Hello there. Well, we’re not going to be needing this today because today I’m going to teach you how to grow a small Forex account quickly.
It’s been a long time since I’ve traded with a small account. I know I look young, but the fact is it’s been over 10 years. So for the past week, I’ve traded a scalping strategy on low lot sizes that works on the M1 and M5 timeframe to get you a trading strategy that grows small accounts quickly.
Small Forex Account Strategy
All right, let’s jump right in. I’ll show you a live trade right now using my scalping strategy built for growing small Forex accounts quickly. Let’s take a look at this trade. You can see I’m firing it up. This was a trade I took last week on the Australian dollar, New Zealand dollar. It’s a sell trade on the M1 timeframe. This works for larger timeframes, but I’m really focused on M1. I almost exited this trade around here because it began to hit the oversold in the RSI.
But I did hold on because we had good support and resistance levels. We had a key level right around here, which is why I waited until we got to that point. And that’s how I won the trade. That was the winning trade. I ended up with 17.7 pips, but I only traded a 0.05 lot size. Because again, this is for small accounts. That hit me $6 and 30 cents, which is a nice win. And it only took around four hours and 50 minutes. So about five hours to finish this trade.
Now, let me show you how you can use this strategy. Why I traded it the way that I did.
How to use the Strategy (Trade 1)
All right, let’s jump right back in and show you why I took the trade that I took. First thing you got to do is come to www.tradingview.com and you’re going to want to install a couple of indicators. So click on the indicators button up here. All you want to do is click on the stochastic, the relative strength index and the moving average exponential. Then double click on the moving average exponential right here change the length to 200. I’m using the 200 day moving average. This is to help me with trend direction, and I’m going to try and trade the trend, Obviously. Now you can see below I have the RSI. I have the stochastic. These are default settings. You don’t have to do anything with these. Now that they are on your chart. Let me tell you about the trade. For the rules, What I’m looking at is the moving average. You can see right here, If I’m doing sell trades, I want the price to be below this moving average, pretty consistently. Then I want the RSI to be coming out of the overbought, which is happening right here. When it comes out of the overbought. Again, this is a another thing telling us we have a sell opportunity.
And lastly, you want to have the blue line breaking below the orange line like we have right here and right at this level here, which is 75. And then that is the third indicator telling us we have a strong sell opportunity. In terms of setting the take profit. You can see I set it at this resistance level. You can see here, there is a test of this support level right here, and you can see it actually breaks through support, becomes resistance at this level. So this is a key level. That’s why I used it as my take profit. And that is a good way of using take profits. Another way to exit trades using this strategy is when the trade gets out of overbought or into oversold, you can see right here, the trade came down right here and actually became oversold. So I considered exiting at this point and you can see again, it’s oversold at this point. So that’s another way to exit your trades. If you’re following them manually, when using this Forex scalping strategy.
Now, let me show you the second trade and give you more insight into this strategy. More insight in how you can grow your small Forex account quickly.
Myfxbook position size calculator
Before I jump into more trade examples, show you how to set up the stop loss for this strategy. I want to talk about money management and to do that, I’m using the position size calculator on my FX book. I will have this link in the description. It’s easy to find. This will just tell you how many lots you need to set in order to set your risk properly. Okay, Let’s say for example, you have a $500 account size. You would put $500 right here. Then you’re going to say, all right, how much do I want to risk? All right, let’s say for the small account, you’re going to risk 5% every trade you would put five right here. Then you want to set your stop loss. So you’re setting your trade up. You go alright, let’s say my stop loss for this trade is 25 pips. Then I’m just going to put one here and I’m going to hit calculate.
This is going to tell you the size of your trade. So for this, you can actually use a 0.1 lot size on this trade, and that’s going to risk $25. Let’s say you have a hundred dollar account. You calculate that you would set your lot size at 0.02. So this just helps you set your lot size appropriately. So you’re not losing your entire account for a single trade, because if you do that, no strategy that I give you is going to help you. Let’s get into trade Number two.
Small Forex Account Trade 2
This is the second trade growing a small Forex account quickly. Okay, Let’s take a look at this chart. Let’s take a look at what’s happening. You can see here, I didn’t mention my stop loss in the last trade. So I’m going to start with stop loss. You can set your stop loss above the last swing high, something like this, or you can set it around the moving average near the last swing high, which is what I did on this trade. You could see I’ve put my stop loss around here. Now, That’s how you set the stop loss. You could also set it however you want, but that’s how I do it with this strategy. Next, for my take profit. I set the take profit right here. You can see, this is a support line rate here. This is a key level. So I set my take profit around that level because I figured that’s where we’re going to end up.
Now, The next thing I did was the 200 day moving average. Of course, this is on the five minute chart. This works on the one minute chart and the five minute chart. So this is a US dollar Swiss Franc sell trade. So we have the moving average. The price is below the 200 days. So I’m looking for sell trades. With this strategy, I’m really just doing sell trades all week. So get used to it, enjoy these sells. All right, So what I want to have with the RSI is what we’re seeing here. We want the RSI to be creeping back in, right back in from above 70, right here, We’re overbought. So we want to sell. And then with the stochastic indicator, we want the blue line going below the orange line. Like we have right here, right around the 75 or the 80 mark, which is perfect. So this is a sell trade. Let’s take a look and see what happened with this trade.
Being very fast. Like it, we’re cooking, we’re cooking. And then Bang! Smashed might take profit right here. This trade does continue down here and would hit take profit there again, if it didn’t take, but this was a win and this was a good win. With this trade, It was a risk reward ratio of 2.36, which is 2.36 to 1. So if I lost, I lose 1%. If I when I gained 2.36. And so that ended up being 24.5 pips, which banked me $12 or somewhere around $13.5. Because again, this is for small accounts. This is a small account strategy. And the lot size on this trade I used was 0.05. I think that this was a really good trade. I was really happy with this trade. There’s just one more trade to show you. And then I’m going to give you the full result and tell you some more techniques with this strategy that will help you grow your small Forex account quickly.
Small Forex Account Trade 2
All right, this is the third sell trade that I took. You can see this as a Euro Japanese yen sell trade on the M1 timeframe. I messed up a little bit with the moving average here. It was above the moving average. I wanted to be below the moving average, but we were coming out of this overt bought zone right here. And the blue line was crossing the orange line right here at the 80 mark with this stochastic. So I still thought this was a great trade. And the moving average wasn’t that far off, it was kind of a bit rangy here, as you can see. So let’s just take a look and see what ended up happening with this trade.
Slowly but surely this was a long trade. I actually let this trade go for a couple of days. You see, we do get below the moving average at this point, which makes it a bit healthier, but this didn’t follow the rules exactly the way I like to do it. That being said, sometimes you have to trust your gut. Sometimes you have to use confluence. I’m always looking at support and resistance when I’m trading. So that is also a really important factor. This is absolutely taking forever. So let me just see if I could skip this thing along a little bit faster. Okay, Bing, bing, bing at some point, I got my win over here. All right. So there you go. I ended up getting my win. I actually think I may have let this thing go even further. I think I might’ve got my win over here because I wanted to see if we were going to continue in that direction. Because again, right here, we were showing overbought at this point. So I thought we may creep lower, but that being said, I did win this trade. It was 48 pips, right? Which is an awesome trade. The risk reward ratio is 3.15 to 1. So lose 1% gain 3.15%. That is how you grow a small Forex trading account. And then you can see here, everything was just inline. So the strategy did work. 48 pips. I made a $21, something like that because again, small account 0.05, lot size. You can see my stop loss. I placed my stop loss rate here because of this previous level, this previous swing high here. So that’s what I used. And in terms of my take profit, you can see, we do have some support and resistance at this level. This is a bit of a key level. So that is an area I thought we might get to. And so I did wait that out. I did get the 48.8 pips. Now let me show you the full trading results. Talk this out a little bit and get down to the nitty gritty.
All right guys, that’s it for today. I hope you enjoyed my strategy to help you grow your small trading account. If you’re interested in any of my services, my VIP group is up 15.01% in just two weeks this month, which means if you risk 3% of your account on every trade, you would have gained 45% growth in just two weeks. I’m really hot. I’m not going to promise I’m always this Hot, but I’m really hot right now. So I hope you join that. If this lesson helped you at all, do me a favor, like comment, subscribe. And other than that, guys check out another video, check out another one of my strategies. If you liked this video, you’ll probably like that one.
If you like this video, you’ll probably like that one. Thanks for watching. Love you guys as always, peace.
how comes I have never RSI and stoch on the same time below or up?