Funded Futures Journey

Hi everyone,

Babypips was the first place I learnt anything about the world of trading 8 years ago and now I’m back to hopefully complete my long learning journey!

I’ve traded on and off for those 8 years and the past year have been focused on the futures market. I absolutely love the potential prop firms have given us as traders to trade big size relatively quickly and have been really inspired seeing some guys on YouTube get pretty big payouts compared to what guys in stocks are able to achieve. I’m not so much chasing the money, more see the potential being so much large in the prop space that it makes so much sense to move there.

The biggest lessons I have learnt in my journey are as follows:

  1. You need a way bigger edge than we think to succeed.

It sounds easy: Have a win % of around 50% and a R:R of 1:2, but the EV per trade with that is only 0.5 and that is the smallest theoretical edge you want as a trader. Given the actual edge is always a little lower than our estimates, you are already starting out likely closer to an EV 0.4/trade and to be profitable with that kind of edge you need to execute your edge at about a 90% accuracy to make an actual of 0.25R/trade. the issue with this is that the variance at this tiny return will be pretty huge and this is when we are most likely to make mistakes.

  1. Psychology is important, but it is wrapped up in performance.

Performance is what makes a trader. Performance is split into strategy knowledge and psychology and
both are critical to success. You need to know your edge inside out, every little detail of it, how it changes
in different markets, when you should “bend some rules” to catch a move in high edge circumstances and when to add a layer of rules to make sure you are avoiding taking average setups in low edge scenarios. On the psychology side, you need to do everything you can to be at your peak performance to stay on top of your “chimp mind”. FOMO, discipline, fear of losing etc, are almost all causes of uncertainty of edge and come out when you mentally slip up a little or when you are not certain on your edge.

  1. One Good Trade is probably the best book you can get

There are so many lessons in here from the firm SMB Capital and every single one can help. Regardless of if you trade stocks, futures, forex etc. The principles and golden nuggets of info are really powerful!

  1. Journaling is pointless unless you use it

Journal trades to find patterns of performance and USE IT! It’s a free resource you can create that will show you where your edge is performing well, where you are executing well and badly.

My current situation is this: I have an edge I have a huge amount of faith in after months of backtesting, forward testing, trading on paper, trading on evals, trading in a live account. I have made adjustments to the edge to perform better in different markets and feel I am now about 75% of the way there to being successful with it. Now the hardest part.

Actually executing at a high level consistently!

So this journal will be that. I’m not sure how often I will post but I will try to do so relatively often! I already record trades in excel and in Evernote, but want to share in a forum to see if any like minded traders want to connect, work together on things and help each other push forward with out goals!

I’ll post my strategy outline in a later post to get any feedback people have!

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So my strategy:

I developed this after watching a video put out by SMB capital where trader Lance Breitstein talks about his journey to becoming profitable. He suggests screenshotting charts every day and finding the easiest opportunity to make money. For me when looking at charts I found that after we enter a support or resistance zone and failed to break, that after reclaiming the 50ema there is a pretty high probability that we get a strong move in the opposite direction to the attempted break. I began testing this and found there was indeed a high win % and that we got pretty big moves about 1/3 times. Here is an example below

This chart is the 800 tick on NQ and the yellow line is the 50ema

There are a few nuances to the strategy that I have developed over the past few months, for example, when we get a clear false break out, I don’t wait for a retest of the 50ema if we get a strong move lower.

I have developed extra rules alongside these nuances which I’ll discuss when trades come up.

I have found that historically over 75% of trades hit TP1 which is set at a 1:1 R:R and about 35% hit TP2 which is set a 1:3 R:R. When TP1 is hit I move my stop to breakeven or close to it if for example I’m long at 18100.5 and want to give it to 18099, or we have a clear level of support jsut below a long entry to risk off. I adjust the stop if we get a move close to TP1, typically about 70%, but depends again on price action.

The total average R:R comes out around 1:1.25 after making adjustments to stops. I am still sifting through data to confirm 100% that having TP2 is profitable or if I should have a different approach, maybe more of a runner where I adjust the stop along with price.

Would love to hear others thoughts!


Had an okay day today. I have developed a really nice feel for when my edge is in play, but a bit hesitant on some of the harder situations where it isn’t an “easy and clear” setup.

I took one trade which I think was spot on but managed it poorly because I felt I was long in a trap so cut it a bit too early for a -10 loss but then my second trade was a really clean winner. I think I got in a bit early and my stop was therefore too tight. It ended up being a total of +30, which is great but I think it should have been more like a +40 trade.

There were a few spots I felt I could take a trade but didn’t pull the trigger out of fear that I wasn’t spot on with my edge. This will probably be a main goal for next week.

Have a great weekend all!