How To Make 504% gains in a year via trading?
Pick the right broker, the right instrument, the right leverage, the right size and learn a consistent trading style.
If you are American or Canadian, consider obtaining another citizenship (by blood line or marriage or buy one in the Caribbean) so that you have access to a broker with 500:1 leverage.
There is only one instrument that can make you money in under a pip move in your favour, and that is EUR/USD.
To understand the power of the high percentage gains consider the following things:
- You could sustain yourself for the rest of your life with minimal capital.
- You could beat Warren Buffett by all risk parameters.
I bought a house in the Philippines for 1,3M pesos in a gated community (27k USD per current rate). Daily 30 USD is more than enough for expenses where there is no car insurance to be paid, only need to buy gas to drive around.
Say you are using 2% of your net worth to trade. You can make 1k percent a year, which leaves you with 20% gains on your entire worth. You are lousy enough to be trading at a 60% draw down, which makes for a net worth fluctuation of 1.2%, and have plenty of cash available for temporary loans (to boost margin). The best risk control is high risk and small size.
100 x $1 = $100
Start appreciating small gains. A trade that made money was a successful one and you no longer have any risk associated to its size. If a trade made at least $1 after expenses, it was a worthwhile trade.
252 trading days => average 2% gains per day
Figure your own personal maximum risk based on the instrument’s typical volatility and your own rate of income / savings.
For instance, if you can tolerate $40 draw down per 10 pips, you can open up to 8x 0.05 lots a few pips apart (3, 4, 5).
Be in and out quick and often, if you get into a draw down, refrain from doubling down immediately. Consider hedging.
If you end up having to put in extra margin, do not take on more directional risk.
Since you are trading without stops (but with trail stops) you should have automatic hedging available. I set a ½ hedger at $700 equity and a full hedger at $400. This would prevent from the account being blown and would buy you time for topping up margin if needed.
A fluent trail stop routine can allow you to use up exit codes (I call these croppers) based on a certain moving average displacements or RSI, stochastic readings / sequences.
Having multiple trail options is very helpful. For instance, if I am uncertain about what might happen overnight and I would end up having to positions with me, I can opt to have code “2” stop loss for a long (0.2 for long) and the trail stop routine would lock in 1.5 pips from the open upon achieving 4 pips in gains, then 3 pips after 8 pip gains, then starts trailing a fluctuation size behind. It also makes sure that after your commission and swaps you are still in gains. This can liberate up some or all of your risk.
Our theoretical example
Start with $1500, need to make $30 on average daily.
Started with $1430 on the 30th of July, 2020.
5 months and 2 weeks into the trial run, my equity is up 380% with a 99.5% win rate. My local objective is to make 1000% gains by the 30th of July, 2021. I feel it is more than doable.
A typical day would go like this:
A not so typical day (when you are trading against your directional holding) could look like this:
My pay is £10.73/hr out ow which 23% deductions => £8.26 net
8 hours of labour = £66
I’m making $48 average a day with trading while holding a full time job. Am I a professional trader? Some months, yes. In January I have made $1,417 in the first 2 trading weeks, so this month for sure.