Someone recently shared me with the following money management strategy. I was proposed that if your system can fit the following criteria, you will be a millionaire in 10 shorts weeks with the initial investment of $1,000.

40% Break Even

40% Winnings Trades

20% Losing Trades

Risk Reward Ratio 1-15

Max Drawdown 10% of Equity

With such a money management system intact, the following would take place with a mere $1,000.

Week 1: $2,000

Week 2: $4,000

Week 3: $8,000

Week 4: $16,000

Week 5: $32,000

Week 6: $64,000

Week 7: $128,000

Week 8: $256,000

Week 9: $512,000

Week 10: $1,024,000

It looks like a pretty sweet system when it’s written out doesn’t it? Sound money management as well. Not a lot of huge risk involved as the risk reward is well in place.

The drawback? It’s not realistic. You would need to trade this multiple times a week to achieve such a result. And why would you end after 10 weeks. Heck, imagine the billions you would reap in just a year or two. It’s easy to develop a money management system that looks attractive.

However, it’s only part of the equation. A successful trading method is just as important as the money management strategy itself. And I find it quite difficult for one to find trades that give up a 1:15 risk/reward ratio on a continuous basis week after week.  With that said, if you happen to know on, I’ll gladly pay every penny in my accounts for it.

If you are in search of a trading of a trading method, I would recommend KISS Futures. They have developed a trading method that will reap 75-150 pips a week. Granted you won’t be doubling your account every week, its’ not unreasonable for one to expect a gain of 10% each month. That alone would double your account every year. Now that’s impressive!

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