You will surely lose your money with such approach. With correct or wrong signals it doesn't matter. You have market volatility and it is highly likely your position will be wiped out by completely random price swing. And I emphasize completely random.
What you need is a broker that offers 1:1000 leverage and reliable. I have used up to that leverage on Forexchief platform. Been using the broker for many months. Also, its easier to trade and withdraw funds. Good luck with your strategy, and if it works please share with us. Thanks
It is a misunderstanding that if you have a high leverage account, you are over leveraged. Most discount futures brokers have daytrading margin at $500, which is roughly equal to 500:1 leverage on a forex account. That doesn't mean anyone who open a futures account is over leveraged. You have a high leverage account, and you improperly use high leverage, these are two different things. Only losers will mix these two things up.
Or people who rightly wonder why one would desperately search for a high leverage broker if the were never going to use high leverage. Oh, I see you said "improperly used" high leverage, so you must be one who does it in the "proper" way, with a hint of a British accent with afternoon tea? You know I too hate it when people ask about where they can buy C-4 and everyone jumps their shit about the dangers of explosives for those who don't know anything about them and all that other negativity. If you have high explosives and you improperly use high explosives, those are two different things. Only losers will mix these two things up.
So you have $100, willing to risk $50 on a trade at 500:1 leverage. What is your plan if your trade goes 5% against you? Pay your debt? Run? Declare bankruptcy ? Makes you think FINRA may have been onto something with their PDT rules
Why people need high leverage? If you have forex trading experiences, you should know. But it seems you don't have forex knowledge. There are many pairs that could have opportunities at the same time. So high leverage will enable you to catch all these opportunities .For example, I often hold 3 or 4 overnight positions and daytrading other two . And you still need room for your positions to fluctuate, I mean when your positions go down, your free margin level go down. To prevent broker from liquidating your positions, you could only partially use your leverage. So for 500:1 leverage, what you can safely use, is only about half of your leverage. What proposition of your leverage to use on each trade, depend on each trade's risk and reward level. You should have each trade's stop set before your entry, and calculate how much the risk of your trade could affect your account.Basically my trade risk is set for 1/4 to 1/2 kelly. But to trade this way, 50:1 margin is far not enough. 500:1 is a proper leverage that you don't have to worry your positions being liquidated.
Oh I have plenty of "forex knowledge", but I appreciate your concern on that front. I've also got some math knowledge. It let's me know that if you invest $100 at 50:1 leverage you buy a $5,000 position and if it goes down more than 2% you're at $4,900 and you're liquidated. If you invest $100 in a 500:1 account but do it "properly" according to you such that you only buy a $5,000 position and save the rest to "prevent broker from liquidating your positions", then when it goes down 2% you're liquidated, same as the 50:1 account. You have literally no more "prevent broker from liquidating your account" for a the same size move that wipes out your equity if you're using 50:1, 500:1 or 50,0000:1 for the same original position size. All that higher leverage allows you to do is buy a bigger position with your original equity, not withstand a larger drop. I really would expect someone who's throwing out accusations that everyone around them 'don't have forex knowledge" and "Only losers will mix these two things up." would understand the basic math behind this concept.