Double in a Day Forex Strategy aims to double the account with one single trade. Double in a Day Forex Strategy works best on best timeframes like H4 and D1 where you can catch a big 200-300 pip move which is sufficient to double your account. Let’s discuss this strategy with a recent NZDUSD short trade. Take a look at the following screenshot.
You can see the strong downtrend on NZDUSD. Now keep this in mind that NZDUSD pair moves slow. So don’t rush. Be patient and you will reap the reward. The first up red arrow shows the entry. YOu can see a number of H4 candles being formed that are finding strong resistance at 0.69243. We make an entry just above the red arrow at 0.69100 with a pending order. Our risk is only 20 pips.
Suppose we have $1000 in our account. Our risk is only 20 pips. We enter with a lot size of 0.2. So our risk is 4%. We let the trade continue. We make another entry just above the second red arrow. Our risk is now 35 pips. Our entry is at 0.68503. We move the stop loss to 0.68850 and open the second position with 0.2 lot. The first position is in a profit of 120 pips while the risk for the second position is 70 pips. So if the stop loss gets hit we still have a profit of 30 pips. Our position has just become risk free now.
We open the third position with 0.2 lot just above the third red arrow at 0.67965 and move the stop loss to 0.68150. First position is in a profit of 228 pips. The second position is in a profit of 108 pips while the risk for the third position is 40 pips. Our net profit is 336-40=296 pips. The whole trade is now risk free and even if the stop loss gets hit we have a profit of 296 pips. We close all the 3 positions at 0.66832.
Profit for the first position is $454. The profit for second position is $334 and the profit for the third position is $226. So our net profit is $1014. So we have successfully doubled our account in 4 days. You should practice this Double in a Day Forex Strategy on the demo account or use smaller lot sizes.
The crux of this strategy lies in managing the risk. As you can see in the above example. We started with a risk of 4%. After that our trade became risk free and we were in profit meaning we could have opened even more positions. Just make sure that you don’t make hasty decisions when trading with this strategy.