Original subtitles

so in this video i want to talk about the risk management for all of you we're

talking beginners we're talking people that never got a payout never got funded

or already got payouts and got funded and want bigger payouts i'm going to

you a formula on how to get consistent payouts from the market this is going to

be the most insightful video when it comes into risk management with funded

accounts and yes you might still be in your challenge phase and do have videos

on formulas when it comes into getting funded but this is a very important part

of your journey what are you doing once you get funded how can you get

consistent payouts and this is going to be a big wake -up call for a lot of you

because when you get into the funding this is normally when you start doing

mistakes and then you get into drawdown and then you blow the funded account so

all of this idea of i am going to get a payout goes out of the window once you

get a few losing trades. And that is exactly what I want to avoid.

So we're going to go into the computer. That's going to be a downloadable

resource. And I'm going to give you the formulas in whatever stage of your

trading you are at right now. So let's get into it. So let's talk about the

risk management for funded accounts.

And you need to understand a couple of things. It's all based on the skill.

that you have, if you haven't got a payout, if you're a beginner trader, if

you're not a beginner trader, the number of funded accounts that you have, and

the consistency at which you want to get the payout. I will explain all of these

in detail, but someone that has gotten hundreds of thousands of dollars in

payouts should not be approaching PropFirm the same way as someone that

never gotten a payout. And that is why I think this video is going to be great,

because it's going to be an arrangement of...

every single skill level you will have a formula on what to risk when it comes

to your funded account and if you like that please make sure to subscribe i'm

going to do a whole free 30 -day boot camp in this youtube very very soon so

keep your eyes peeled for that so let's talk about the risk management for

funded accounts well first we're talking about And the skill is based on the

idea of if you've had previous payouts or if you have never had previous

payouts. And first, let's start off with the people that have never gotten a

payout. Because I know that this is a lot of you and a lot of you are getting

ready for when you get funded. And this is going to be extremely, extremely

important. And then let's talk about consistency.

Do you want bigger payouts or do you want consistent payouts?

And let's start off because I know that most people are going to want bigger

payouts, right? You've got your funded account. You want to get a big payout

because you want to prove to yourself, I can make money from trading. But I want

you to think about this. You do not have previous payouts. So you don't have

previous experience showing you that I can get payouts from a prop firm. And

so... If you are thinking that you want bigger payouts, I want you to rethink

why you want a bigger payout. You need to understand a bigger payout is going

incur more risk because if you don't risk, you have no reward. And if you

higher reward, which means a higher payout, you're going to have to risk

And so I want you to rethink why.

Because if you don't have previous payouts, if you don't even have one

to prove that you can get consistent payouts, then why are you trying to go

a big one?

It doesn't make any sense.

If you have never gotten a payout, consistent payout is the way to go. It

is. A lot of traders, they get so caught up because they start comparing

themselves with the other traders and how much they're getting paid out. And

this beginner that never got a payout before in his first payout was a $30

payout. Let me tell you, a lot of the people that you hear that the first

was a $20 ,000 payout, they will not show you all of the blown accounts.

And by the way, they will not show you the same people that are on the same

as you, meaning they never got a payout, and they will never get a payout

because they're always aiming for the big one, right? So I want you to think

about, if you are a beginner...

Especially if you don't have any payouts, you want consistent payouts

want something called proof of concept. And then once you want consistent

payouts, it depends on the number of funded accounts that you have.

And the reason for that is because like once you get funded, that is your

opportunity to make money from trading, right? Once you get funded, you can

finally get actually a payout. You don't need to profit 8%. You don't need to

profit 10%. You don't need to profit whatever it is to actually be able to

payout. So you just need to profit. So it's going to be different. The approach

that we are going to be using, if you have one funded account, two to three

funded accounts, or four plus funded accounts. And you will see that.

We'll talk about this a little bit after at the end of the video. That is going

to be one of the best lessons ever.

the risk that you are going to have if you are trading with one funded account

is going to be max drawdown divided by four divided by the number of trades

you take per week so let's say that the max drawdown on ftmo for example is 10

you divide that by four and then you divide that by the number of trades that

you take per week so let's say if i take five trades per week that means that

i'm going to be risking 0 .5 percent per trade and if you want to be even more

conservative you can do this by eight Now, why am I giving you this formula?

is this the formula?

Because you're basically dividing the max drawdown by four, which means you

going to need four weeks.

of consistent losing to blow your account and if you have not never gotten

payout but you got to the funded the likelihood of this happening is very

low so if you've never gotten a payout and you have one funded account i would

say risk max drawdown divided by four divided by number of trades per week

because again this is really going to reduce the risk of you blowing the

and if you don't know the number of trades that you take per week well you

should And if you don't have that data, look back in the last month, how many

trades that you have and divide that by four. Now, if you have two to three

funded accounts, the risk that you're going to have on one single account is

going to be max drawdown divided by 2 .5 divided by the number of trades per

week. So let's say once again, 10 % divided by 2 .5 divided by five trades

week. That means I'm going to be risking 0 .8 % on my funded account on one.

of the two to three funded accounts because again this is going to maximize

profit that you are going to take without risking your fund account

risking your opportunity to make money which is the number one thing that you

have to be thinking about it the opportunity for you to make money. And

want to reduce the risk of you losing the opportunity to make money as much as

possible, meaning you want to reduce the risk and the probability of you losing

the funded account as much as possible. And so then you are going to do

something called the rotate account, which we are going to talk about very,

soon. And if you have four or more funded accounts, then what you should do

max or down divided by two divided by the number of trades per week. So that

means that Max drawdown divided by two, divided by five. That means that in this

case, if I'm taking five trades per week, I'm going to be risking 1 % per

And again, this is only on one account because then we are going to be rotating

accounts. And this is going to basically guarantee that if you are profitable,

you can get consistent payouts. Every single month, you will get a payout,

right? That is my number one goal for you. I want you to see...

payouts getting into your account and so that is how we are going to be

approaching it if you don't have previous payouts and stick around

are going to talk about what this rotate account is going to be and it's going

to be one of the most important things if you're watching this just for this

video i made a quiz that basically is going to take you through all these

and tell you what risk you should use and at the end there is going to be a

calculator on a google sheets that you will be able to input your values and

will be able to to know how much you should be risking in percentage per

So make sure to check the first link in the description. The quiz is going to be

there and the calculator is going to be at the end of the quiz.

Now, let's talk about if you have...

previous payouts well in this case wanting bigger payouts is a possibility

so we'll talk about that but first let's talk about consistent payouts on the

funded account well in one two to three or four plus funded accounts if the

formula actually remains the same as if you have not gotten a payout yet because

again we understand that the goal is to get consistent payouts the number one

goal is consistent payouts and so the formula remains the same but if you have

gotten previous payouts that means that very likely you're going to get more and

more and more payouts because maybe you are a little bit more profitable than

the person that has not gotten payouts once again the reason for these formulas

believe me i spent hours coming up with these formulas because i was thinking

okay what do i do and how can i guarantee that the viewer watches this

implement these formulas and then actually get consistent payouts because

my number one goal is for you to get a payoff that's the number one goal with

the simple trading edge that's the number one goal with the boot camp that

going to have very very soon all on YouTube. But now let's say that you have

previous payouts and you want bigger payouts. Well, this depends also on the

number of funded accounts that you have. If you have one funded account, I don't

really recommend it. But again, I'm going to give you a formula, two to

accounts or four plus funded accounts. Well, if you have one funded account,

should do max drawdown divided by two divided by the number of trades per

which means yes, you are going to be risking in my example, around 1 % per

trade, but you don't need much more. You need to understand you only have one

funded account why would you risk more than that on one funded account so don't

risk more than one percent i would say and the formula is max drawdown divided

by two divided by the number of trades you take per week but if you have two to

three funded accounts then the risk you should be taking would be max drawdown

divided by the number of trades per week so worst case scenario this is the

problem worst case scenario is if you have a full losing week you are going to

lose one of the accounts.

Because don't forget that this is all about trading on one account, and you

going to rotate the account. We are going to talk about that right after. So

to three funded accounts, you are going to very much increase the risk of you

losing the funded account, but also you need to understand this is about wanting

bigger payouts. And this is only for traders that have previous...

payout and then if you have four or more funded accounts then what you can do

max drawdown divided by 0 .8 divided by the number of trades per week which

means let's say that you take five trades per week if you lose the first

you are going to be losing this account and again it's just one i really really

need to emphasize this this should be taken on one account and that's now what

we are going to talk about on the rotating the account because i want you

understand this very very clearly before it used to be very known that you just

interlink all of the accounts and you trade all of the accounts at first

if you have four million dollars or if you have one million dollars in assets

under management that means that you are going to make ten thousand dollars

every time you risk one percent if you copy trade between all of the accounts

i've tried that i know many many people that have tried that I know a lot of

people that still do that.

And I know a lot of people that are going to do the account rotation as I'm

going to tell you. The people that are most consistent in terms of payouts,

rotate the account.

And that's what I'm going to explain to you what this is. And the idea for this

video came about when I was talking with the coach inside of the Simple Trading

and she's going full time trading this year.

It was absolutely amazing to see. He told me I have a bunch of accounts,

blah, blah. And I was like, okay, now.

you're actually going to follow exactly what I just showed you of wanting

consistent payouts. And he was like, oh, but I could just interlink all of them,

risk 1%, and I would be making tens of thousands of dollars every single month.

And I was like, yeah, but that's not what you're going to do.

Because I want you to get consistent payouts. I don't want you to go back to

your job, right? So what does the account rotation mean?

The account rotation simply means...

that you're going to use all of the funded accounts that you have one at a

but you're always going to be rotating between them as soon as you have profit

that you can lock in. So for example, if you have a $100 ,000 account and you

make $2 ,000, you lock in the payout, you move on to the next one, right? One

winning trade, you move on to the next one.

And this is a perfect example.

Let's say you make $500, which means 0 .5%. At this point, you're likely

1%. You make $500, you lock in the payout, you move on to the next one,

Then let's say you enter in a losing streak, minus $500, minus...

thousand minus a thousand so you're down 2 .5 percent and then you make two

thousand dollars meaning you make two percent and then you make a thousand

dollars which means you make one percent you lock in the payout so now you've

already locked in three thousand dollars in payouts and you already went through

one losing streak and then let's say you have another break -even trade that is

a two hundred dollar trade you lock in that payout too Because don't forget

at that point, maybe this first account is already available.

But you've already locked in three payouts and with this one, four payouts.

So can you see what I mean with consistent payouts? And now let's

you get into a deep losing streak. Minus 1%, minus 1%, minus 1%, minus 1%, plus

2, plus 0 .5, minus 0 .5.

This is a big losing streak that you could be taking.

And the beautiful thing here and the reason why I really seriously, seriously

recommend you doing this is because as this losing streak is happening, you are

not fearing that you are going to lose all of your livelihood.

You are not fearing that all of a sudden you will not be able to pay the bills

anymore because you still have all of these other accounts to fall back on.

You still have all of the other two accounts three accounts to fall back on

this is extremely important because we're talking about the consistency of

payouts and constantly getting that payout constantly getting money into

bank account what is the goal with trading the goal with trading is to get

out of the market into our bank account that's the only time that you have

profited from trading if the money is not in your bank account you have not

profited from the market if the money is in the broker you have not yet profited

from the market because you have not withdrawn the money yet So it's very

important to keep that in mind. And so this is basically what the account

rotation means. As soon as you get one trade in profit, you lock in the payout.

Doesn't matter if it's $200, doesn't matter if it's $500, doesn't matter if

a $4 ,000 trade. You lock that in. So maybe the $200 on this maybe break -even

trade that you took.

It's actually your bills paid for a week. So do you understand how you are

comparing yourself with all these other influencers or anyone that is making an

interview on the PopFirm Challenge?

And you're forgetting that $200 is one week of bills paid. And that maybe you

made in one break -even trade where you should not even have profited.

All of a sudden, you're getting a payout and you're getting your bills paid for

a week.

How freeing would that be?

How freeing would it be to every single week get a payout that would pay for

your bills for multiple weeks to come?

How beautiful would that be?

And that is my goal for you. Now, some of you are going to say, well, but how

I get to 100K, 100K? I have a risk management video for that. But I want to

about, let's say you have $10 ,000 accounts.

This is the same thing. If you have $10 ,000 accounts, you're going to work the

same way.

And yes, you are not going to get the biggest returns, but this is what you

are going to funnel into bigger challenges.

Maybe your next funded account is going to be a 100K account. Maybe the next

account is going to be a 200K funded account.

Who knows? But that is going to come from the consistency of getting these

payouts. So let's say you enter in a big losing streak, minus 5%. You dig

yourself out of that losing streak until you lock in the payout. Then you move

on to the next one. Profitable trade, lock in the payout, move on to the next

one. Losing trade, winning trade, lock in the payout, right? So all of a

you're getting this consistent money into your bank account. That's the

one thing that I wish.

for you and that's why i really urge you to try to do this you will see a huge

shift in your trading once you start doing this all of a sudden you're going

be like man i don't feel like stressed anymore when i'm in a losing streak i

don't really care that much anymore and you'll notice that it's because you have

something to back you up you have something that if you blow this account

it is what it is i still have other ones and you're not going to fall into the

cycle of i've entered in two trades losing okay it's done i'm done i cannot

the bills trading is not working for me blah blah blah that is going to happen

to you if you keep copying between accounts eventually it will happen to

well if you rotate the account you will go on a losing streak on one but you

won't worry because on all of the other accounts you will still be able to get a

payout because there will be ad break even or at a tiny profit or even at a

loss so with that being said this is the best system when it comes into getting

consistent payouts with prop fund and that i really urge you to try to do this

and you'll notice a huge shift in your training so make sure to subscribe

there's going to be 30 days followed 30 days of a bootcamp coming in this

channel which is going to be absolutely a game changer on youtube so subscribe

if you want to watch that if you want the risk management for problems when it

comes into challenges then that video is going to be right here hope you enjoyed

and i'll see you in the next one If you're watching this just for this video

made a quiz that basically is good to take you through all these paths and

you what risk you could use and at the end there is good to be a calculator on

Google sheet that you will be able to input your values and you will be able

know how much you should be risking in percentage per trade so make sure to

check the first link in the description the quiz is going to be there and the

calculator is going to be at the end of the quiz