u/adam_oseburne

Finally realized why we all keep blowing prop accounts and it is purely a math problem

I have been stuck in the same cycle for way too long where I pass a challenge then get funded and eventually hit a bad streak that eats the 10 percent drawdown and kills my account . It finally clicked for me that risking 1 percent of a 100k account is actually total madness because you do not actually have 100k to play with. You only have 10k before the firm rugs you. So in reality you are risking 10 percent of your actual liquid life every single trade which is why the psychology is so hard to manage.

I decided to code my own strategie into an EA (bot) that calculates risk based strictly on the max drawdown value instead of the total balance. If the firm gives me a 10k limit it treats that 10k as the 100 percent.I also programmed it so the risk percentage drops significantly after every loss creating Zeno's paradoxes. It basically creates this mathematical floor where it becomes nearly impossible to actually hit the breach level because the position sizes keep shrinking as you get closer to the limit. Then when it is in profit it scales the risk back up to move the needle faster, but not as fast as to risk even more because the percenntage has a celleing set too.

I have been running this logic on a few accounts lately and for the first time the equity curve actually looks sustainable.I'm not saying this is 100% guaranteed not to hit the max drawdown, I just made it 20 times harder and automated my actions to not be in a cycle of doubt that I dont see myself living with in the future.

reddit.com
u/adam_oseburne — 3 days ago