The Real Reason I've Withdrawn $390K
43sReveals a controversial profit strategy that challenges common trading advice, sparking curiosity and debate.
▶ Play ClipAI Summary
The video discusses risk management strategies for prop firm trading challenges, emphasizing that funding accounts should not be treated as personal capital. The creator shares specific risk percentages for each phase—phase one, phase two, and funded accounts—to maximize payouts while minimizing risk.
Chapters
[00:02]
Funding accounts are not personal capital
The creator stresses that funding accounts are not personal capital, so risking 0.5-1% is unnecessary. A $10,000 account costs only $50-60, so traders can afford to risk more.
[00:16]
Risk more in phase one
In phase one, where the target is around 8-10%, the creator recommends risking 1.5-2% per trade to reach the goal faster.
[00:42]
Reduce risk in phase two
In phase two, the target is only 5%, so the creator advises risking 1-1.5% at most, as you are close to getting funded.
[00:59]
Minimize risk in funded accounts
Once funded, risk should drop to 0.5-1% at most, because all profits are withdrawable and you want to protect the account.
The key to successful prop firm trading is adjusting risk based on the phase: higher risk in phase one, moderate in phase two, and low in funded accounts to protect withdrawable profits.
Study Flashcards (5)
Why should you not risk 0.5-1% in phase one?
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Why should you not risk 0.5-1% in phase one?
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Because funding accounts are not personal capital; a $10,000 account costs only $50-60, so you can afford to risk more.
00:02
What risk percentage is recommended for phase one?
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What risk percentage is recommended for phase one?
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1.5% to 2% per trade.
00:42
What risk percentage is recommended for phase two?
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What risk percentage is recommended for phase two?
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1% to 1.5% at most.
00:42
What risk percentage is recommended for funded accounts?
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What risk percentage is recommended for funded accounts?
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0.5% to 1% at most.
01:14
Why reduce risk in phase two?
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Why reduce risk in phase two?
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Because you are already close to the goal of funding the account, and the target is only 5%.
00:59
💡 Key Takeaways
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Funding accounts are not personal capital
This reframes risk management for prop trading, encouraging higher risk in challenges.
00:02
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Risk scaling by phase
Provides concrete risk percentages for each phase, a practical technique for traders.
00:42Full Transcript
[00:02] in payouts from funding accounts, and this is the reason. So pay attention to what I'm about to tell you. What you need to understand is that funding accounts are not personal capital. Anyone who tells you that you have to risk
[00:16] who tells you that you have to risk between 0.5% and 1% in your challenge, in your phase one, in your phase two, is wrong. Funding accounts are not treated as personal capital. You're not risking your life savings or
[00:29] your life money, nor are you going into maximum debt; a 10,000 account costs you 50 or 60 these days. Therefore, what you need to do is squeeze a little more out of phase one and phase two, especially phase one, because they're asking for around
[00:42] 8% and 10%. Personally, what I do is risk between 1.5% and 2% per trade. In phase two, I would tell you to risk a little less, between 1% and 1.5% at most. Because? Because
[00:59] you're already very close to the goal of funding that account. They only ask for 5% in that second phase. And once it's funded, that's when the risk goes down, mate. Because? Because all the money you make is withdrawable into your pocket.
[01:14] In the funded phase, where you have the funded account, I would say 0.5% and funded account, I would say 0.5% and 1% at most. This is the key. Yeah.
