they are over-regulating cryptos that don’t need over-regulated.
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Even before Covid, I held the belief that government in this country would eventually evolve to the point where most things are decided upon and governed at the state level. We are starting to see this happening already.
With regard to cryptocurrency, I would not be surprised if it was eventually treated in the same way as recreational marijuana, where states adopt their own laws regarding how to regulate it.
The issue then becomes figuring out how to balance state law with federal law. In the case of marijuana, banks were resistant to conduct business with companies associated with it because although it was legal at the state level to do so, they still had compliance issues imposed by federal law.
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That’s been the norm for past 4-5 years. Death by 1000 cuts. Regulators have increasingly choked off exchanges to US residents, banned certain coins/tokens, etc.
Out of the very large pie that makes up the crypto universe, US residents are only allowed to participate in a very small crumb of offerings.
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Yep. They gotta protect us from becoming wealthy.
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Yeah that’s a correct way 
risk should be based on. let’s call it authentic account (dd) and the other funded account, even though they are the same, just different in % number of.
It would be a good habit to state risk in dd authentic acc to stay true and honest in risk management imho 
I am so new in this forex trading, coming from sports 
betting world so please advised if I’m misinformed.
I don’t even have a good trading strategy but having blown up many sports bet accounts, i try to learn risk management as much as I can to start out.
By looking at prop firm vs personal account, one thing prop firm has advantage is 0 risk vs initial investment (iv). However, we could make personal account just as 0 risk similar to prop in comparison. How?
The trick is to get our iv back when say funded acc blown off which by then we don’t lose anything for both accounts. our dd for prop is our iv for personal
So, we have to find an equilibrium point. This is a point where prop firm has no value over personal and vice versa. if it falls below this point, then favor prop. Above favor personal
let’s take mff 10k funded as example with 85% payout, 1200 dd
Our equilibrium point is at 8k profit with both prop and personal trading at no risk.
Say if you make it to 12k overall profit, personal acc has $600 more value than prop acc, and vice versa, if it falls to 4k profit , prop has $600 more value than personal
Since each firm has different payout, simple formula would be: iv (which is max dd) / payout fee%
1200/0.15 = 8k which equates to 666% return for authentic acc or personal or 80% funded acc
8k/1200 x 100 = 666%, 8k/10k x 100 = 80%
So, what’s value of return if we maintain above the equilibrium point in favor of personal acc is just a matter of calculating % increase in account times iv (dd)
Ex: from 8k to 12k in profit. that’s 50% increase
12k-8k=4k, —> 4k/8k=0.5 x 1200= $600 in favor of personal acc more in our bank if we were to withdraw, having both accounts trading at no risk similarly in comparison. And the more account grows, the value of personal acc grows over prop indefinitely 8k----> infinity, while prop only has value over personal of only profit from 0-8k in our example
So if you are great traders out there that can maintain profits above the equil point, then it would be a good idea to keep on trading personal accc , don’t abandon them and go all in for prop firm.
I am not good at math, so please someone with great skills can double check the numbers
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Welcome to the community!
That’s quite the deep dive into the analysis. The sentence I quoted say it all. Great traders would have no need for a prop firm. However those chaps are far and few between.
There’s also the school of thought that if your a “pretty good” trader, you can use prop firms to fund your trading venture. Rather then saving and risking your own.
Im maxed out on FTMO and MFF. My ROI as a result is insanely profitable.
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My withdrawals from Coinexx within 4/5hrs (nice)
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’ve been trading with FTMO for about 15-16 months and MFF about 5. Great point where risk should be based on allowable DD. This is why I prefer the challenge models vs. the scaling models where the allowable DD is equal to the fee you pay. With FTMO, you pay aprox $1250-1300 for $20K in DD, MFF is $979 for $24K in DD. To put that fee in a personal account you need to increase it 20 fold before you are even on a level playing field in comparing personal vs. prop.
The other HUGE advantage is you have none of your own money at risk, black swan, broker goes bust, etc. you lose entire account you may have worked years to build up, with prop, pay the fee again and start over. Lose 1K vs 100K. I view the 10-15% I give up in a profit split as an insurance premium to never have any of my own money at risk. Being maxed at FTMO and MFF puts you in control of 1 million, or the equivalent of 100-120K of DD, after factoring in the split, let’s say 80-90K account. You start with $1k, fee is refunded and you simply reinvest into future challenges until you are maxed. This can be done in 6-9 months, cryptosurf passes these things in less than a week. Much quicker than grinding a 1K personal account up to 80-90K.
Being in the US, risk of a personal account is even greater. All of us here refuse to trade with the horrible offerings they have limited us to in the US. As reliable and trusted as some of our offshore brokers are, that rug can be pulled overnight.
Just my thoughts on risk mitigation, I used to divide my capital into 5 different offshore brokers. I just sleep much better at night with my current situation with FTMO and MFF.
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Bitcoin briefly crashed 87% to about $8,000 on Binance’s US crypto-trading platform
Discussions around the drop trended on Twitter, with crypto traders posting photos of Binance US’s bitcoin candlestick chart, a graph that tracks patterns in price movements, and calling it a scam.
The account @Crypto_Chase, which has more than 55,000 followers, said: “Well done Binance US.” The account added that Americans were forced to use poor exchanges where they “can get completely scammed on unreasonably thin books.”
Bitcoin has been trading around record highs this week on investor hype regarding regulator approval for the first bitcoin-linked exchange-traded fund. On Wednesday, the cryptocurrency hit an intraday peak of $66,976.
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Yup, total crapshow. Main Binance exchange on the left vs Crappy one Americans are forced to use on the right.
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But don’t worry, very soon they will “mandate” every aspect of our lives. Better get out before they tell us we cannot leave.
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Those are not proprietary trading firms. Somehow the retail crowd labeled them as such and it caught on. Now these companies are claiming the title some of them still do not.
Proprietary trading firms have a robust structure and offer resources and trading environments no online company can.
Real proprietary trading firms are registered with the proper regulatory body in their jurisdiction.
Depending how they are structured all the traders need to be licensed and registered or a number of principles at the least.
The feeds are not live they are demo quotes.This is a paramount aspect of professional trading.
These companies are merely on-line gambling websites and have more to do with following their stringent rules than trading.
US brokers will not partner with these companies.
A professional trader does not need online gimmicks and social media outlets to sell or promote. I’m sure some like the interaction, but it would only be a distraction for me.
I’m sure there are people that can make money with them. But you need to know what you’re really dealing with and it may even benefit you.
Not saying that I agree with everything that you just said, but you are stating the obvious to a group of people that know clearly well what they are dealing with, as well as the potential risk-benefits associated with them. The rest is just not important.
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I see, so the retail crowd labeled them as such, then they caved…and claimed such title? 
Couldn’t have said it any better.
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Thanks, actually credit goes to you sir and wmwmw. 
as for the reason to keep personal account, the return just outclassed the risk by a wide margin. In another word, We are making double profit at the expense of fixed dd ( initial investment iv).
what margin? An increase 117% of profit with a fixed risk that can be recovered
ex: mff, dd 1200
at profit 8k: prop=6.8k ; prop + personal = 14.8k in bank, by now we have already recovered dd long ago by gradually withdrawn. that’s an increased 117% withdrawal every time had we kept personal acc.
as long as we recovered iv, we are off the hook and enjoy the double profit. So the time we are vulnerable only from the moment personal acc opens to dd amount. In reality actual practice, we can shrink that time by withdrawing gradually as we’re making profit. So as time goes by, profit doubles and risk reduces and to 0, we are off.
so the trick is withdrawn frequently and as you said spread among brokers
all that said assuming we are traders with steady return.
and vice versa, if I’m a trader with a steady return 
( which I’m not), and know can pass the prop test, I will take it in a heartbeat and enjoy the double profit, keeping both accounts. In essence, we are actually our own prop firm on top of our prop acc
if i have multiple prop accounts, then i would tether personal acc with each prop account to maximize profits. By the numbers , they are hard to ignore . We are enjoying both sides of the world. If i plan to retire in 10 years, it could shrink it in half
on the same token from a prop perspective, if they tethered live to our account, as long as they collected fee matching their iv, or dd, they are off the hook and enjoy both hands 
of profit in fees and our trading at no cost even when the acc blown off.
in practice as the prop acc gets bigger, human psychological will set in because dd is large, but it doesn’t have to be 1:1 ratio, it could be less or more depending on risk tolerance
obviously nobody has to keep personal acc or go for prop firm if we are happy with our current situation, but the benefits are there to be taken
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I’m not looking for your agreement. The post wasn’t for you. It’s for the person that knows the unadulterated and seeks perfection.
If unable to trade real money live then what else can you do. But calling yourself a trader at a “propshop” that is not.
There’s real advantages to trading live that you people just don’t pick up. So it’s understandable you need to resort to that.
If hitting buy and sell on those websites is your thing, there’s nothing wrong. You can’t call it trading and you definitely can’t take that title. These websites capitalize off dreamers.
You can’t say it’s a money issue. A good trader is able to take calculated risk and reap a hundred percent a week - at will, not by accident.The number changes as the account gets into serious numbers, but the returns don’t diminish and rise in tandem. It’s not compounding, that’s another amateur misconception.
There’s a freedom being a real trader and not rely on anyone else.
You must be confused.
No one is here to cater to pretentious pricks and their expectations.
You’re offended to the point of profanity.
It’s easy on the internet isn’t it.
No one needs anything from you.
What does this reveal about yourself.
-You are sharing your ideas in a public forum and making generalized comments that anyone here is free to respond to.
As far as everything else that you say, do you even listen to yourself? You are a clown.
Probably for the best that you take yourself so seriously, because no one here is sure going to.
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“reap a hundred percent a week”
That means 1600% a month.
Did you really mean that?
Or you meant sometimes you can double your account in a week?
But consistently making 16 times a month is another story.
As a trader, only what you can consitently make matters.
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