Many Who Fail Their Prop Evaluation Challenges may not know this !!
Ep2; The Basic Ultimatum
A Thread πͺ‘π§΅
Ep2; The Basic Ultimatum
A Thread πͺ‘π§΅
Basics are one of the few things lots of persons are impatient to master before beginning a new skill or a heard money well.
It'd come as a shock if I told you that most persons with fx Evaluation accounts today do not even know what Spreads areπ
Seems they love to see pepperπ
It'd come as a shock if I told you that most persons with fx Evaluation accounts today do not even know what Spreads areπ
Seems they love to see pepperπ
In this Basic Ultimatum Thread, I'd like to go over a few basic things you should master before attempting to take a prop Challenge
1) There are different sessions in the Forex Market, by sessions I mean the primary trading hour or time and locale for a given asset
1) There are different sessions in the Forex Market, by sessions I mean the primary trading hour or time and locale for a given asset
Regular trading in the US stocks has a clearly defined trading session and so do the others
The working or open hours of the Newyork stock exchange also marks the most active period for trading withing a 24hr time period
The 3 major trading sessions are; Asian, London & Newyork
The working or open hours of the Newyork stock exchange also marks the most active period for trading withing a 24hr time period
The 3 major trading sessions are; Asian, London & Newyork
Trading sessions in Nigerian time (GMT+1)
Asian Session > 12:00 am to 9:00 am
London Session > 8:00 am to 5:00 pm
NewYork Session > 2:00pm to 11:00pm
When 2 sessions overlap higher volumes are generated because participants from both time zones are placing buy/sell orders
Asian Session > 12:00 am to 9:00 am
London Session > 8:00 am to 5:00 pm
NewYork Session > 2:00pm to 11:00pm
When 2 sessions overlap higher volumes are generated because participants from both time zones are placing buy/sell orders
What a time to be proudly a Nigerian.
Some other traders would need to stay awake all night to be able to catch trades from either the London or new york Session but Nigerians get the most active sessions traded in these different time zones during their DAY
Some other traders would need to stay awake all night to be able to catch trades from either the London or new york Session but Nigerians get the most active sessions traded in these different time zones during their DAY
Spreads !!
What are Spreads?
Spread is simply the difference between the bid & ask price on any currency pair
Today we have firms whose partnered broker do not charge fees for opening trades but Spreads are high because they make back those fees from there and vice versa
What are Spreads?
Spread is simply the difference between the bid & ask price on any currency pair
Today we have firms whose partnered broker do not charge fees for opening trades but Spreads are high because they make back those fees from there and vice versa
Spreads have been a common enemy & friend to forex traders as it has both its upsides & downsides.
β’It is important to note that during market rollovers/close Spreads can go crazily high and may have effect on your trades or orders executed at that time
Here's my experience π
β’It is important to note that during market rollovers/close Spreads can go crazily high and may have effect on your trades or orders executed at that time
Here's my experience π
In this tweet, it could be seen that my trades filled but didn't read in profit
This was because it happened to have triggered during market rollover late 11pm one night
This was because it happened to have triggered during market rollover late 11pm one night
What Is Leverage ??
Leverage simply means buying power
It allows traders to control higher position sizes they would not normally have been able to control withdraw their own money/capital
Meanwhile you can read up lots, pips & other basics from Forextrading.ng π―π
Leverage simply means buying power
It allows traders to control higher position sizes they would not normally have been able to control withdraw their own money/capital
Meanwhile you can read up lots, pips & other basics from Forextrading.ng π―π
PROP FIRMS TERMS & EXPLANATION ?
Let's go
Trading days - The number of days you're required to have traded before passing your challenge account , let's say a firm has a minimum trading day rule of 5 days, it simply means even if you get to the profit target in a day
Let's go
Trading days - The number of days you're required to have traded before passing your challenge account , let's say a firm has a minimum trading day rule of 5 days, it simply means even if you get to the profit target in a day
You still haven't passed your challenge yet till you have traded for complete 5 days and stayed about the profit target successfully
Time Limit - The maximum amount of time given to attempt passing your evaluation phase, if this time elapses and you still haven't crossed the
Time Limit - The maximum amount of time given to attempt passing your evaluation phase, if this time elapses and you still haven't crossed the
Profit targets, you'd lose the account
This is also one of the rules dreaded by most prop traders, hence why beautiful class-leading firms today like @FundedNext have provisions for a No-Time limit rule evaluation account
EA's (Expert Advisors) - also known as trading bots
This is also one of the rules dreaded by most prop traders, hence why beautiful class-leading firms today like @FundedNext have provisions for a No-Time limit rule evaluation account
EA's (Expert Advisors) - also known as trading bots
They're programmed or pieces of codes which when uploaded into the MetaTrader 4 or 5 enable you to engage in forex trading via automation
Profit Targets- are simply % growth your evaluation account is supposed to meet before its considered passed βοΈ it is calculated in $$ or %
Profit Targets- are simply % growth your evaluation account is supposed to meet before its considered passed βοΈ it is calculated in $$ or %
Holding Restrictions - This means you'd not be allowed to hold Trades either overnight or over the weekend
News Restrictions- Whenever there's a high impact news, your open trades would be closed automatically before then
This can be Extreemly helpful & also annoying π π
News Restrictions- Whenever there's a high impact news, your open trades would be closed automatically before then
This can be Extreemly helpful & also annoying π π
Most persons love to trade during news days because of the volatility it brings
And volatility eases transfer of wealth
Withdrawal days - States the number of times in a month a live funded Trader would be allowed to withdraw his profit share/split
And volatility eases transfer of wealth
Withdrawal days - States the number of times in a month a live funded Trader would be allowed to withdraw his profit share/split
Profit split (70/30) - simply means that as a live funded Trader, whatever Profit you make off the account 70% belongs to you and 30% belongs to the firm
Most firms go higher than these today tho maybe to drive starting publicity but this is considered the standard or normale
Most firms go higher than these today tho maybe to drive starting publicity but this is considered the standard or normale
Equity - Is the current floating state amount left of your capital wether in profit or in loss during an open trade
Balance - is what's left after a trade is closed or before it is opened
Drawdown - This is the lowest value of the account allowed whilst trading
Balance - is what's left after a trade is closed or before it is opened
Drawdown - This is the lowest value of the account allowed whilst trading
I'd be talking about just 2 types of Drawdown in this Thread
Equity-based & Balance-Based Drawdown
Equity based Drawdown is what's considered to be daylight robbery by few firms in today's understanding, this form of Drawdown is tricky cuz it's being calc from floating PnL
Equity-based & Balance-Based Drawdown
Equity based Drawdown is what's considered to be daylight robbery by few firms in today's understanding, this form of Drawdown is tricky cuz it's being calc from floating PnL
Let's say your Max Drawdown is $300 and you're on a profit of +$600 on your ongoing open trade & then suddenly there's a little reversal in price which amounted to a regression in floating profit to about +$250
On an equity based DD account, your acc would be breached
On an equity based DD account, your acc would be breached
Why ? This is because the reversal caused a decline in price more than the required amount the equity is meant to impact at any given time.
Many firms today use equity based Drawdown today and most traders are in aware of it
@Starr_gael even tweeted out how she was a victim
Many firms today use equity based Drawdown today and most traders are in aware of it
@Starr_gael even tweeted out how she was a victim
To this malicious practice by some firms today and many many of my friends have also lost their accounts because of this as well
Balance Based Drawdown - is the DD only calculated from your final balance once your open trades have been closed & not from the floating equity
Balance Based Drawdown - is the DD only calculated from your final balance once your open trades have been closed & not from the floating equity
@JeremyofCrypto would be threading on everything Drawdown more intensively than I did when he does I'd retweet for y'all to learn more
Swaps - is an agreement or a Derivative contract between 2 parties for a financial exchange so that they can exchange cash flow or liability
Swaps - is an agreement or a Derivative contract between 2 parties for a financial exchange so that they can exchange cash flow or liability
When you hold trades overnight or over the weekends you're charged a certain amount in fee called swaps to keep your position opened for you
That'd be all for now
Tho the list is inexhaustible, myself I'm exhausted π π
If you did appreciate this thread
Do well to follow meβ€οΈ
That'd be all for now
Tho the list is inexhaustible, myself I'm exhausted π π
If you did appreciate this thread
Do well to follow meβ€οΈ
see you at Ep3 (The Ultimate Prop Risk Mgt )
That one would be a banger cuz I'm literally going to spill lots of secrets on it so do well to follow @Techriztm
And below are good Traders with great contents. Follow
@Alh_Myke1 @DipoAdepoju @Starr_gael @Kelvintalent_ @Vee_forex
That one would be a banger cuz I'm literally going to spill lots of secrets on it so do well to follow @Techriztm
And below are good Traders with great contents. Follow
@Alh_Myke1 @DipoAdepoju @Starr_gael @Kelvintalent_ @Vee_forex
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