Looking for a way to double your money in Forex without risking more than one trade. Well listen up, because this is the technique i use time and time again and it works more than half the time. But the best bit of all it involves risking the same amount with the possibility of double the gains. Sounds good does it not, well the truth is it is as easy as saying one two three, but to a lot of traders it is simply ignored.
How this strategy works, is we look for a top of the range trade or the bottom of the range trade. To do successfully you must assess the hourly chart and 4 hour chart.. We are looking for a range that is at least 120 pips or more from top to bottom or vise versa. Then we wait for price to hit the top of the range, when it does we then look for price action to sell.. So what i do is create a price alarm, no point watching and waiting, you will drive yourself silly as price ebbs too and throw. Instead set an alarm on your mt4, put the sound up so that when it goes off you notice.. Also some android based phones you can set alarms on as well which is even better because you can then be anywhere and trade..
Example on the NZD / USD currency pair with its recent sell range.
Above Image – Showing a 130 pip plus range on the NZD / USD currency pair from top to bottom. To see larger view click on image.
Okay, so if price action looks good then sell one trade at a comfortable risk.
You are done for that trade for the moment. Now place an order for a price 40 pips down from where you opened your first trade to open a second sell trade. You also can set an alarm for when this happens, this is because once this second trade opens you have to go into your account and place the stop loss on the first trade three or four pips into the profit of this trade. You see what is happening, once you have placed the stop loss on the first trade in the profit zone you are now only risking one trade. And to think many traders would be only trading one trade down on this range. You have just made a way to risk one trade for double the profit potential.
Lastly, now this is where it gets interesting, set an alarm for 40 pips further down. Once this alarm goes off log into your Forex account. Set the first trade stop loss at 40 pips into the profit and set your second trade that is now over 40 pips in profit the stop loss at a few pips into the profit zone.
This means you have now locked in about 43 to 44 pips and you are completely safe even if some fundamentals or your trade turns against you. All you need to do now is set the take profit near the bottom of the range as is seen in the chart while lowering its expectation by about 10 to 15%. This is because the bottom of ranges are areas of support so it is never exact. Now wait for either take profit or SL to be hit or Take Profit to be hit. Either way, you make twice as much money with the same amount of risk as one trade. Just by simple mathematics.
I hope you enjoy this strategy. I use it all the time and it allows me to get over 300 pips from an average range where normally i would only get around 150 pips max if it was one trade only.. I in a sense made twice the profit with the same amount of risk. Enjoy…