You guessed it, another funded trader got through our managed forex account evaluation: Richard Conway! (Check out the managed forex program yourself.)
Richard noted that he tends to position trade which presented an interesting trading question as many traders tend to have an opinion on, especially whether they want to ask a funded trader who just passed the funded trader evaluation or if they want to adjust their strategy to optimize it for the managed forex account.
You will get different answers, while we answered it several times in various articles and through our community (which is to use a style that best suits your lifestyle and psychology).
This is the best time to go through short term trading and long term trading, and what typically defines them.
From there you can decide what suits you. However, I cannot stress enough: here at CTI we always advocate to stick to the strategy that makes you profitable hence the fair time limit we set.
Short term trading:
This tends to describe intraday trading. Nowadays, in the institutional space this will reference algorithmic trading or fast paced momentum strategies (which will seldom be manual trades in this day and age in the shortest time frames; think 1 minute or so).
Long term trading:
Position trading is that tends to come to mind. Usually, positions are held for a week to up to a month. These strategies are usually actioned with fundamental strategies or longer term technical plays, or a combination of both.
Now you can have position trades that last longer than a month, but then it the line blurs with a typical buy and hold approach with investing.
As the subtitle suggests, the styles of trading can overlap. That’s why I mentioned we get traders that like tend to ask questions so they could modify their strategy before they embark on the funded trader evaluation!
Technically speaking (pun unintended), any strategy could be scaled up, or down, for any time frame. The only difference is the waiting time.
The best way to illustrate this is with a classic market structure strategy, support and resistance. It applies in both, long and short term trading strategies. The main difference is how long it takes for you to see any action.
What determines what a prop trader picks?
Psychology, personality—you can use any sort of psychobabble to commentate, but ultimately it is a personal choice based on your individual psychology and commitments. Can you handle waiting for a long time? Can you realistically time the markets like an intraday trader? These are questions you need to ask yourself.
(Of course, if you are unsure where to start, we have an assortment of mentoring, psychology and ground-up educational programs to help you get started.)
But what can really determine what a trader picks? Skill and account size.
These points are two ways to achieve the same result. Allow me to explain. If one has a larger account size, they can create a trade with larger stops if you make an accurate call, so to speak. So it is unlikely you could be stopped out prior to the market going in your way if you have the right fundamentals and technicals. In contrast, with a small account, you could be stopped out before this happens.
Conversely, if you can time the market (effectively market timing) well, your account size does not matter as you will be able to time your entries and exits well, in theory.
Ultimately, the type of trading strategy you will use, and the one you will use for the CTI funded trader evaluation, is a personal choice. Feel free to reach out to the team if you need help working on your strategy, we are more than happy to help!
Without further ado, here's the interview of our newest funded trader, Richard: