I’m SpongePip and I’m writing this topic to share with you my journey from unprofitable to getting funded by a prop trading firm. If you want to know more about me and my trading journey, you can read My Introduction.
Why do I want to join a prop trading firm?
As I’ve said in my introduction topic, I don’t have a job, and I don’t plan to get one until I finish my studies, so I can’t really add capital to a small account and grow it this way. Getting funded is also the easiest way to start dealing with some serious amounts of money as a beginner.
My Trading System (Work in Progress)
I built a temporary trading system which I’m currently backtesting. The system is based on price action and I only trade a couple of candlestick patterns.
I will talk more about this system in another thread as soon as I have the full and final rules.
Last week I also started demo trading this system and so far the results are pretty good. I managed to earn 8% in the last 4 trading days. You can follow My Demo Account on Myfxbook.
I’m risking 1% per trade (sometimes a little less because I opened the demo account with only $ 1000 and I can’t be 100% accurate with the volume of each position since the stop loss size is usually quite big… my bad).
Prop Trading Firms
In my introduction topic I said that “If I’m profitable doing demo trading, in January I will open a small live trading account and start tracking my trading results, hoping they get better and better with time. Eventually, I will get to a point where I can apply for a prop trading firm.”
Well, meanwhile I discovered the existence of remote proprietary trading firms. They will verify you are able to trade and make profits, and only then they will give you a funded live account. You’ll have to pay a small fee in order to apply for them and your net profits will get split between you and the firm.
That’s a game-changer for my journey because it means that I no longer have to build a trading history on a small live account and I will use that money to pay the fee and try to get access to more money and more opportunities. Of course, I will make sure I have big probabilities of passing their verification process before applying.
I know that if I go from demo trading straight to real live trading I won’t have the opportunity to test my system and the psychology behind it in a live market environment.
The verification process is done with a demo account and after that, I won’t have to trade with my own money and I think that’s a psychological advantage.
My only risk would be the fee I pay and I’m willing to lose it.
- I will continue backtesting and demo trading the strategy until I get to a set of final and profitable rules for my system that I would be confident enough to trade, even with my own money.
- When step one is done I will apply for a remote prop trading firm. I don’t want to go too fast, neither too slow. When it’s the right time and I’m feeling confident about everything, I will do it.
I will update this thread once a week or whenever there’s something new regarding this journey.
I’d love to read and reply to your comments.
Stay in touch!