Forex Strategy

I’ve been contemplating for a long time whether I should publish this strategy at all. If a trader succeeds in developing a profitable strategy, he should try as much as possible to keep the strategy to himself and this has been my opinion until now. The foreign exchange market is the largest market in the world. The market always tries to track down any inefficiencies and market gaps and close them as quickly as possible. When a trader presents his profitable strategy to a wide audience, it is only a matter of time before the market begins to respond to this strategy..

What changed my mind?

In times of zero interest policy, investors desperately try to invest their money on the market. This results in great disruptions in the markets and huge bubbles (stocks, real estate, gold, etc.) are created which threaten to burst sooner or later. The small investor often relies on the friendly financial adviser next door. This quickly leads to a conflict of interest “moral hazard” and products which are not always the best for the investor are advertised and sold. An investor makes money which arises from a loss at some other level. This example is visible in different areas. There is an imbalance and the financially weaker investors often get the shorter end of the stick and cannot resist it. I intend to compensate this imbalance with this strategy and still have the hope that the strategy will work for a long time. The difference with conventional strategies lies in the way certain brokers handle their clients’ accounts. Often, all open positions are lumped together and invested. This allows brokers to offer their customers certain advantages over a direct market system. There are no longer requotes and small deposit amounts can therefore be offered. The strategy builds upon this and allows the trader to get a real Casino edge. It is therefore not a question of recognizing a market gap, but taking advantage of the preconditions offered by a broker.

Strategy requirements

This strategy only works with brokers with the following characteristics

-Leverage: 500: 1
-Spread: > 2 pips
-Minimum deposit 10 $
-No deposit fees
-Negative Balance Protection = 0 Slippage
-Minimum trading volume: 0.001 lots or 0.01 microlots
-No Requotes

Before we begin to introduce the BrokerHack strategy, you should make sure you have the knowledge you need.

You need to understand the following things.

How to properly use MetaTrader
How to calculate the lot size
How to recognize important news
How to find your support and resistance level
How to recognize your pinbar pattern
How to recognize the engulfing bar pattern

The Forex strategy

With this strategy, the trader tries to gain an edge over the broker (bank). In order to explain the strategy in a simple way, we have to briefly illustrate this with an example of why the normal trader has a disadvantage in the forex market and thus loses in the long term..

Just as the zero in the roulette game in the casino, the trader is at a disadvantage due to the spread at the beginning of each trade. This results in a negative expectation that cannot be avoided and which is responsible for the normal trader being devoured by the costs in the long term as a result of an assumption of an easy chance of rising or falling prices.

However, what happens if the trader can lose more per trade than he has deposited?

Assuming a trader is risking $ 10 per trade and can loss 20 dollars without risking his own capital or even getting a margin call. This is originally negative due to the cost (spread, swap, and slippage)
The expected value of one dollar per trade is now covered by the additional 10 dollars acquired from the broker (Negative Balance Protection) and we get an advantage of

$ 10 Negative Balance Compensation – $ 1 Cost = $ 9 per trade

The original negative expectation – $ 1 will now be +9 $.

Let us take an example

We need to trade so that we do not risk 100% of our capital.

  • For a better illustration, I always start with a $ 1000 trading capital. The currency pair traded is the EUR/USD
  • 1 % is risked per trade so only $ 10 is deposited on the trading account!!!
  • I wait for false breakouts in the hourly chart (Engulfing patterns and Pinbars in the direction of the trend, which were previously broken in the intraday period and arise on a day full of news. You can follow me on Twitter.)
  • Now I enter a trade with 5 microlots without SL
  • If the position goes against me, I lose more than $ 10 and the broker must compensate for the rest.
  • The take profit is $ 100

You can see an example with pinbars on the charts.

Another example of engulfing bars

Optional personal approach for great profit

– In addition, I enter my positions rather aggressively with stop-order at important technical supports/resistances every 20-50 pips. (Pyramidizing)
– I try to trade intraday 3 – 5 times
– Again no SL and the TP is worth $ 500

With this strategy and with the right broker, I can lose more money than I have deposited. So I trade without my own risk. If the position goes against me, I can make a loss of $ 15-20 from the deposited $10. Therefore even news trading does not create a negative slippage which you have to pay for, since you only deposited $10, so the strategy of Toni112 works excellently.

Not every broker fulfills the necessary requirement. The above strategy works very well with this renowned broker. I was able to achieve very high profits with this strategy. Check my profit here.

If you like to do me a favor, I would ask you to open a micro account at XM via this link. Another advantage with this broker is also the 50% bonus with every deposit.

I recommend you first test the strategy without risk with a micro account with the free 25 Dollar real money bonus of XM. This enables you to build up a sense for the market and gain first experience. Note that you have to adjust the lot number (0.13 Lot) and you only have one trade/attempt with this strategy.

You can test the strategy without risk with the 25 € real money bonus.

To the Broker