The Big Question About SnapbackFX

So, a lot of people snapped up a copy of SnapbackFX yesterday and I know those guys are looking forward to putting it to the test.

I realise you decided against giving this a go… or maybe you didn’t even see Alex and Nicky’s invitation?

Either way, I thought it might help you if I went through something that I was discussing with some of your fellow readers by email yesterday.

You see, a few people emailed in to ask about how much you need to get this going…

They liked the idea behind it and loved the fact that price-wise it’s one of the most accessible forex strategies available. But they were worried you might need a lot of money to actually start trading.

Truth is, it’s up to you how much you trade – or rather, you can trade at a level you feel comfortable with.

In the SnapbackFX guide – which I’ve got open in front of me as I type – Alex and Nicky explain that however much of a starting bank you decide to kick off with, you should never risk more than 2% of total bank.

Let’s say then that during your 60 day test run of this – during which you can get a full refund at anytime – you decide to invest £500.

With a £500 starting bank, and risking 2%, you should therefore only ever be risking £10 on a particular trade.

How’s that work with spread betting?

Well, it’s a lot easier to work out than you might think…

I mean, it’s just a case of dividing £10 by how many points below entry you’re setting your stop loss.

So, if you set your stop loss 20 points below where you enter the trade, you can trade with 50p a pip…

£10 divided by 20 equals 0.50.

And that way, with that particular trade, you can’t lose more than your £10.

Alternatively, if you’re setting, a much bigger stop loss, say 50 points…

You only want to be trading with 20p per point. That way, even if the worst happen and your trade goes the wrong way and hits your stop loss, you can only lose £10, 2% of your trading bank.

The good news is, thanks to ShortSpreads – our very own spread betting platform – you can trade with as little as 20p a point.

So, you can see that not only is this strategy very accessible with regards to the price of thing itself…

It’s also very accessible when it comes to how much you can trade.

And of course, we’re talking here about worse case scenarios, where you hit the stop loss!

This strategy hit an average strike rate of 70%, so most of the time you’ll be picking off profits and not worrying about stop losses at all.

Even with 20p a point trading, you could be picking off £20, £30 or £40 profits on a regular basis.

Naturally, if you up that to £1 a point, you could be banking a serious second income month after month.

All in all, it’s a great strategy, which, as I mentioned yesterday, could help you grow a very nice inheritance fund for your children…

Or you can just spend the profit on yourself. I won’t tell anyone!

Get in on the action right here  - SnapbackFX