Compare Trading Strategies

What a better risk strategy - one that loses $300 on one thousand 💸 or one that loses $100,000 on a million? 💰

Trade Tiny To Win BIG

Looking at old ideas with fresh eyes can be incredibly valuable. One old idea is to Trade Tiny. The idea was to trade the smallest possible size of 0.01 units on all your trades even if you had a five or six-figure account and could afford much larger positions. My argument for this approach is that Trading Tiny eliminates almost all bad trading behavior. It allows you to trade much larger time frames with massive 200-300 pip stops because a loss on any given trade is only $20-$30. 💡📉💵

Never Confuse Brains with a Bull Market

Ray Dalio, the multi-billion dollar hedge fund manager, has always claimed his risk parity portfolio was 🌩️ “weatherproof”. But the truth appears to be that he simply rode the 30-year bull market in bonds for all that it was worth. Now that bonds are essentially a state-run enterprise of the Federal Reserve 🏛and bond/stock correlation no longer exists 📉 neither does the “brilliance” of Dalio’s strategy.

Best September 2024 Prop Firm Discounts

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Trade Multiple Prop Accounts for Consistent Gains

Trading with multiple prop trading accounts can significantly enhance your risk management and trading edge. Here's why:

4 WAYS TO TRADE PRICE ACTION

Price action is one of the most straightforward and effective ways to trade the markets. Think of it as a way to cut through all the noise and focus on what really matters—the movement of price itself 📉. No need to clutter your charts with tons of indicators; instead, you’re learning to read the market’s story as it unfolds 📖. Ready to dive in? Let’s explore four fun strategies that will get you started: trading the range, trading breakouts after a retrace, trading resistance at swing highs and lows, and running and testing significant levels.

Avoid Breaches by Uses Average True Range (ATR) to Determine Proper Sizing

In prop trading, managing risk is crucial to avoid hitting loss breaches and maintaining consistent performance. One effective way to do this is by being aware of the Average True Range (ATR) and adjusting your position sizes accordingly. Here's how to incorporate ATR into your trading strategy:

3 Ways to Trade Both Sides of The Market

Most traders are only focused on one direction, but here are three different ways to trade both sides of the market that could really improve your game:

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