I have been executing the exact same grid strategy for five years now (1 year in demo and 4 years live) making a 30% return annually. The only problem with this strategy is that I scale in and do not use stops so it requires a lot of capital to manage heavy drawdown periods. This keeps all my capital tied up.
My initial goal is to make $30-40K a year salary.
Right now I am trading with a $10k account. Because my strategy relies heavy on margin and drawdown, this creates all sorts of negative problems. While my account is growing, that is all it will do until I reach the 100K threshold. I can not start taking money out until I hit the $100k mark. Only then i can generate a little salary. This creates a 10 year window of growth but no withdrawals.
Enter the funding programs
But all is still not good. It is going to take me roughly 2 years before I can start withdrawing because of the steep challenge that the funding programs create. You are really only trading with the RISK value not the entire amount like they advertise.
Even though they have this ridiculous ratio of profit target to Risk amount, for me, they are still a better option over the long haul.
Side Note: If you are not familiar, they have swing challenges that allow you to take as long as you like to hit the profit target. Just don’t hit the drawdown mark and you are good. After blowing three 30 day max challenges, I finally found the program for me.
It is the MentFX $400K Swing Challenge
After doing the math to see which account generates 100k first it is a no brainer. The funded program is the ultimate choice for me. Let’s break it down.
My personal account starts at $10K and goes 10 years at 30% annual return. This equals $106K total excluding taxes for the sake of easy math.
My 400k funded account will produce $20K a year. $20K -$5k (25%) for MENTFX, leaves me at $15k a year.
My $400K Challenge target is $40K (10%) so after that 75% of all withdraws are mine. It will take an estimated two years to hit the 40k target. This equals $15K a year for 8 years, which equals $120K.
Now, both make roughly 100K in 10 years but here is the two MAJOR PRO’s that the funded account has over the personal account.
PRO#1) I can start withdrawing after two years. With my personal account I can not withdraw until I hit 100K, if I want it to grow at max capacity. After all, my objective is to withdraw profits, not just make them and keep it in a brokerage account.
PRO#2) My funds are ALWAYS secured. I am only investing $4k. That’s it…ever. I withdraw everything and never worry about a crash.
This creates the ultimate set up for a low risk entry into a very difficult industry.
You can scale this down to just a few hundred bucks to get a super low entry into trading if you like.
Add in automation like I have and you have created yourself a nice little automated cash flow.
This is my MENTFX Dashboard for the 400K challenge and screenshot of the account in mt4.
Stay tuned here I will update periodically.