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THE DOUBLE YOUR MONEY IN 2 TRADES TECHNIQUE
Disclaimer:-The information on online Forex trading presented on this website should not be regarded as forex or currency trading advice. Currency
trading and fx trading is highly speculative and should only be done with risk capital. Foreign Exchange prices rise and fall and past performance
from currency trades is no assurance of future performance. This online forex trading website is a currency trading information website only.
Accordingly, we make no warranties or guarantees with respect to the correctness or validity of its content. Forex traders making use of the online
currency trading information presented do so at their own risk. The information provided herein does not take into account their forex investing
objectives, financial situation or needs of any particular person. This site is not intended to by used as the only source of currency trading information
or forex education. It is important and assumed that traders use sound trading principles when using the online forex trading information on this
currency trading site. This includes trading common sense, sound money and risk management and full personal ownership of any trading decisions.
Investors should obtain individual financial advice based on their own particular circumstances before making any foreign currency investment
decision.
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THE 2XMX2 METHOD (DOUBLE YOUR MONEY IN 2 TRADES)
The 2xMx2 money management system has been developed by the traders of Expert4x .
Although it is fairly mechanical it requires trading experience and a reasonable amount of capital to be effective. Information
supplied regarding this method is not a recommendation on money management. It is just an example of some methods used
by successful traders. Please read our disclaimer on the general and specific risks involved in Forex Trading.
When reading this method for the 1st time it may sound illogical or complicated. Please view a number of Free alerts which will
illustrate the application of this method before raising any queries.
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AGGRESSIVE, MAXIMUM LOT SIZES
The philosophy of the 2xMx2 (double your money in 2 trades) is to trade your account in the most aggressive way possible. The
way to do this is to enter the absolute maximum number of lots your stoploss and margin requirements allow.
For instance if you had a mini account of $10 000 and you needed $100 margin per lot and your stop loss per lot will be $100 you
would be able to enter 50 lots.
Calculation: $100 required for margin and $100 for stoploss per lot = $200. Capital of $10 000 divided by $200 = 50 lots.
In practice we add the spread to the requirement to the requirements per lot to make the calculation more conservative.
VIEW TRADES AS GROUP OF 2
You would therefore be able to enter 50 lots. If your target was 100 pips you would make 50 lots x 100 pips x $1 per pip (mini
account) = $5 000. A 50% return on your money.
Now should the deal go negative you will incur a loss of $ 5000 (Stop of 100pips x 50 lots x $1). You will get your margin back so
your account will have a balance of $ 5000. A loss of $ 5000.
Now if we extend this into a second trade.
On the winning account ($15000 balance) you would be able to take 75 lots. ($15000/(stop $100 + margin $100) = 75 lots. When
successful, the gain will be $7500 (75 lots x $100) and the account balance will be $ 22 500 (a return of 125% after 2 trades on
starting capital)
On the losing account ($5000 balance) you would be able to take 25 lots. ($5000/(stop $100 + margin $100)) = 25 lots. If this is a
loss the loss will be $ 2500 (25 lots x $100) and the balance will be $ 2 500 (a total loss of 75% on starting capital).
2 wins result in a 125% return on capital and
2 losses result in a 75% loss of capital.
Thus by viewing trades as groups of 2 your odds become +125:-75 = 5:3
You make 66% more money on successes than you lose on failures.
Please note that to get best benefit from the maximum lot approach we use mini accounts as they divide into lots much better.
SEPARATE CAPITAL AND TRADING ACCOUNT
Our opening balance on our broker trading account will be +/- 5% of our trading capital. Whenever it reaches 10% or more we will
withdraw the surplus. Whenever it reaches less than 1% of our capital we will top the balance up to 5%. While the broker trading
account is between 1% and 10% of the capital balance we will continue using the maximum lot approach.
This helps reduce or risk during negative streaks 4% to 8% but gives us the ability to double or trading account anytime we have
2 successful trades in a row.
Having our capital in a banking institution and our broker account with a broker helps us further manage the risk of Forex trading.
Our risk is always limited to +/- 5% of our capital. This means that we can sleep relatively peacefully in the evenings without the
risk of huge losses on or trading capital.
Example:- Trading Capital of say $ 714 000 would be divided into a trading account of $ 35 700 with the broker and $ 678 300
with a financial institution.
THE FREE ALERT SERVICE EXAMPLES USED
The capital and trading balances used in Free Alert Service do not represent the actual moneys traded by the Expert4x traders.
The example balances are used for illustrative purposes to show what returns that are potentially possible using this money
management technique coupled with a reasonable trading methodology.