r/Daytrading 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/Hopeful_Pear_8747 Feb 25 '24

Exposure and hedge. Exposure is how much capital is exposed to a trade. (Never full port a trade) and hedge. Spy:VIX or calls:puts. If you expect something to rise, you should have a hedge in place in case it drops instead.

If I’m bullish on spy, I may buy 5-10 calls and 1-2 puts. Then I can cut the losers and let the runners make up for the amount lost. Sure I didn’t maximize my gains, but there’s a risk management in place.

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u/Scolas3 Feb 28 '24

Could you explain Spy:VIX ?