Smart Money 💰 are they really smart?. Yes and No but they are the ultimate connoisseur of human psychology. 😎

Footprints 👣 of Smart money
1. They buy to sell and sell to buy,
2. Their large orders are filled bits by bits in what is known as consolidation
3. They buy below Demand and sell above supply zones.
4. Fair value gaps , wicks and order blocks are indicative of smart money in action.

This are my views from my experience in the markets. You can add urs let’s learn too .

I can't find the forex factory app anymore on playsore. Please how do I get the app?

Day trading is not everyday trading

ICT GEM💎

An oversimplified explanation of how the market works⬇️

The algorithm seeks discount to premium, premium to discount.

Within that logic,

We are simply looking for 3 things when viewing the market place:

👉Liquidity
👉Imbalances
👉Time of day
Knowing this aids us in answering these 3 simple questions when looking at price:

1) Where did price come from?
2)What is price currently doing?
3)Where is price likely to go next?

greatcheer:


hmm try to understand this balance based draw down cos I was depending on it and still chop disqualification with maven prop. I was waiting for trades to retrace unto say balanced based by the neck me with their dq email.
some say its when you close ur trades.
I think this balanced based is a trap

Good morning,
I noticed that too. It is better to not let your trades hit DD, rather than trusting those balance based DD,
Honestly, I understood this when I was in UMW competition,
I held a trade after it crosses the DD of 5k it retraced into profit of 8k I was smiling, na so them nack me DQ email. I just surprised even though na balance Based DD o. Then I knew it was pure marketing.

Petah:

Good morning,
I noticed that too. It is better to not let your trades hit DD, rather than trusting those balance based DD,
Honestly, I understood this when I was in UMW competition,
I held a trade after it crosses the DD of 5k it retraced into profit of 8k I was smiling, na so them nack me DQ email. I just surprised even though na balance Based DD o. Then I knew it was pure marketing.

U breached it na.
U don't understand what they meant by "balance based"

rainlover:


U breached it na.
U don't understand what they meant by "balance based"

please kindly explain to us

greatcheer:


hmm try to understand this balance based draw down cos I was depending on it and still chop disqualification with maven prop. I was waiting for trades to retrace unto say balanced based by the neck me with their dq email.
some say its when you close ur trades.
I think this balanced based is a trap

Balance based DD simply means at the end of each day around 10pm Nigeria time your next daily DD will be calculated based on your current balance irrespective of equity or pnl either positive or negative.

Example you have current balance of $6000 and equity is $7000 (or $5000 negative pnl) your next day DD is 5% of 6k = $300 . That means your balance should not fall below 6000-300= $5700. If it does then you go chop dq.

But reverse is the case if it equity based. Instead it will be 5% of $7000 or ( 5% of $5000) and will be either $350 ( or $250). In that case your balance for day must not fall below 6000-350 = $5650 ( or 6000-250 = $5750).

MFF is a bit trickish. They would rather look at what is higher between your balance or equity at the end of day to calculate their next dd.

Hope you get the gist now?

rainlover:


U breached it na.
U don't understand what they meant by "balance based"

There is equity based and balanced based.
The held trade was in equity na,
Abi I am missing something?

Better to just trade below the DD

BrightFuture48:

Balance based DD simply means at the end of each day around 10pm Nigeria time your next daily DD will be calculated based on your current balance irrespective of equity or pnl either positive or negative.

Example you have current balance of $6000 and equity is $7000 (or $5000 negative pnl) your next day DD is 5% of 6k = $300 . That means your balance should not fall below 6000-300= $5700. If it does then you go chop dq.

But reverse is the case if it equity based. Instead it will be 5% of $7000 or ( 5% of $5000) and will be either $350 ( or $250). In that case your balance for day must not fall below 6000-350 = $5650 ( or 6000-250 = $5750).

MFF is a bit trickish. They would rather look at what is higher between your balance or equity at the end of day to calculate their next dd.

Hope you get the gist now?

greatcheer:


please kindly explain to us

What has balance got to do with PnL. If it's balance based then one should be DQ when trades are closed and when such closure negatively affects the balance. They are just using it as marketing strategy like someone stated above

Petah:
Better to just trade below the DD

Yes I think that's the best thing to do. Treat every DD as equity base

seeteazain:


What has balance got to do with PnL. If it's balance based then one should be DQ when trades are closed and when such closure negatively affects the balance. They are just using it as marketing strategy like someone stated above

Just dey play... Balanced based means DD is calculated from your balance....
If i understand you correctly you mean someone can have floating loss of 8% and should be disqualified only when they close the trade.....

Donsheddy:


Just dey play... Balanced based means DD is calculated from your balance....
If i understand you correctly you mean someone can have floating loss of 8% and should be disqualified only when they close the trade.....

Balance based is the biggest scam ever, and here I was wondering why I was disqualified from my Fundednext challenge.

Petah:

There is equity based and balanced based.
The held trade was in equity na,
Abi I am missing something?

greatcheer:


please kindly explain to us

BALANCED BASED: let's assume you have a starting balance of $10k with a daily drawdown of $500

Now - you only breach the account if your balance reduces to $9,500.

I.e - even if you made some profits, but later lost it, your account remains active so long as it doesn't get to $9,500.


EQUITY BASED: let's assume you have a starting balance of $10k with a daily drawdown of $500

Your drawdown counts begins from the highest equity attained within that day.

Equity means: Opening balance + floating profit and loss

Eg: you took some positions and your PNL got to $1000

This means that you have trades in profit and your equity would be $10k + $1k
That's $11k

Now here's the catch..

After reaching $11k and your trade(s) reverses , reducing your equity to $10,450 ($11k - 5%
)
You will lose the account because, you lost 5% of daily equity.

So in conclusion; if your account is equity based, just keep making profits and don't come down to -5% of whatever equity attained within that day.

Hope this helps

kozmicity:


Balance based is the biggest scam ever, and here I was wondering why I was disqualified from my Fundednext challenge.

balance based isn't scam sir. Your account had daily equity drawdown rule.

Understand this: some accounts are balance based with daily equity drawdown rule.

Yesterday I wanted to say smtin concerning this balanced based drawdown.. it’s just a marketing gimmick.. drawdown is based on equity not on balance..

karkinase:
Yesterday I wanted to say smtin concerning this balanced based drawdown.. it’s just a marketing gimmick.. drawdown is based on equity not on balance..

Kmoney api weekend, anything for ur guy been a good digger,abi are u not?

Kaybee7000:


Kmoney api weekend, anything for ur guy been a good digger,abi are u not?

U and sheddy !!!

BrightFuture48:

Balance based DD simply means at the end of each day around 10pm Nigeria time your next daily DD will be calculated based on your current balance irrespective of equity or pnl either positive or negative.

Example you have current balance of $6000 and equity is $7000 (or $5000 negative pnl) your next day DD is 5% of 6k = $300 . That means your balance should not fall below 6000-300= $5700. If it does then you go chop dq.

But reverse is the case if it equity based. Instead it will be 5% of $7000 or ( 5% of $5000) and will be either $350 ( or $250). In that case your balance for day must not fall below 6000-350 = $5650 ( or 6000-250 = $5750).

MFF is a bit trickish. They would rather look at what is higher between your balance or equity at the end of day to calculate their next dd.

Hope you get the gist now?

finally someone explains it to them read and understand

FTMO stands out! DD is based on initial capital; no wuruwuru! They need to come down with their prices.

I think the safety way for me oooo, just my own plan and belief, is to trade below your DD.
This is what I am planning to do.
If my DD is $500 on a $10k account. I tell myself I am only using $500 to trade per day and not $10k.
Then I divide the $500 by 4 = $125
For each trade I risk about 25-50 dollars.
I use the babypips position size calculator to get the lotsize I should use and how many pips.

I realized this after I lost my blueguardian $10k account I won as a giveaway on Twitter due to DD violation. I thought that when it gets to $500 for the day they will log me out till the next day, omo. When I couldn't place trade the following day. My eye clear. $10k account was sold for $87. I checked the price. He pain me gan.


Please note, that's my own plan on my risk management.

rainlover:




BALANCED BASED: let's assume you have a starting balance of $10k with a daily drawdown of $500

Now - you only breach the account if your balance reduces to $9,500.

I.e - even if you made some profits, but later lost it, your account remains active so long as it doesn't get to $9,500.


EQUITY BASED: let's assume you have a starting balance of $10k with a daily drawdown of $500

Your drawdown counts begins from the highest equity attained within that day.

Equity means: Opening balance + floating profit and loss

Eg: you took some positions and your PNL got to $1000

This means that you have trades in profit and your equity would be $10k + $1k
That's $11k

Now here's the catch..

After reaching $11k and your trade(s) reverses , reducing your equity to $10,450 ($11k - 5%
)
You will lose the account because, you lost 5% of daily equity.

So in conclusion; if your account is equity based, just keep making profits and don't come down to -5% of whatever equity attained within that day.

Hope this helps

I beg to disagree

To avoid DD being hit, calculate your daily (not overall) DD and make it your capital throughout.

Ignore to the original capitals of 100k, 10k etc.

Elliotwaveforec:
To avoid DD being hit, calculate your daily (not overall) DD and make it your capital throughout.

Ignore to the original capitals of 100k, 10k etc.

We are on same page. I actually use one-four of it.

Where do we go from here. Up or down.

We will know after this coming week's candle. (Although I would preempt a buy)

Stay tuned

Witchcraftfx

Una just dey confuse una self.. for me i prefer equity based DD... Reason been that as you keep making profit your DD increases and as you loose profit your DD reduces helps you to be discipline


For Equiity Based

Starting Balance is 10000 and your daily DD is 5%>>>
5% of 10000 is 500 that means your account shouldn't go below 9500 today....
If your trade moves 800 dollars in profit and goes back to entry that same day your account will still be intact because you didn't go below 9500...

Lets assume you make a profit on 400 dollars day 1, your closing balance for the balance for the day is 10400 now your DD for the next day is 5% of 10400 which will be 520... That means your account shouldn't go below 9880...

Now if in loss, lets assume you didn't make profit the first day and you close with 9800 your DD for the next day will be 5% of 9800 which is 490 that means you can't loss more than 490 on the new day that means your account shouldn't go below 9310 if you like make 2000 dollars profit that day... Thats how equity based work....

While in Balanced Based Your D. D is Fixed at 5% of starting balance which is 500 dollars

So any day dont lose more dan 500 dollars ...

If your starting balance is 10400 for the new day your account shouldn't go below 9900
If your starting balance is 9800 it shouldn't go below 9300 thats for balanced based....

Kaybee7000:


Kmoney api weekend, anything for ur guy been a good digger,abi are u not?

I never dig gold bro.. my mining ⛏ license never activate

Edd1e:
Balanced based will always supersedes Equity based firm. Choose wisely

You wey sabi … what’s the definition of drawdown..

Donsheddy:


Just dey play... Balanced based means DD is calculated from your balance....
If i understand you correctly you mean someone can have floating loss of 8% and should be disqualified only when they close the trade.....

What is then a balance? Is balance not different from equity?