Friend: I wish it was that simple. Your math might be conceptually correct but is functionally difficult if not impossible using high leverage as it gives you no room to manage the trade, or the next trade, ... and so on, if you are looking to make a living at trading. I initially typed much more here, but then deleted it leaving only the following to say. Best of trading to all. -hg
Finally some is interested in my math. But you got me wrong. By my math, I did not mean to recommend that trading model. In fact, I myself trade ES at contract/$10000. What my math tells, is my model is as risky as earning a funded account (whatever cause the live account blowup will also cause the funded account challenge breaking drawdown limit )while has much higher reward. If you think my model is too tough, then earning a funded account is tougher. So in the first place I don't recommend earning a funded açcount. But if you really want do it, then do my model instead. It costs you the same risk but much higher reward. In fact my model is less risky: when A makes some money but not 10%,A loses $429 but B is still profitable; When A loses some money but not 10%, A loses $429, B loses some money but still has some money left in his account.So B does not lose all his $429.
First, when people think earning a funded account is low risk, is because if you lose, you lose small. So I offer a small live account to compare. How likely you blow up your small account with 10x leverage? It is the same likely you break a funded account 10% drawdown rule. Second, People think a funded account is a big account, so they can make big money if they get funded. But when you think about the 10% drawdown rule,you can only use small portion of this funded account. So it is not that big account. A $50000 account is really a $5000 açcount if you want to trade safely. Finally, you make 10% of a $50000 account =you make 100% of a 5000 account. How tough you make 100% in two months? I would say none in this world can consistently do this. So you can only succeed by luck. And if you do have this luck, you are better off trading a small live account.
Sorry to be a contrarian. Doubling the minimum margin requirements (i.e. ES @ $500.00) is possible (yes, even in a single day) and has been done many times. It is "very" tiring, and does not happen often, requiring both, yes some luck, and a lot of skill, and usually a huge amount of commission costs. To your question of consistently making money, that is reserved for skilled traders. You will know it when you get there, ..if you get there. Most don't. In the meantime, go slow, trade small, and best of trading to all. -hg
It really depends on the cost to earn funded acct VS real funding (max loss allowed--and how that max loss is determined--fixed drawdown below zero line or trailing drawdown) Some funded accounts start out with daily loss limit of $5000 and max fixed drawdown loss of $10,000 below zero line. If the cost is $500-$600 to earn that account if you pass then that seems like a viable option VS using $10,000 of your own money. If you are spending $500 to only get a funded acct with some companies that daily loss limit of $2200 and have max permitted total loss $3500 and on top of that only offer accts that have a trailing max drawdown calculated from unrealized or realized and not fixed max drawdown below zero line (and usually they take your drawdown away "i.e. continued funding with their money" after your earnings are equal or greater than trailing drawdown amt--so then you are trading essentially with your own money at that point and paying them a %) then definitely not as attractive
Took a few days to clear out my head and get back on track. Not too happy about the 2 resets within the first 3 weeks of my evaluation but I learned a few new tricks and more importantly, stopped trading the MES and instead traded the ES (mostly 1-2 contracts per trade). Reset 2 -- Day #2