Forex Capital Funds “Pauses” Operations

Hey Prop Traders, here’s what is buzzing in the prop trading today

🗞️ LATEST PROP TRADING INDUSTRY NEWS

1. Forex Capital Funds “Pauses” Operations

2. True Forex Funds Shuts Down Permanently 

3. Funding Pips introduces 1-step & 3-step evaluations with 10 daily lot size per day limit for soft breach

4. E8 Markets rolls out E8 Pro Account with no daily drawdown

5. Blue Guardian halts new cTrader platform additions

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• Alpha Capital Group 20% off in May

• City Traders Imperium Get Funded for Only $10

• Goat Funded Trader up to 15% Off Challenges 

📌 PASS THE PROP TRADING TIP

Passing the prop is easier with day trading than swing trading for one big reason – DRAWDOWN. 📉

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.

Day trading aligns well with these limits as traders can closely adhere to the predefined risk parameters on a daily basis 📅. By consistently limiting the duration of trades and exposure to market fluctuations, day traders can maintain compliance with drawdown limits set by prop trading firms, increasing the chances of 💪passing trading challenges.

Some firms also have consistency requirements that are easier to meet by day trading than swing trading. Overall, the agility and precision of 📈 day trading aligns better with the strict risk 💼management requirements of prop trading challenges, increasing the chance of passing the prop.

🔥 TRADING TIPS

🎓 PROP TRADING LINGO

What is the Consistency Rule? 📜 

DEFINITION: Some prop firms have a consistency rule that states no single trading day can make up more than a certain percent of your total profit. This percentage varies by firm and can range from 30% to 45% 📊

Example: Let's say you're a trader at XYZ Proprietary Trading Firm, and they have a consistency rule where no single trading day can make up more than 40% of your total profit.

Here's an example to illustrate how this rule works:

Suppose your total profit for the week is $10,000.

According to the firm's rule, no single trading day can contribute more than 40% of this total profit.

• Monday: You make $4,000 in profit. 💰
• Tuesday: You make $3,000 in profit. 💰
• Wednesday: You make $2,000 in profit. 💰
• Thursday: You make $500 in profit. 💰
• Friday: You make $500 in profit. 💰

Now, let's calculate the percentage of profit each day contributes to the total profit:

• Monday: $4,000 / $10,000 = 40% 📈 
• Tuesday: $3,000 / $10,000 = 30% 📈 
• Wednesday: $2,000 / $10,000 = 20% 📉 
• Thursday: $500 / $10,000 = 5% 📉 
• Friday: $500 / $10,000 = 5% 📉 

In this example, no single trading day exceeds the 40% limit set by the firm's consistency rule.

However IF you make $6000 one day and only $1000 the following days, the consistency rule will be breached and you will not pass the challenge. ❌

📈 MIND OVER MARKETS

Every Winning Strategy has these 3 Ingredients

1. Structure 🏛️🔍

   This is just a fancy way of saying will you trade continuation or mean 🔄 reversion? The implied bet of every trading strategy in the world can be boiled down to a binary↔️ choice - is price direction going to continue or will it reverse? Structure 📊 simply refers to how you will determine the optimal way to trade your state.

   The key to good structure is that it must be precise and mathematically 🧮 describable so that a computer algorithm could execute it if need be. If the trading behavior cannot be described by simple math and clear logic it cannot be replicated or traded systematically. 🤖

   You don’t have to take every signal 🔎 your system generates but you need a clean, clear idea of exactly how your trade sets up. 📈

2. Technique 🎯🔧

   This is the single most underrated element of trading. Recipes 👨‍🍳 are easy. Execution 🔪 is hard.

   Technique refers to the way you will execute the trade once the system flashes go. Some traders will only take trades on limit entries, others will only enter on stops letting momentum carry them into the move. Most traders just click away at the market eager to just get in. 🚦📉

   There is no right or wrong way to execute trades. Just like a master pitmaster at the 🍖 barbecue, you will discover the best technique if you keep doing the same set up over and over. One effective method of entry is the 📊 candle-on-close trigger. Instead of just confirming through price, you confirm through time as well. The process can be a singularly unique and unusual torture for an 🕰️ impatient traders, but the improvement in results will be rewarding many times over.

3. Risk Control 

   This is by far the single most difficult element to get right. Take any strategy, change the stop and target parameters and you can quickly go from a sure winner to a certain loser or vice versa. The subject of risk 🛡️management is a never-ending conversation and it is made doubly difficult in high volatility 🎢 markets. There is nothing more frustrating than losing money on a system that is right on direction but wrong on stops and many novice traders make the mistake of abandoning the strategy when in fact a pause and a revaluation of risk controls is usually a much more intelligent action to take. ⚖️

   One of the great ironies of trading is that most traders and investors abandon their strategy usually at the point of maximum drawdown and therefore never get to participate in the inevitable return to profitability. By taking an eagle's eye 🦅 view of how the strategy works, traders can be a little more dispassionate about their performance and stay in the game until they 🎲 win.

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🔥 OUR PICK: HOW DID YOU PASS THE PROP?

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