head of trading risk @takeprofitllc, ex @coinbase, @circle, @anchorage, @cmegroup. Financial markets, golf and good food.
Chicago, U.S.A.
Joined March 2010
- Tweets13K
- Following317
- Followers1.9K
- Likes4.6K
Behavior question: Help me understand why people trade MNQ in 10 lot increments in prop accounts. Why not trade NQ and if you want less exposure than that, trade MNQ?
Tighter spreads don't offset the commissions... and in a live account, the slippage.
No dog in this fight, but ...
You should want to go live with your prop firm.
Pick a prop firm with an A+ live program. I'm biased at which that should be...
🚨 Saw someone this morning who made $100,000 in 5 PRO Accounts in the past two days. What do we do?
Pay him any withdrawals he wants. Withdrawals can be requested daily. Move him to 5 live PRO+ accounts where he has $4,500 in each as a drawdown. It’s that simple. We don’t:
❌ Lock up capital beyond the buffer to live
❌ Put profits in a vault and make him earn it with live trading
❌ Cap total sim funded payouts
❌ Claw back the capital with some made up rule violations
❌ Put him in a single live account with a small drawdown
You make it; you keep it.
Thats how @TakeProfitLLC is different.
Starting this week, we're implementing some risk controls for traders in live-market PRO+ accounts to close trading ahead of major earnings releases from the Mag 7 & SpaceX.
Open positions will liquidate (without a rule violation) and trading will close at 4:01 PM ET on select days. Traders will be able to re-enter the market at the start of the following session at 6 PM ET.
Why?
Real markets have slippage — and that slippage was KILLING accounts. Slippage was 56x worse than during any other 4-5 PM ET trading window.
On average, the PnL during this time was 30x worse than a normal 4-5 PM window.
Why is there more slippage?
These stocks have high enough weights in indexes to cause big moves, but the time periods themselves are thin liquidity. Institutions pull out of the market. Market makers scale back. NQ price is a few ticks wider and there isn't much liquidity deep in the book. Translation: firing off 150 MNQ is gonna cost you almost an immediate liquidation.
This change impacts just those traders in live accounts.
Test and PRO accounts can continue to trade until 4:55 PM ET (though I'd personally advise against it).
Love having conversations about how to manage risk. What would you change / add from this? 👇
On my TPT Pro + accounts depending on where I am with my buffer I do asymmetric risk.
I like risking $1,000 dollars on my trades building my buffer slower and scaling with time.
But I want to be in control of that I don’t want the firm to create a fixed DLL for me.
Exactly what I plan on doing in my Pro + accounts now as I build my buffer my risk per trade will grow.
If the firm caps my risk per trade at $1,000 when I build that buffer it really hurts and prevents me to properly scale how I want to.
I 100% agree with you losing the $4,500 in one trade in a day is beyond irresponsible. I just want to be in the drivers seat in my account thats all. 🤝
Mark Meadows retweeted
@TakeProfitLLC is my favorite firm in the space for a reason. I get real freedom in my account. Just get through the trialing drawdown and it’s essentially a live account with no limitations.
I just got moved to Pro + and its been one of the best experiences for me as a trader.
Happy to have the debate about whether the DLL benefits traders. I believe strongly it does (from history of trading and going on tilt and losing $20k funded in a day). I’d challenge anyone to point to a successful live-market trader that doesn’t shut down for the day when they reach a certain threshold of losses.
But also, traders should have the ability to set their own and learn from their mistakes. That’s what prop is for.
Friendly reminder prop accounts with DLL aren’t to protect the trader it’s actually quite the opposite.
If the numbers suggested traders achieved more payouts that way
The accounts wouldn’t be cheaper. Remember that. 🤝💯
DLL prevents the trader from properly scaling an account caps your potential to your upside significantly
