From Zero to One Million US$ in Forex Trading Capital in One Year
The forex trading industry has changed drastically for retail traders since 2020. There are now more opportunities than ever to grow your capital and profits quickly and safely, without needing to throw risk management out of the window and over-leverage your funds. Prop firms have been paving the way for traders to move from small 4 figure accounts, to pulling in 5 figure monthly and quarterly profits. In this article, we are going to look at the exact blueprint to follow to grow your trading capital from $0 to $1,000,000 in just 1 year of trading. Of course, this is simple – but not easy. Let’s find out more…
Growing From $0 To $1,000,000 Of Forex Trading Capital In 1 Year
Firstly, I appreciate $0 to 7 figures in one year is a gigantic claim and let me preface the fact I am not saying you will be a millionaire – you won’t! However, it’s possible to have 7 figures of funded trading capital under your management. In essence, this is an incredibly simple transition from a small personal trading account to a large funded account. You’ll be taking the exact same trades, but you’ll just have to exercise a more strict level of risk management when funded, which should benefit you anyway!
So, let’s take a look at the steps needed to become a successful funded trader within the next year…
- Creating A Forex Trading Strategy
Firstly, you need a profitable forex trading strategy if you’re going to become a funded trader. If you already have a strategy nailed, then you can skip the first few steps. However, 80% Of traders do not have a profitable strategy to work with, so this needs to be your priority before even looking into scaling your capital.
So, how can you create a profitable trading strategy? Thanks to the trading community, there are already a huge amount of profitable trading strategies with objective rulesets that have been shared online in various trading forums, YouTube and MyFxBook. I’d recommend you spend a good few weeks compiling a list of potential trading strategies from the forums, and focus on finding those strategies with actual track records to verify their validity.
For example, a brief look through automated trading systems on YouTube led me to a profitable XAUUSD trading strategy with over 10 years of data!
- Back test The Trading Strategy
Once you’ve got the strategies in a spreadsheet, you need to start a thorough back test of the trading strategies. There are a huge amount of back testing tools you can use to help speed up or automate this process. For reference, you want to use 99.9% quality tick data, which you may need to pay for. Anything less will give you false trading results, which will not be too useful for you. You can do this manually on TradingView, if you fancy, but it’s hard to manually back test without throwing in any human bias. Once you’ve back tested all the trading strategies over years of data, you will have a list (or at least one or two) profitable strategies to work with! Note, this could take you months to do – but, you need to get it done!
- Refine The Trading Strategy
Now you’ve back tested the trades, you will have a fair few refinements to make. For example, you need to limit the drawdown to fit within the rules of the trading account you’re applying for funding from. For example, if your drawdown limit with a funded trading account is 5%, you want to ensure that your trading strategy doesn’t violate this. So, do you reduce? Do you tweak the stop losses? Do you hedge trades? You have hundreds of potential options to enhance the strategy, but I’d recommend trying to keep the logic there and keeping it as simple as possible during the refinement process.
I’ve estimated that this would take a few weeks to do and re-back test the strategy.
- Automate The Strategy Where Possible
At this point, you’ve got a robust trading strategy on your hands, and it’s as rule based as it could possibly be – great! From here, you will want to look into automating the strategy if possible. For purely price action-based strategies, this won’t be entirely possible, so it may not be worth bothering. However, for traders that have built strategies around ‘entering on a daily close at X time’ for example, then it may be possible to automate. For simple strategies, you can use a No-Code editor like FxDreema to do this for you. For complex strategies, using a freelancer will be your best option for success!
- Purchase A Funded Trading Account Challenge
You’ve reached the point whereby you have a profitable trading strategy and, hopefully, it’s slightly automated! Now you will want to start your journey in obtaining funded capital. There is a wide range of prop firms out there but, of course, we would recommend using a prop firm like Lux Trading Firm that offers live trading capital.
Prop firms that offer demo accounts are a giant risk as they could go under at any time! Prop firms with live trading capital, like Lux, make money from profitable traders, so they provide traders with the best possible environments to succeed! Once you’ve purchased your account, you’ll be ready to go.
- Deploy The Strategy On Funded Capital & Monitor Performance
Let’s get going on the trading account, now all the groundwork has been done! Run your strategy and monitor the performance. Don’t focus on the profits, you need to focus on risk management and actually keeping the funding without violating the drawdown and loss rules. At this point, you’ll have a fairly good grasp on the success of the strategy, and any further refinements that need to be made along the way!
- Use The Scaling Plan To Grow Capital
Lux Trading Firm offers a huge capital scaling plan that allows you to grow to over $10,000,000 of funding – with an increase in capital at every profit milestone. As your trading strategy is being executed, you’ll be ticking the boxes, profiting and naturally progress within the scaling plan (if profitable, of course).
- Create Further Trading Strategies
You’re now at the ‘Business As Usual’ stage, so it’s time to start looking into further strategies. Most profitable traders have a range of profitable strategies in their portfolio to help ‘weather the storm’ of drawdown within their strategies. It’s worth also considering the fact that you can obtain multiple funding accounts from Lux Trading Firm, so you could run a strategy per account, if that’s something you’d look to do. I’d recommend repeating all of the above steps again, to find, refine, test and deploy another strategy in the markets and help accelerate that capital growth! Once you’ve got a portfolio of profitable strategies, the world is your oyster.
In Summary – Growing From $0-$1,000,000 In One Year
In conclusion, this is the blueprint you should follow to help scale your trading capital from nothing to over 7 figures within one year. Am I saying that this is possible for all traders? No, of course not – it depends on your work ethic, trading strategy and how much time you can dedicate to those first few steps of researching, testing and refining your strategies. Regardless, this is the simple roadmap that you should work to when looking to become a professional funded trader.
If you’re looking to become funded, work with Lux Trading Firm now!