Double in a Day
The Double in a Day Forex Expert Advisor
Congratulations on your purchase of the Double in Day Forex Expert Advisor. As you will see this trading tool is extremely flexible and can be used in a number of ways and to achieve many Forex trading goals. Once you get to know the power of the EA you can adapt it to most Forex trading techniques and use it to improve your return on risk ratio dramatically.
What it is designed to do:
The Double in a day technique is designed to optimise gains made from trends in the Forex market by minimising the initial risk and optimising the return by safely adding to the initial position one or more times at no risk by using carefully positioned breakeven stops. The Double in a Day EA automates the whole process.
Although it is possible to double your account in 1 trade using this technique, it lowers risk considerably when used for smaller account gain targets.
Phases of a typical successful trade
We will now walk you through the phases of a typical successful Double in a Day Forex trade. We are going to show a strategy where the goal is to double your $1,000 account using 2 top-ups at 40% and 60% using a 100 pip trend. In this example the initial break-even is set to 30 pips and the stop loss is 20 pips. Only 10% of the account is risked.
The EA automates all the activities in these phases from input you provide when planning your strategy – this will be explained later in the course.
Please bear in mind that this EA is highly flexible. You can use many or a few top-up levels such as only 1. You can use short trends, top-up at different levels, risk more or less initially etc. The example below is one example of hundreds of possibilities.
1. Entry and initial stop
The entry is the riskiest part of the Double in a Day technique. Ideally this is done with small lot sizing and appropriate stops sizes. The Strategy generator calculates 50 lots would be needed for the first transaction.
The trader determines the direction of the trade. See later in the course how this is done.
If this transaction was successful without a top-up, the result will be a gain of 50% on the account
The initial stop should provide the transaction with enough room to move, yet control losses. Ideally the initial stop should be a maximum of 5% to 10% of the account balance. It provides a good return of risk if you can risk between 5% to 10% on a potential return of 100%.
The risk is that the price will move in the “wrong direction” and we will be stopped out
2. The Price moves to the Initial breakeven stop level
The price moves to +30 pips
At this point the transaction has reached a position that is so positive that the EA can safely move our initial stop to break-even.
This has been specified and the EA does this automatically.
From now on we have no risk and everything to gain.
We have a +100 pip potential with no risk
This also gives the transaction a margin of safety of 30 pips. The price can move in the “wrong” direction by 30 pips and not incur a loss.
3. The price reaches the 1st Top-up level and the Breakeven stop for the 1st Top up is activated.
This is the big success factor.
When the 1st Top-up level is reached, the breakeven stop is moved to a risk free level. In other words if all the open deals are stopped out, the result will be neutral – no loss and no profit.
We also add to our position so the potential again now becomes higher – $700. $500 from the first transaction and $200 from the second transaction (33 lots x 60 pips).
So the potential has increased and we are still risk free.
Our margin of safety is 24 pips which gives the price room to move without stopping us out.
4. 2nd Top-up level is reached and the Breakeven stop for 2nd top-up is activated.
The 2nd top-up level is where we add even more lots to our already open positions.
The EA enters 75 more lots adding $300 to the potential outcome.
Now we can double our account. $500 from the initial deal, $200 from the 2nd top-up and $300 from the 2nd top-up.
When the 2nd Top-up level is reached the breakeven stop is moved to a risk free level for ALL 3 sets of open trades. In other words if ALL 3 sets of open deals are stopped out, the result will be neutral – no loss and no profit.
The margin of safety before the Breakeven stop for all 3 deals is now 23 pips which gives the transaction enough room to move before travelling the last 40 pips to the overall target.
At this point the target is reached and our account has doubled. All deals are closed. This example covers the doubling of an account. We will now look at the variables that need to be taken into account when setting up your EA for less aggressive targets and even less risk.
The Expert Advisor implementation process
The process for a successful result is:
1. You provide the basic information about the transaction you have in mind.
2. The EA generates the overall strategy with calculated breakeven levels etc.
3. You review the strategy and if you don’t like it, you go back to point 1 and review the input provided.
4. If you like the strategy, you confirm the strategy.
5. The EA will then automatically trade your strategy for you until a result is achieved.
There are 3 possible results to trades generated.
1. You can be stopped out immediately and lose the portion of your account risked.
2. You can be stopped out by any of the breakeven stops and walk away with a break-even result
3. You can be successful.
Other Double in a Day pages:
To access other Double in a Day pages use the menu options on the main menu