My Forex Funds 5% Daily Drawdown EXPLAINED (MUST SEE BEFORE EVALUATION)
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- Опубліковано 16 лют 2023
- The 5% Equity Daily Drawdown rule takes many traders by surprise especially if you started trading FTMO before My Forex Funds. If you are planning on taking the My Forex Funds challenge, watch this video to understand what to watch out for and how to avoid a violation.
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You’ve got a great channel here with really great content. Keep it up man.
Thanks for the encouragement and support.
Hey bro, I love your content and everything that you do. I would like to give some feedback on the music volume especially when you are explaining technical and complex stuff. It’s a big distraction, perhaps less volume will help. ❤
You’re my best UA-camr when it comes to trading clarity🎉
This is actually what I was talking about bro. Glad on how you explained it though…great delivery once again.
Glad you liked it!
Keep in mind MFF is a business owned by a 27 year old. Solo entrepreneur. He only makes a profit when you buy challenges and fail them. Which means he loses money when you pass and make money. They want to deter you from passing and they know most of you will fail.
I believe if they see that you are profitable they will copy your trades to get your payout. So there shouldnt be a money loss for them
Wrong. They make money either way because if you trade and fail they keep your money. But if you trade and succeed they fully fund you and then any profit on your account you keep 80-90% depending on the firm. They keep 10-20%. It’s a great business idea. They will always make money. Then we get rewarded by being funded and keeping 80-90%. Prop firms really give skilled traders a chance to change there lives if they don’t have the biggest capital.
They let the diamonds in the rough come up.
I just found your channel and absolutely love, keep it up bro 👌
Welcome! Thanks for tuning in bro.
I personally would not trade that prop firm at all due to this alone. No trading propfirm should ever have rules like this ever.
I feel you. It works for my trading style, but I think they should definitely change the rule.
This rule was quite tricky for me to understand. I didn't understand how I lost the MFF account when I was in profit. Overall, because of this one rule, I'm never going to purchase another MFF acc
MFF is basically saying fk Swing Traders. And welcoming Intraday Traders nd Scalpers. 😂
Trailing stops, closing trades over weekends and your fine
@@banginzazano instead it caters for swingers, the rest are compromised😢
yeah thanks bro so much info in this :)
thank you abdullah for the video and explanation it would be extrely helpful
Equity vs Balance 👌🏿 another fire one my Caribbean trading brother 🇯🇲 🎈
🙏🏾🙏🏾🙏🏾
Thanks man. This video saved me. I didn't know that about my forex accounts. I will consider FTMO which sticks to the principle balance.
Informative as always, bro. I've also found that FTMO has much tighter spreads than MFF on EU - I've been SL'd on MFF scalps just on the spread but has never had that on FTMO. Keep the content coming, bro
✊🏾💯 - I appreciate the compliment. Thanks for all of your support Kam. It means a lot to me.
🔥as usual
10k subs lets goo
Thanks for all of your support!!!
Yes.... Anticipating..and it's finally here
💯
Mr Rasheed thank you very much. As for me this rule alone makes MFF a 2nd class to FTMO. It's both limiting and criminal. As in how can a trader who is in massive profits violate an account?
thank you for the insights
Thank you for this hoss
Only effective way to handle them is trailing stoplose as"they shrink loss limit you shrink stoploss respectively" THANKS SO MUCH BRO I DIDN'T KNOW THIS BEFORE!✌️✌️
Definitely use the trail. Thanks for stopping by.
Yeh thats what im doing
It's very useful. thank you.
This is the same as some futures prop firms intraday trailing drawdown which I’m funded with and If you’re a quick scalper it’s not so bad. It does make it hard to hold trades for too long though. Usually these types of challenges are cheaper though
For sure.
I didn’t know futures prop firms existed similar to the CFD props like MFF and FTMO. That’s good to know they are there.
@@abdullahrasheed Yeah looks like you got the Forex prop firms locked down I’m doing pretty good on futures. I was thinking about taking an FTMO myself 😎
@@abdullahrasheed Most futures are mainly for day trading can’t get the big accounts to hold overnight like you can with Forex
Yes I want to see that rule changed to Balance for MFF
Me to
This is insane, they are willing to close your account even though you are in profit
thanks G for the great content
Thanks for the support! ✊🏾 Let me know what you want to see next.
Thanks for the info. Nuff respec bro.
Respect bro.
The best explanation of this condition. Always great content Abdullah 👍
Thanks for tuning in.
This Rule makes MFF not even top 3. Their is no logical reason for this rule. As trader you are massively limited, you could never peacefully decide to become a swing trader with this rule in place. You will be stuck being a short term day trader fo as long as you trade with MFF.
You just can’t trade bro
I think the online-prop space is going to continue to expand and force existing props to become more flexible. I think traders will gain more bargaining leverage as more viable options become available.
You literally can’t trade lol.
It’s called risk management and if you’re a swing trader just use their account for swing trades
You actually can’t trade
That's why I never bought their challenge 😂
Well explained .. thank you
✊🏾💯 - Let me know what you want to see next.
So, to be safe, as approaching closing time, any running profits should be closed and withdrawn to bring the balance back to the initial amount, is that correct?
Thank you very much for this informative video.
I think they should change the 5% drawdown rule from equity to balance
Great channel. Lots of good information, I discovered it when I was looking for a platform to fund my account. Keep up the good work.
How’s it going?
Im a scalper, so i dont hold positions for more than 30m. & according to my trading plan, i wld never lose more than 4% in a day. So im in the clear.
Perfect.
I lost 3 MFF accounts despite my stops being in profit because of the 5% rule. I set my stops in PROFIT while up 8% on the account and i wake up with the account disabled despite still being in profit. Its really bad for swing traders. Lost it 3 times cause 1st time i thought the rule was like FTMO, 2nd time I thought the 5% was based on balance/after you close your positions not equity and 3rd time was due to spreads
You lost because of greed . Being up 8 % and not closing is greed
Sorry to hear that. I bought a few $5k MFF accounts and played around with everything you mentioned so I’d know exactly how they operated before purchasing the big $300K account
@@thewhitedevilfromthebible5899 no, people have technical levels and they wait for them to be hit. That's not greed.
You have talent in speaking
thanks bro
Hey Abdullah, who does all the video and audio editing on your short movies🎬😎? They are just great! Excellent job bro!🤝
Hahahaha thanks for the compliment
Quality content, amazing breakdowns. Love your channel bro!
Thanks for tuning in. I appreciate you.
Thank you Abdullah! One question. When you trade indices with your strategy, do you have specific trading hours (ie Killzones) or you trade when the setups show up even if it is in the nightime? Is it important to have specific trading hours?
The majority of my trading happens pre-market NY or during NY. On rare occasions I will trade right before the close of NY or enter during asian, but these are mostly sell positions that are inside of my zones.
Smh this happened today I was about to pass phase 2 on MFF then got a suspended on some bs when I was in profitv
This is why you trade MFF accelerated accounts because it’s calculated off starting balance only
The accelerated accounts doesn’t have daily drawdown limits, so ur balance wouldn’t matter either. Only thing that matters is max stop out, which is nice. But that 50/50 split 🫠😩
@@rashadheyward Very true but the max allocation when you scale up through the phases thoughh
Lot size of 0.20 okay to use on accelerated trading gold?
I have cleared the 200,000 Free Challenge of FTMO in just 4 trade with my setup in a day. I was listening to your video when sudden move in my favor gave me 15 pip of 5K profit and later I saw challenge is passed...Thanks
Hahahaha. My video have you edge
Could you please explain to us about the consistency part of mff accounts
First to comment, Thanks Bro
Thanks bro! I appreciate the support!
Does that work for both daily and overall drawdowns?
Thanks Bro👍
✊🏾💯 - Your'e Welcome. Thanks for tuning in.
Is the drawdown rule at True forex funds based on equity or balance ?
When you say “watch this video” the video is not popping up
Can you aplowd some video how to enter and estar buy and sell and also how to widraw
jesus im scared now, I just let a position run over the weekend after being 2% up 100k risking only 0.50% of the account , I'm a day trader but this was my A+ set up so I wanted to let it run, And there is no way to check it now
I dont think its because they dont want you to swing and get a big pay out because the more money you make its the more they make..solid video though keep up the good work you just got a new subscriber
I noticed anytime you say "watch this video" with you pointing at the top right corner... Nothing pops out .. can you kindly fix it?..
Just my observation.
I’ll correct it asap
Super informative! What camera are you using? The quality is amazing
Thanks for the compliment. Canon 90D. Let me know what you want to see next.
Brother is the daily draw drawdown percentage same on live (real) funded accounts
In reference to analysis. If you are a short term trader on 3/5min timeframe is there any reason to consult higher time frame charts? I find it causes analysis paralysis as the moves i am looking to capture on the smaller timeframe happen anyway regardless of the greater trend? Look forward to hearing your view for a short term trader
If you trade the 5m there's no need to look for time-frames higher than 1h
The spread is even more of a problem.
Great explanation bro
🙏🏾🙏🏾🙏🏾
Or move to break even with enough to to cover commissions take partials and move to break even
Agreed
The daily dd is always based on the initial balance or equity of the day, the higher? I mean if im 10k in profit on a 100k account, the 5% daily dd on that day is 5.5k based on 110k, right? What means if i go down till 104,5k minus 1 i'll be breaking the daily dd? Does the daily dd ALWAYS based on the initial amount of the day... equity or balance, higher...?
For example, if that same day when i start with 110k so my daily dd is up to 104.5k... if go up that day till 115k in profit. My daily dd will keep up to 104.5k? Or now will be 109.250 based on 115k...?
Thats my question; the daily dd keep based on initial balance or equity of the day during that day or change during the trading day while we are putting trades that modify our balance or equity?
Dope video. What are your thoughts on The5ers?
Never tried them out. Have you?
Be patient and wait on high probability set ups.only risk up to 1% of your account cumulatively.go for a 1 to 3 risk to reward
That’s the key brother.
Brilliant video Abdullah. Very informative and helpful . Peace! ✌ (Subscribed!) 😉
Thanks for tuning in 💯. I really appreciate you supporting the channel.✊🏾 Please let me know what else you want to see next.
So if I understand well you’re implying that as long as you’re a day trader or scalper you’re safe this rule of MFF works like FTMO right ? ,but when you swing trade then it’s different is that correct ?
Yes. If you don't hold positions overnight you are fine.
thanks pro
✊🏾💯 - Let me know what you want to see next.
I just got the drawdown and said it was suspended I feel like I can’t trade no more is it true?
Do the drawdown on MFF reset every month?
Yh but eventually, you'd violate with MFF because nobody can watch the markets 24/7. I recently got caught out even though I knew of the equity thing but I was not paying attention. What peed me off is the trade I was in went on to profit and that single trade alone would have made me pass the challenge if not for the stupid equity drawdown rule.
I heard MFF change their rules now, ,do they change this also?
One more question!
Let's say I take a 5k account for 49$ and I pass phase 1 and 2, are they going to refund my money?
And give me a live 5k account, am I going to trade based on the challenge rules or?
They got me with this on my phase 2 very very very disheartening as a trader complete scam it should be off balance not equity due to position is not closed
Appreciate if you can do a short video on fundednext prop fund . Thanks
I’ll look into it for sure.
So if you are not keeping position over night your equity is your balance? How does this work throught the day? will the limit change with the equity or is based on the starting equity of the day?
It doesn't change throughout the day it always remains the same
The MFF rule disadvantages the swing traders more, especially if you are in Drawdown!
That is right bro.
does ftmo now still use balance or also equity?
What would it be for 10,000
ok so for instance if i have a 10k acc and im in profit like i have 10500 and max daily drawdown is 500$, can I go to 9500$ because im in profit or not
But i tried the trail version of FTMO and i found that when you are in profit and you didn't even close the position . When the profit slipped off 5% and you didn't hit the daily max drawdown , the FTMO breached my account . MFF didn't do that . I can lose all my day profit + The maximum drawdown even it 7 % or 8 %in the the day period of drawdown !?
Is it right !?
I have never experienced this with FTMO.
I think it’s the only sensible way to do it. Equity is what matters anyway.
The trader funding space is amazing, they really do provide an opportunity for the little guy but also remember how the bucket shop owners in reminisces of a stock operator looked at their “customers”. These rules have nothing to do with keeping traders consistent, they have everything to do with keeping traders subscriptions and reset payments. Still a great opportunity though, just have to be super intentional with the math of your trading plan, at least until you get through the trailing drawdown!
I read the Reminiscence of a ST…I totally agree with you. The rules are designed for their own profitability.
@@abdullahrasheed yup, great read. The beautiful thing about it is you can often read between the lines to see where a brokerage probably makes most its money. Those who are always offering deals are probably making more on the reset fees. Nonetheless those deals are GREAT opportunities for traders who understand edge and the math of their trading plan. Love the content bro, a lot of fluff on UA-cam but your page is 💯 keep going!
Can anyone explain about the spreads please?
Im currently interestes on MFF i've read all of the rules but i still dont get this spead thing.😂
Yep that was me twice..😣😣
Bro, question? What if I start the day with 8K (Meaning daily draw of 8K is 400Dollas right) OK I make 400 profit bringing my balance to 8400! And second setup of the day I make a lost of 600. Did I violate the rule or am I still good!
Losing 5% in a single day is huge, how is it possible? With everything you've already earned, maybe you don't need it anymore?
Do you loose the account after your equity is being violated
The CEO already said in a interview he will not change that rule
He is not. That's right. Other props are following suit
So, MTF is better because you can compound your lot size and not remain fixed as FTMO where 5% means maximum of initial balance all the time. I understood correctly?
No. You can always compound lot sizes in both. With MFF though, at the end of the day if you have floating profit...its worst.
Please a video on spreads offered by FTMO and MFF..... especially spreads when news releases is happening
The MFF spreads are wide during news. I’d recommend staying away during news.
@@abdullahrasheed what is normal spread on GOLD ?
Thats true ..i made that mistake first time..i breached my contract first day 😂😂
Yes they should change the rule
They aren’t going to change it bro. Most funded companies have adopted it so it’s here to stay most likely
Which monitor you use?
Waiting for setup video
Putting it on my list. 49inch Samsung, 34 inch LG
Hey bro thanks Al Hamdulilah ! Can you do a video for you're EA in MT5 ? I don't wan't to trade in my phone anymore haha
Alhamdulillah. I’ll definitely do a video on the EA.
@@abdullahrasheed Allah y hafdek bro !
MFF Ceo said he will not be changing that rule anytime soon in a interview. So NOPE!
My forex fund the have to change that roles why drawdown is on equity it support to be on balance not equity
I'd prefer that as well.
Does this rule only apply to those who hold trades overnight or to us scalpers
Overnight only.
It's crazy you can be in profits but still lose your account. I think only intra day traders and scalpers should use this prop firm. If you swing you'll lose your account guaranteed
I think that rule is bullshit because if someone is trading an 100k account and they're up say 107k in profit and experience some draw down that might bring them back to 101k. Then that means they're in violation and lose the account, but when in reality they're still in profit because they initially started at 100k, so therefore they're $1,000 in profit. I think that rule sucks!
For sure
No, the rule should remain. MFF is half the price of FTMO for the same challenge and has 2% more in drawdown so that rule is fine
I breached my daily max loss on my 20000 rapid account but not the over all draw down of 12% but they terminated by account. prior o breach the account i did not breach 6% in my previous trades . Is this correct?
If you violated max daily loss then yes.
If they stop the daily 5% limit.. it means more passing the challenge also they can’t afford funding winners accounts. Psychologically that’s where budget comes from lol
Yep that rule should be changed to balanced and they would be the best out there
They would pass FTMO if they changed the rule and hired performance coaches.
What prop firms use the same drawdown as ftmo?
I don’t know. I have to look into it. Most are adopting MFF’s model.
I mean I see why they do it. With the lower costs and the lower profit margin I don’t mind it. Just make sure people know this rule before purchasing
To me…most people probably overlook it because they just don’t expect to be penalized for something like this.
@@abdullahrasheed you’re right. I do believe they should make people more aware of it
Brotha we can't wait for Episode 2 of the $300K challenge, when is it dropping?
I’m filming daily but the episodes have to be edited to cut out unnecessary dead space so they will be released like this:
Episode 1 - Purchase and Strategy
Episode 2 - Phase 1 trades pass, free repeat, extension or fail
Episode 3 - Phase 2 trades pass, free repeat, extension or fail
Episode 4 - Funded Account Payout
US30 was ranging for 20 days so I was waiting for the break out. It broke out to the downside and the fed decided to raise interest rates by 25 basis points so I’ll be trading the trend now