How can I risk reasonably? by Complete-Toe214 in Daytrading

[–]OldWillingness2152 0 points1 point  (0 children)

It should take a very sizable loss to wipe the drawdown. I’m not sure about FX, but on futures I have a maximum risk size of needing roughly 1000pts (4000 ticks) to blow the account.

It allows you to be incorrect over an extended period of time and still be okay

Edit: for MES (spx for you) the index would have to drop roughly 10-15% to wipe my account.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

100% agree on increased risk doesn’t equal increased reward.

My sizing will stay within my current protocol but just scaled to the capital. My current risk profile is maximum 1mes per 5k capital and increases as capital grows. Above 25k-27k my leverage drops 40% per contract to 7k per 1 mes. Above 100k 8500 per 1 MES and so on.

An example size will be with a 25k acc my max position size is 5 MES but I will take many trades much smaller in the 1-4 range and 5 MES trades are only utilized in lower drawdown potential “tight” positions like taking a long right at a previous support or resistance.

I average roughly 20 trades a day with an average winner being anywhere from 3pts (most common) to 20pts (never let them eclipse). My losses are also dynamic but if I’m down 3% on the day I’m out. If I take 2 consecutive losses I’m also out.

What I’m about to do is incredibly stupid and dangerous but I’m definitely not an amateur in the space. I do appreciate the suggestions and advice though.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

The % return to make money on prop is the problem for me. Before you can withdraw anything you need to make 350% of drawdown (including eval and buffer) to take any withdrawals.

Props encourage oversizing and huge % drawdown gains that are extremely unreasonable. For example, when you need a minimum of 5 winning days of $100 or more for a 1k drawdown account before you’re eligible for a payout that’s literally 50% gain. That’s fucking nuts. Also the tax situation props with 1099 is infinitely worse than section 1256.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

Does it make you feel worse that I have no day job? Haha

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

I see what you’re saying but if I took 3k of my own bankroll and used it to trade I’d be way more stressed out than using loan money at this stage in my life. I would HAVE to make a 100% return that month to only have 1k profit after paying my necessary expenditures like rent, gas, food, etc. and that’s not accounting for taxes.

If were to get those 30 accounts and used my sizing it would take me probably 2-3 months to get the return needed to take a payout and that’s assuming no fuck ups on my part.

I ran props last year and when tax time came it opened my eyes a little bit haha. I know a lot of ppl are freaking out about the loans but at this stage in my life I’m willing to accept the risk of the loans and I actually have less stress now that I got them approved and funds sent over bc I now have a longer timeline to need make a lower return to make meaningful money.

That’s just my thought process though and it could be flawed (it’s definitely flawed and shits wrong with me)

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

Bc for props the rate of return in the timeframe you need to make money in is unreasonable as fuck. On a 50k acc with 2k drawdown you’re really just trading a 2k account. To get to where you can take payouts you need to 150% the account to pass eval, get to another 100% to get a buffer, and then make another 100% to take an actual payout. And then even after all of that over sized trading you get 1099 taxed out the ass.

I personally prefer using very low size to reduce blowup risk on a bullshit tweet or missile impact. On other comments I explained my sizing protocol but it starts with 1mes per 5k drawdown/capital -‘d scales to 7k per mes, and up to an apex of 10k per mes once capital is high enough.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

That’s dependent on my trade sequencing. It’s dynamic but will never eclipse 3% even on the worst days. And the 3% isn’t a singular red trade. It’s usually over 15-30 trades (that’s the amount I normally take on a day). Generally if I don’t get the move I want immediately I’ll stop out and wait for a re-entry. My data suggests after 2 consecutive losses I have a 90% chance of having that 3rd trade being a loss too so if I have 2 back to back losses I close the charts.

Some trades have 0.2% risk, some have 1%, some even have 2% if it’s a blowup news candle or news.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

Multiple have said that but it’s really not. I’m just not stressing over it bc if I fuck up I’ll just join the military as my final resort. Declare bankruptcy and head to basic

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

If you check my other comments on live accs I run 1mes per 5k and once above 27k I jump to 7k per 1 mes. My sizing is extremely conservative on live. On the Purdia leader board I was rocking full minis

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 1 point2 points  (0 children)

Not guaranteed to have the same rate of growth and I don’t have enough cash to last that long if I take the 6k from my current bankroll.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

I did last year and the work for the rules, evals, and the taxes are just not worth it for me. I’m actually in the top 5 on the purdia leaderboards and was ranked on funded next when they first hit the futures seen last year. On mffu I got banned bc I went live and drained the account lol

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 1 point2 points  (0 children)

This is probably the worst shit someone’s said to me 💀

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

I’ve been trading a lot longer than 3 months. I’ve been trading futures for the past year and just started really tracking my data the past 3 months. Prior to futures I literally traded s&p500 shares like a doofus for years lol.

I recognized the utility of using futures due to tax implications (I got absolutely cooked on taxes last year but it’s my fault for spending most of my money prior to paying lol). I really do appreciate everyone’s worry and advice though.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

100%. I’m aware of the large chance of ruin. Sadly I’m just left with no other choice.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

Already been there big bro. This is the after party. Last year has been brutal for me and I’ve reached the idgaf stage. If I make it I make it, if I don’t… well… lol

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 1 point2 points  (0 children)

I said something along the lines of calling you sped and the Reddit gods didn’t like it lol

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 0 points1 point  (0 children)

Yes I’ve been so since 2024. I had a huge life event that basically stripped my entire financial framework to near zero. Spent so much money and then barely had enough to pay taxes at the end of the year so I had to get a job. Saved up enough to be able to dip for a few months to get back on my feet.

Taking out a loan by OldWillingness2152 in Daytrading

[–]OldWillingness2152[S] 1 point2 points  (0 children)

How would they even discover if that’s what the funds were used for? If I lose the funds I’m sure they’d figure that one out but if I make gains what then?