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  5. the profit target isnt the hard part of a challenge, the drawdown is

the profit target isnt the hard part of a challenge, the drawdown is

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  • D Offline
    D Offline
    Dean
    wrote on last edited by
    #1

    my claim after a few attempts: hitting the profit target is the easy half, anyone with a decent edge gets there. the real filter is staying inside the max drawdown the entire time, especially the trailing kind. the firms know this, the target is the bait and the drawdown is the actual test. agree or am i missing something?

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    • B Offline
      B Offline
      Blake
      wrote on last edited by
      #2

      completely agree and the math backs you. the target is a one-time achievement, the drawdown is a constraint you must satisfy on every single trade for the whole period. one is a finish line, the other is a tightrope you walk the entire way. far more accounts die to a drawdown breach during a normal losing patch than fail to ever reach the target. the constraint is the test.

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      • R Offline
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        Ryan
        wrote on last edited by
        #3

        trailing drawdown specifically is the brutal version because it punishes giving back open profit, which is normal trading. you can be genuinely up and still breach by letting a winner retrace. the skill it actually tests is banking and protecting gains, not generating them. that is a real and useful skill, but its not the one beginners think theyre being tested on.

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        • W Offline
          W Offline
          westcoastjay
          wrote on last edited by
          #4

          if staying inside a sensible drawdown is the hard part, your risk per trade is too high, full stop. traders who size small barely notice the drawdown limit because they never come close to it. you didnt discover the firms secret test, you discovered youre overleveraged.

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          • R Offline
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            Ryan
            wrote on last edited by
            #5

            the troll just handed you the solution disguised as an insult. the reason drawdown feels like the hard part is that people size to hit the target fast, which pushes them toward the drawdown limit. size small enough that the drawdown is never in play and the challenge transforms, it just takes longer to reach target. the drawdown is only the hard part if youre racing. slow down and it nearly disappears.

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            • T Offline
              T Offline
              tylerg
              wrote on last edited by
              #6

              this reframes the whole thing. the target and the drawdown are linked through your position size. size big and the drawdown is a constant threat while the target comes fast. size small and the drawdown is a non-issue while the target comes slow. since the evaluation gives you time, trading small to neutralise the drawdown is almost always the correct trade-off.

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              • E Offline
                E Offline
                electricmind
                wrote on last edited by
                #7

                how small is small enough, is there a rough risk per trade that keeps you comfortably away from a typical drawdown limit?

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                • N Offline
                  N Offline
                  noahsmith
                  wrote on last edited by
                  #8

                  a common comfortable range is risking well under one percent per trade on a challenge, often around half a percent, so that even a string of losses stays far inside the drawdown. work it backwards: if the max drawdown is, say, ten percent, you want a realistic losing streak to use only a fraction of it. size so your worst plausible run still leaves comfortable room. the exact number depends on your win rate and streak length, but small enough that a bad week cant breach is the principle.

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                  • N Offline
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                    Nicholas
                    wrote on last edited by
                    #9

                    drawdown is only hard if youre racing. size small, problem shrinks.

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