Hey guys,
An interesting math, I was told in FF.
A 100k prop account offers 5k daily drawdown, which is the effective balance of 100k prop account.
Open a 500 $ real money account.
And open a 5k re settable demo account with a mt4/5 broker.
Re settable means, one must have 5k balance only every day, If not possible, open 5k demo account every 5 days
Trade only in 5k demo account which will be master account.
In a 5k account, max lot size to be traded is 1 standard lot in a day
Loosing 5k demo account with 1 standard lot is near to impossible. The price unlikely to go against you 500 pips !
Use day trading strategy. Use London open to take trade.
Target is 20 pips or 200 $ in a 5k demo account.
Situation A :
When you copy the trade to 100k prop account, the profit earned is approx 200 $ x 125 days = 25,000 $
Situation B :
When you copy the trades into 500 $ account, the cumulative profit earned is 40 k in 125 days
Advantages and drawbacks we know in Prop account and Real money broker.
The profit earned can be with drawn without issues from a reputed regulated broker from real money account. But once in quarterly
With a prop account, you loose approximately 1 to 1.5 months time in securing funded account and withdrawing profits are difficult especially from a non reputed prop provider.
I am planning to open a 500 $ real money account with OANDA or Tradersway to make life more easier.
I could not attach my work sheet as it is different format not excel
Positive and negative comments are welcome
I am continuing anyway with prop funded accounts/ challenge accounts , but will copy trade from 5k demo account in order to manage risk effectively
An interesting math, I was told in FF.
A 100k prop account offers 5k daily drawdown, which is the effective balance of 100k prop account.
Open a 500 $ real money account.
And open a 5k re settable demo account with a mt4/5 broker.
Re settable means, one must have 5k balance only every day, If not possible, open 5k demo account every 5 days
Trade only in 5k demo account which will be master account.
In a 5k account, max lot size to be traded is 1 standard lot in a day
Loosing 5k demo account with 1 standard lot is near to impossible. The price unlikely to go against you 500 pips !
Use day trading strategy. Use London open to take trade.
Target is 20 pips or 200 $ in a 5k demo account.
Situation A :
When you copy the trade to 100k prop account, the profit earned is approx 200 $ x 125 days = 25,000 $
Situation B :
When you copy the trades into 500 $ account, the cumulative profit earned is 40 k in 125 days
Advantages and drawbacks we know in Prop account and Real money broker.
The profit earned can be with drawn without issues from a reputed regulated broker from real money account. But once in quarterly
With a prop account, you loose approximately 1 to 1.5 months time in securing funded account and withdrawing profits are difficult especially from a non reputed prop provider.
I am planning to open a 500 $ real money account with OANDA or Tradersway to make life more easier.
I could not attach my work sheet as it is different format not excel
Positive and negative comments are welcome
I am continuing anyway with prop funded accounts/ challenge accounts , but will copy trade from 5k demo account in order to manage risk effectively
Intraday only.
2
7
protection.
, at aprox. 30% tax your tax bill: 48K. So although you made money they ruin you, someone trading options had a 90K profit last year, but got a tax bill of around 320K.H e went to court against the "Finanzamt", cause the law is unconstitutional, and guess what Finanzamt won the case, now the poor soul appealed to the Supreme Court. He will probably win, and the hope is that he makes a case to change the law. But it could take years.
