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.
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.
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.
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.
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