Payout Certificates

465683272_919502616947055_3458193942044859753_n.png

I hope we've established a level of trust... What I'm about to tell you is a result of many considerations of various profit targets to aim for.

Recommended Profit Target: 3-4%

Now, to each their own, but my recommended profit target is 3-4%.

There are a few smaller reasons for this recommendation, like staying under the radar with large payouts that are much more likely to get denied from prop firms.

Market Exposure

But the main reason is something I call market exposure. Let's say I have a $100k account, and I take a trade risking 1.7% for a potential 3% gain. If I win that trade, my balance is now $103,000.

If I want to target a 5% gain on this account, I now have to open up another trade and risk my guaranteed profit that I've made from my previous winning trade. I am no longer risking prop firm money; I am risking my OWN money that I could claim in a payout.

This is the main reason why I target 3-4% because I can hit that target with one trade and put the account dormant until I'm waiting for the payout.

Sustainability

Another huge reason is sustainability. If I have a 10% drawdown limit and a 3% profit target on the account, the probability I hit 3% profit before 10% drawdown is about 70% in the worst case. So this allows me to run 20 funded accounts, hit targets on them frequently, and create a business model that generates consistent profit rather than sporadic large payouts that would stress me out if denied.

If you are in the prop firm game to manage multiple funded accounts and keep them alive and healthy month over month, I recommend targeting lower levels of profit.

Conclusion

Only having one large funded account and targeting a large 20% payout is a losing situation long-term. Prop firms' "risk management" teams will flag you for high-risk trading and decline you as a customer while also rejecting your payout. Every prop firm has a risky trading policy, and they will enforce it if it saves them from having to fork out a large sum of money.

  1. Hit that 3-4% target on the funded account.
  2. Put the account dormant until the payout date.
  3. In the meantime, keep working on passing more challenges so you have multiple funded accounts to trade in the future.

It's not a game of large percentage gains; it's a game of capital. 3% of $2 million is $60k... That is a life-changing amount of money to earn each month.

I've had months where I made $50k net profit on my $2 million funded account... Trust me, I know how insane that sounds, and some days it still doesn't feel like it can be real, but numbers like that are a result of dedication to the art of trading with prop firms.