Trading » Overlay Trading Technique
In order to maintain a secure trading account we use a doubling up method usually referred to as Overlay trading strategy. According to the strategy, if you require a constant return of $50 per trade and so wish to lay this amount per trade, then you receive the above mentioned return for every successful trade. In the event of an unsuccessful trade clients are advised to double up and add the initial outlay for the next trade. For instance, an unsuccessful $50 trade must be followed by a $150 trade.
If the next trade is successful, you not only retrieve the amount lost in the previous trade but also earn the profit expected from the current trade. Following a successful trade you are advised to lay the initial fixed amount for the next trade. In the case of a sequential unsuccessful trades, you are expected to double up as explained previously until the trade is successful. We advise our clients to have sufficient amounts in their accounts to cover up to five (5) consecutive unsuccessful trades, for instance if you wish to lay $50 per trade, then according to the overlay strategy the required account balance to cover five (5) unsuccessful trades would be $2850.
Given below is a table containing the amount required to be laid in for sequential unsuccessful trades for $20, $50, $70 and $100 respectively.
| No. of Unsuccessful trades | $20 / Trade | $50 / Trade | $70 / Trade | $100 / Trade |
| 1st | $20 | $50 | $70 | $100 |
| 2nd | $60 | $150 | $210 | $300 |
| 3rd | $140 | $350 | $490 | $700 |
| 4th | $300 | $750 | $1,050 | $1,500 |
| 5th | $620 | $1,550 | $2,170 | $3,100 |
| RECOMMENDED TRADING CAPITAL | $1,140 | $2,850 | $3,990 | $5,700 |
The Overlay trading strategy mentioned above primarily focuses on minimizing losses and maximizing profits to our clients. The reasoning behind the necessity to have sufficient funds to cover five (5) unsuccessful trades is based on past trading results where Sapphire Capital Services have shown an average of less than 4 consecutive unsuccessful trades, thereby ensuring the implementation of the overlay trading strategy will always be profitable.
| CAC | NASDAQ | ASX | DAX | FTSE | NIKKEI | HANG SENG |