The idea of trading to earn is to earn a monthly income with a relatively small account. To make this work I will take more risk and use higher leverage.

I will use an offshore, non-regulated broker as these are the only brokers that offer high leverage to retail traders. Regulated brokers normally offer 30:1 or 33:1 max leverage on major pairs. off-shore brokers will provide leverage up to 1000:1.

The plan

The plan is to trade my strategy as normal but use a different money management. The money management will be as follows:

• deposit 500 USD into an offshore broker account
• use 500:1 leverage
• risk 10% of the equity per trade
• withdrawal above 3200 USD

I have modeled this plan as part of my backtest and here are the results:

Risk per trade	10%
Start balance	500
Payout balance	3200
Minimum balance	245
Maximum balance	3840
Total payouts	71375
Months traded	70
Average Payout p.m.	1020

 

I use the following broker:

• XM Global

I use a broker like XM Global where you can trade with high leverage.