspace on the chart.
Advisor for overclocking the deposit
People who don't have the time or experience for manual trading buy automated trading systems. You just need to choose the right maximum profitable adviser or independently develop a calculation algorithm. Let's take, for example, the profitable “Easy Money” deposit overclocking system. You will have to monitor the resources with the databases of advisers that use this system. Overclockers post their comments, test reports and market monitoring on them. Any adviser for overclocking a smalldeposit contains a brief instruction. The task of the trader is to find the “Minimum deposit” item in the description and invest in the market an amount 3 times less than the indicated one. At the same time, the volume of one transaction must meet the requirements of the broker.
Experts for overclocking the deposit are built mainly on the principles of Martingale. That is, sooner or later they all lead to losses. Therefore, when working with this tool, you should follow these rules:
- initial deposit should be divided into at least 20 parts, then in case of a losing bet you can always open a new one;
- use advisors better on a cent account;
- Regularly withdraw profits - at least once a week.
Raising funds with the help of robots is not a safe method. Sooner or later they all merge. The initial task of a trader is to learn how not to lose money and protect your capital. As soon as the amount on the deposit doubles, half of the capital should be withdrawn.
Martingale System
Today you can find a large number of tips to increase the deposit. The most popular of these is to use the Martingale system. Its essence boils down to the fact that the dispersal of a small deposit is carried out by doubling the position after each losing trade. At the same time, there are many options for achieving the goal:
- You need to wait 4-5 candles in one direction, and then open a trade in the opposite direction.
- Open a trade every time in the direction of movementprevious candle.
- Buy an option against the last candle.
In all the above cases, if the first time failed to make a profit, it is necessary to increase the investment by 2-3 times. There are many options for interpreting the strategy. But the smaller the initial deposit amount, the faster the trader will face losses. And in this case, he will lose the entire deposit. Therefore, it is not recommended to use Martingale to overclock the deposit.
Ladder
This strategy is very simple, but risky. Trade should be on M5. It is better not to choose turbo options, since with an expiration of 1 minute the risk increases even more. Next, you should choose any asset and carefully monitor the chart. If the last candle closed with a decrease, then as soon as the current candle breaks the low of the previous bar, you should buy a short option. If the previous candle closed on the rise, then after the current candle breaks through the previous high, you should buy an option to increase. To choose an asset for yourself, you should test the strategy on a demo account.
“Ladder” is great for accelerating the deposit. It should not be used as a permanent strategy. It is best used when trading binary options.
Trading with several Expert Advisors at once
In order to diversify investments, some traders advise connecting several advisors at once. In this case, they should use different strategies: trending, scalping and martingale. Next, you need to test their work ondemo account. If the periods of drawdowns for two of the three Expert Advisors coincide, then they cannot be used. 1/10 of the deposit should be allocated for each of the advisers. So one of the transactions will always be a safety net for all the others. Using the described algorithm, you can test the work of Equilibrium, Night Owl and Forex Hero. It is also recommended to change the basic settings of Expert Advisors from aggressive to conservative trading.
All-In
This strategy should be used on the weekly timeframe. Trades should be entered on Monday morning, immediately after the market opens. According to statistics, the use of the strategy on the following currency pairs brings the greatest profit: AUD/CAD, EUR/JPY, AUD/USD, CHF/JPY, CAD/CHF, EUR/AUD, EUR/CAD. If during the previous week there is a good movement for any of the listed currency pairs, then it is usually followed by a price rollback. Therefore, you should analyze the length of a weekly candle using the Candle Body Size indicator. If trading is carried out on Forex, then the trade should be entered on Monday morning. In this case, you need to set a take profit of 50 points and a stop loss of 100 points. With a bearish candle, you should open a buy trade, and with a bullish candle, you should open a sell trade.
Strategy Features:
- you need to enter the deal 5-10 minutes after the market opens;
- better to use a pending order 10-15 pips from the close of the weekly candle;
- if the take profit or stop loss does not work in the first two days, then the position must be closedmanually, and you can't open a new one this week;
- use the strategy should only be in one currency pair with the largest candlestick body.
The All-In system is used to quickly increase capital. It has a high probability of a take-profit, just like the “Easy Money” deposit overclocking system. Risking 80% of your capital, you can double your account balance in a month. Why not put all your money into a deal? Approximately 20% of the deposit should be left so that in the event of a drawdown, the transaction does not fly into a stop-out. If the trader has $12 in the account, the trade volume is 0.01 lot, the stop loss will be equal to $10. After the successful closing of two transactions with a profit, it is recommended to withdraw all earned funds. After accelerating the deposit to 300%, double the lot size and repeat the cycle.
Conclusion
It is best to increase the deposit yourself. It will take more time and effort, but a beginner will be able to get used to the psychology of trading. A robot that does not experience emotions acts strictly according to a given algorithm. In case of successful trading, the capital can increase many times in a few days. But with the same success, the robot can drain the deposit due to the fact that the chosen strategy has stopped working. You can also diversify funds, that is, distribute money to 2-3 robots. In some cases, you will have to prepare for additional expenses - renting a server for the constant work of advisors.
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