Hello and welcome to this video, it will help you to improve your algorithmic trading results in the next 12 months.
In the last video we have talked about how to avoid your own manipulations and improve your sleep.
In this video we will talk about how to even trade small accounts in a way that makes it easy to avoid manipulations.
There is a TV show where you can become a millionaire if you can answer some questions.
The host will start with simple questions, for example if some kind of animal is living in a particular country.
But each round of questions is more difficult and you can see in the candidates face how she starts to question her abilities.
What if I lose it all?
This is so much money, shouldn’t I play it save?
Most of those candidates have a number in mind where the pressure is getting to high for them.
In the TV show it is often around 50000 or 100000 Euros.
I also know a radio show where you can win up to 10000 Euros.
The only thing you need is to do is to decide if you want to continue after a voice told you that you just have won a few hundred Euros.
In the radio show most people stop as soon as they have made a little over 1000 Euros.
So why do so many people stop at about 10 percent of the jackpot?
Because of their interpretation what the impact of that money can make in their life.
Because they want to avoid the pain of a loss!
Could you afford to lose 50000 dollars?
For most people the answer is no.
That would be a huge disaster.
But they probably would have no problem to lose 17 cents.
Everybody has his or her own idea about how much is too much.
I think it is a good idea to find out what that means for you before you start to trade bigger accounts.
And there is a way to do that.
It is called cent account.
A cent account is something that makes it possible to trade with a lot less real capital.
Please let me explain what I mean.
For a micro lot trade I allocate at least 200 dollars of capital.
So with an account size of 1000 dollars I would only allow 5 open positions at the same time.
When you use a cent account, the 1000 dollars will be translated to 100000 cents that can be traded like 100000 dollars.
That makes trading much more scalable, because you can afford to trade a lot more positions on a lot more currency pairs.
If you can make 20 percent profit, this would translate to 120000 Cents and if you decide to close your account, you would now get back 1200 dollars.
Depending on the broker you use, a cent account can be traded with a lot less capital that you would need otherwise.
But it is still real money and it is much more scalable.
You could pick an affordable account size and you can adjust your system settings to avoid painful loss sizes.
That will make it easy to avoid manipulations, because now you are not a victim of your own fear.
For premium course members I always recommend to trade at least 3 months on a demo account and if this works 3 more months on a small cent account.
Once you have your profitable trading system up and running, you can always scale up your account at any given time.
And that is the best way to grow with your account size.
In this video we have talked about how to even trade small accounts in a way that makes it easy to avoid manipulations.
In the next video we will talk about the first fundamental law for profitable trading.