WELCOME BONUS AND PROP ACCOUNT TRADING

YOUR SUCCESSFUL GUIDE TO NO-DEPOSIT AND PROP ACCOUNT TRADING

AUTHOR: EMA

WHATSAPP: (+27)79 079 9626

EMAIL: [email protected]

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Risk Disclaimer: Any content or information in this document is general
advice only. It does not take into account your personal circumstances. Do
not trade or invest solely based on this information. By using the
information shared in this document you agree that this is general advice
and you will not hold any person or entity responsible for loss or damages
resulting from the content or knowledge provided here by EMA, its
employees, directors or fellow members.

Trading foreign exchange on margin carries a high level of reward as well

as risk and may not be suitable for all investors. Before deciding to trade
foreign exchange, you should carefully consider your investment objectives,
level of experience, and risk appetite. The possibility exists that you could
sustain a loss of some or all of your initial investment and therefore you
should not invest money that you cannot afford to lose. You should be
aware of all the risks associated with foreign exchange trading and seek
advice from an independent financial advisor if you have any doubts. Past
results as represented in testimonials are not necessarily indicative of
future results or success. Forex trading involves significant risk of loss and
may not be suitable for all investors. Whatever you get on this document,
practice and validify it first on a demo account before applying it on a live
account.

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What is a welcome bonus account?

Most brokers have what we call a "welcome bonus account" which is a free
trading account given to a new client without any deposit from the client
having to take place. Profits from this account can be withdrawn but only
after specific targets have been met and the conditions set by the broker
have been respected.

What is a prop account?

On the other hand we have prop accounts. Some proprietary firms offer
prop trading accounts. They are accounts funded by the firm which a trader
will trade on and after certain trade rules and conditions have been met, the
trading profits will be split between the trader and the firm. It almost sounds
like demo trading where you just find large capital and trade it, who would
be so generous to allow you withdraw the profits? Well in most if not all
cases, you have to pay a certain amount to be given the prop account and
you'll have to pass some challenges and verifications. In order for them to
be confident that you will most likely grow their funded capital, they need to
see you pass some objectives and also put forward a fee so that you take
the trading of the account seriously.

Prop accounts are very larger in capital than welcome accounts and have
lesser trading rules and regulations.

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Can you withdraw from a welcome bonus account?

Yes. You can withdraw from these welcome trading accounts but only after
you've met the specific requirements set by the broker.

Why would a broker give you free money which you can withdraw?

The main aim of these welcome accounts is to attract clients to the broker
offering them. So brokers couldn't care much if you grow the account or not
or even withdraw. The capital in that account isn't usually that large and
you are also trading under their servers, so they win either way. But to
make the withdrawal process not so easy they will give you rules which
seem impossible to achieve. Many traders end up losing their own invested
capital (fancy term for blow accounts) without being given any conditions,
so already the odds are in the brokers favor. Adding complicated rules to
the process now makes it a mammoth of a task to grow the given capital,
hence they give out these accounts knowing very well that 95% of traders
won't succeed in growing them according to the given rules.

How does this document help?

Although this document is for all account conditions (even the account you
funded yourself), more focus will be placed on welcome bonus accounts or
no deposit bonus accounts. This is because their conditions are usually
strict and can seem impossible to adhere to as the rules are many and look
impossible to achieve. The document helps you tackle the issue and
successfully get a strategy which beats this system.

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Why are there so many rules with welcome Accounts?

That's expected if a broker will just give you money completely for free and
tell you that you can withdraw the profits from that money.

The usual rules for the no-deposit welcome bonus (NWB) account is that
within a specific period (usually a month), certain lots have to be reached
by the trader whilst using a certain maximum lot size together with a given
maximum number positions that can be running at a time.

A typical example is that you are given an account and have to trade for 30
days on it. After 30 days the account will be disabled, the bonus will forfeit
and you'll remain with the profits. You can either withdraw the profits or
transfer them into a regular account under the same broker. Let's continue
with the example. For the welcome account you will be told that the
minimum lots that should be traded in that period must be 5 lots and the
maximum lot size you must use per position should be 0.01. That would
seem nearly impossible to achieve because you'll basically have to over
trade but then they also come around and say the maximum positions
which should be opened at once or the maximum number of trades that
should be running all at once should be 5. That's better but still you'll need
to over trade unless if extreme scalping is a part of your strategy and
trading routine. If we dissect this correctly it means you will have to open
more than 500 trades within a month in order to meet the overall lot
requirements with your given lot size. This is an average of 125 trades per
week which makes it 25 trades per day. Remember that you can't open all
25 trades at once, there can only be a maximum of 5 trades open at a time,
not 6 or more. In order for you to open a new position you need to close 1
trade from the list.

It seems very complicated and can easily blow the account due to over
trading which is the case for most people. Besides the fact that your
analysis can be wrong and you take a loss, you still have hundreds of
trades to take in the given period so you are basically trading under
pressure. Your psychology is already down and out so odds are stacked
against you. That's why most traders never get to successfully trade,
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complete and withdraw from the NWB accounts. But it's all about to change
because we have a simple strategy in which if carefully followed and
mastered, you'll be able to successfully trade these accounts and withdraw
from them.

Should one take such accounts very seriously?

Yes. Unless if you have hundreds and thousands or even millions of dollars
then an account with such small capital is a drop in the ocean for you and
you can take it as a practice account. If you don’t have such money, then
you should take such opportunities very seriously because they can be
your breakthrough and help you with the start you need for your financial
freedom journey. Remember that to be big we all start somewhere, and
that somewhere is usually small compared to the final product. You are
advised to exercise extreme commitment and dedication to every financial
opportunity you come across. Don’t overlook small beginnings.

How many NWB accounts can you have?

The number is limitless as there are many brokers which offer these
accounts to their new clients. Besides many rules, another disadvantage
with NWB accounts that have withdrawable profits is that a client is allowed
to only have one NWB account under a specific broker, not more than that
(it should be noted that it’s not the case with all brokers). Upon getting an
NWB from a broker, a client can open additional accounts under that broker,
but they will be regular accounts offered by the broker, not an NWB
account. If you want many NWB accounts, you have to register under many
brokers.

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The Strategy

There are steps to beat this system:

First step is to get a working analytical strategy. This is also the most
important step. Most traders focus so much on the stop loss (SL) part of
risk management that they end up overlooking the actual analysis process.
SL is important, don't get me wrong but trading high probability setups and
getting high probability entries is more important. Trade based on
confirmation or when your strategy requirements are met, not only on hope.
There are gamblers in trading, these are the people who have no idea what
they are doing, they just get in with hope and no actual strategy. Even with
an SL you can become a gambler when you trade without knowing what
you are doing, but with hopes that SL will save you should things not go in
your favor. And it will save you, but if it saves you many times then
eventually it won't because there won't be nothing left to save. Remember
that every time SL gets hit, the account size decreases, eventually it will
decrease to a point where it blows. This is the disadvantage of focusing too
much on SL.

Imagine you are the coach of a soccer team and you are always training
the defenders only. The attacking players never get any practice and
ultimately lose shape and have decreased accuracy. When match day
arrives, your defenders will perform their job but eventually the opposition
might score some goals but you won't be able to get back at them because
you have no attack force. This is the same scenario for having a strategy
which puts more emphasis on avoiding loss but not by increasing accuracy.

Before considering SL, focus more on increasing your trade and profit
accuracy. Work with a strategy which puts you at great odds of actually
winning the trade instead of making you have to worry a lot about SL. Once
again SL should be there, but it should be the last thing on your mind
because of the confidence and not only that, but the knowing that the
strategy you are using has a very high success rate. Don't let your SL act
as a safety net to the point that it sets a comfort layer. Work on improving
the analysis part or using a strategy which has a great reward ratio.
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I'll end this section with the words I opened with. SL is important, but a
working analytical strategy is more important.

Second step is how to position the trades. Now that you have a well-known
and verified working strategy for analysis in your hands, you need to know
how to position the trades.

You ultimately have to open many trades but in a timely manner. This is not
a problem. You should just do this after you've secured your profit. But not
in a sense that you trail all your trades, this won't end up working because
you still need to open more trades while maintaining the maximum number
of positions rule.

So How? You do so by having what we call a leader trade(s). This trade is

that one trade or a set of trades which are the main profit bearers of your
account. Once you've managed to have these trades which secure your
main profit, you can now deal with the volume part of trading.

The volume part of trading deals with the multiple positions you need to
open in order to reach the overall lot target. These will be the minor trades
you open and close more frequently just to complete the lot requirement.
You can do so with any amount of profit per trade, even cents you close.
As long as it's not a lot of losses because when added together, they will
damage your account more than they will grow it. The leader trades are to
support your account and help you reach the profit requirements and the
minor ones are to help you reach other objectives like overall lot, number of
trades, number of days etc. Hold the leader trades and deal with the minor
ones.

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From the above strategy it means if we were to go with the example given
in the beginning which consists of an overall 5 lots, with 0.01 lot size, and
maximum 5 running trades, you can complete it successfully within the
given 30 day period.

Your approach will be to have 1 or 2 leader trades and 4 or 3 minor trades.

Once the minor trades turn to profit you close them and open new ones.
You repeat this procedure many times and before you know it, you have
successfully passed the frequency part of the challenge. You have met the
required lot and those minimal profits have also come together to give you
an overall bigger profit. This has built and increased your account size.
Now you can close the leader trades and add more profits to the already
grown account.

That's how you beat this system but it might not be as easy to carry out as
explained in this document because psychology is a factor and your
strategy has to have a high win rate in both the short term and long term
run in order for you maintain profit consistency of the leader and minor
trades. The great part is that if manage to successfully carry out this
strategy and complete the challenge, your mindset will have evolved and
adapted to the winning strategy and conditions. It means your reward won't
only be with withdrawals but also with the fact that you are consistent and
can show versatility with your skill. You can now take on other welcome
accounts and when you succeed, make enough withdrawals to get yourself
a prop account to trade bigger capital and also fund your own personal
account. Then it's more challenges and growth from there. You didn't
deposit any cent from your own pocket, all it took was a successfully
working strategy, plan and consistency.

All the best in your trading. God bless you.

A fearless attitude breeds limitless altitude -EMA