Strategy back tested over 5 years has produced ON AVERAGE +2500 pips per year. By using compounding interest money management technique, this strategy can turn an initial balance of $10,000 into $3,200,000 ($3.2 Million) over the course of 10 years by using 5% of capital per trade. Even though I use 5% 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) 5% PERCENT OF BALANCE PER TRADE = $500 iii) MAX DRAWDOWN PER TRADE: Max 4 Positions X 40 Pip Stop Loss = 160 Pips Maximum Drawdown per trade iv) CALCULATION: $500 ÷ 160 PIPS = 3.1 Lots per pip/point. [*Followers can change lot allocation daily, weekly, monthly or yearly but I advise daily if possible] ----------

 

YEAR ONE >> Starting Balance: $10,000 | Profit: $7812 | Closing Balance: $17,812 ____ YEAR TWO >> Starting Balance: $17,812 | Profit: $13,915 | Closing Balance: $31,727 ____ YEAR THREE >> Starting Balance: $31,727 | Profit: $24,786 | Closing Balance: $56,513 ____ YEAR FOUR >> Starting Balance: $56,513 | Profit: $44,150 | Closing Balance: $100,663 ____ YEAR FIVE >> Starting Balance: $100,663 | Profit: $78,642 | Closing Balance: $179,305 ____ YEAR SIX >> Starting Balance: $179,305 | Profit: $140,082 | Closing Balance: $319,387 ____ YEAR SEVEN >> Starting Balance: $319,387 | Profit: $249,521 | Closing Balance: $568,908 ____ YEAR EIGHT >> Starting Balance: $568,908 | Profit: $444,459 | Closing Balance: $1,013,367 ____ YEAR NINE >> Starting Balance: $1,013,367 | Profit: $791,692 | Closing Balance: $1,805,059 ____ YEAR TEN >> Starting Balance: $1,805,059 | Profit: $1,410,202 | Closing Balance: $3,215,261