0:28
In this short commentary, the speaker warns traders that the nominal size of a proprietary trading firm’s challenge account can be misleading. Using a $100,000 challenge that costs $500 and has a 10% drawdown limit as an example, he shows that each 1% of risk actually corresponds to only $50, not $1,000. Consequently, taking a 0.25% risk per trade during the challenge is ineffective and provides no real payout potential. He advises traders to avoid such tiny‑percentage risk positions while attempting the challenge and to reserve proper risk‑management practices for after they have successfully passed the evaluation.
