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Prop Trading: How to Get a Static Drawdown
One of the advantages held by prop firms is the relative drawdown rule. This tilts the playing field in favor of the prop firm as the trader cannot just risk profits, as he/she might do with a broker account, otherwise wise known as ta trading with house money.
Instead, when trading a prop account, whether in the test or funded stage, the trader must be aware that there is a drawdown limit based on the high watermark. This is in contrast to a static drawdown calculated from the initial deposit regardless of how much profit is in ther account. Note. There is a broker offering static drawdowns (scroll below).
Let’s take a look at relative vs. static drawdowns</strong>
BTCUSD – Bitcoin
Supports : 94.500 , 92.500 & 90.750
Resistances : 97.500 , 99.000 & 100 K
Close tonight above 97.500 would be a signal for another attempt at previous high within a day or two.
Any failure to overcome given resistances would push coin into deep correction.
Only barrier between going back to 70K zone is 85.500
Prop Trading: How to Get a Static Drawdown
One of the advantages held by prop firms is the relative drawdown rule. This tilts the playing field in favor of the prop firm as the trader cannot just risk profits, as he/she might do with a broker account, otherwise wise known as ta trading with house money.
Instead, when trading a prop account, whether in the test or funded stage, the trader must be aware that there is a drawdown limit based on the high watermark. This is in contrast to a static drawdown calculated from the initial deposit regardless of how much profit is in ther account. Note. There is a broker offering static drawdowns (scroll below).
Let’s take a look at relative vs. static drawdowns</strong>
Trump Tariffs Strategy: Big Stick Diplomacy?
President elect Trump has not even taken office and he is already impacting markets, the latest being a threat to impose 25% tariffs on all products from Canada and Mexico, and an additional 10% levy on goods from China.
This followed easing market concerns after Scott Bessent was chosen to be then next Treasury Secretary so you can imagine the market reaction when Trump‘s tariff comments hit the wires.
Taken at face value an across-the-board hike in tariffs would have a severe economic impact but is this just the first salvo in “big stick” diplomacy.
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