My Forex Funds Daily Drawdown Rule EXPLAINED!
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- Опубликовано: 9 май 2024
- Hey everyone, I hope you guys are doing well! This video is all about the My Forex Funds daily drawdown rule. A lot of you guys are confused about it, so I thought I would make a video on it. If you like content like this make sure to smash the like button and subscribe if you have not already. Appreciate you!
Key takeaways:
The 5% daily drawdown limit per day is based of the equity/balance at
the start of the day 00:00 GMT+3 (whichever is higher).
Daily drawdown limit resets every 24 hours at 00:00 GMT+3 (or 5:00pm EST).
This means that at 00:00 GMT+3 the daily drawdown limit will take into account
any drops in profit from trades that are running from the previous day.
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I hope you guys enjoyed the video! Check the key takeaways in the description!
Purchase a MFF account through this link bit.ly/3HRAZ6t and you will be automatically entered into a giveaway!
Discount code ‘ebfinance5' for 5% off!
What about if i hit dropdown 5% then automatically i recover and made profit so what is soloutin?
You saved a lot of stress. And you are very good at explaining things. Thank you man 👍
ALL prop firms manipulate their numbers to make you think you are on a funded account but you'd be better of compounding your own account. See my video on that to know how they do that.
My MAN... Denzel voice... Thank you for this explanation I just passed phase two of my evaluation challenge and in the same day just heard about this rule so I was so confused and couldn't understand how people were making money without violating this rule but you explained it good thank you
This is very nicely explained, how does it work for "floating" drawdown, if it hits, is it immediately stopped or do you get until the daily reset to fix it?
Risk low and dont have a bunch of positions open and long story short youll be good, Awesome video man ! thanks :)
Thanks a lot bro, much appreciated.I've always been wondering how to calculate.
No worries buddy:)
ALL prop firms manipulate their numbers to make you think you are on a funded account but you'd be better of compounding your own account. See my video on that to know how they do that.
I honestly never had issues with the DD rule as I never hold positions overnight,but I do feel for swing Traders the rule is not that appealing as you always have to keep track of how much floating loss you have etc and to make it worse if you have multiple trades with different pairs it's just too much information to process which I think it's not worth going through when you have other prop firms out there that don't have this rule, apart from that Mff is a great prop firm,I've had no problems with them whatsoever
ALL prop firms manipulate their numbers to make you think you are on a funded account but you'd be better of compounding your own account. See my video on that to know how they do that.
@@eissa_rsh do you know how hard it is to compound your own acc if you lack capital?
Isn’t this issue eliminated if you’re only risking 1% a trade and only allow yourself 2 loses a day?
@@ryuxfx52 no
@@eissa_rsh how?
Hi, have you had any payouts for MFF ? What are the chances of them folding/ closing? Seems like some negative publicity is gathering pace, that’s all. Thanks sorry I have joined them but getting worried now
STOPLOSS do you place after placing an entry or during?
Makes perfect sense. Thanks!
Exited thanks for the content
Great video Eshan. Thumbs up!! 👍
Appreciate you!
Is overall drawdown based on the initial balance ? Let's say in a 100k account u are up 10k, so is overall drawdown calculated out of 100k or 110k?
Awesome content man! Very helpful and you make MFF very clear.
Could you please explain the overall drawdown rule.
overall DD rule is fixed , 12% based on your balance. which means that whenever your balance or equity are over 12% dd, then u are considered as violation of the overall dd rules.
i.e. on 100k account , 12% would be 12k, which means when your account balance or equity goes lower than 88k, you are considered as violation on the rules based on the overall dd.
@@darylyip59 what is starting equity n starting balance?
@@darylyip59 is it based on the initial balance ? Let's say in a 100k account if you made 10% percent meaning 110k account, now overall dd will be calculated based on 100k or 110k ?
@@simplicityfx70 plase bro did you finx any answer fir this question??
Very necessary video it is thank you very much. I've always been wondering if you'd have to trade every single day till you reach your target profit when taking the MFF evaluation challenge or you can take a break and trade the next day when setup is formed?
You only need 5 minimum trading days within the 30 day challenge.
It doesn't have to be consecutive days.
Or you could just use another option that doesn't have all of the unnecessary drawdown rules..I finally learned my lesson after about 7 failled challenges mostly due to drawdown rules..I smartened up & found a prop firm that didn't penalize your profits..to me it just seems like this business structure is designed for the trader to fail imo
ALL prop firms manipulate their numbers to make you think you are on a funded account but you'd be better of compounding your own account. See my video on that to know how they do that.
@@kingk7613 can you please the did other pop firm?
@@kingk7613 prop firm name?
Hey man I just have a question! Great video btw, if i enter a trade at 6 pm est can I hold that until 4:59 pm the following day until it gets added to my equity?
That annoying rule only applies on equity if you hold profitable trades over night . So basically MFF wants you to take profit before the next day begins, that way it's easier to calculate draw down based on account balance.
ALL prop firms manipulate their numbers to make you think you are on a funded account but you'd be better of compounding your own account. See my video on that to know how they do that.
hi brother,can I ask if mff let's you hold trades over the weekend?
thanks for your content.you helped me take a chance with them and now I am funded and received my account on Wednesday and im up 21% atm.
thank you for your content.🙏
I had a question, if I open a trade and my trade enters a floating loss of 1%, but if it is closed with a profit, will this floating loss be calculated for the total monthly loss?
Question are we able to increase the account through profits and our daily drawdown won't be affected
For some one who is in East African time which one should we use 00:00 gmt+3 or the EST time ?
Thanks a lot bro
Is this only for closed trades?
if i hit daily drawdown and then go back to hit profit target is my account will okay or not
What if trades are running and the draw down is 8 percent but I close in profit before the day ends
Isn’t this issue eliminated if you’re only risking 1% a trade and only allow yourself 2 loses a day?
Thanks for this information. I just passed the mff challenge
You got payout?
I have had problems in their replying for account details, it is taking a week or so
what is starting equity n starting balance?
Excellent Video!!! This explains it very simply. Very manageable rule to ensure you use proper risk management and understand how to trade. Thank you.
Super clear🙂
Does the drawdown apply to both the evaluation phase and the live account..?
Or only the evaluation phase..?
Both buddy:)
What's does the draw down water mark on my account mean
If I drawdown my 5% account
So will they suspend my account permanently or they will suspend my account temporarily
Please tell me
What will happen if violets the rule of daily drawdown?
My forex funds should explain this better on their website. it's confusing especially with time zone differences too.
hi pls what is drawdown watermark
Ghis is the only reason why im not taking their challenge. Imma choose btwn top tier and ftmo
Ey man I violated my daily drawdown with 0.87$ a day ago but my account is not closed. What does this mean? Is it going to be closed once I pass my challenge or what cause now I don't know if I should continue trading it or not.
Please advice
Eishhhhh....Oma sepeng ncha
When you pass the evaluation process on mff,and get funded a live account,does the daily draw down rule still affect the live account?
yes
Yes.
Great content! If your starting balance is 100k and you take a trade and it runs up to +6%, you then move your stop loss to breakeven. If the current position then retraces back and stops out, would that be a violation of the account because the floating price drew back down over 5% in the same day? If that is the case you must make sure you trail your stops closer than 5%.
Yh basically that , make sure your trail stops closer than 5% otherwise mff gonna slap you with that violation detection
Or just take partials and you will be okay
No, guys, don't confuse him and each other. He asked about same day. It is true if you leave position overnight but on the same day if you made a profit you still have full dd available as it was at the beginning of the day
If it is on the same day you will be ok as you are in profit. However, if you are holding the +6% over the next day, the drawdown per day resets. This means any drops in running profits will count towards the drawdown.
Hope this makes sense:)
@@EshanBala your answer is the best overview
You have initial baseline EB1 on Day1 (Based on which ever is higher Balance B or Equity E)
You have new baseline EB2 on Day2 (Based on which ever is higher Balance B or Equity E)
You have a VARIABLE daily DD (VDD) based on the baseline at beginning of day
DAY1 : VDD range is high-up relative to EB1
DAY2 : VDD range is lower-up relative to EB1
Both are safe while floating PNL remain high as on Day1 and Day2
Risk is if floating PNL reduces on Day2
The danger is the VDD might dip below EB2 = violation
I think best risk control to implement options
...(a) take partial profits before the PNL drops to EB2 (like nick says) or
...(b) set a trailing SL closer than the VDD so a PNL drop won't touch the EB2 (like Abu says)
Option A means cash is safe (taking partial) BUT your upside is reduced profits (if PNL were to fall then rise)
Option B means cash is safe (taking all) BUT your upside is still full profits (if PNL were to fall then rise)
If trailing stop could be automated...option B
If no automation then manually take partials ...accept option A
Your video has been great for me
I've finally understood the difference of choosing baseline on E or B ...and the risk on Day2 of any changes
Was a abit of a mystery for so long ...not now !
If I have a 5% daily draw down for a day and my account got suspended do I get to trade the next day ?
Did you get to trade the next day?
Are there other prop firms out there that calculate drawdown on account balance and not on equity?
FTMO
The Funded Trader for me is better
I used your promo code for registration
Is This daily drawdown rule applicable only during challenge or always?
Always Christy.
ALL prop firms manipulate their numbers to make you think you are on a funded account but you'd be better of compounding your own account. See my video on that to know how they do that.
If my account was suspended for the violation of the daily drawdown what should I do
that account is already gone and forgotten, I presumed you purchase another one again
Does MFF notify you immediately if you violate the DD rule?
yes
Do your profits cover up for the losses? Or are the losses counted individually?
They dont.
So as your equity increases so does your daily drawdown? So you just gotta ensure you in good profit hmmm ok
What if my equity rose by 6% and fell by 5% would that be a breach even though I am technically still in the money for that trade?
You only need to worry if you hold it overnight
@@davidlaing5297 ah right - and what is considered overnight? is it 24h after I placed the trade?
1 hour after New York Session Close
not for swing traders and do not hold a trade overnight
Does the rule still apply after you are funded
Yes it does
What if I haven’t lost the trade yet and it’s losing 5% is that a violation? But I hold until it’s winning
Its violation. Any moment it hit negative 5% its over. Doesnt matter if you go 20000 positive after, you lost account
Bro you can make 10k today on a 100k account & tomorrow if that same account drops to 104k then you are in violation even tho the account is still in profit lmao 🤣
@@vultur311 if it's the same day... Even if it goes up 10% As long as it didn't close in a loss... It's not calculated as part of your daily drawdown... But if in 6%, it crosses over to the next day, if it goes down 5% on that new day... U violated the rule... I think they are just discouraging swing traders
@@danielajayi9311 yes... I wanted to ask them directly if they are willing to change rule but later realize its their prop firm, their money/their rules
@@vultur311 In Kimmel's interview with the CEO, he asked the CEO about that rule and how he didn't like it.... The CEO sounded like, based on their experience so far as a firm, it was good for business and kind of good for the traders too....
I have passed phase 2, I have sent them my proof of documents after that. They emailed saying it will take 24 to 48 hours for live trading account. However it’s been well over 5days and they keep saying they will send me live account shortly which sucks. I’m still waiting for it. I can send you the proof as well if you want to look into it
Hey did you ever get the live account
@@honeyblu1586 yes I did
Thank you !
So if I’m in a trade still and it falls down 5% does that count ?
Yes this have me confused as well if it applies to trades running on the same day that don't go over to the next day.
@@meliciaclarke1996 yeah cause if that’s the case then it’s pointless to do the challenge in my eyes
@@neilpowell8504 exactly am currently doing the 10k challenge and that's my biggest fear
@@meliciaclarke1996 you pass bro or
Does the Overall Drawdown reset the following month?????
can someone please answer this?
Yes
Yes
Sir , my equity is 5k my total balance is 5395k but i have loss 273 doller today .... account status is suspended.... it's life broke or only d day...plz reply me...i m using ur code.
What happened bro?
How could anyone have 5% drawdown when you should never risk more than 2%?
bro thats what i was saying like if you wanna risk more and want more income, then just make 3,4 accounts and make sure to balance it
so basically it means you can lose the equity profits and losing is part of the game that's it won't work for a lot of people!
still very confused
So this rule is only bad for those guys in losses. If you are making profits, even better. Stive to be intra day.
Singal word not understand what u say
I have an account of $20k, which is in phase II
Their system detected a DD violation in my account but the fact is it wasn't even close to my DD limit
I reached one of their executives, he accepted that their system mistakenly detected a false violation and promised me to fix it within 24 hours, but it's been almost a week now and he closed my ticket without even solving the problem
Maybe they are a legitimate prop firm but their support is awful
Hope your issue has been solved by now,but it sucks to have faced that issue especially when your In phase 2
Update?
@@wikiorg379 they gave me a new phase II account and I passed it as well but ended up hitting my overall drawdown in funded account
Assuming am trading a100 000 account and am in 50000 profit if my profit suddenly drops to 40000 am I in violation of 5 per cent daily draw down?
If you hold the trade overnight, and your profit drops.
If it's the same day... Then no
This is such a stupid rule! MFF is the only prop firm in the industry that uses this rule!