I have made 298% profit with forex scalping in 15 hours

Today post i would like to write little bit about right size of your trading account and risk management. Because i found, that higher deposit with lower risk per trade is allmost all the time more risky than small deposit with higher risk.

I see, that it doesnt make a sense, but i will show you, what i mean.

At first i would like to present my results from one of my very small account, where i made more than 298% profit in less than 24 hours, its extreme example, how forex scalping technique can be profitable and i understand that deposit 7$ is extremely low, but i made it just for fun and to show you, that it is possible.

Deposit at real forex account

Closed forex scalps (trades)

Open trades at the end of trading session.

So deposit was: 7.67$, and the end equity was: 22.90$, so its around 298% profit.

I found out, that everywhere forex gurus writes about right forex money management, but don’t realise, that 2 percent risk per trade is not the best way how to setup your money management. I will create very simple example:

Lets say you have trader A, who deposited 100k$ and risk 2% per trade, in good trading series he will have 70% win ratio and 30% losses. If the trading series is 100 trades/scalps long, he will make:

1.02^70 * 0.98^30 = 218% profit

100 000 $ -> 218 000$

On another hand, if this trader will have bad trading series, his resuts will be like this: 70% losses and 30% profit trades.

0.98^70 * 1.02^30 = 56% loss

100 000 $ -> 44 000$

So at the end this trader A risk 56 000% for potential profit of 118 000$. It seems to be not so bad, but i will show you litte trick and better risk money management.

Lets say we have trader B, who risk 10% per trade, has the same winning ratio in good trading series like trader A. But he will not deposit 100k$, but only 10k$.

1.10^70 * 0.90^30 = 3 347% profit

10 000$ -> 334 700$

In bad trading series, it will be vice versa:

0.90^70 * 1.1^30 = 99% loss

10 000$ -> 100$.

So as you can see, who risk more? In percent point of view, trader A risk less, but in reality risk much more, because he stake 56 000$ for less profit potencial than trader B, who risk in reality just 9 900$.

In reality its just much more complicated, but i think that if you will think about this for some time, you will realize, that way B is much more better. And in my own forex scalping trading strategy this money management is the way, which i go. And it is one of the main reason, why im still in profit at forex markets, which are really compentative.

In one of my future post i will try to write about this topic little bit more.

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