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What’s going on, guys? So, um, this video I’m going to talk about how I conquer the prop firm drawdowns, some tips. Um, and I’m just going to talk about it. Before I get into it though, I stream live every day 10:30 to noon, 2:00 p.m. to 4:30. Uh, if you’re looking to get a prop firm account, be sure to use the best code out there, coupon code Cove Trader. it will automatically give you the best discounts at all the prop firms.
Uh also in the link of this uh video uh I have the free Discord if you want to come in the Discord. It’s free. You can talk to other traders. That’s where I’m at when I’m not streaming. Uh I don’t charge for anything. So everything I do here is free. I hope you guys learn a little bit. Um and if you have any questions, comment on the video or uh find me on the live stream. But uh let’s jump right into
It. So one of the big things is draw down. Depending on what size account you have, your draw down could range anywhere from 1,500 on a 50k account all the way I think it’s what is it 6,500 or 8,500 on the 300ks. I don’t even trade the 300ks because you got to make so much more in profit than draw down. So there’s two types of draw down. There’s the one that’s the end of day. So argument sake, say I buy here
And the NQ goes up and all the way down and I sell out at even, my draw down didn’t go anywhere. Draw down stays the same. But if I buy and I make $1,000 in my account on this move up and then I come back and sell at even, my draw down just went from 2500 to now 1,500. And you’re like, well, how’d you lose $1,000 in draw down? the draw down moves based on the highest value of your account with
Unrealized gains. So that’s how draw down works. One of the ways I get around draw down is using a trailing stop. That’s the best way to do it because as the NQ or whatever you’re trading continues to go up, you kind of just trail your stop. So when it does pull back, it sells you out that you’re kind of sold out near the top. The issue with this obviously is say say you’re shorting, right? And right here and you’re shorting and
You’re shorting and it drops and then you get taken out, right? Well, we continue going down lower. You might have held, but because you got to worry about draw down, you get stopped out. So, a lot of times what I do is I look at this as a whole and yes, I’ll get stopped out, but I’m looking to re-enter short either at a higher position or let it go up, let it come down, let it, you know, uh, get restructured and
Then maybe take the break on the way down. So, that’s how I trade a lot of the accounts that have uh, intraday draw down. You got to trail. Uh there’s a setting in um there’s a lot of your like trade of eight has a trailing draw down. Ninja trader has trailing. Quant uh tower has trailing. If you have questions about how to set up the trailing draw down, uh the trailing stop. Uh just let me know and I’ll help you out
Depending on the platform you’re on. But that’s my number one thing is a trailing stop. uh when you have a trailing stop, it lets you like say you have 10 points one mini, the worst case scenario is you’re going to be about $200 from the top. So your draw down is only going to be down 200 bucks. Um a lot of the prop firm accounts give you more draw more draw down on a trailing than end of day. So trailing you
Might have 2500, end of day might only be 2,000. But I highly recommend um I highly recommend just trailing your stops. That’s the number one thing I go about. Also, I take profits um and not let it move around that much to not waste draw down as well. I’ll have uh take profit areas, not just let it move around. But those are things that I use to conquer the the draw down. Um I’ll scalp if my draw down gets hit pretty
Low. I’ll definitely scalp um to make my money back before taking a a big shot as well. And uh that’s pretty much it is just be mindful about the draw down. Enable trailing draw down. You can enable it on Ninja. Like I said, all the platforms have it. And I recommend like a 10point uh draw down. So that’s 40 ticks as you move up or down. Um, also I have a setting on one of my accounts that once we go up
35 ticks or uh I I adjust it between 25 and 35, I go to break even and then after that it’ll trail it uh 40 ticks after that. So you’re kind of always moving at uh the worst you can be down is 10 points. So if you have any questions about any of this uh let me know. I recommend if you’re doing this, use take-profit trader for the trailing drawdown. And if you want end of day, use my funded futures. Everything’s
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