Apr 10, 2023

$niper

Managing Your Risk / Losses

Evaluation Phase 1- Challenge

- The main thing in trading is risk to reward - Do not take anything below 1:2 RR
- ALWAYS risk 1%
- Do not change your risk parameters at all
- You should always be risking the same amount for every trade BECAUSE every trade
you want to take should look identical from the previous one based on your trade entry
model
- You should have the confidence to risk 1% on your trade idea because it matches your
entry checklist

You have 30 days to pass a evaluation phase 1 for a challenge

- 4 weeks in a month
- Let's say you're taking MyForexFunds challenge the profit target for phase 1 is 8%
- Do the math here… that is only 2% PROFIT TARGET PER WEEK
- 2% x 4 = 8% boom passed phase 1
- The reason you're not passing these challenges for the most part is due to your inability
to submit to time
- You're lacking the patience you need to pass these challenges
- This is literally 1 2:1 RR trade in an entire week
- This is the most lackadaisical approach to a challenge

- 10k account - 1% risk = 100$

- 20k account - 1% risk = 200$
- 50k account - 1% risk = 500$
- 100k account - 1% risk = 1000$
- 200k account - 1% risk = 2000$

My rule for losses is 2 losses max in a day and 4 losses in a week

- I do not go over 2% loss risk a day
- 4% max weekly loss on the account
 - Understand this is the power of risk to reward - 1 win or 2 wins could cover a week or
weeks worse of losses, this is why you need to trust your trades and always risk the
same amount per trade
- Do not get discouraged from losses because they are the name of the game, you will
lose trades
- This is the thin though with losses, don't look at them as failures but only see them as
lessons to learn from, this is why your journal is so important to you
- Your journal is your story and life as a trader, your success and hardships in this journey
- If i am losing 5% in a week on my account with risking 1% per trade and every setup is
identical from the previous all matching my entry model, the reason is not my entry
model for losing, it's the TIME or DAY i'm executing or taking the trade

A majority of your losses (depending on the ones w/ adjusted SLs or B/Es) should be
identical amounts

- A way to avoid taking these losses is adjusting your SL and reducing your risk while the
trade runs in your favor
- Personally, I never move my SL to breakeven and will only adjust it if the swing low im
pushing it to is a internal liquidity stop hunt
- I always want my SL placed below/above a stop hunt, these are looked at as protected
swing highs or lows

Evaluation Phase 2- Challenge

- The same rules apply to the phase 2 like it was for phase 1 expect for phase 2 were only
risking 0.5% of the account per trade
- 60 Calendar days to complete Phase 2.
- You have 2 whole months to complete this phase and get funded do not fuck this up
- Your max draw down on the account is also 12%
- You literally have to lose 24 trades in a row with 0.5% risk to lose the challenge

If you lose 24 trades in a row with 0.5% risk and lose that shit you're just a bad trader or
someone traded phase 1 for you no way around it.

- Your biggest problem and issue will be yourself when it comes to these challenges
- You won't want to risk 0.5% you'll wanna do 1% to finish it faster
- You're going to let your ego or emotions get the best of you

- Don't let that shit happen.

- Think like a fucking robot, enter the rules into your break and while the market is active
you become the most disciplined mother fucker alive
 - You become an Ai system that only listens to what it was told to do before being turned
on
- This is when you really prove to yourself that you're disciplined enough to follow a
model, checklist, enter the same trade every time and risk the same amount every time
- Are you ready to be a funded trader? Do you have the patience to become one and are
you disciplined enough to submit to the take it takes to become one?

- 10k account - 0.5% risk = 50$

- 20k account - 0.5% risk = 100$
- 50k account - 0.5% risk = 250$
- 100k account - 0.5% risk = 500$
- 200k account - 0.5% risk = 1000$

- Your profit target for phase 2 is only 5% compared to 8% on phase 1

- 8 calendar weeks to make 5% of your account risking 0.5% per trade
- In this case you can shoot for 1% profit on the account if you're looking to do the same
process as phase 1
- 1% PT per week going for 2:1 RR but you have 8 weeks to complete
- Even more time so less stress on your shoulders
- If you go into drawdown, change nothing about your trading or risk
- This is what will save your account because remember 2 wins or 1 win can save a week
or more of losses

BOOM - You’re now a FUNDED Trader

- This is how i treat my funded accounts

- 100k account is treated like a 50k - i risk 0.5% per trade
- 50k account is treated like a 25k - risking 0.5% per trade

Both accounts get 0.5% risk and only trade them on high probability trading days
- Never trading mondays
- Only tuesday - thursday past releases of high impact news drivers
- Never looking for counter trend moves
- Always taking trades in correspondence to the HTF orderflow

Same rules for losses abide to funded accounts

- 2 trade losses max within a day
- 4 trade losses max within a single week