64% winrate, but I failed my prop challenge
passing propfirms is next to impossible
you need a robot (for consistency) and even then it's really hard
some robots have YEARS in drawdown
how do you think propfirms make their money ? with unreachable conditions
passing propfirms is next to impossible
you need a robot (for consistency) and even then it's really hard...
how do you think propfirms make their money ? with unreachable conditions
Yes, there are "proprietary trading firms" and then there are "prop firms."
A real proprietary trading firm has an actual brick and mortar office or offices to which traders can physically commute, or traders can work remotely. In this scenario, traders and algorithmic programmers work together as a team, and capital matching is customized/negotiated based on the market/instrument(s) that a trader is trading. While real exchange based stocks, futures, and options markets are generally supported, OTC markets such as FX/CFD's are generally omitted. A prospective member walks in with at least 5 digits of USD in capital, and begins the application process. A substantial part of trader capital goes toward exchange and multi-market platform subscription fees. In the U.S., stocks and/or options trading requires a Series 7 lLcense─the firm will sponsor the trader for licensing exam purposes. Futures can similarly obtain a Series 3 License, but it is not required. There are generally no firm imposed "rules" governing the strategies deployed by individual traders. It is basically understood that no one is going to walk in the door with that kind of money without a profitable strategy.
In contrast thereto, a prop firm is a more recent "innovation." Here, there is a "gaming" application process. Generally, there is nothing but a website. A prospective trader is required to first pay a "challenge fee" and even then, that trader is not a member─the trader must navigate a plethora of rigidly enforced rules such as 5% daily drawdown, 10% total drawdown, etc. The overwhelming majority of the prop firms only support OTC markets such as FX and CFD's. That means that the prop firm must partner with a specific OTC broker-dealer, as there is no centralized exchange for OTC markets. There is little to no equality in price discovery, trade execution priority, nor access to real volume in OTC markets. In this scenario, the broker-dealer operating behind the scenes is the sole entity that decides which price a trader gets and when. What does the broker-dealer get out of that arrangement? Extra cannon fodder/fish food liquidity in its own off-exchange liquidity pool.
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What if you trade at the wrong time?
So, I was trying to pass my first prop-firm challenge.
My trading system was actually pretty decent giving me 64% winrate with RR 1/3.
But I lost my challenge. I didn't know why because my live broker account gave me +9.13% of profit monthly.
Most of my trades were on Tuesday (6 trades), Thursday (3) and Friday(2). (that's the thing).
SO... I HAD THIS PROBLEM ALL THE TIME IN MY TRADING HISTORY.
My trading strategy before prop-challege had 27 trades opened on Tuesday with -6% total result. (only 28% winrate). For me it was like: Why does it even matter? The market had right conditions to open a trade. I still have no answer, but I just know that when I don't open trades on Tuesday, my results are better. I failed the challenge but my own account gave like +11% of profit in October.
Anyone else notice specific days are just cursed for them?