Why such prop firms can exist from a math point ? Because one cannot do compounding. Otherwise 1 trader out of 100 even with a 90/90/90 rule would make a killing.
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prop firm new model - my trading journey 871 replies
Anyone trading with a Prop firm 2 replies
So I accepted a Prop Trading job in South Beach Miami 43 replies
Disliked{quote} Interactive Brokers requires 10 million in assets to trade forex. None of the mentioned brokers offer any protection of funds on FOREX, the CFTC actually prohibits it. The regulation on forex is all disguised to move people back to futures. Not to mention, as CableJ has pointed out, the conditions are deplorable. I am only talking spot market here and have no interest in anything else.....futures, options, stocks, etcIgnored
DislikedFrom FTMO thread: Starting from Saturday, 20 August 2022, MT4 and MT5 platforms will calculate free margin based on the account balance instead of the account equity. Going forward, our maximum order size for Forex pairs will be set to 50 lots (only applicable to MT4 and MT5). If you would like to open a bigger position, you will have to simply submit another market order. Opinions/concerns? Obviously, the calculation of free margin will prevent one from maxing out on a winning position. Looks pretty obvious, IMO, they are trying to limit the huge...Ignored
DislikedOf course if they can figure out which trader to A book then it can makes sense to reduce the risk. On overall traders failure statistics which are published on internet I have calculated the minimum challenge fee for a 100k account must be something between $150 and $200. With no A booking and not offering any compounding here. So the breakeven point is much lower than what MFF is offering at $450 for 100k challenge. So there must be plenty of room to obtain profits from doing this business.Ignored
DislikedKnowing that a trader is profitable and not just lucky a couple of times may be difficult, no ? At some point firm may be hedging against a trader who they think is successful and he ends up being a loser, starting to lose and firm loses twice (the past withdraws and now the losing hedge)Ignored
DislikedCompounding on an account can force a prop firm to A book some of their highly profitable traders. Compounding is the most single critical factor here (beside the challenge fee of course) because when a good trader is in the gains and can increase his position 10xtimes the initial size, it really can be dangerous for a prop firm. In the second place if a prop firm allows unlimited accounts (TPT) having unlimited risk capital, that can cause a lot of problems when good traders make a killling (against prop firm), too. So that is why I see the risk...Ignored
DislikedNot really because on FTMO you can still do Indices trading and having swing trades on them. Even a 30:1 leverage cap here and their new cap that only on initial balance the max. margin can be allocated, it is not a real limit on scaled swing trades. Because 30:1 leverage on initial balance still is 300:1 true leverage based on risk.Ignored
Disliked{quote} Map that math out for me. 30:1 leverage on balance is still 300:1 true leverage? ... What does that even mean?Ignored
Disliked{quote} I assume you can't trade CFD forex in Interactive because you're americans ? Because they do have forex and CFD forex. Spreads are the same but leverage is much higher in CFDs.Ignored
Disliked{quote} I assume you can't trade CFD forex in Interactive because you're americans ? Because they do have forex and CFD forex. Spreads are the same but leverage is much higher in CFDs.Ignored