Trading funded FX accounts (paying a fee to take a challenge)
This has become a popular choice for a lot of would-be traders who don't have the funds to trade a large account of their own.
I am about to take a $200,000 FTMO challenge... not for the 1st time I might add.
I have failed 4 FTMO challenges in the past ranging in size from $50k to $200k.
I passed on 2 challenges but failed the verifications on them.
After trying to work out why it is so difficult (putting aside the psychology side of trading) I have come to realize that I am NOT trading a $200,000 account because I'm only allowed to lose up to $20,000 of it... so my real account size is $20,000, not $200,000.
So to increase the $200,000 account by 10% in order to pass, I must double my usable amount of $20,000... in just 21 trading days (1 month)... I must make 100% in 1 month or less.
My trusty spreadsheet tells me I must average a compounded 3.6% gain per day for 21 days to double my usable account of $20,000... to $40,032.
This takes a $200,000 FTMO account to $220,032 which gives me a pass to go on to the verification phase.
Now I understand why it is so difficult.
This has become a popular choice for a lot of would-be traders who don't have the funds to trade a large account of their own.
I am about to take a $200,000 FTMO challenge... not for the 1st time I might add.
I have failed 4 FTMO challenges in the past ranging in size from $50k to $200k.
I passed on 2 challenges but failed the verifications on them.
After trying to work out why it is so difficult (putting aside the psychology side of trading) I have come to realize that I am NOT trading a $200,000 account because I'm only allowed to lose up to $20,000 of it... so my real account size is $20,000, not $200,000.
So to increase the $200,000 account by 10% in order to pass, I must double my usable amount of $20,000... in just 21 trading days (1 month)... I must make 100% in 1 month or less.
My trusty spreadsheet tells me I must average a compounded 3.6% gain per day for 21 days to double my usable account of $20,000... to $40,032.
This takes a $200,000 FTMO account to $220,032 which gives me a pass to go on to the verification phase.
Now I understand why it is so difficult.
In the days of old when sailors were bold, and seldom if ever contented.