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The Double your Forex account in a Day technique (DIAD)
The Double your Forex account in 1 day technique was actually created from a top up technique that Barry Thornton uses in some of his high potential trades. It is an attempt to automated the process Barry Follows in an Expert Advisor.
The Double your Forex account in one day technique which is also available as an EA basically adds lots to a Forex deal with a high potential of success is such a way that:
- The increase in lots 2 or 3 times makes it possible to double your account or increase your account in the original trade.
- Normally adding lots adds to the risk of the trade but when using this technique the calculations are done in such a way that adding lots makes the transaction risk free. In other words at worst you can be stopped out at break-even.
All of the above has been made available in a Double in a Day EA which automates the top-up process but the trader is responsible for the identification of the trade entry. You don’t always need to go for a 100% gain when using this EA but many traders do or think they have to. Click here for more information about the DIAD EA :- DIAD
How Barry use the concepts of this technique
Barry uses this concept during trading in the following way:
- The Daily highs and lows occur mostly during 3 to 5 hours of the day. Trading the weakest currency against the strongest currency Barry would enter deals in these high potential times using high potential currencies with small lots and using the lower time-frames (1 minute to 15 minute).
- When the deal goes positive and starts looking good with high trend potential on a longer time-frame (30 min to 4 hour) and starts triggering entry signal on those higher time-frame charts he then uses the profits already made with the first deal to increase the lots of that deal and to move the stop to a risk free, break-even position.
- So now he has a risk free deal with good potential. As the deal progresses and triggers more entry signals on higher time-frames he follows the same process. Adds more lots and moves the stop to break-even.
In general he only goes for a return of 10% to 20% of his account and that allows him to have bigger break-even stops. The break-even stops are calculated when required using a basic excel model similar to the one provided in the Double in a Day Course.
Differences
So the main differences between using the EA and Barry’s method are:
- He only starts the top up process once the transaction has proved itself. With the EA you need to commit to the top up process at the initial entry point.
- His top ups are at specific additional entry points such a new support being violated or a longer term chart signal being triggered. The EA top up points are pre-calculated and relatively random.
The EA provides the best automation of his process we know of.
Typical Barry Thornton deal
So a typical transaction using Barry’s top-up method could be:
- Enter a deal using the 5 minute charts. Using the 1 min to 5 min charts also allows for small stops.
- Top-up and move the stop to break-even when an entry is triggered in the same direction on the 15 minute or 1 hour chart
- Top-up and move the stop to break-even when an entry is triggered in the same direction on the 30 minute or 4 hour chart.
- Manually Cash in when appropriate making 10% to 20% on the transaction. At this point Barry also does partial cash-ins and would leave smaller portion to run risk free. He has often caught 200 pip runs this way although 50 to 60 pips is enough to get a 10% return.
Trading strategies
This process can even be enhanced even further when using the multi-currency approach of the WATO system.
This waterfall affect is not difficult to occur when momentum indicators are ALL overbought or oversold at the same time for a particular currency. The 5 minute charts will always be first to trigger a momentum entry and if you have caught the start of a reasonable trend the other entry signals will follow like a domino effect.
If you use the Forex Tester and setup multiple time-frame charts to all run at the same time it is possible to view this process where different time-frame sharts trigger entries at the same time on one screen.
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Video
View this video to see the Forex Tester, the Domino top-up strategy and the progressive RSI strategy in action
Click on the full screen option for better viewing
I hope this gives you a few ideas on how to trade a top up strategy when you have caught a reasonable trend.
Like the Barry Thornton series
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Questions or comments
If you have any questions please use the facility below.
17 Comments
Ph I l Hecker
March 12, 2015The BT series has renewed my confidence after a poor start to the year caused by the incredible volatility from the Swiss decoupling from the Euro. I nearly gave up and now have gone back to my fundamentals. Thanks for the re energizing.
John Thoroughgood
March 12, 2015Thanks for that feedback Phil – sometimes all it can take is a change in perspective
Lisa x
March 12, 2015thx John, very good to show the bridge bewteen manual and EA trading. Gives new inspiration
Shane Bullmore
March 13, 2015Awesome video. I am getting alot of education out of this series.
Thank You
Filter
March 14, 2015If anyone wants a multi timeframe RSI so you only need one chart open to follow this technique, I’ve created a free one here (source code included):
https://www.mql5.com/en/code/11949
Fabian Schroter
March 14, 2015Hi Alex and John
Thanks so much for the extra effort of presenting the concept in a video. Makes things so much clearer to follow. This series must be one of your masterpieces!
Hi Filter,
Thanks to you for the indi. But I must admit it is nice to see the candle shapes as well of the relevant timeframes as they happen, gives some extra confirmation to the move… my 2c 🙂
info@expert4x.com
March 14, 2015Hi Fabian
Thanks for that feedback – yes the price charts are very important as shown in the video – the channels ect could also be identified on the 1 hr and 15 minute charts. The indicators is however great for identifying the RSI setups very quickly.
Filter
March 14, 2015Hi Fabian
Very welcome 🙂 Totally agree with you. I use the indy as a quick way of identifying possible setups (much easier than constantly jumping through multi timeframe charts). When I see something that looks like a setup forming, then I’ll jump to the individual charts.
Cheers
Stu (Filter)
Shane Bullmore
March 15, 2015Hi Filter (Stu)
Thanks some much for the MTF RSI indicator. I have put it on a M15 with normall RSI and the MTF showing M5 H1 H4. The profile has 12 charts so I can see alot. When there’s a possible setup open individual profiles.
@Alex
Will there be an excel model for working out stops and lot sizing made available for the manual trading style?
Cheers
info@expert4x.com
March 15, 2015At this stage we are not planning an excel model – it is best if traders design their own calculations – that will mean that they have given them some original thought and there will be more ownership.
Filter
March 16, 2015Very welcome Shane 🙂
If you haven’t seen already, Alex has put together a great video of using the indicator: http://www.moneymakingforextools.com/installing-and-using-the-multi-timeframe-rsi-indicator/
Cheers
Stu (Filter)
Kim Stellfeld
March 22, 2015This is a great course, thank you for the effort Alex. Found the attached video very helpful.
John Thoroughgood
March 22, 2015Thanks for your feedback – much appreciated
greg anderson
April 7, 2015on the Forex Tester I’m using GMT+2 broker on stardard time, and that is for 5 months of the year. they change to GMT+3 for 7 months of the year does the forex tester adjust itself or do i need to install on 2 computers with 2 different time periods, when i do the backtesting on mt4 i noticed the ea’s i run are not affected by the time change.
Alex du Plooy
April 7, 2015You can as support at Forex Tester for assistance. When you download the history you are going to use the times used by the broker will automatically have daylight saving built in. So in the history 8:00 am in London for your broker will always be 8:00 am in London even it is Dec or June. No adjustment is required.
[…] TOP UP Techniques […]
[…] Add to your position aggressively when you are right (The deal goes in your favor) and when longer time frames confirm new signals using the Double in a Day principles and strategies of low risk lot size increases. See the previous Barry Thornton Article TOPUP […]
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