Example Earnings
This section shows you that you do not need to make 100s of pips per day in order to make a substantial income from trading Forex. Sorry,
but you might
need a
wide screen monitor to see all of this on your screen. It shows how £/$/€ 12,000 capital can be increased to over £/$/€ 120,000 in 12 months using the
Lindencourt FX
System.
Please note that the following example is a hypothetical example. It assumes there is an initial capital of £12,000, but you can read €12,000 or $12,000
as it makes no difference. It also assumes that you take a basic stop loss of 30 pips on all trades and that all trading gains are added to trading capital,
and therefore there are no withdrawals during the 12 months of trading. It also assumes 1% of trading capital is risked on each trade and that one trades
5 days of the week for 4 weeks each month. The example also assumes that Lindencourt FX money management rules are fully applied.
Taking our trading capital of £12,000 we will risk 1% = £120 max loss per trade. We divide this by the average stop loss of 30pips which gives us "4" which is
either 0.4 lots or 4 mini lots or £4 if you are trading using spread betting. This is just an example so lets not get too involved with which currency pairs we are
trading. We will take 50% out on the first partial exit on each trade (unless stopped out) and the next on the second exit (there are more exits
with the
Lindencourt FX
System but we will just assume 2 partial exits in this example).
Assume trades are as detailed below - Trade 1 is partially closed for 30 pips(2 mini lots or £2) and the remaining part of the trade (2 mini lots or £2) for 50 pips.
Trade 2 is partially closed for 15 pips x 2 mini lots or £2 and the remaining trade is closed out for 25 pips x 2 mini lots or £2, etc. You will see that taking into
accounts some losses on the other
2 trades this would result in an average of 35 pips each day x 4 mini lots or £4 = £140 net per day. Over a 20-day month this
is the equivalent of £2,800 net income ( or $2,800 or €2,800, etc). For the remaining months the same calculation is performed - Capital balance is now £14,800,
so divide by the stop loss factor of 30 pips = 4.93. As we round down to the nearest whole number we will still trade 4 mini lots (or £4 per pip)
on each trade in the
following month. At the end of month 2 you will see trading capital has gone to £17,600, so divide this by the stop loss factor of 30 pips = 5.87. Rounded down
this means we would trade 5 mini lots per trade (or £5 per pip)
on each trade during month 3. Here we would take 3 pips on the first exit and the balance on the
second exit. The process continues each month, ensuring that no more than 1% is risked on any one trade and all capital reinvested.
I repeat, this is a hypothetical example and trading is never as smooth as depicted here. There will be much larger gains sometimes and losses might be more
frequent at times but at least you know that risk is limited to just 1%. It nevertheless shows you the potential of what a net 35 pips per day can achieve. So don't
be greedy with your trading - wealth will come in time.
In this example £12,000 was increased to over £129,000 in 12 months,using a systematic disciplined approach. Taxes would be payable on these gains unless
trading using financial spread betting (for UK residents).
|
|
Month 1 |
Month 2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Month 7 |
Month 8 |
Month 9 |
Month 10 |
Month 11 |
Month12 |
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|
Pips |
|
|
|
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
GBP per trade (1) & (2) |
Total income |
|
Trade 1 |
Exit 1 |
|
30 |
|
|
|
2 |
60 |
2 |
60 |
3 |
90 |
4 |
120 |
4 |
120 |
5 |
150 |
6 |
180 |
8 |
240 |
10 |
300 |
12 |
360 |
14 |
420 |
18 |
540 |
|
|
Exit 2 |
|
50 |
|
|
|
2 |
100 |
2 |
100 |
2 |
100 |
3 |
150 |
4 |
200 |
5 |
250 |
6 |
300 |
7 |
350 |
9 |
450 |
11 |
550 |
14 |
700 |
17 |
850 |
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Trade 2 |
Exit 1 |
|
15 |
|
|
|
2 |
30 |
2 |
30 |
3 |
45 |
4 |
60 |
4 |
60 |
5 |
75 |
6 |
90 |
8 |
120 |
10 |
150 |
12 |
180 |
14 |
210 |
18 |
270 |
|
|
Exit 2 |
|
25 |
|
|
|
2 |
50 |
2 |
50 |
2 |
50 |
3 |
75 |
4 |
100 |
5 |
125 |
6 |
150 |
7 |
175 |
9 |
225 |
11 |
275 |
14 |
350 |
17 |
425 |
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0 |
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Trade 3 |
Exit 1 |
|
-30 |
|
|
|
4 |
-120 |
4 |
-120 |
5 |
-150 |
7 |
-210 |
8 |
-240 |
10 |
-300 |
12 |
-360 |
15 |
-450 |
19 |
-570 |
23 |
-690 |
28 |
-840 |
35 |
-1050 |
|
|
Exit 2 |
|
- |
|
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|
0 |
|
0 |
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0 |
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0 |
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Trade 4 |
Exit 1 |
|
10 |
|
|
|
2 |
20 |
2 |
20 |
3 |
30 |
4 |
40 |
4 |
40 |
5 |
50 |
6 |
60 |
8 |
80 |
10 |
100 |
12 |
120 |
14 |
140 |
18 |
180 |
|
|
Exit 2 |
|
0 |
|
|
|
2 |
0 |
2 |
0 |
2 |
0 |
3 |
0 |
4 |
0 |
5 |
0 |
6 |
0 |
7 |
0 |
9 |
0 |
11 |
0 |
14 |
0 |
17 |
0 |
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|
Daily income NET |
|
140 |
|
140 |
|
165 |
|
235 |
|
280 |
|
350 |
|
420 |
|
515 |
|
655 |
|
795 |
|
980 |
|
1,215 |
|
Monthly income NET in GBP |
|
2,800 |
|
2,800 |
|
3,300 |
|
4,700 |
|
5,600 |
|
7,000 |
|
8,400 |
|
10,300 |
|
13,100 |
|
15,900 |
|
19,600 |
|
24,300 |
|
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Capital Balance at Start of month |
|
12,000 |
|
14,800 |
|
17,600 |
|
20,900 |
|
25,600 |
|
31,200 |
|
38,200 |
|
46,600 |
|
56,900 |
|
70,000 |
|
85,900 |
|
105,500 |
|
Add monthly increase |
|
2,800 |
|
2,800 |
|
3,300 |
|
4,700 |
|
5,600 |
|
7,000 |
|
8,400 |
|
10,300 |
|
13,100 |
|
15,900 |
|
19,600 |
|
24,300 |
|
Total End-of-Month Capital Balance |
|
14,800 |
|
17,600 |
|
20,900 |
|
25,600 |
|
31,200 |
|
38,200 |
|
46,600 |
|
56,900 |
|
70,000 |
|
85,900 |
|
105,500 |
|
129,800 |
|
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|
Risk per Trade in GBP (1% of New Capital Balance) |
|
148 |
|
176 |
|
209 |
|
256 |
|
312 |
|
382 |
|
466 |
|
569 |
|
700 |
|
859 |
|
1055 |
|
1298 |
|
Stop loss factor (pips per trade) |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
30 |
|
Amount to be traded next month per each trade in GBP |
|
4.93 |
|
5.87 |
|
6.97 |
|
8.53 |
|
10.40 |
|
12.73 |
|
15.53 |
|
18.97 |
|
23.33 |
|
28.63 |
|
35.17 |
|
43.27 |
|
Actual Amount to be traded next mth (GBP) on 1st exit (1) |
|
2 |
|
3 |
|
4 |
|
4 |
|
5 |
|
6 |
|
8 |
|
10 |
|
12 |
|
14 |
|
18 |
|
22 |
|
Actual Amount to be traded next mth (GBP) on 2nd exit (2) |
|
2 |
|
2 |
|
3 |
|
4 |
|
5 |
|
6 |
|
7 |
|
9 |
|
11 |
|
14 |
|
17 |
|
21 |
|