What happens if I meet my profit target early?

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5 comments

  • Lwyz Estrada

    This Rule is Kind of Tricky. 
    Because last week we had a lot of Volatility and if you are correct You can Profit more. 
    So last week, I had a great day, a 3k Day. 

    So that 3k Day Plus my second best day 2K are now 5k. 
    but i had 2 Losing days. So now I need to be careful that I don't have a BETTER day than my Best day cause this will messed up the consistency Rule. 

    The problem that i see with this is. If you have a a lot of volatility and you can Profit, The truth is that you CAN`t because if the futures days we don't see any opportunities. You can lose the chance to get the founded  account. Because this Rule. 

    Please take a look of the Image Attached

    "P.S. English is not my first language. "
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    Spanish
    Hola, 
    Creo que esta regla hace un poco dificiles las cosas. 
    El tema es que tenemos 10 dias para hacer trading, En estos dias ha habido mucha volatilibilidad. Pero ha habido otros dias que la volatibilidad es Menor. 

    El caso es que tuve 3 dias buenos con la volatibilidad. Pero no todos los dias pueden ser asi de buenos. 
    EL tema es que ahora Me tengo que limitar para que mis proximos dias, no seas Mejores que mis Primeros dias, por el hecho que SI sumo dos dias de 3 mil esatria rompiendo la regla del 75% entonces mis proximos dias tienen que ser de menos Ganancia a pesar de que pueda haber Muy buenas oportunidades. Y si pierdo un dia Poco capital y me salgo del mercado. Al final de los 10 dias estaria incumpliendo esta regla. 


    Se que es un poco confuso, pero hice una tabla de exccel en la que me muestra que No Puedo tener mejor dia, a mi mejor dia porque estaria rompiendo esta regla si en dias futuros soy mas conservador. 

    Tomar en cuenta el Ejemplo adjunto.  

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  • Jv

    @Lwyz Estrada, I completely agree with your observation. In my opinion, consistency is already regulated by Minimum trading days, Daily loss limit and Maximum Drawdown. If you are not disciplined or consistent no way you will succeed anyway. I simply don't see a mathematical way to pass, especially because only approximately 15 days are monitored. It is not the same to use this principle on 100+ or 15 trades!

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  • Jv

    Just to make my concerns clearer, it is obvious that strategies (even excellent ones) with low win ratio don't stand a chance at all. In order to be profitable with poor win ratio, it is necessary to have significantly larger winning trades in comparison with losing trades. In a pool of 15 days, I dare to say it is impossible to have 2 best days below 75% of total profit.

     

    Another option is to have a strategy with smaller profits/trade, but with very high win ratio. This is maybe possible to achieve in 15 days, but again, it is almost impossible to keep that pace for a long time on a funded account. That having said, you will fail rapidly, and you will have to start all over again from scratch. Hamster wheel...

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  • Juan David Ramirez Ortega

    within the 10 days do I have to trade all of them, I mean, is there a minimum trades per day rule?

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  • Paul Alfred

    So if your best two days of trading adds up to more than 75% of your profits what happens?

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