Why do PRO Traders have such STRICT RULES?
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- Опубликовано: 1 окт 2024
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Discover the secrets of professional trading! Today, we delve into why strict rules are non-negotiable in our prop trading firm and how they differentiate a trading strategy from risk management. If you've ever mixed up these two concepts, this video is your key to understanding what could be keeping you from profiting in your trading journey.
Trading strategies help identify market opportunities using a set of rules for entry and exit points, while risk management controls losses, ensuring you can trade another day, even after a streak of losses. From setting stop losses to managing portfolio exposure, learn the crucial practices that keep our traders ahead in highly volatile markets.
Stay tuned as we break down:
The importance of stop losses and consistent risk management.
Why big position sizes and not using stop losses can doom your trading strategy.
Real examples of how adherence to firm rules provides stability and reduces emotional trading decisions.
Whether you're a novice trader or looking to refine your approach, this video will equip you with the knowledge to implement firm, beneficial trading disciplines that lead to long-term profitability. Let's decode the essentials of professional trading together!
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Hi Oliver, since this video touches about the importance of stop loss and I myself agree with this absolutely. Lux trading view platform is a fantastic and friendly platform for charting and trading. I just have one issue with it, I was hoping for in the future the SL and PL can be permanently saved by the trader according to his/her preferences in the TLT platform and later modified when the price is in favour. The reason for this is because I tend to unintentionally make mistakes by not clicking the SL and PL box many times and this has caused damage to the account analysis in the dashboard.
@@TeeShongwe sorry , I believe Lux is not such a firm . Please do remember, 95% of trader out there fails .
We appreciate you saying that. Thank you for your feedback. It always helps us make the platform better
@@TeeShongweNo it isn't. Their funded accounts are with real money not virtual funds, so if you lose you're losing their money, and if you win they take a share of the profits. Exactly how a real prop firm is supposed to work.
@@LuxTradingFirm you are welcome
@@TeeShongwe they did say the trade will close automatically if no stop loss, but of course they are liers, they need that excuse not to give you a life account if at all that exist
Decipline. Maybe the most basic but neccessary thing to win in any business.
i read your rules and they stated you can’t hold trades over the weekend. If this is fixed, i will join. i don’t trade on smaller timeframes. just 1hr and 4hrs
Hi, we have no rules that say you can't hold trades overnight or over the weekend! You can even see in our main video presentation that we say that you can hold your trades overnight and over the weekend. If you see anywhere that this is not allowed then send a screenshot to trading@luxtradingfirm.com and we will correct this but I am for 100% sure that this is not on our website anywhere that it says you are not allowed to hold traders overnight and the weekend.
@@LuxTradingFirm thanks for the clarification
Hi Oliver, as you mention in your second point:
"To always risk the same percentage of our remaining risk capital, this helps us automatically lower the risk and draw down periods and be able to take advantage of the opportunities presented in good times WITH CONSISTENCY".
Can you please explain more on this if possible give a trading scenario etc to help us understand better thanks loads.
If i take a $200k challenge and risk 1% per trade ($2000) is that a violation ?
No, this is not a violation; we only calculate our risk per trade based on the maximum risk capital that you have in your account, not on the total balance on your account. If you trade your own live account, then you can risk 100% of the total balance you have in your account and the 1% risk per trade is a very good risk management parameter. But when you trade for a prop firm, private investor, bank, hedge fund or asset management trading department, then you only have the mandate to risk a small part of this total balance, which is most of the team between 4-10% of the total balance. In our case, this is 6%, which is $ 12.000 on a $ 200.000 account size, and then when you risk $ 2.000 per trade, In reality, you risk 15% per trade based on your available risk capital, and that is very high as only 6 bad trades on a row and your blow up your account where you needed 100 bad trades on a row to blow up your own live account when you risk 1% per trade.
@@LuxTradingFirm so if i risk 2K per trade in a 200k challenge and pass the target. In that case you won't be giving a live account to trade for a reason of high risk ?
@@manassrivastava9103 No, we did not say that! We only say that risking 15% per trade is a very high-risk trade. We have clear trading and risk management rules, and only when you break these rules can the risk desk ask you to do part or all over based on how many rules you break and how many times.
@@LuxTradingFirm got your point !
how about 1K$ risk per trade on 200K$ account? (7.5% of max drawdown = 13 loosing trades in a row) Will you consider this acceptable or still high risk?
also, could you share a sweet number from your end about how much risk per trade (in amount) should i take if trading 200k$ account?
@@manassrivastava9103 We think a 5% risk per trade based on the maximum risk capital available in your account at any given time is reasonable risk management.
Hey I having question you say that when a trader says that his statergy needs to risk X amount in order for him to he profitable rytt' and you say that isn't the case but wht if the trader has a certain amount of win rate and according to his statergy if he risk X amount only he would be able to survive that string of loss or else even if wins the trade he would be a break even trader
I’m a swing trader and use progressive exposure. Means when the market is conducive for my strategy I make risk per trade bigger as trades is working, max 0,5% risk per trade. And when its a choppy environment i’ll bring it down to 0,1%-0,125%. So the damage is very little in a difficult environment. Is this method possible per your rules?
This is something I also like to know. I use 0.5% per trade, but sometimes lower.
So to be on the safest side, limit orders are your best bet to avoid breaking the whole placing a SL before the trade is executed? Once executed, can you modify the trade in terms of SL and TP?
Hi, you also can place a SL in the order panel when take a market order not need to use a pending order.
@@LuxTradingFirm thanks so much, and can the order be modified after a minute or 2 for eg?
@@DavidsTrading369 Yes, you can always modify your SL to smaller, break even or in profits.
@@LuxTradingFirm are EA's allowed?
@@DavidsTrading369 We allow EAs that are created by the trader (trader’s intellectual property). EAs that are developed by a third party, is prohibited since this does not show the individual trading skills of the trader.
If this EA is no longer available to the trader/public, for whatever reason, the trader will be unable to update, upgrade or make changes to it for the better.
One can use a third party EA as a tool to support your strategy without a trade execution option.
Always make sure the EA places a stop with the order; together with the order, not afterwards (modify order). If such a trade is placed, you will receive a warning email. Trades placed without stop loss will also not count towards your goals.
Please send me a video link that talks about how to automatically place a stop loss right after entering the trade. I don't place it, it is placed automatically and I then move it only at the level where I take the risk. I am very excited to subscribe to your program after learning that this feature is available on your platform
Our rules says that you need to place a SL before entering the market not after and, we do not advise on these party tools for this we only say that they are out there if your trading strategy/style require a one click enter and have no time to place the SL before.
Can you start a training program to become a successful professional trader
Yes, we have our own inhouse educational training program that will help you how to trade with our trading and risk management rules in our funded account program. It has unlimited free test accounts to practise with your personal mentors, any strategies linked to our trading rules, and as well a real evaluation account to get founded. See this page for the full elite packages: luxtradingfirm.com/lux-elite-traders-club/
❤ thanks brother 🙏
My problem so far for not entering with you is that I trade stocks and I enter and exit quickly in seconds and sometimes minutes, and I cannot place the stop loss before I enter, but I place the stop loss immediately after I enter, and I know the level at which I am risking. I limit my entry but place the stop loss after I enter. Come in, am I not violating your rules?
Hi, many EAs can be used on the MT5 trading platform where you can trade with a one-click trade button and also place the SL automatically before enter the market.
@@LuxTradingFirm How do I do that? Send me a link to the video that explains it, if available?
@@LuxTradingFirm you are a bloody liar, you need at least 2mins to put a stop loss with MT5 how can a scammer teach traders how to use MT5 real traders don't need robots, stop loss is dependent on the market volatility at the time of trade execution. stay away from these firms with obscure rules that they make up all the time. with the sole aim of scamming traders.............😡😡
So I will participate in one of your accounting programs. This is what stopped me before. My strategy is designed to always place a stop loss after entry, and you have now allowed me to do so even though you did not advise me to do so. What is important to me is that the results are counted for me and there is no excuse after that for not counting them for me. I overlooked Level 2, which you do not provide, even though I mainly trade it. I am not a novice trader, and I have won funded accounts in other companies, but your offer and the size of your accounts is what made me look at your company, so I hope you will honor me with this response. Thank you.
Hi, we do not say that you can place your SL after you enter the markets! Where do you get this idea that we allow our traders can place the SL after enter the markets? CFD liquidity providers do not offer any level 1 or 2 data only cash stock brokers can do this as they get this data from the exchange.
@@LuxTradingFirm In your previous response to me, I thought you told me that I can do that if I have to. See the comment. I do not understand English, but I am just translating. Sorry if I understood you wrong.
@@mohammedalshareef9837 We will never say to anybody that they can break our rules or that for some traders do not need to keep to our rules. What we did say or write is that you are allowed to use tools like a position size EA that can place your SL like a one click trade before you enter the market.
@@LuxTradingFirmIf you have any video to put what I said or a video to put on how to enter with the one click that I said, please put the video link here. Thank you.
Can I use magic keys to manage risk?
Not anymore. Apparently, it doesn't work with Lux's risk software. It's a shame cos magic keys is a great tool
About SL rule
Trader have to put SL before execution trade Or have to put SL within a minute?
Always before enter the trade.
@@LuxTradingFirm then scalping is not possible
@@rysar1072 Why would that not be possible? We have many scalpers in our program.
@@LuxTradingFirm okay
And if I risk 1% per trade at evaluation stage and after passing evaluation phase reaching funded account reducing risk0.5% per trade is it violation rule or not
@@rysar1072 No, that is not a violation.