Why R is the Most Important Letter in Trading

R in trading parlance is simply a uniform unit of risk with all your rewards expressed as multiples of R. So a simple 10 pip stop and 20 pip target is a 2R trade. 📊 R can be expressed as pips, points, or dollars—whatever suits you. The primary value of R is that it normalizes risk across all your trades, or bets as I like to call them. 🎯

Sharpe Ratio: Easy Explanation for Traders

The Sharpe Ratio helps traders compare the returns of different trading strategies relative to their risks.

🤔 What is the Number One Reason for Trading Losses?

What’s the real reason behind most trading losses? Spoiler alert: it’s not a bad strategy, weak risk management, or even a lack of market know-how.

Prop Firm Updates - August 27, 2024

Two-Step Prop Trading Evaluations - Pros/Cons

Prop firms use evaluation accounts to assess the skills of traders before providing them with access to the firm's capital.

Prop Trading Tip: Understanding and Using Scaling (and When It's Not Allowed)

Scaling is a trading strategy that involves adjusting your position size in response to market conditions or performance metrics

GO AHEAD! CHERRY PICK YOUR TRADING STRATEGY 🍒

The fundamental tenet of all system trading is that the strategy should work across a broad range of time ranges and a wide swath of products.

How to Trade News Effectively

Trading during news events often gets a bad rap, and for good reason. The market can be unpredictable, spreads can widen, and volatility can spike out of nowhere. But let’s be real—if you know what you’re doing, trading the news can also be a fast-paced, thrilling way to profit. Here’s how to dive into the action without getting burned.🔥

Prop Firm Updates - August 22, 2024

Best August 2024 Prop Firm Discounts

Grab all of this month's best savings

Understanding and Using Scaling (and When It's Not Allowed)

Understanding and Using Scaling (and When It's Not Allowed) Scaling is a trading strategy that involves adjusting your position size in response to market conditions or performance metrics. In the context of prop trading, scaling can be a powerful tool to manage risk and maximize profits.

Passing the prop is easier with day trading than swing trading for one big reason

With limits like 5% 🛑 day traders will find themselves more able to respond to market fluctuations 📊, monitor positions closely 🔍, limit exposure to volatile markets, and minimize the risk of exceeding drawdown thresholds.