Strategy for a cent account
After the introduction of mini-lot trading on Forex, as small as 0.01 of a standard lot, the market became accessible to almost anyone. With the introduction of cent accounts, trading became possible for everyone.
A cent account allows trades to be opened starting from just $1. This account type is most often used to test new strategies.
This allows for a thorough testing of a new trading strategy while minimizing the risk of loss. However, in some cases, a cent account can also be used for profit.
What strategy should I use for a cent account in Forex?
Traders generally choose cent accounts because they require much less funds to get started.
Yes, it's quite risky, but the chances of making money are much higher than winning the lottery, so it's still worth a try.
The strategy itself was described in detail on our website - http://time-forex.com/taktik/razgon-depozita We will try to describe the features of its use on a cent account.
• Minimum deposit – from 10 dollars, we will use this amount in the calculations.
• Leverage - 1:500, it is possible and more, but it is simply difficult to imagine how to work with a larger size.
• Five-digit quote – in my opinion, when it comes to scalping, working with a five-digit quote is quite more comfortable than with four digits.
• Cent broker – unfortunately, not all brokers have the opportunity to open this type of account, you will find recommended brokers here - http://time-forex.com/centovye-brokery
• Volumes – one of the most important points, 10 dollars and a leverage of 1:500 are enough for you to open a deal with a volume of 4 lots on the EURUSD currency pair. With this volume, you will earn 4 cents from one point, yes, a little, but the deposit size leaves much to be desired.
In this case, the minimum available volume can be 0.01 micro lot or 10 dollars, this amount is divided by the leverage used, for example, leverage of 1:100 means that to secure a transaction of 0.01 lot, you will need about 10 cents.
But this is more of a reference information, since it is unlikely that you will be able to make money with such a volume.
• Time frame - M1, for acceleration, a minute time interval on the chart is best suited.
As entry signals, you can use the scalper advisor http://time-forex.com/sovetniki/urdala-trol or you can trade manually.
If you choose manual mode, I would recommend Stochastic as one of the auxiliary indicators, the strategy for using it is described - http://time-forex.com/strategy/strategiy-stohastik
To make trading on a cent account more efficient, you should activate the one-click trading feature. It will help you instantly close trades with the best results.
Also, remember the risk-reduction rule: don't aggressively increase your trading volumes proportionally to your deposit. This way, you'll gradually reduce the risk of your transactions.
