Earn2Trade 2/28/19 Journal

[Nobert]

Again, why is that relevant? If you are sure of a direction, you may have to suffer some pull back to get there.

It is the same old argument, over and over again. Cut loses short, let profits run etc blah. So now the real issue is order entry, not order management. Because if we had proper entry points, we wouldn't HAVE to manage the orders, because they would all work in out favor with zero drawdown.

Let me tell you something. I just went through a spate of "cutting my losses short", and it fucking hurt me a lot. Trades went against me? I cut those losses short. And I came out on the wrong side of it all, because I never let the trades work. I cut their lives short.

I see. Thanks.

 

[Earn2Trade-Ryan]

Why does the max open draw down matter?

The max drawdown in this case is irrelevant, because there is profit, yes?

What I am getting at, and which is something I am unaware of, is do some brokers instantly close your positions if the equity vale of your account drops one penny below $0?

Actually no, brokers cut your positions if your account gets too low. Generally 80% of your account value. Sometimes more, sometimes less, but rarely will a broker let an account go debit (below $0).

Max open drawdown is extremely important. Lot of people can’t accept they are wrong and let single positions wipe them out. If someone has a 99% success rate but holds trades until they go in their favor, no matter what, all it takes is 1 trade to wipe them out.

 

[qlai]

The max drawdown in this case is irrelevant, because there is profit, yes?

So you would fund a guy who was down $3k to make $300?
Ok, how much money would you allocate to such strategy? Is it ok to risk 3MM to make consistent $300k?
Martingale away then.

Let me tell you something. I just went through a spate of "cutting my losses short", and it fucking hurt me a lot.

Well, that is the lure of the siren, isn't it ... Market rewards you for doing the wrong thing.

 

[Earn2Trade-Ryan]

So you would fund a guy who was down $3k to make $300?
Ok, how much money would you allocate to such strategy? Is it ok to risk 3MM to make consistent $300k?
Martingale away then.


Well, that is the lure of the siren, isn't it ... Market rewards you for doing the wrong thing.
View attachment 198437

Depends, the prop firm would fund someone regardless of their max drawdown, as long as that max drawdown did not take them below $22,500. The worse the drawdown, the worse the offer. If someone demonstrates good risk:reward, they are rewarded for that. Including potentially getting their fee refunded.

 

[qlai]

The worse the drawdown, the worse the offe

And this is exactly why I want the OP provide this stat ... So we can judge how "fair" your offer will be

 

[Earn2Trade-Ryan]

And this is exactly why I want the OP provide this stat ... So we can judge how "fair" your offer will be

We also provide the stats used for the offer within the offer letter.

 

[tradethereaction]

Current status in earn2trade

 

[tradethereaction]

Current Status in earn2trade

 

[tradethereaction]

 

[tradethereaction]

Hit the 2K mark. Looking to make at least 2-3K next week. Would like an offer larger than 25K. Still have about 6 weeks to go.