Difference between Relative and Absolute drawdown, The5ers vs. MFF

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Difference between Relative and Absolute drawdown, The5ers vs. MFF

Рет қаралды 5,440

ANNA FX

Күн бұрын

Пікірлер: 66

@InfiniteSkyTrading Жыл бұрын

Wow finally someone who explained relative drawdown where I actually understand the rule. Thanks Anna!

@anna.ikerte Жыл бұрын

I'm glad it was useful. 🤍

@TT-dv9er 7 ай бұрын

Relative drawdowns are a ripoff. They force you to scalp and over trade.

@sonamkoul2 Жыл бұрын

Hello Anna, You are right the5ers go by absolute drawdown. The word Equity made me believe that it includes open positions. I asked the5ers customer support, and they told me that the drawdown goes by the account balance. Therefore, you are right, and I was wrong.

@anna.ikerte Жыл бұрын

Hi Namory! I am glad that you reached out to the5ers support, and now you understand how drawdown works. Wish you all the best for the week ahead.

@rufdymond 8 ай бұрын

This is one of the reasons I take partials and automatically move my stops on all my trades when trading prop.

@sarahakota1752 2 ай бұрын

But does it affect the account if the market reversed and the running profit becomes loss without hitting stop loss? Or must it hit stop loss/break even first?

@devonfer Жыл бұрын

This is the clearest and easiest explanation I have ever heard. You are exceptional. Thank you!!! Subscribed!!

@jtcapitalfx Жыл бұрын

well explained, relative DD sucks, I thing trailing stop loss it's the best way or trying to reach 5R and taking partials.

@majidfx2006 Жыл бұрын

thanks ANNA......you explained very good....Indeed we have 3 drawdown: Absolute drawdown Relative drawdown Maximum drawdown Your explanations are good and complete....if you use whiteboard to explain and draw the figure, it will be very complete for all traders....❤❤

@anna.ikerte Жыл бұрын

Thank you. Have a great trading week. :)

@ritazavackaite6496 Жыл бұрын

Thanks Anna.. I was really confused about the relative DD..I am swing trading so sometimes I go into profit 7% and then it breaks even... You just saved my ass :))))

@anna.ikerte Жыл бұрын

Hey Rita! I'm glad the video was helpful to you. Maybe just try to take partials when trading with relative DD. 😊

@ritazavackaite6496 Жыл бұрын

@@anna.ikerte hmm.. I would need to backtest that because I have never tried taking partials and wouldn't know where to 😅 thanks for the advice 😊 At the moment I am leaning towards 5ers with the max dd 😄

@sarahakota1752 2 ай бұрын

Best explanation so far! But, will the breach apply if the market reverses and the running profit becomes loss (trade is still running, haven’t gotten to stop loss/break even yet) Or will the breach only apply after the trade is closed either by hitting stop loss or breakeven Must the trade be closed first before the drawdown is breached?

@anna.ikerte 2 ай бұрын

Hey! Once your equity goes below allowed drawdown you will lose your account.

@Mike-London-UK Жыл бұрын

I used to hate My forex Funds relative drawdown, I suppose I didn't understand it properly and listening to KZfaqrs who don't know any better giving bad advice made this worse. But actually for my style of trading it works very well compared to say FTMO. I still haven't passed any challenges yet and it's taken me months to understand relative drawdown and I simply compared the drawdown to FTMO's..... But now that I understand MFF drawdown I think it's amazing especially for challenges, for example I always have open positions overnight and weekends and for example, if I'm down x percent, with FTMO the following day I will have to watch how I trade because of the drawdown is so tight but with MFF you get the full 100% drawdown the next day which is amazing and I've adjusted my trading accordingly because of the relative drawdown. As you stated, relative and absolute, one is not better than the other, and if I had a funded account then I'd prefer absolute, but to pas the challenge, for me, I just love MFF relative drawdown, and they are my number one prop firm for me at the moment and have overtaken FTMO, in my opinion

@anna.ikerte Жыл бұрын

Hi Mike! Thank you for the comment. I think it's great that you have found what works for you. I personaly prefer absolute drawdown as that way I have more control over account, but it's just what works for me. Have a great trading week. :)

@sylvesterkabine4769 Жыл бұрын

Thank you Anna, you really helped with something I was struggling with for some time now, God bless you. You are doing great!!!

@anna.ikerte Жыл бұрын

You are so welcome! Glad that video helped. Hope you are having a good week so far. :)

@mustangs263 Жыл бұрын

You are the best at using your phone for videos.

@candlemcstick4024 Жыл бұрын

One other reason The5ers is my favo prop firm.

@anna.ikerte Жыл бұрын

Same! :)

@jantarai362 Жыл бұрын

Anna Also make a video about KYC verification process and withdrawal with live example or screen shot

@anna.ikerte Жыл бұрын

will do so for my next withdrawal. Have a great week. :)

@SSEnrich Жыл бұрын

I think I know about most og these things. Interesting video anyway. My question though is about trading for a prop firm. When you trade for a prop firm, do you have your own trading account at the same time? That you regularly deposit money into? I am a bout to start trading with real money this week. I think I am about 8 months to å year away from trying a prop firm challenge.

@adil6317 7 ай бұрын

Im from Scotland!

@MasegoMarie Жыл бұрын

This is solid Anna💯 You just gained a new subscriber.

@anna.ikerte Жыл бұрын

Thank you so much. Appreciate you. 🙏

@madhusudankhandal7328 Жыл бұрын

Well explained, you really explain things very well Keep growing stay blessed...

@anna.ikerte Жыл бұрын

Thank you, I try to keep things as simple as I can and use easy language so everyone can understand. Have a good weekend. 😊

@GB-kl2pd 10 ай бұрын

My prop firm offers "fixed" and "trailing." Would absolute be same as fixed and relative same as trailing? Thanks

@jantarai362 Жыл бұрын

Very nice and infomative video really your are doing well

@anna.ikerte Жыл бұрын

Thank you, really hope it was useful and esy to understand. Thank you for your support, appriciate it.

@sazam77 11 ай бұрын

do 5% have a rule that if you dont trade for 14 days of inactivity you can lose your account ?

@anna.ikerte 11 ай бұрын

Yes. But if you open and close 0.01lot trade, it will reset your inactivity days.

@tombarrett4237 Жыл бұрын

With the 5ers say you are on bootcamp 100k your drawdown on the camp is 6% but when you pass it then drops to 4%, then say you want to make a buffer but by the time you have made your buffer they have scaled your account to the next level with 4% drawdown again. Makes it impossible to create a buffer

@anna.ikerte Жыл бұрын

Hi Tom! What I personaly do is, I simply don't withdraw my profit and keep that as a buffer, then after I reach next target I take previous profit out but keep the one that I make. So lets say you trade 100k account, after you reach 5% you can withdraw 2.5k however if you want the buffer just keep it in account.

@tombarrett4237 Жыл бұрын

So basically you are skipping a withdrawal and having the payout on the 2nd scale up. 👍🏻

@heybear7271 Жыл бұрын

@@anna.ikerte pls explain it more on a video. thanks!

@lifeoftraderlot5647 Жыл бұрын

Relative Drawdrown be written explanation will better?

@jtcapitalfx Жыл бұрын

I got a little question, to day I opened two entries on GU, is usually leave the first one open full volume to my target. Let's say my target is 10R for the first trade, then I look for scaling and If I find one I will close it on 5R before the last target. So I can be in profits leaving my first entry full volume with no problems. But if I close the second on 5R and the let's say that the first entry was already on 10R but it comes back to BE, In that case I will lose my account??

@jtcapitalfx Жыл бұрын

I mean with relative DD

@anna.ikerte Жыл бұрын

Hey Lucas! In this example it depends on your starting balance and risk you take per setup. Lets say you started with 100k and used 1% risk. your 10R trade was looking good, then you scaled in and risked another 1%, took 5R(5k) profit but the 10R trade now goes back to BE, now your balance is 105k, so no, you won't lose account, however if the trades both were in profit and then new trading day starts then you need to watch out for your profit trades to go into BE as that will count as drawdown. So with relative DD you need to make sure, when your trades are open and NEW TRADING DAY starts, be sure they won't go into 5% dd. Hope this helps.

@jorgecamara1030 Жыл бұрын

hello any EA USE Rules....

@heybear7271 Жыл бұрын

HI anna, are you still on your MFF challenge???

@clistens3368 Жыл бұрын

No, keep 5ers the way it is. I dislike prop firms with relative drawdowns. Definitely shows you are not trading real money and /or they are not taking your trades. 5ers is legit with absolute drawdown.

@anna.ikerte Жыл бұрын

I agree, but I think daily DD(not relative DD) is good to have for trading psychology, like you know when to stop.

@clistens3368 Жыл бұрын

@@anna.ikerte recommend traders use a trade/risk manager so they can limit their trading for the day is they loss a specific percentage because breaking a DD means not funded or loss your account. Rather use a trade manager to reference daily loss percentage.

@Letraderstoique 11 ай бұрын

MFF has "slip them to hell" drawdown

@anna.ikerte 11 ай бұрын

This is now the most popular saying, so many memes as well...

@user-lv7bj4ei1n 10 ай бұрын

stay away from any prop firm that has a relative or equity base drawdown.. just like mff had.

@ericnyamu9981 Жыл бұрын

I love you . 😉

@sonamkoul2 Жыл бұрын

No, it is not true that the5ers go by absolute drawdown(based on account balance only). The5ers have Equity-stop out of 6% which is relative drawdown(based on open positions. So stop misleading people.

@anna.ikerte Жыл бұрын

Namory, you are the one who is misleading. Please make sure you understand how relative and absolute drawdown works before you comment. Let me give you an example. You have a 10k account, and your drawdown is 6%, so your equity stop will be $9400. Now, if you have made a profit and your account is now at $10500(+5% profit, now you have 11% drawdown) and your open trades go to $9700(-8%, with MFF in this case you would have lost account as daily drawdownlimit would have be reached) but with the5ers you still will have your account not violated because you have an absolute drawdown of 6% (which is $9400). I hope this example helps you to understand the difference between relative and absolute drawdown.