The speaker, having made over a million dollars from trading, shares their approach to getting funded for the first time in 2023. They emphasize that the ease of getting funded now compared to previous years has changed their strategy.
Specifically, they address the Skill Challenge with SFT, which requires a six percent profit for phase one and phase two, with a 10 Max drawdown and a four percent max daily drawdown. They present two approaches: an aggressive one and a conservative one.
The aggressive approach involves risking one percent per trade idea, using a one or two risk to award, and having a maximum of two wins and two losses in a day, and four losses in a week. This approach is recommended for those who don't mind taking a bigger risk.
The conservative approach, on the other hand, is more cautious. It advises risking 0.5 percent until the account is up two percent, then increasing the risk to one percent. The same rules apply: maximum two losses in a day and maximum four losses in a week. This approach is recommended for those who want to take a lower risk.
Regardless of the approach chosen, it's crucial to remember that the stop-loss should be bigger than what's often seen on social media, as it's unrealistic to consistently catch 1-8 risk rewards with a five pip stop loss.
The speaker concludes by reiterating that these are their personal strategies and not guaranteed ways to get funded, but they provide a potential roadmap for traders in 2023.
1. The speaker has over a million dollars in profit from capital.
2. They are discussing their approach to their first funded account and how it differs from their current approach.
3. The speaker is presenting two approaches to getting funded in 2023: an aggressive approach and a conservative approach.
4. The challenge they are discussing is a skill challenge with SFT that requires a 10% max drawdown and a 4% max daily drawdown.
5. The aggressive approach has three rules: risk 1% per trade idea, use a 1 or 2 risk to award, and have a larger stop loss.
6. The conservative approach is similar to the aggressive approach but risks 0.5% until up 2%, then risks 1%.
7. The speaker also sets limits on the number of losses in a day (2) and a week (4) to prevent overconfidence and reckless trading.
8. The skill challenge requires only six percent for phase one and six percent for phase two, and allows for unlimited trading days.
9. The speaker suggests that the aggressive approach is easier to get funded with, as all you need is six percent and you can take as long as you want.