Strategy for a cent account
After it became possible to trade in mini lots of 0.01 standard lots on Forex, the market became available to almost everyone, and after the appearance of cent accounts, everyone had the opportunity to trade.
A cent account allows you to open transactions from literally $1; in most cases, this account option is used to test new strategies.
To fully test a new trading option while reducing the risk of losses to a minimum, but in some cases, a cent account can also be used to make money.
What strategy should I use for a cent account in Forex?
Traders mainly choose cent accounts because they require much less money to get started.
Yes, it’s quite risky, but at the same time there’s a much better chance of making money 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.
• The minimum deposit is from 10 dollars, this amount will be used in calculations.
• Leverage - 1:500, more is possible, but it’s just 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 working with a four-digit quote.
• Cent broker - unfortunately, not all brokers have the opportunity to open this type of account, recommended brokers can be found here - http://time-forex.com/centovye-brokery
• Volumes - one of the most important points, 10 dollars and leverage 1 :500 is enough for you to open a deal with a volume of 4 lots on the EURUSD currency pair.
With such a volume, you will earn 4 cents per point, not much, but the size of the deposit 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 1:100 means that to secure a transaction of 0.01 lot it will take approximately 10 cents.
But this is more for reference information, since it is unlikely that you will be able to make money with such a volume.
• Time frame – M1; for overclocking, 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 have chosen the manual mode, I would recommend Stochastic as one of the auxiliary indicators; the strategy for its use is described - http://time-forex.com/strategy/strategiy-stohastik
In order to make trading on a cent account more efficient, you should activate the one-click trading function, it will help you instantly close transactions with the best result.
You should also not forget about the rule of reducing risk; you should not actively increase the volume of transactions in proportion to the increase in the deposit. This way you will gradually reduce the riskiness of your operations.