30.09.2016 | RESULT: +0 Pips | ANNUAL: -19 PIPS
TRADE SUMMARY >> No Trades
SEPTEMBER 2016 TOTAL: +507 Pips
***MONEY MANAGEMENT || COMPOUND INTEREST STRATEGY***
Strategy back tested over 4 years has produced ON AVERAGE +1500 pips per year. By using compounding interest money management technique, this strategy can turn an initial balance of $10,000 into $576,000 over the course of 10 years by using 3% of capital per trade. Even though I use 3% of my capital per trade, I would advise followers to allocate only 1-2% of their capital per trade if you are risk averse.
COMPOUND INTEREST FORMULA >> i) BALANCE: $10,000 ii) 3% PERCENT OF BALANCE PER TRADE = $300 iii) MAX DRAWDOWN PER TRADE: Max 1 Position X 90 Pip Stop Loss = 90 Pips Maximum Drawdown per trade iv) CALCULATION: $300 / 90 PIPS = 3.3 Lots per pip/point (0.33 Mini Lots) per pip/point. [*Followers can change lot allocation daily, weekly, monthly or yearly but I advise daily if possible]
***TEN YEAR RETURN PLAN***
YEAR ONE >> Starting Balance: $10,000 | Profit: $5000 | Closing Balance: $15,000
YEAR TWO >> Starting Balance: $15,000 | Profit: $7500 | Closing Balance: $22,500
YEAR THREE >> Starting Balance: $22,500| Profit: $11,250 | Closing Balance: $33,750
YEAR FOUR >> Starting Balance: $33,750 | Profit: $16,875 | Closing Balance: $50,625
YEAR FIVE >> Starting Balance: $50,625 | Profit: $25,312 | Closing Balance: $75,937
YEAR SIX >> Starting Balance: $75,937 | Profit: $37,968 | Closing Balance: $113,905
YEAR SEVEN >> Starting Balance: $113,905 | Profit: $56,952 | Closing Balance: $170,857
YEAR EIGHT >> Starting Balance: $170,857 | Profit: $85,428 | Closing Balance: $256,285
YEAR NINE >> Starting Balance: $256,285 | Profit: $128,142 | Closing Balance: $384,427
YEAR TEN >> Starting Balance: $384,427 | Profit: $192,213 | Closing Balance: $576,640
