What to do with my life?

nickynoes said:
Yes indeed, but lets say for example you have a strategy in which you only find 2 trading opportunities per month, have a 90% win rate and a 5R win per trade on average, risking only 2% of your account would be an extreme waste.


Sorry but what? How many % you risk is determined by how many lots you trade, unless you have an underfunded account.
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Anything that has a 90% win rate has to have miniscule returns not 5R returns. Much like buying options vs selling options. A lot of option sellers claim 90% winners until that one big loss wipes out all their profits and their capital as well as the Optionseller.com guy. The number of contracts I trade when I buy options is 2% of my total capital per trade. That way, even the worst case scenario, the most I can lose on that trade is 2%.
It is your monies, do as you please with it! I am only here to express my opinion based on my actual trading experience.
 
Thank you for that review! I am sure many here will find it useful in making their decisions. There seems to be fewer and fewer options as far as prop shops for an average trader wanna be :(
 
MrMuppet said:
They used to make money and they have contact to a lot of big names in the industry. Also it's not a requirement to pay for their courses in order to trade for them. They have access to good comissions and infrastructure, so when you know how to make a profit, I don't see any problem to trade for a split with them...if you want that.



It's better than this bullshit topstep or gauntlet offers were you have to pay to get in. Also, I don't see a problem with getting in touch, ask for an opinion and a few contacts. Bellafiore never asked me to buy anything and he was always generous with advice. I'm still using a lot of their free advice today, especially on getting better and finding new edge...so yes, they know what they are doing.


Based on my own experience, they are worth a shot. Would I vouch for them regarding profitability? No, cause I haven't seen statements. But I'm providing first hand info considering OP's situation.
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@MrMuppet, I'm sorry you think our offer is "BS". On the futures side you absolutely have to pay SMB to try out. In fact, it's more expensive than ours and has more requirements including double the profit target. You also get only 50% of profits rather than 100% of the first $5k and then 70-80% of the rest.
 
Visaria said:
Really? Could you go through the maths on this statement pls?
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Why are you so dense to be able to figure out what 2% means? That if you lose 5 straight trades, you have lost 10% of your monies? Studies have been done on the 2% rule so, look it up for yourself! Compare that to the current trade size the OP uses which is 5%-20%. You need math to figure out he stands to lose 25%-100% of his monies on just 5 trades?
 
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shotstakovich said:
So, I had a post from a couple years ago that basically asked the same thing.

After college I worked at a minimum wage job to rebuild my trading losses from college. I improved tremendously since my blow up and managed to quadruple my account in a few months. I then found work at another firm that paid better, but there were a number of things in that firm that I was not comfortable with (legal issues, etc).

This year my account is up around 80%, and I'm still trying to refine my approach to trading and risk management. It is a mixture of fundamental, some technical, and sentiment. I'm a contrarian, and like to position myself against the crowd if the risk/reward is good. It seems like I hold my trades anywhere from a few weeks to a month. Position sizes range anywhere from 5% to 20% of my capital.

I've reached out to different people in hedge funds and prop trading. A former poker player-turned hedge fund manager told me that I should focus on getting really good at a skill outside of trading in order to stand out from the pack. He got into the industry via poker, and I guess he hinted that maybe I should try poker. Aside from that interaction, most of my efforts have led nowhere.

It seems impossible to break into this industry...
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You might find this article useful.

https://www.investopedia.com/terms/t/two-percent-rule.asp
 
themickey said:
If there was $100,000 trading capital and 5 trades were placed simultaneously at $2k each which went belly up, is that not a loss of 10%?
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$100,000 less 2% = 98,000. What is 2% of 98,000? Do you want the formula?
 
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destriero said:
$100,000 less 2% = 98,000. What is 2% of 98,000? Do you want the formula?
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themickey said:
Would that not be 50 losing trades x 2% on initial capital?
If you concurrently lost 2% over 50 trades and 2% was on your new balances, then after 50 losing trades you would still have 37% of initial capital. After 100 losing trades you would still have 13.5% of capital. However, the smaller trading capital becomes the more difficult to trade on 2% stops.
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Formula not required.
5 trades at 2% each placed simultaneouly or of equal amounts of 2k each is 10%
Do you want the formula?
 
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smallfil said:
You might find this article useful.

https://www.investopedia.com/terms/t/two-percent-rule.asp
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The article gives an example of how someone can take a position size of over 20% of their account value in Apple, and limit their risk to 2% through a stop loss. This logic is flawed to some extent, because a stop loss won't save you if the stock's price moves past it after-hours or premarket. But it does illustrate that overall position sizing doesn't necessarily determine the overall risk in a trade. I guess technically it does, but only if you're trading something that could legitimately drop to zero overnight.
 
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