How to Turn a Small Amount of Money into a Significant Profit

Aspiring traders often wonder if it’s possible to turn a small amount of money into a significant profit. The answer is yes, with the right strategy and risk management. In this article, we’ll explore a trading strategy that can turn $100 into $10,000 in the shortest amount of time possible, using AI-based trading view indicators.

The Strategy

The trading strategy involves using three free trading view tools: the Machine Learning KN-Based Strategy, the EMA Ribbon, and the RSI Indicator.

Machine Learning KN-Based Strategy

The Machine Learning KN-Based Strategy is an AI-based trading view indicator code that analyzes historical market data and predicts future price movements based on patterns in the data. It uses a classification algorithm (K Nearest Neighbors) to determine whether a stock price is likely to go up or down based on its historical data. The indicator prints blue and pink labels, which are buy and sell signals, depending on the strength of the signals. It’s important to note that this indicator is not repainting, but you do have to wait for the candle bar to close before considering a signal valid.

EMA Ribbon

The Exponential Moving Average (EMA) Ribbon is a trading indicator that consists of multiple exponential moving averages plotted on a price chart. This tool is used to identify the direction and strength of a trend in the market. The EMA Ribbon is created by plotting several EMAs with different time periods, stacked on top of each other, creating a ribbon-like appearance on the chart. When the ribbon is sloping upwards, it indicates an uptrend, and when it’s sloping downwards, it indicates a downtrend. The EMA Ribbon will help identify potential buy or sell signals based on the direction of the trend and the location of the price relative to the moving averages.

RSI Indicator

The Relative Strength Index (RSI) is an indicator used in trading to measure the strength of a security’s price action. It’s displayed as a line on a chart ranging from 0 to 100. When the RSI is above 70, it’s generally considered overbought, and when it’s below 30, it’s generally considered oversold. As part of the strategy, the RSI will be made more sensitive by changing the upper band to 60 and the lower band to 40.

The Entry Conditions

For a long trade, the following conditions must be met:

  1. The price must be closed above the 200 EMA, and the ribbon must also be above the 200 EMA and green.
  2. The price must pull back into the ribbon without closing below the long-term EMA.
  3. The Machine Learning strategy must print a blue label.
  4. The RSI must be either oversold or at least below 60 before the buy signal.

For a short trade, the following conditions must be met:

  1. The price and ribbon must fall below the 200 EMA, and the ribbon must become red.
  2. The price must pull back into the ribbon without closing above the 200 EMA.
  3. The RSI must become overbought during the pullback.
  4. Wait for the Machine Learning to give a final confirmation.
  5. It’s important to note that you should not enter the trade if the RSI turned oversold at the time the sell signal was issued. For a short trade, enter only if all the rules are in place.
  6. Stop Loss and Target Adjustments
  7. For both long and short trades, set the stop loss below the recent swing low and target two times the risk. Once you have made a quarter of the profit, you can either adjust the stop loss to the break-even price or just close the trade. For example, if you risk 5% of your account per trade to make 10%, and the price moves in your direction, reaching an unrealized profit of 2.5% (which is a quarter of your target), adjust the stop loss and secure the trade.
  8. Tips and Tricks
  9. While the strategy has been backtested and proven effective for growing a small account fast, it should be used with caution and proper risk management. Here are some tips and tricks to keep in mind:
  10. Use higher risk per trade for a higher reward, but don’t risk more than you can afford to lose.
  11. Don’t skip the forward testing phase on a paper account.
  12. Be prepared for higher drawdowns, as higher risk involves higher potential losses.
  13. Conclusion
  14. Turning $100 into $10,000 is possible with the right trading strategy and risk management. Using an AI-based trading view indicator code, along with the EMA Ribbon and RSI indicators, can help filter out problematic signals and identify potential buy or sell signals. By following the step-by-step approach for both long and short trades, along with adjusting the stop loss and target, this trading strategy has the potential to grow a small account fast. However, it’s important to use proper risk management, including not risking more than you can afford to lose and forward testing on a paper account.
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