You probably have lost a Prop Firm challenge before and, to be honest, that’s perfectly normal. It has happened to all of us. But what if I were to tell you that in this article today I will show you guys a cheat code in which it will increase your chances of getting funded.
For those of you who are new, I am a 21-year-old seven figure day trader and I have done over 50 plus challenges. I’ve received seven figures in funding with Prop firms. I’ve withdrawn multiple six figures with Prop Firms.
And I am excited to share with you guys this cheat code which I have discovered and used throughout my years in this prop firm journey. Now, with that being said, let’s get this article started.
Now, before we start a challenge, we all have a plan. And in that plan we know how much we are going to risk per trade. Some of you guys might start out risking 0.5%, others like to use 1%. But the fact is that we only have four weeks to hit an 8% target goal or 10% if you’re using FTMO.
And the truth is, four weeks is not enough. I always say trying to make eight to 10% in four weeks, that’s ridiculous. That’s a very, very high target goal to aim for. And the fact is we don’t really have all four weeks because one week is NFP weeks. There are some weeks where we have red folded news all throughout the week. So basically, we don’t even have four weeks. And that is why I like to use this cheat code. So this cheat code can only be applied in the last week.
Now let me break it down for you guys. Say, for example, you’re on your last week, you’re following, let’s say, the conservative system. The conservative system, you’re risking 0.5% until you’re up 2%. Then you’re bringing the risk up to 1%. You probably won’t hit your 8% target that way, but there’s a high chance that you will be above your original balance. And that’s very important because let’s use you’re using conservative system realistically, maybe say it’s the last week and you’re up 4%. Now it’s all up to you, tackling challenges and verifications is all up to your preference for what you feel comfortable with.
Now, do you want to aim for that extension?
Some people are very patient. They want to aim for the extension. They want two more weeks. If that’s the case, then just risk 0.5% to hit that 5%. Many of the extensions are, you have to hit a 5% goal. Now you hit the extension, you can stop trading.
For some of you who don’t want to wait an extra two weeks for the extension, you want to pass the challenge. As long as you’re above the original balance, you do get a free retry.
So use up all 4% to try to pass the challenge. A lot of you guys, and even I used to do this, I used to end the challenge being 2% up, thinking, damn it, I still have 8% to go, only 2% left. That’s it. I lost the challenge. However, use up whatever profits you have left. So say, for example, its last week, you’re up 4%. Now, risking 0.5% won’t get you to that 8% target. But since it’s the last week and you only have a couple of trades left, risk much higher as long as you stay above the original balance.
Say, for example, you think it’s the last week. Maybe there are two trades left, risk 2%. This is just an example, guys risk 2% or maybe risk 1%. It’s up to you. Just make sure you use up all 3.9% of your profit to either pass it or either get a free retry.
So this is what I mean by if you’re above the original balance and it’s the last week, use up all that profit to try to aim for that extension, if you don’t mind waiting longer to pass the challenge and not willing to take that risk.
However, if you’re willing to take the risk to pass that challenge with the remaining profits left, risk much higher than what your original system was. This is why the first three weeks of your challenge follow your system.
Whether it’s risking 0.5% till you have a certain buffer and then you risk more, or whether you start you risking 1% till a certain buffer, then you risk more. But however, on the last week you do not follow your system.
You have to approach it accordingly. You have to approach it. Are you up? Can I risk a certain amount to pass the challenge now? Also, it works the other way as well. Say, for example, you’re down 2% using the conservative system.
You’re down 2%, it’s your last week. You start with $100,000 balance, you’re risking 0.5% until you get that buffer. Then you risk 1% if you’re following that conservative system. So now it’s the last week, you have $97,000 balance, which is basically you’re down 3%.
Don’t follow your system anymore, don’t follow the system anymore. You have to get back to the original balance. And at this point if you’re down, don’t try to aim for that target, just get the free retry.
It’s just one more week, you wait and you get a free retry. So you’re down 3%, you originally risk 0.5%. But don’t do that. You know why? Because now you have 7% to play around with. So, for example, if you’re down 3% and you usually risk 0.5%, that’s not going to get you back to original balance by the end of the week.
Maybe start risking 1% maybe risk 1.5%. Maybe the next trade in the last week risk 1.5% for 1:2 give you 3% and now you’re back to the original balance, you get a free retry.
Say, for example, you lose that trade and you’re down negative 4.5%. You still have what, 5.5% to play around with to get you back to that original balance. So then, what risk? Maybe the next trade risk 2.3% to try to get back 4.6%, which is enough to get you back to original balance.
So make sure you exploit all of that. Make sure you exploit the losses and the win on this last week. Your goal at the minimum is to get a free retry. It doesn’t matter how down you are or how up you are. The minimum should be a free retry.
Now say, for example, you’re up 7%. It’s the last week, and you need 3% left to pass the challenge. You now have 2% to play around with because as long as you stay above 5%, you get a free extension, right? So at the minimum, you should aim for a free extension if you’re up like 7, 8 or 9%. While if you think maybe there is only one trade left in this week, there’s only one good clean trade set up left in this week, then risk the 2%.
If this trade hits, you pass the challenge. If this trade doesn’t hit, it hits stop loss. Well, you’re above the extension percentage. So you get the free extension, you just stop trading. So this is what I mean by the last week, is approached very differently from the first three weeks.
In the first three weeks, you just want to follow your system. You don’t care about that profit target. You just let the system play out. Because you know the system, over the long term, over a series of trades, will eventually be profitable.
And in the last week, you exploit everything, whether you up from the original bounce or whether you’re up on the free extension, whether you’re down from the original bounce. At the minimum, you should at least get a free retry.
So thank you all for reading this article.