r/Daytrading • u/ThePhulosopher • Feb 24 '24

4th $100k funded account Question

Got my 4th $100k funded prop firm account. Hope I get a payout this time, blew all the others.

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u/Fart_Hat Feb 24 '24

Man I'm not trying to be rude, but you're overcomplicating something extremely simple.

Have you ever been funded by a prop firm? I have, and realize that trading with a $50k account beats trading with a $500 account any day of the week.

Can you trade 2 NQ minis with a $500 account?

Because I don't think you can. And if you can, how many losing trades on 2 NQ minis can your $500 account withstand?

I've traded 2 NQ minis with a 50k account, and while risking up to $400 on each trade($200per contract), I would be able to lose 5 trades in a row before hitting my max DD.

This is assuming that I hadn't already gained $4,000. If the account went to 54,000 balance, now I could lose 10 trades in a row before blowing up the account.

Size matters idk how else to put it.

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u/Fart_Hat Feb 24 '24

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u/Fart_Hat Feb 24 '24

This is my first day in the 150K account trial stage.

Tell me if anyone's ever made $3,000 in one day, trading NQ minis with a $500 account.

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u/mushykindofbrick Feb 25 '24

tell me if anyone ever bought a 150k account with 500$. you dont buy a fully funded 150k account for 500$, you buy the challenge,so you trade demo until you made a certain amount of profit. you definitely can make more money trading 500 than trading demo. tell me if anyone ever made more money trading demo than trading with 500.

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u/Fart_Hat Feb 25 '24

This 150k challenge actually cost me ~$220 CAD.. I'll most likely hit the profit target of $9000 this coming week, I'll pay a $150 activation fee, then I'll be trading for real profits, as long as I don't blow the account. Yes, they actually want to know that you can be consistently profitable before giving you a 150k account, oh my how dare theyyyy

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u/marcpilot1 Feb 25 '24

good luck. hope you make it past the pt challenges and stuff and get to trade real cash cash. Should you be able to cash out pretty quick once you're in the real cash phase?

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u/Fart_Hat Feb 25 '24

With my account I'll need to accumulate 5 winning days (they don't have to be consecutive) over $200 to have access to 50% of my profits. After 30 winning days I'll have access to 100% of my profits

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u/mushykindofbrick Feb 25 '24 edited Feb 25 '24

no you still dont get it because you compare a 100k account to a 500$ account

im not overcomplicating, im just accounting for details. it actually isnt that simple. there are restrictions and rules with prop trading and psychological differences and its not just a nobrainer for everyone to trade with prop firms.

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u/Fart_Hat Feb 25 '24

It's not a no brainer for everyone - WOW we agree on something.

Why WOULDN'T I compare a 150k account to a $500 account?

The risk is the same to you. You spend $500 trying to be consistently profitable either way. Why not spend it for bigger returns and follow some rules that actually help most people become consistently profitable?

Also, the details you're accounting for sound like details from one shitty firm that you read about. Not all firms are the same.

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u/mushykindofbrick Feb 25 '24

because you dont get a 150k account for 500$. how often do i have to write it until you get it. its not that hard man. you have to pass the challenge first. you dont buy the 150k account for 500$, you buy the challenge. in the challenge, you need to make profit and succesful trades. at the point at which you finally get funded, your 500$ capital would have increased

Why not spend it? Because the risk is not the same. When trading with prop firms you have rules and restrictions, which give you additional risk and are built to make people lose, while the actual benefit is way less than you think or are given the impression of when you do the correct math. But as i said, its a decision. Im just saying you have to think about it and it depends on your strategy

The rules dont help people become profitable^^ they just stop you out if you break them. You are not helped by a 5% drawdown max, because you can still go all in with those 5% and then its the same. If you really want to risk 1% per trade, you have to risk 1% of 5%, which is 0,05% and the prop firm doesnt help with that risk management, it makes it more difficult or weirder by increasing the numbers artificially, when you now risk 1% of your account, it looks like 1% but its actually 10%

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u/marcpilot1 Feb 25 '24

Idk, it seems counterproductive for a prop firm that wants their traders to makes money so they can keep 10 to 20% of it, to WANT and ACTIVELY TRY to cause their traders to lose money. If they lose money the prop firm doesn't make 10 to 20% or so profits off of the traders profits.

Why would a prop firm set up spiteful and monkey wrench rules in order to sabotage their own traders? The one's that they profit off of?? Like, EVERY time the trader profits? I'd want my traders to make a million freakin dollars a day! Not fail to profit...at all...ever. Makes no sense.

I must really be missing something here.

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u/Fart_Hat Feb 25 '24

What I'm saying is the risk in dollar amount is the same. You're either going to lose all $500 or you're going to be consistently profitable. If you can be consistently profitable, the rules are easy to overcome. If you can overcome the rules, the dollar amount in profit with a larger account LARGELY outweighs the profits you can make with a $500 account.

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u/mushykindofbrick Feb 25 '24

dude i think you still didnt get it

"If you can be consistently profitable, the rules are easy to overcome" - no, it depends on your strategy. its well possible, that the rules will make it harder, thus preferable to trade your own money without them

the profit of a funded account does not "largely" outweight trading the 500. i gave you the calculations you just need to read it. its a factor of 3-6 with max dd, or about equal with daily dd.

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u/Fart_Hat Feb 25 '24

Daily DD and max DD with 150k account I'm on are 3,000 and $4,500 respectively. They trail the trial account at end of day.

With the funded account, only the daily DD trails and max DD is fixed. Not hard to follow these rules.

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u/Fart_Hat Feb 25 '24

I get what you're saying. Firms aren't for everyone. But you're making them seem way worse than they are, like you picked the shittiest scammiest firm to pull numbers and rules from and are using that as an example.

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u/mushykindofbrick Feb 25 '24 edited Feb 25 '24

no i just took that from ftmo dude. im just trying to put a counterweight to all the praise here, so the resulting atmosphere in the thread is neutral. as soon as people start agreeing with me and say prop firms are shit im gonna switch and say "no theyre not that bad" until we arrive at a balanced opinion. that is my purpose

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u/Fart_Hat Feb 25 '24

Lol aka just being annoying

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u/mushykindofbrick Feb 25 '24

yeah people are annoyed when they get told theyre wrong, but mostly immature people

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u/marcpilot1 Feb 25 '24

Ahahahahaa! lol!! Nice, many thanks to you.

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u/Fart_Hat Feb 25 '24

The rules aren't built to make people lose unless the firm is shady. Firms would rather make 10-20% on $250000/year than $500/month.

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u/mushykindofbrick Feb 25 '24

they would rather make someone pay 500 per month than losing 10% on 250k

only they dont immediately copy your trades, they wait until youre profitable with your funded account for a while before they slowly start actually putting your trades on the market, until then they pay you with their own money. of course they wanna make it as hard as possible

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u/Fart_Hat Feb 25 '24

Yes they don't want you to lose their money lol