Trade Company Money by Day Trade Institute
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Title - Funding Criteria.
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“How do I maximize my initial and subsequent Company ‘real’ money account?” Nearly every new day trader asks this question. 
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This webpage provides the major consideration made by the company in determining the amount of initial and subsequent ‘real’ money funding.
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The Company has discretion on if and how much money to which they provide access. It is the desire and expectation of the Company that each day trader reach a level of $100,000 by the first year of trading. The follow shows the primary criteria used by the company to decide how much and how fast they add funds to your account. Following these guidelines will maximize your Company funding, as well as teach best practices generally to create the most account profits.
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Trade Aggressiveness
The first three months of trading is the most risky for the Company in providing a funded account.
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Company requests the following trade behavior and can observe compliance through the reports:
Fewer High Quality Trades – The Company requests day traders make fewer, but higher quality trades.
Account Growth Secondary – The Company seeks simply a positive account growth, with less interested in aggressive growth. At least initially, the Company perspective is that account growth and day trader profit will more likely come from the Company adding more funds to the account than by trade account growth from profits. Meaning, adding funds to your account creates a larger trading profits, even while trading carefully as done with a smaller initial account size.
1% Trade Leverage – Trade no more than 1% of the account size. If you have a $2,500 account then your trade leverage should be 0.25. A $5,000 account uses 0.50 leverage, a $10,000 account uses a 1.00 leverage, $15,000 account size uses 1.50 leverage, etc.
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Trade Protection
The most important consideration in trade profit and wealth accumulation is not so much the size of your winning trades, but management of trade loss.
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Consider the following Company best practices:
Trade Plan – Before placing a trade, have a trade management plan in mind.
Trade Protection – Never leave a trade open without some type of mechanism to address any possible trade losses.
Address Trade Losses – If a trade hedge is used, do not just let them float through time, but address them actively to remove the hedge as soon as practical.
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Basic Trade Protection:
Stop Loss
[su_row][su_column]
Example:
Place sell trade
If the market move up a sell loss is created.
Exit sell trade
When the market move a certain distance against the trade then exit the market with a loss.[/su_column][su_column]
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Accepting the loss of closing a losing trade at a certain market price. This is the simplest trade protection approach, and should be the last option. Effort must be taken to become familiar with better trade management strategies.[/su_column][/su_row]
Price Averaging
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Example:
1st Sell
Say, the market move up creating a loss
Sell a second time
When upward moving market reaches its local peak
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Same direction trade improvement
1st Sell gets increasingly less of a loss as the market moves down.
2nd Sell increasingly gains profit from the peak downward.
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Close
When 1st Sell reducing losses = 2nd Sell increasing profits.[/su_column][su_column]
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An approach where the price moves against the given trade, but eventually set up for another like trade. For instance a sell trade is taken, the market moves up but set for again moving down. Then place another sell trade at the top of the market movement. The second sell trade profit grows positive as the market moves down, and the first sell trade becomes less negative as the market moves down. When the increased profit of the second trade equals the decreasing loss of the first trade, then both trades are closed. A net zero account loss occurs. Close the negative trade first.[/su_column][/su_row]
Hedging
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Example:
1st Sell
Say the market move up creating a loss
Place a buy
When the market moves a certain predetermined amount.
A loss is locked in
The sell loss increase, at the same rate that
The buy profits gain as the market moves up.
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Exit the buy
When the market reaches its local high.
Exit the sell trade
As the market moves down and the sell loss is minimized to equal the buy profits or better.[/su_column][su_column]
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As the market then moves down then the sell loss continues to be reduced until closed. Often the overall sell and buy combination can result in actual increase in trade balance. A buy example would simply be the opposite trade action and opposite market movement. An approach where there is a buy and sell trade active in the market at one time. That is if a buy trade begins to lose, then at a predetermined loss a sell trade is made. The result is a locked in loss to be managed later. As the buy trade loses with downward market movement, the sell trade gains a profit. This locked in loss can be minimized by removing.[/su_column][/su_row]
Combined Price Averaging and Hedging
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Example:
1st Sell,
If the market move up a sell loss is created.
Place a buy,
When the market moves a certain predetermined amount.
A loss is locked in
The sell loss increase, at the same rate that The buy profits gain as the market moves up.[/su_column][su_column]
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Exit the buy,
When the market reaches its local high.
Place a 2nd Sell Trade
Also at the market top, place a sell trade.
As the market moves down an immediate profit is made. 
Exit the 2nd sell trade
When the market reaches it local low.
Exit the 1st sell trade
As the market moves down and the sell loss is minimized to equal the buy profits or better.[/su_column][/su_row]
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Balance vs. Equity 
Money management is one of the most important consideration and show if a day trader can responsibly trade Company money. The comparison between the balance of the account and available equity is a quick and appropriate indication of just that money management.
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Order Of Priority
Consider the following three element of account health in this order:
#1 Consideration – Equity – Equity = Balance – Losses or the true measure of the account size. Often the balance may be higher than the equity because loss trades have not yet been closed. As such equity is more of a real time indicator of fund amount.
#2 Consideration – Margin Level – An indicator of the percent of the account fund available for trading. If the margin gets too low (about 85%) then the worst performing trade will be closed for a loss. Keep margin levels high for more freedom in the market.
#3 Consideration – Balance – This is the accumulation in the account. However, make it a habit to skip the balance and consider the account equity as the more true accumulation of the account as described above.
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Legend (Images That Follow)
Balance = Sum of funds in the account. Shown as – Blue line on top of blue graph.
Negative Equity = Balance – Pending Losses. Shown as – Red line below the blue line or in the blue space.
Positive Equity = Balance + Pending Gains. Shown as – Red line when above the blue line or above the blue space.
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Ideal Balance vs. Equity Pattern – The following image.
Most Fully Funded – This ideal balance vs. equity pattern supports an unhesitantly funded account.
Ideal Pattern – Notice that the equity line usually closely or exactly follows the account fund balance. You do not need to have a more ideal correlation between the account balance and equity, but having a close correlation is not that difficult to achieve, and should be sought.
Means – This means that there are no funds consistently at risk.
How – This is done by not having negative trades outstanding too long. In this case there is usually no open trades. All positive and negative value trades are closed or address fairly immediately.
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Graph - Balance vs Equity - Ideal
Equity (red line) usually matches the account balance (blue line). This is very good negative trade management.
Graph generated by www.fxblue.com reports and provided to the Company.
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Fine Balance vs. Equity Pattern – The following image.
Well Funded – This a fully acceptable balance vs. equity pattern that will support a well funded account.
Okay Pattern – The following pattern of the equity line not usually matching the account balance, but largely and closely paralleling the account balance is fine for receiving uninhibited ‘real’ Company money.
Means – This means that there are funds at risk with some negative trades remaining open.
How – This patent occurs when negative trades are left open while the day trader waits for more ideal conditions to exit the negative trade. This pattern represents that the day trader is actively addressing negative trades and seeking to close then or associated strategies (hedging, price averaging, or their combinations) as soon as possible.
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Graph - Balance vs Equity - Fine
Equity (red line) is below the account balance (blue line), but generally parallel. This is sufficient negative trade management.
Graph generated by www.fxblue.com reports and provided to the Company.
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Poor Balance vs. Equity Pattern – The following image.
Limited Funding – This is not an acceptable balance vs. equity pattern and funding will be limited.
Unacceptable Pattern – The following pattern of the equity line distantly away from the account balance or even diverging away from the account balance is not acceptable. This pattern put Company funding at risk and the Company will be hesitant to provide additional funding or will minimize funding.
Means – This pattern puts Company funding at risk and the Company will be hesitant to provide additional funding or will minimize funding.
How – This patent occurs when negative trades are left open for excessive periods of time, are not timely address, the day trader does not know how to address the losses, or the day trader loses interest in the losses and keeps trading while allowing losses to accumulate. Day traders should not allow more than two open trades to occur at one time, and should address losing trades actively.
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Graph - Balance vs Equity - Poor
Equity (red line) is far below the account balance (blue line) and now diverging away. This shows a lack of negative trade management.
Graph generated by www.fxblue.com reports and provided to the Company.
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Trade Financials
Most of the information available here is secondary in funding consideration.
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Most importantly with statistics:
Returns – The company is only interested that the account is positive, but not how fast the account grows. As such, return percentages are not of great importance.
Trades Per Day – This provides insight into how active the day trader. The Company would prefer that day traders using Company money trade fewer higher quality trades than more aggressive trading.
History – The Company needs 40 days of trading for initial funding.
Currency Pairs – The Company does not want to see an excessive number of currency pairs. What is shown below is about as many as the Company would want to see.
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Graph - Pairs Used C
Keep the number of pairs traded to the most liquid 4, 6, or 8. Take fewer and higher quality trades.
Graph generated by www.fxblue.com reports and provided to the Company.
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Trade Timing
Elements of the below information is some of the most important to Company ‘real’ money funding.
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Consider:
Trade Length – The Company prefers trade entry and trade exit within two hours. This is represented by the average “Trade Length” as well as the graphical representation.
Win Time vs. Loss Time Ratio – The Company is looking for the Average Win time and the Average Loss time to be as equal as possible, or say within 50 hours.
Losses – Rather than how large a loss is, the Company is more interested in how the trade was managed. Ideally if there was a $500 loss that through trade management, that gains made while managing trade loss actually added a net positive value to the account or minimized losses well below.
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Graph - Wins vs Losses CAttempt to keep trades within a couple of hours (2 hours) and especially within the current day. Seek for Avg Win ≅ Avg Loss.
Graph generated by www.fxblue.com reports and provided to the Company.
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The Company has funded every day trader since it started the Company ‘real’ money funding program.
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Not only does following the above suggestions increase the likelihood of receiving greater Company funding, know that the day trading practices sought by the Company, will also improve your own day trading success. This is a new hobby, life emphasis, or career.  As such, learn to master the above related principles. 
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