Many traders, especially beginners, often do not have enough funds to invest properly. The main principle of risk management is that no more than 2% of the deposit should be invested in one transaction in intraday trading. With such mathematics, you can only merge the deposit 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? It is necessary to overclock the deposit. At Forex, this is not uncommon.
Definition
Overclocking a deposit is a process of increasing start-up capital in a short time. This is not a strategy, but an approach to trading with high risk. The increase continues until the required amount of funds appears on the account and it will be possible to continue trading with minimal risk.
Not everyone succeeds in pumping up capital. This is not a stable buildup of funds. It will not work to increase the deposit from 10 to 100 dollars. And it does not matter which particular market is involved. The overclocking technique works the same way on binary options and Forex.
Only numbers
Many beginners dream of making money 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, Forex trading should begin with 500-1000 dollars. If there are no such funds, you can try to increase the deposit yourself. Although this approach is fraught with risks. History knows several real cases of increasing deposits: Chen Likui, Larry William, Elena Pryakhina. For several weeks of work, these people have increased their start-up capital at times, using price orders and support levels.
What do you need?
All deposit acceleration systems are subject to a number of conditions.
1. Need to have time. To make transactions more often, it is necessary to monitor the market for 8 hours in a row. Persons with permanent employment do not have such an opportunity. You should correctly use hourly time frames and enter the deal 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, a lot of funds are not needed if leverage is used in trade. The minimum deposit depends on the average stop value in the chosen strategy. For example, in the euro / dollar pair, the stop level is 30 points. To open a deal of 0.1, you need to have 3 dollars. Even with the maximum risk management rules, you cannot invest more than 10% of the deposit in one transaction. In this example, it is $ 30. The resulting amount should be multiplied by another two, so that in case of a drawdown in the deposit, it is possible to lower the volume.
3. Trading in any market should be followed with a strategy developed in advance on a demo account. Only after gaining skills to increase the deposit can a real account be opened. It should be remembered that the standard drawdown of 20% with a lot increase of 5 times increases to 70%.
Each trader should have a strategy to disperse the deposit. What do you want? Making a living only by trade? Then start investing with $ 200, increase the deposit 3 times, withdraw half of the profit and repeat the above scheme. If a trader is interested in floppy trading, for which there is not enough money, then it is better to start with investments in PAMM accounts and simultaneously study on the market. Upon reaching the desired level of skills, you can move on to self-raising funds.
Conditions
Understanding the market and a profitable strategy are important, but not all, components. To facilitate the task, you must:
- Trade 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 turn out to increase capital. Recommended values are 75–80%.
- Choose a broker with a minimum rate of 1 dollar.
- Do not trade while breaking important news. Before you start trading, you should familiarize yourself with the economic calendar. Opening deals in anticipation of the release of important news threatens to drain capital. It’s better to wait out such moments. Since no strategy can predict the actions of participants in the market after the release of important news with a greater probability.
The approaches
All working trading systems for overclocking a deposit can be divided into the following groups:
- Martingale strategy and advisors trading on a similar principle. It will be considered in more detail below.
- Averaging strategies - opening a transaction in the opposite direction from the closing level of the previous candle. Even a small pullback is enough for profit. But with a strong trend, such strategies will lead to a drain of the deposit.
- Among others, scalping strategies and order grids can be distinguished. With a strong trend, trading on a one-minute chart will also lead to a loss of deposit. Grids of orders heavily clutter up the workspace on the chart.
Advisor for overclocking a deposit
People who do not have enough time or experience for manual trading buy automated trading systems. It is only necessary to choose the correct maximum profitable adviser or to independently develop the calculation algorithm. Take, for example, the profitable system of dispersal of the deposit “Easy money”. You will have to monitor resources with the advisor databases that use this system. The racers on them post their comments, test reports and market monitoring. Any advisor for overclocking a small deposit contains a brief instruction. The task of the trader is to find the item “Minimum deposit” in the description and invest in the market an amount 3 times less than the specified one. Moreover, the volume of one transaction must comply with the requirements of the broker.
Advisers for overclocking deposits 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 adhere to such rules:
- the initial deposit should be divided into at least 20 parts, then in case of a losing bet you can always open a new one;
- it is better to use advisers on a cent account;
- regularly withdraw profit - at least once a week.
Raising funds with robots is not a safe method. Sooner or later they all merge. The initial task of the trader is to learn not to lose money and protect his capital. As soon as the amount on the deposit doubles, half the capital should be withdrawn.
Martingale system
Today you can find a large number of tips for increasing the deposit. The most popular of them is to use the Martingale system. Its essence boils down to the fact that overclocking of a small deposit is carried out by doubling the position after each loss-making transaction. However, there are many options for achieving the goal:
- You need to wait 4-5 candles in one direction, and then open the deal in the opposite direction.
- Open a trade each time in the direction of the previous candle.
- Buy an option against the last candle.
In all these cases, if the first time it was not possible to make a profit, it is necessary to increase investments 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, using Martingale to disperse a deposit is not recommended.
"Stairs"
This strategy is very simple, but risky. Trading should be on the M5. It is better not to choose turbo options, since with expiration of 1 minute the risk increases even more. Next, you should choose any asset and carefully monitor the schedule. If the last candlestick closed lower, then as soon as the current candlestick breaks the low of the last bar, you should buy a lower option. If the previous candle closed for an increase, then after breaking the previous maximum with the current candle, one should buy an increase option. To choose an asset for yourself, you should test the strategy on a demo account.
"Ladder" is great for dispersal of the deposit. Use it as an ongoing strategy is not worth it. It is best used when trading binary options.
Trading multiple 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 on a demo account. If the periods of drawdowns in two of the three Expert Advisors coincide, then they cannot be used. For each of the advisers should be allocated 1/10 of the deposit. So one of the transactions will always be safe for everyone else. 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 advisors from aggressive trading to conservative.
"All in"
This strategy should be used on a weekly timeframe. Enter the deal on Monday morning, immediately after the opening of the market. According to statistics, using the strategy on the following currency pairs brings the largest profit: AUD / CAD, EUR / JPY, AUD / USD, CHF / JPY, CAD / CHF, EUR / AUD, EUR / CAD. If during the previous week good movement is observed for any of the listed currency pairs, then usually the price rollback follows. Therefore, you should analyze the length of the weekly candle using the Candle Body Size indicator. If trading is carried out on the "Forex", then enter the transaction should be on Monday morning. In this case, you need to set a take profit of 50 points and stop loss of 100 points. In the case of a bear candle, a buy deal should be opened, and in a bullish candle, a sale should be opened.
Strategy Features:
- You need to enter the deal 5-10 minutes after the market opens;
- it is better to use a pending order of 10-15 points from the closing of the weekly candle;
- if the take profit or stop loss does not work in the first two days, then the position must be closed manually, and this week you cannot open a new one;
- use the strategy should be in only one currency pair with the largest body of the candle.
The Va-Bank system is used to quickly increase capital. She, like the “Easy Money” deposit dispersal system, has a high probability of take profit. At the risk of 80% of capital, you can double your account balance in a month. Why not invest all the money in 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 dollars in the account, the transaction volume is 0.01 lots, the stop loss will be 10 dollars. After the successful closing of two profitable transactions, it is recommended to withdraw all earned funds. After accelerating the deposit to 300%, you should double the lot volume and repeat the cycle.
Conclusion
It is best to independently increase the deposit. This 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, capital may increase several 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, give out money to 2-3 robots. In some cases, you will have to prepare for additional expenses - renting a server for the permanent work of advisers.