I had a funny idea to trade a tiny account and see how far we can progress.
Many, many people have attempted this (and still do), even though it is guaranteed to fail due to several aspects.
I will use this challenge to highlight some of the shortcomings and issues that may arise with something like this.
this is almost guaranteed to fail!!!
the only reason i’m doing this is to point out this shortcomings and challenges that come with it,and use the situations created to point out other common realities in Trading, DO NOT try to replicate this!
As I have stated many times before, the minimum amount required to trade a forex account reasonably, with acceptable risks and returns, is $12,500 USD. This figure is indisputable due to multiple issues associated with trading smaller accounts. This is also the reason why brokers welcome traders who invest much smaller amounts, as it’s almost certain that the account will be lost at some point.
Nevertheless, for the sake of the argument, I will set a few parameters to ensure that this experiment occurs as expected, such as:
- A maximum 10% intraday drawdown.
- An aim for about 7% returns, with about half of that in exposure.
This in itself will create massive problems with such a small balance, since the smallest trade size is 0.01 lots (about $1,000 USD).
This test will not be posted immediately on SwingFish.trade, as I do not want to encourage such behavior. I will post the results later, so the entries can be used to document the shortcomings instead of promoting such behavior.
so for some bookkeeping i made a new account, with $200 initial deposit and immideatly removed some $$ from it, and made a “test trade” leaves a “Starting Balance” of 55.35 Euros.
to keep track of things i will use the tag 50€
