I’m trying to qualify for a prop firm (which I will not name here). I’ve been trading forex for almost 2 years and have blown up several accounts. I’ve gone through the same cycle over and over again, which is making 5-50% profit in a day for several days and then losing 30-70% of the capital in a single day. I kept getting told by people that I was risking way too much but was too stubborn to listen. I wanted to get rich quick through compounding gains, and I thought very highly of myself and believed I could find ways to make huge profits everyday consistently.
Now I’m tired of repeating the same cycle, and on the suggestion of a friend signed up for a prop trading firm evaluation program where essentially I paid them some amount of money and the gave me a $10K account which I have to trade with very strict loss limits and max position limits compared to what I was used to. If I lose 4% of the account it gets closed, if I gain 6% in profits I get a payout and the capital is increased to $40K. Thereafter, they double the capital every time the new capital makes 10% profit, and the profit sharing is 50/50.
I was quite skeptical at first, but hey I’ve already blown away so much money I’m willing to try anything. I had some problems adjusting the first week but after watching lots of videos and reading books and articles on trading psychology and risk management I’ve noticed my performance improving stats wise, although the profit is definitely much smaller than what I’m used to. On the other hand, the account is hopefully far from getting blown up.
Here are my stats from metatrader 4 for the past two weeks.
I keep writing down paper journals whenever I’m in the mood but then get lazy whenever I hit a bad patch. I’ve started this journal to record my progress and be able to better analyze what I’m doing. Feedback, both positive and negative, is very welcome. I’d like to see how people think of what I’m doing.
Essentially I do one of three things.
System A. I look at the daily chart and determine my bias. Then I look at 1H charts for intraday consolidation and entry areas/some kind of rejection signal and the 15m chart to enter. Typically these will be rejection candles with wicks. The entry areas should be near some kind of key zone, i.e. intraday supply/demand zones, previous days’ highs/lows/closing price, pivot points, Volume Point of Control (VPOC), Camarilla Pivots S3/R3. Some confluence among key levels leads to higher conviction. I will enter double the size I want in 4 tranches (i.e. 4 entries of 0.02 lot) as the price consolidates, with a tight 1/4 Average Daily Range stop, then exit half the position at the other end of the consolidation, hoping for a pullback where I will exit the other 1/4 or perhaps the remaining 1/2 if it does not develop into a reversal.
System B. Look for clear ranges on the 1H that have developed for several hours. If price just came from an intraday consolidation at key levels and broke out then formed another consolidation, or some kind of M top/W bottom pattern, I will take a position at one end of the range in the direction of the previous breakout. I view this as a consolidation/continuation pattern.
System C. Wait for major news and open 4 charts related to the currency (i.e. EUR GDP news, open EURUSD EURJPY EURAUD EURCAD, depending on what looks to me like it has some kind of sideways consolidation happening), and if 2 or 3 of the pairs has started moving in one direction but one pair has not moved yet take a trade in the direction the other pairs have moved.
I am continuing to refine my process, and would be glad to answer any questions people have regarding the logic of those 3 systems. Also, I trade about 6-14 hours a day, with an average trade length of about 3 hours per trade.
Looking forward to your comments. Thank you!