{quote}Drawdown limits that trail open equity are a complete fraud. They don’t duplicate, mirror or imitate anything to do with real world trading at all.
Ignored
I don't think so. It is a more accurate way to measure performance. Obviously traders do not like it because it is harder to achieve.
Yes, it can feel misleading because many firms earn more from challenge fees than long term funded traders.
The idea is legit, but the model isn’t always trader friendly so caution is needed.
LOL, you’ve apparently bought into the myth that the very few remaining crooks using this bizarre "method" to catch people out want naïve customers to accept. There's nothing "accurate" about it at all. It's just a scam. But fortunately almost non-existent, now, having been so widely exposed as one.
But fortunately almost non-existent, now, having been so widely exposed as one.
Ignored
Exactly - and that’s why it’s rather a pedantic discussion: it’s about something that barely still exists!
Rashna’s original statement (i.e. that prop firms calculate the maximum permitted daily loss as trailing open equity) was just for the most part completely mistaken - to put it very politely.
But that’s what happens when the forum fills with no-value posts whose content is just a re-wording of all the stupid misinformation that already covers the web on such subjects. It’s how AI-generated information is produced, because - obviously enough - that’s what all the AI text-generators are "trained on" in the first place.
If the initial sources are crap, the regurgitated versions are, too.
"Garbage in, garbage out" at its very best.
It’s absolutely killing the forums that are slow to appreciate what’s happening and take action over it, because it gradually but very understandably drives the remaining real members away.
