I Lost $2K on a Funded Account – Here's My Comeback
43sThe dramatic loss and recovery narrative hooks viewers, especially those interested in prop trading.
▶ Play ClipAI Summary
This video is a personal trading recap from a funded account holder who experienced a significant drawdown and then recovered using a specific scalping strategy. The creator explains how they got into drawdown by using an automated bot, then switched to manual trading based on RSI divergences, Fibonacci retracements, and Tokyo range breakouts. They also discuss their risk management approach and the results of a 30-day trading challenge.
[00:03]
Account Drawdown Recap
The account was down almost $2,000 in drawdown. The creator explains the journey from profit to drawdown and the recovery process.
[00:17]
Funded Account Setup
The creator has a Fund Pro instant funded account, which allows direct trading without a challenge phase.
[00:30]
Automation Bot Failure
A trading bot was placed on full risk and initially performed well, but then caused a drawdown from $500 profit down to $98,558, prompting the creator to turn it off.
[01:01]
Switch to Manual Strategy
The creator switched to manual trading using RSI divergences, Fibonacci retracements, and Tokyo range breakout trading.
[01:16]
30-Day Challenge
The 30-day challenge was started, with daily trades shared on Telegram. The strategy involves drawing a box around the Tokyo session and trading breakouts.
[01:46]
Fibonacci Gold Zone
When the bias is bearish, the creator looks for pullbacks into the Fibonacci gold zone (drawn from top to bottom of the move) to enter trades.
[02:14]
RSI Divergence as Exit
RSI divergence is used as an exit signal. If price makes a lower low but RSI stays in a range, it signals the end of the trend and the trade is closed.
[02:43]
Recovery and Risk Management
After vacation, the account was brought back to $1,029 in profit. The creator uses a low risk-to-reward ratio of 1:1.5, risking $200 to make $300.
[03:12]
Payout Plans
The account has surpassed the cost of the funded account. The creator plans to use the first payout for a family vacation after winter.
[03:40]
Promotion and Challenge Results
Promotes Fund Pro with a $1,000 funded account for $1. The 30-day challenge ended with 10% profit, giving new traders confidence.
The creator successfully recovered from a significant drawdown by abandoning an automated bot and returning to a manual scalping strategy based on RSI divergences, Fibonacci retracements, and Tokyo range breakouts. The 30-day challenge ended with a 10% profit, and the creator is now waiting for the first payout.
Mentioned in this Video
💡 Key Takeaways
💡
Automation Bot Failure
Highlights the risk of using automated bots without proper risk management, a common pitfall for traders.
00:30
🔧
Manual Strategy Switch
Demonstrates the importance of adapting and returning to proven strategies when automation fails.
01:01
🔧
RSI Divergence Exit
Provides a clear, actionable exit signal for trend-following strategies.
02:14
⚖️
Low Risk Management
Shows a conservative approach to risk that can help recover from drawdowns.
02:43Full Transcript
[00:03] after being down almost $2,000 in draw down. In this video, I'm going to recap the account, how I got into Draw Down, and what I've been doing since then to position on your funded account where you're in Drawdown, this video is for
[00:17] you. All right, so as you can see, I have a Fund Pro instant funded account. straight into a normal account. Now, I started the account and I was trading and there to get the account warmed up and into profit because when I have an
[00:30] account that is in profit, I'm more likely to feel comfortable and taking the risks that I need to take while day trading. And then I had a automation, a bot running on the side on a different account and it was doing so well. So, I
[00:45] decided to put it on full risk on this account. And for the first few trades, it did all right. And then it went from $500 in profit all the way down to right here. I was at $98,558. That's when I decided to turn off the EA
[01:01] because it wasn't going to get me profit on this account. Put that automation on the back burner and I started doing what I do best and that's RSI divergences, Fibonacci retracements, and Tokyo range breakout trading. This
[01:16] was also the start of the 30-day challenge that I proposed on this channel and have been sharing almost daily trades on my Telegram group. where we draw a box around the Tokyo session. And then on the 5-minute chart,
[01:31] if we get a breakout below, we sell. If we get a breakout above, we buy. And that basically forms our bias for the day. Now, you might notice I have a Fibonacci retracement tool on here, and that is because our bias is now bearish.
[01:46] So, every time we get a pullback, we look for a pullback into a Fibonacci gold zone. So, taking our Fibonacci tool here, drawing from the top of the move to the bottom of the move that broke the previous structure, you can see we
[01:59] retraced to the Fibonacci gold zone and then continued down. Now, currently, we have retraced again to the Fibonacci gold zone and are headed down. I don't in a trade. And basically, what we're looking for when it comes to RSI
[02:14] divergences is our exit point of this strategy. Let's say this continues down and makes another lower low. But looking at the RSI, let's say it comes down to make this lower low, but stays within the 7030 range and then goes up. That's
[02:31] going to be our exit point for this trade where we're no longer interested trade where we're no longer interested in taking shorts because our bias is now null and void because we've gotten that divergence. That's the basic premise.
[02:43] And minus this week right here where I was on vacation, I've been trading almost every single day and I've gotten the account up to $1,029 in profit. Now, I'm not doing 1% risk and 2% reward on this account. I'm
[02:59] and 2% reward on this account. I'm risking like $200 to try to make $300. It's like a one to 1.5 risk-to-reward ratio. So, super low risk. But when I made my first video on this, I told you guys I would give you an update when we
[03:12] had surpassed the cost of the funded account, which we already have done. Now, I just got to wait to hit my consistency rule, get my first payout. And I think what I'm going to do because I went on vacation during this thing is
[03:26] actually use my first payout for a family vacation after the winter's over. good idea. Anyway, if you guys want to get an instant funded account, instead have to go through a one-phase or two-phase challenge, just click the go
[03:40] get straight into it. You don't have to enough money for a challenge, just go to funpro.comtma and you can get a $1,000 funded account
[03:53] challenge for a single dollar. I really appreciate all you guys that engaged yourselves in that 30-day challenge. Everybody did super well. We ended the 30 days at 10% in profit. Really gave a lot of new traders a lot of confidence
[04:07] that they need when trading. Thank you so much for watching. Share this video with a friend and we will see you in the next
