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Lessons from MFF's Regulatory Challenge in Forex TradingYesterday, MFF (My Forex Funds) was hit with an unexpected and sudden blow when both the provincial securities regulator in Canada and the commodities regulator in the United States issued orders that effectively prevented them from trading securities or accessing their bank accounts. This significant action was taken without any prior notice or opportunity for discussion. As a consequence, MFF now finds itself in a state of uncertainty, with its future hanging in the balance. At least until these freeze orders are lifted or modified, the business is effectively frozen as well. This situation has imparted several important lessons: 1) The Proprietary Trading Firms in the US and Canada are likely embarking on a complex and protracted journey that may ultimately result in the establishment of more robust and transparent regulations within this industry. While the outcome remains uncertain, the hope is that such measures will enhance the safety and security of similar businesses in the future. 2) Given the inherent volatility and uncertainties associated with businesses like MFF, it becomes evident that regularly withdrawing profits is a wise practice. Relying solely on compounding, as enticing as it may be, can leave businesses vulnerable to unforeseen regulatory actions or market fluctuations. 3) This incident underscores the importance of relying on one's own private funds for trading endeavors. While Proprietary Trading Firms offer opportunities for profit, they also expose traders to external risks beyond their control. Maintaining control over personal funds provides a layer of security and autonomy that cannot be easily replicated in external trading environments. In summary, the events surrounding MFF underscore the constantly changing nature of financial regulation. They emphasize the importance for traders and businesses to remain adaptable and prioritize sound financial strategies in an unpredictable market. One key takeaway is that while being funded may be an intriguing avenue, it can be challenging to generate substantial revenue. Any such revenue should be deposited into our primary trading account, where it is shielded from external interference, ensuring that no entity can hinder your performance or restrict your trading activities unexpectedly. The core focus should always be on continuous learning, studying, and improving our trading and investment methods and strategies. This commitment to self-improvement should remain at the forefront of your priorities.
EIGHTCAP:XAUUSD
by FOREXN1
11
The Secrets of Making Four Figures Through Trading. The secrets of making four figures through trading. In this Trading view Post, we will explore the key strategies and considerations that can significantly enhance your swing trading results. As a forex coach specializing in this trading style, I'm excited to share valuable insights and empower you to achieve your financial goals. Small Accounts are Out, Prop Firms are In Problem : Insufficient Earnings with Small Accounts Solution : If you aspire to make four figures, it is essential to trade with five figures. Turning $100 into $10,000 or $500 into $100,000 is much quicker and more feasible when you have a larger capital base. With a prop firm, you can afford to trade less frequently and prioritize quality over quantity, eliminating the struggle often associated with small account trading. Implement a Proper Risk Management Strategy Trade with Skill, Not Luck To safeguard your capital and increase profitability, it is crucial to limit your risk on each trade to no more than 1%. This approach allows you to rely on your trading skills rather than luck. Remember, success in trading is a result of consistent and disciplined decision-making. Consistency in Risk Allocation Maintain a consistent 1% risk level as your account grows. As your balance increases, the amount of money you risk will grow proportionally. For example, if you start with a $100,000 account, you would risk $1,000 (1% of $100,000). As your account balance reaches $101,000, your risk would be $1,010 (1% of $101,000), and so on. Consistency in risk allocation ensures that your percentage risk remains the same while adapting to account growth and drawdown phases. Leveraging Position Sizing Based on Account Size Your position size, or lot size, plays a critical role in determining how much you value each pip movement. It is essential to find the right position size to prevent excessive drawdown or losses that can jeopardize your trading account. Position sizing calculations consider your account balance, percentage risk, and stop-loss levels. For instance, if your stop loss is 30 pips and you have a $10,000 account, your position size would be $100 (1% risk) divided by 30 pips, resulting in $3.33 per pip. Your lot size will be 0.33 per pip . By maintaining consistent risk management practices, you can aim for profitable trades while preserving capital. Focus on Higher Reward-to-Risk Opportunities Problem: Losing Trades Depleting Capital To sustain long-term profitability, it is essential to prioritize trades with a higher reward-to-risk (RR) ratio. Winning trades compensate for losing trades and help you overcome drawdown phases. Avoid subpar trades that you force or that fall below your minimum RR requirements. Strategies to Achieve Higher RR: Multiple Timeframe Analysis: Shorten Stop Loss Analyze multiple timeframes to identify strong trade ideas. Once you've determined a suitable trade on a higher timeframe, drop down to lower timeframes to tighten your stop loss. This approach allows you to manage risk effectively and maximize your RR ratio. Utilize Higher Timeframes or Tools: Extend Take Profit When dropping down to lower timeframes, refrain from shrinking your take profit target. Instead, utilize higher timeframes or tools like Fibonacci to extend your take profit level. By setting reasonable profit targets, you increase the potential for achieving higher RR trades. Main Talking Point 3: Quality Trades and 4-Figure Trade Planning Problem: Inconsistent Trading Results Solution: Trading with a focus on quality trades offers numerous benefits. By targeting high-quality opportunities and planning trades effectively, you can profit during trending markets, reduce mistakes, and avoid the need to chase after four-figure profits. Commitment to Make 4 Figures & Stay Under Drawdown Limits Plan Weekly and Allocate Resources Plan your trades every Sunday to determine the potential profit or loss for each trade. Identify high-quality opportunities and allocate 1% of your capital to each trade. Assess if each opportunity meets your minimum RR requirements and if it brings you closer to achieving four-figure profits. Example: $10,000 Account Suppose you risk $100 on Trade 1 and make $333 (3.33% return), followed by risking $103.33 on Trade 2 to make $516.65 (5.16% return). After two trades, you have earned $849.65, representing an 8.49% increase in your account balance. Continuously monitor and adjust your trades to maintain profitability. Is this possible? Yes! Is this easy? No! Why? Because you'll have to get out your own way and head to make this possible. While achieving consistent four-figure profits through trading requires dedication and skill, implementing the strategies discussed in this post can significantly enhance your chances of success. By trading with a prop firm, implementing proper risk management strategies, focusing on higher RR opportunities, and prioritizing quality trades, you can navigate the dynamic world of trading with confidence and boost your financial growth. Remember, trading success comes from discipline, continuous learning, and a well-defined trading plan. Best of luck on your journey to four-figure profits! Shaquan Hey! If you found this post valuable like the post and let me know below what was your takeaway❤️
Education
by ShaquanLopez
3
How you can make 6 figures a month using prop fundsFirstly you need to be able to acquire one account such as a 100k account. Assuming your target is $110000 you start by risking $500 a trade until you reach $3000. if you take losses you continue risking the same until you're back at the starting point. once you reach $3000 of profit you now up your risk to $1000 until you get to $6000 and then $2000. This should easily allow you to pass phase 1 of the challenge, you then repeat the same for phase 2. Once you receive your first funded account, you are now going to purchase another challenge and copy trade your funded account (master acc) onto the challenge. Repeating the above and considering you have a strategy with a good win rate, you are now able to make money while passing the challenges without having to trade 2 accounts manually. You continue this process and max your funding with one prop fund, and then move on to a second and so on until you have 7 figures in funding under your belt. The key is to remain focused and have your psychology and mindset on point. making a mistake on your master account is going to reflect on all accounts. The same goes with profits however. If you have 1 mill in funding and make 1% in a week on one of your 100k accounts, then the other 9 will also make 1% bringing you to a total of 10% ($100000) in one week. My favourite prop fund atm is properfunded.com
Education
by opes_trading_group
Advantages of Trading with Prop FirmsProprietary (prop) trading firms offer traders the opportunity to trade with the firm's capital, rather than their own, in exchange for a share of the profits. Here are some of the advantages and benefits of trading a prop fund account: Access to More Capital: Prop trading firms typically provide traders with access to significantly more capital than they would have if they were trading with their own funds. This allows traders to take larger positions and potentially earn greater profits. Lower Costs: Prop firms often provide their traders with access to discounted commissions, lower borrowing costs, and other benefits that can help reduce trading costs. Training and Support: Many prop trading firms offer training and support to their traders, which can be especially beneficial for those who are new to trading or who want to improve their skills. Shared Risk: Because prop trading firms are providing the capital, they share in the risk of the trades. This can be beneficial for traders who want to take larger positions but don't want to risk losing all of their own capital. Performance-Based Compensation: Prop firms typically offer traders performance-based compensation, meaning that traders are only paid a portion of the profits they generate. This incentivizes traders to focus on making profitable trades and can help align their interests with those of the firm. Overall, trading a prop fund account can offer traders access to more capital, lower costs, training and support, shared risk, and performance-based compensation. To find out about my favourite prop firms, comment below
COINBASE:BTCUSDEducation
by opes_trading_group
8
US30 forming one of the most consistent patternsEIGHTCAP:US30 Of all the patterns I've traded, the trend line breakout, especially on the US30, has been very consistently profitable. When I see it being formed, my bias begins to shift in that direction. The US30 is currently forming a flag, with indecision and growing tension being expressed from market participants. What I'll be looking for, as a follow-up to my previous US30 analysis, is a move down to test the previous swing low and to probe liquidity beyond that. Should this happen, it will be an aggressive move down there but also a sharp recoil back to close above the swing points low, which will form the SFP bar. This will also be just beyond the ATR, creating even more reaction in this zone, and also a 3rd push down, creating a descending wedge for even more bullish bias. From there, I expect the trend line on the H4 to be completed and for the reversal to unfold. Target for this trade would be towards the top of the flag, at previous resistance just below the highest swing point. Stop would be placed below the SFP bar. Note: My long position E/S/TP are based on approximations of what would be close to ideal should this unfold as I anticipate.
EIGHTCAP:US30Long
by TheMeditrader
USD/CAD further upside to come...The USD this year has been nothing but bullish throughout. Fundamentally and technically which has lead stock, futures and commodities is certain strong directions which is fair to say has had a worldwide effect. Further technical are showing USD not to be slowing down anytime soon. USD/CAD long term prices could be found above 1.5000 and up towards 1.6000 in the distant future to come. But with more immediate anticipations around the 1.4000 handle further buying spots may now be present.
Long
by FTUKcom
1
Lets talk prop firms❗Its the buzz words and hot topic of the moment! PROP FIRMS Before I start on this topic I want confirm I am a funded trader. This post isn't to promote this style of trading or prop firms. I am writing this post for those who may not understand what a prop firm is and to share my own experiences on the route to being a funded trader. What is a prop firm? Proprietary trading is where a firm trades for its own financial gain instead of earning commissions for clients. What is a prop trader? A prop trader is someone who uses that firms money to trade with and in exchange receives a wage or a percentage of the profits. Now those two statements above probably ring more true for those who work for financial institutes on trading floors all around the world. The propriety trading firms I want to talk about are the retail prop firms that usually for a subscription or a challenge fee will allow you as a trader to trade funds provided by them. Any profits you make on that account you as the trader will receive a share of the profits. Usually 70-80%. The business model has drawn a lot attention some good and some bad. So this seems a good starting point to discuss what we know of the business model. To become a funded trader with these companies you must either pay a subscription or take a challenge. You rules and conditions of which you have to abide by in order to gain and keep funded accounts. Subscriptions model This route to prop funding tends to be a monthly reoccurring payment. You are then given an account to trade with stipulations attached. For the subscription model the rules on the account tend to be very tight/strict and the fee can be quiet hefty. Challenge model This route to funding is where the trader pays an entry fee in to a challenge to prove their trading credentials. The trade will be set targets to meet over one or two phases in order to secure funding. The account will have rules and stipulations applied for example 10% overall draw down. If funding is secured then most companies refund the entry fee and you then as a funded trader earns money of any profits made on your funded account. So that's the options to becoming a funded trader. The retail prop firm business model has been criticised because some of these funded accounts are demo accounts once gained. Some say these companies only make money off failures and that's why even their funded traders who have passed are only ever trading demo accounts. Some prop firms on completion of challenges give you real accounts. But do we truly know they are real or does it just say real? A prop firm most definitely makes money from failed challenge attempts as part of it's business model. No one will ever know for real if they copy trade their top funded traders either. But in my opinion they would be daft not to copy trade consistent performers that take payouts of these firms every month because they exists. Prop trading pros and cons. Their is pro and cons to any choice in life and prop trading is no exception. I'll cover my personal pro and cons to the prop world below. PROS -For traders who are consistent and proven but only have small capital available, Prop trading is a good route to potentially larger trading pots. -Most prop firms have scaling plans -Prop firm gives trader the opportunity to funding most would never of got if they didn't exists. Most would never get an the opportunity to trade for a big institute. Prop firms bridge that gap. -Given the amount of firms popping up a consistent trader could soon find themselves with a diverse portfolio of accounts giving some life changing chances and monthly profit opportunity. -Most prop firms have favourable commissions and spreads with some having no commissions what so ever. -Reduced personal risk . Worse case scenario for a funded trader is losing the account rather than massive personal losses. CONS -Even when funded you have to adhere to rules and terms of the prop firm -You could spend big money getting traded -The health of the prop firm you trade for is unknown and one prop firm has already dis-appeared. -In reality the targets set are gain the funded account is quiet high at 8-10% in 30 calendar days. -Violation of rules ends in account loss. Summary I can only speak of the journey I have taken myself. For me the pros out weighed the cons when it came to seeking funding via these prop firms and the opportunities they offer. I personally don't mind paying a fee to enter challenges as you need some emotional attachment to the challenge in order for you to play your best trading game. If these were free to enter then everyone would just go big and all out to get funded then would do exact same if managing to get funded. That would be sustainable for no one. That's not what trading is about it's about risk management and emotional control which helps lead to consistent trading results. For a 100k challenge most prop firms charge between £400-£500 that is still a fair amount of money for anyone and you should be treating it as a serious venture if your not then you are simply gambling. Funded accounts being a demo account hasn't bothered me. I get paid when I'm in profit and that's all that matters. Spreading accounts over different prop firms lowers risk and exposure to losing all your funded accounts. One well known firm has gone and thankfully I wasn't with them but aiming for a few accounts with different firms lowers risk of finding yourself funded one minute then not the next. Are they a scam? In ever growing market place bad apples will be operating in the sector. As traders you have to do own research but plenty have been round for a while now with good reviews to boot. Trading in general is hard and gaining 8-10% in one month to pass then doing 5% the following is no easy feat. Get a game plan and strategy together, back test and forward test the live out of it and when consistency is there only then is it worth attempting funding challenges. Love them or hate them prop firms are here and making some noise. They offer opportunity a plenty but they do come with mystique attached. You as a trader and an individual have to judge if they are for you or not. Simple way I looked at the opportunity 1 Funded 200k account 3% profit per month = $6000 80% profit split= $4800 GBP= £3478 Approx equivalent to 57k GBP a year! Freedom can be closer than you think. Thanks for taking time to read my idea Darren.
Education
by pow_removetheguesswork
Dax daily: 17 Jun 2020Yesterday's session started well in line with the auction market theory. The price first dropped to retest our support at 12 151 and bounced back up to continue higher, even above the open. Buyers lost momentum mid-day and Dax dropped sharply to retest the same support once again. The session then closed nearly break even. Important zones Resistance: 12 494 Support: 12 151 Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases NIL Today's session hypothesis We'll disappoint all traders who expect a clear direction analysis today. The price hasn't eventually gone anywhere yesterday and is currently in the middle of two important S/R zones. We don't have any indications or signals about the direction, yet we incline more to the bullish side. The retest of 12 494 is expected in the short to the mid-term horizon. Contrary, should 12 151 be broken to the downside, space opens for more sell-offs.
EUREX:FDAX1!
by FTMO
Dax daily: 15 Aug 2019 Our market analysis didn't go well yesterday. We've had clues for the uptrend continuation and breaking of Tuesday's high. Instead of that, Dax gave us the complete opposite and formed a big daily sell-off. Today we open with an ascending gap. Important zones Resistance: 11 899, 11 629 Support: NIL Statistics for today Detailed statistics in the Statistical Application The statistical probability for breaking yesterday's low is 96% Macroeconomic releases NIL Today's session hypothesis We anticipate the bullish correction until yesterday's mid-range. The resistance level of 11 629 or even lower could be a good zone for sellers to target yesterday's low, which has a really high statistical probability. Even though we have such a powerful hint for today's price direction, it is important to remember that markets might always behave erratically and the statistic might not be fulfilled.
EUREX:FDAX1!Short
by FTMO
Dax daily: 07 Aug 2019 Yesterday's session was a bit odd. Dax behaved lazily all day long and has broken neither low or high of the previous day. The support level at 11 615 hasn't functioned either. The price opened with a small descending gap today which is already closed by the time we write this. Important zones Resistance: 11 702, 11 845, 11 899, 12 031 Support: NIL Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases NIL Today's session hypothesis Dax has slowed down significantly after a big drop from 25 July. In the ideal scenario, we could see a correction towards 12 031 in the upcoming days with smaller corrections at the mentioned resistance levels. For today, we don't have any drivers or significant clues for the market direction estimation. There is a near resistance at 11 702 which could trigger some action of sellers. Besides, we can expect a lazier price action once again.
EUREX:FDAX1!
by FTMO
Dax daily: 06 Aug 2019 Monday's session had an expected development. We first saw buyers taking the price slightly up, yet not able to retest the 11 823 level. Sellers took over and pushed Dax to the support zone of 11 657. It took some time for this to be broken to the downwards and bears dominated the intraday session until the close. Important zones Resistance: 12 031, 11 899, 11 8845 Support: 11 615 Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases NIL Today's session hypothesis Today's price opens with an ascending gap which could be closed and adequately find buyers at 11 615. We can then target our trades to retest yesterday's high and retest of the resistance zone of 11 845 - 11 899. If there are no significant buying pressures around 11 615, it is more likely that yesterday's low will be broken. As soon as that happens, buyers could shift things around to correct the fall and Dax would likely to oscillate and close inside yesterday's range.
EUREX:FDAX1!
by FTMO
Dax daily: 05 Aug 2019 Friday's session started with a slight downward movement which prevailed for the whole intraday session. We've had a bearish based bias and our hypothesis played out as expected. Today we open with a really big descending gap. Important zones Resistance: 12 031, 11 899, 11 823 Support: 11 657 Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases 16:00 CEST - USA - ISM Non-Manufacturing Today's session hypothesis Today we open with a 170 points sized gap which equals the range of a volatile day session. There was a row of really nice S/R levels formed. The first zone of our interest is the resistance at 11 823 which could be retested today. If sellers aren't strong enough, Dax could head towards 11 899 and close the gap. Buyers might appear around 11 657.
EUREX:FDAX1!
by FTMO
Dax daily: 01 Aug 2019 And so August is here. Yesterday's price action was dominated by FOMC. Dax first closed the gap, found some buyers and then went idle. After the FOMC came out, the 83% statistical probability of breaking the previous day low was successfully fulfilled. The price closed the gap this morning right after the open. Important zones Resistance: 12 283 Support: 12 073 Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases 09:15 - 10:00 CEST - Eurozone PMIs 13:00 CEST - United Kingdom - Official Bank Rate, Statement, Votes & Inflation report. All of these could influence DAX as well. Today's session hypothesis Most of the time, days following the FOMC are relatively calmer. Moreover, it's a summer holiday season. We have a weaker support zone near the current price, laying at 12 073. That level could be used by buyers. From the price action perspective, it is difficult to estimate today's direction development. Talking about the probabilities, we have 80% for breaking yesterday's high or low and then there is a statistical chance of 78% that Dax might close inside yesterday's range. Taking this into account, it is rather wise to target our trades back into range should the high/low be broken.
EUREX:FDAX1!
by FTMO
Dax daily: 16 Jul 2019 Monday's session started wild and many traders were facing problems with unexpected volatility. Dax first spiked upwards quite prudently, just to correct itself soon after. If you remember, we suggested not to trade yesterday as the price development was unpredictable. Good to those who took a break. Dax also broke both Friday's low and high, which had a very low probability. Today we open with a smaller descending gap. Important zones Resistance: 12494 Support: 12 350 Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases 11:00 CEST - German ZEW Economic sentiment Today's session hypothesis Today we can expect the breakout of yesterday's high, which has a slightly increased statistical probability of 64% and then we'll await the retest of resistance zone at 12 494 and closing outside of yesterday's range. We hope to find buyers around 12 350 which is an intraday support level from yesterday. Should the price break yesterday's high and return right into a Monday's range, it is likely Dax will slow down and oscillate.
EUREX:FDAX1!
by FTMO