Hey folks, let’s use this blog post to talk about passing the 5ers evaluation and why I decided to go with them.
First of all, why did I choose to go with 5ers?
In terms of funding programs there’s quite a few out there, I believe the most well known ones are 5ers, FTMO, Trader4Trader and CityTradersImperium.
FTMO offers a 100k account (where you can get 3 accounts up and running) for a total of 300k if you pass three evaluations.
That’s rather nice, a good way to sum it up, the only problem is that to pass the evaluation you need to return 10% without having a 10% downside – you have one month to achieve that.
My trading style is a lot more swing / hybrid – I usually have around 5 trades per month so doing an evaluation over 1 month seems rather stupid. There was also a second downside – when you are trading live money you aren’t allowed to hold over the weekend – something I currently do. If I were to cut my positions before the weekend that would mess up my entire RR model which I prefer not to do.
Traders4Traders have an interesting platform, however they require a 10% profit without having a 4% drawdown which is more than 5ers. The scaling isn’t that important either once you proved yourself to be consistent.
City Traders Imperium is quite interesting I love the scaling offered, the max account size is 2M which is rather nice, there’s a higher profit split the more consistent you prove yourself, they double your account size etc.
The downside of City Traders Imperium is that their office location seems rather strange, at the time I was doing my research, their address was a home in a suburb, which isn’t something that gives me too much confidence.
Now onto 5ers. I decided to join them for the following reasons
1- Their evaluation method asks you to return 6% within 6 months without having a 4% drawdown
2- They offer a clear scaling method – they double your account size up until 1.2M every time you make 10% profits.
3- Their conditions are rather similar to what I apply to myself (no more than 1.5% risk for each position / allowed to hold over weekend and news / long term vision)
They were also rather good at answering my emails which showed their customer support does exist, and also run quite a few live programs / webinar where it’s possible to interact with others
I am so far very happy with my choice and I have no regrets doing it 🙂
Why did I want to get funded?
While getting funded is rather nice, it’s a nice “ego boost” there’s still a drawdown max so you’re actually not really enabled to trade a 40k account once you pass the evaluation.
People have said about these funding programs “You’re not trading a 40k account Max, you’re trading a smaller account with leverage – getting funded is useless.”
Yes I know, but that’s not why I did it.
To make the example based on the evaluation period, you are trading a 10k live account with a max loss of 400$ (4%) I think that’s fair, but basically what that means is that you’ll probably be risking 0.5% per trade or less (or you can go balls deep and risk a full 1.49% per position, you’re allowed to)
By risking 0.5% you’re now risking 50$ per trade. You could open a trading account with the 450$ sign up fee and risk 50$ per trade as well (slightly above 10% risk instead of 0.5%) you won’t have anyone to share profits with etc etc
Basically what I mean here is that you can make the same amount of profits opening a small account and using a lot of risk for the same cost. So why get funded?
Getting funded enables me to get used to trading with numbers that are slightly bigger than what I am used to, instead of only having my personal account I now have a passive income on the side, I don’t have to worry too much about it, I just have to keep executing.
It makes me more comfortable with the idea of getting investors onboard, I’ve had quite a few people asking if they could invest with me over the years, I’ve always said no I prefer to focus on myself and grow my own account first.
Getting 5ers to invest in me is the first step to open up to individuals I meet, it enables me to have more confidence in myself & the future investors will be able to see I passed an evaluation and more.
It enables me to increase my income (every profit I take on 5ers is transferred into my personal account where I do not have a profit split deal), increase my confidence in my trading, reassure investors & a lot more
My “journey” to getting funded
Heck, I started this trial account around the worse time to do it based on my strategy, Q4 was slightly in the red for me, January as well, so all in all it was a bad time to start, My P&L curve was definitely in a nice bearish trend let’s put it that way.
No way I could’ve predicted that my trading strategy would have a bad beat at that time, but it happens all that we have to do is accept it and focus on our risk management.
Since I knew there was a 6month time limit – and a max drawdown of 4% I decided to trade the account with 0.5% risk on every single position I took.
That enabled me to have up to 8 losing trades in a row / on top of BE trades which I thought was a decent amount. Since 2016 we’ve only had a drawdown of 8R twice.
It happens, it already happened, however I was happy using 0.5% since otherwise reaching the profit target (now 12R) would be a lot more challenging.
I was nearly taken out of the evaluation period before the markets decided to switch gears and start respecting my strategy – heck, I was 1 loss away from being taken out of the program.
I’m happy I stuck with my trading plan and executed as I was supposed to, but that was a hard moment. From that low I basically recovered within a month, went from nearly 4% drawdown to the 6% profit.
Now you may have done the calculations, that’s a lot of profit to make in a month using 0.5% risk.
It was my last month on the program, so I increased my risk to 1% which enabled me to get through.
I wouldn’t recommend using 1% risk at the beginning of the trial, but on the last month once I was 2.3% away from the 4% drawdown limit I decided to increase my risk due to the time constraint.
Philosophy / Mindset I’d recommend when passing an evaluation
Seneca had a great philosophy for everything, I’d recommend reading his writings & about stoicism as a whole.
Something I only recently came to realize is that the aim is to avoid being fragile, you don’t want to shatter just because some volatility came across you. Instead you want to remain robust, or ideally become better off thanks to that volatility.
You want to write off all your possessions that way if you loose them, well, nothing bad happened to you since you already wrote them off. All you do is keep the upside.
You become anti fragile to fate, no more downside, only the upside.
In what way can this be applied to trading / passing a trading evaluation?
Imagine that the 450$ you invested to pass the 5ers trading evaluation is lost, that they’ll never actually pay them back. If you’ve already written it off as a loss and don’t expect it back, there’s no more downside.
Once you have no more downside, once you seen the money you’ve invested as gone you’ve enabled yourself to benefit from the upside but have no downside whatsoever.
If you don’t stress about passing the evaluation to get your money back, or to get the funded account and you no longer have all that energy being directed towards stressors you’re able to redirect your energy into something that will more than likely be able to benefit you.
How can you copy my results?
I’m fed up with this industry.
So many people are doing their best to sell you their trading course (they make more money of their course than from their trading)
So many people are going to be selling you their trade signals (do you really think a guy making 10% p/m will ask for 50$ per month to copy his trades???)
So many people are trying to pump their crypto holdings by telling you to invest in them (strangely they’ll sell as soon as you’re in the position and dump you)
That’s why I wanted to be fully transparent.
I’m sharing my daily watchlist (for free & no sign up requirements) on this blog.
You can find it under the “Daily Watchlist” section or through this url: https://bullishoncoffee.com/daily-watchlist/
I’ll be updating you daily on what I am looking at, what trades I took the previous day and be transparent with my losses and my wins.
But let’s be honest, you don’t need to copy my trading style
Consistency in your trading profits won’t come from a trading style or another – I was actually profitable trading in three different manners (support / resistance followed by market structure and now I’m trading supply and demand)
Consistency will come in your hard work, in your daily dedication to the chart, to making your watchlist on a daily basis, to actually executing the trades that fit your trading plan, and only those trades that fit your trading plan.
You can do all of this alone. You don’t need me, you don’t need anyone.
Copying someone else strategy and backtesting it will be helpful – you’re able to find a way to enter the market that’s supposedly profitable.
If it is, great, steal their work, say thank you and then put in the work. Backtest it. Tweak it to fit your personality (and test it again). Execute it. Etc.
3 Replies to “Becoming a Funded FX Trader – 5ers evaluation”
Good evening interesting a funded account already work with blue fax funded by want to leave them detail or call please
I’m not sure what you’re asking for Fazal I’m sorry