00:00:00
this might quite possibly be the best
00:00:02
prop firm strategy of all time because
00:00:05
either way whether you pass or you fail
00:00:07
the prop firm challenge with this
00:00:09
strategy you have the potential to
00:00:11
actually make money either if you pass
00:00:13
or if you fail and unfortunately I
00:00:15
wasn't smart enough to think of this
00:00:17
simple strategy I was actually speaking
00:00:19
to a customer of ours who's absolutely
00:00:21
brilliant and he happened to be one of
00:00:22
the most successful poker players of the
00:00:24
world and he was telling me stories of
00:00:26
days when he would either make or lose
00:00:28
$100,000 playing poker believe it or not
00:00:31
and so he's understood probabilities and
00:00:33
statistics unlike anybody that I've ever
00:00:35
talked to and I actually got the idea
00:00:37
from this guy so here's how you could
00:00:38
potentially make money regardless if you
00:00:40
pass or fail a prop firm challenge so
00:00:42
for the remainder of this video I'm
00:00:43
going to be talking about the EA One
00:00:46
Step Pro challenge for the $100,000
00:00:48
account which cost about $400 EA is a
00:00:50
prop firm that I really like at this
00:00:52
point I've had a lot of success gotten a
00:00:53
lot of funded accounts and a lot of
00:00:54
payouts and so I really like it this
00:00:56
works for any other prop form or even
00:00:59
two-step challenges that you may be
00:01:00
taking as well but for Simplicity sake
00:01:02
I'm just going to explain it using the
00:01:03
E8 onestep challenge okay so before I
00:01:06
show you how the strategy work let's
00:01:07
take a look at what most people actually
00:01:10
do so most people will go out there and
00:01:12
they'll sign up for a prop firm
00:01:13
Challenge and they'll spend like around
00:01:15
$400 to take an evaluation with the
00:01:18
chances of hopefully getting access to a
00:01:21
$100,000 account now with that challenge
00:01:24
you have two options either you're going
00:01:25
to pass or you're going to fail now if
00:01:27
you happen to pass the challenge which I
00:01:29
think only about six or so% of the
00:01:32
people actually pass a prop firm
00:01:34
challenge you then have the potential to
00:01:36
actually make profits which I heard is
00:01:37
even smaller like the percentage of
00:01:39
people that actually make profits that
00:01:41
sign up from a prop fir challenge is
00:01:43
really abysmal it's like 2% or something
00:01:45
like that or the other option which is a
00:01:47
lot more likely is you could fail your
00:01:49
prop firm Challenge and essentially you
00:01:51
would lose $400 which according to most
00:01:54
prop firm statistics happens like 98% of
00:01:56
the time so this is not really a good
00:01:59
model now if you get really good at
00:02:01
passing prop firm challenges you may be
00:02:03
able to get up around like a 30% pass
00:02:06
rate which is pretty good and one of the
00:02:08
most successful manual traders that I
00:02:10
know that's taken sufficient a number of
00:02:12
challenges that's actually been paid out
00:02:14
millions of dollars by prop firms he has
00:02:16
about a 30% pass rate now if you can get
00:02:18
up to that point then you can have a lot
00:02:20
better Edge at actually making money
00:02:22
with prop firms but most people aren't
00:02:23
talented enough to get up to this pass
00:02:25
rate so with that being said doesn't it
00:02:27
make sense that we should try to cut our
00:02:29
down side risk to as little as possible
00:02:31
or what if there's a way that you could
00:02:33
actually make money when you fail which
00:02:35
according to most statistics say that
00:02:38
most people fail 98% of the time to
00:02:40
actually get a payout that'd be pretty
00:02:42
good right so first things first let's
00:02:43
see how we could reduce this risk to
00:02:46
where even if we fail the prop firm
00:02:48
challenge instead of losing $400 what if
00:02:51
we could just be close to Net Zero
00:02:53
meaning that we're able to make back
00:02:55
this $400 so I'll show you this and then
00:02:57
I'll show you how you could actually
00:02:58
make money when you fail potentially so
00:03:01
here's what we've been doing inside of
00:03:02
our community that's been the biggest
00:03:04
game changer we've done something called
00:03:06
hedging and hedging is simply when you
00:03:07
buy something else to protect yourself
00:03:09
against something so it's a smart thing
00:03:11
to do for example you may buy an
00:03:13
umbrella to protect yourself against the
00:03:15
rain it's just generally a smart thing
00:03:17
to do now in this scenario when we talk
00:03:19
about hedging we're going to have this
00:03:20
goal of recovering our $400 challenge
00:03:24
fee okay so that means that even if God
00:03:26
forbid only 2% of the time we're able to
00:03:29
actually make profits and get a payout
00:03:31
well this other 98% of the time ideally
00:03:33
we're not losing any money this would be
00:03:35
a dramatic advancement compared to what
00:03:38
most people are doing currently so the
00:03:39
way that hedging works is instead of
00:03:41
just trading our 100K challenge which
00:03:43
again this could be with EA it could be
00:03:45
with ftmo or any other prop fir that you
00:03:47
want to instead now we're also going to
00:03:49
trade our own personal account at the
00:03:52
same time and in this example we're
00:03:54
going to deposit $1,200 into a brokerage
00:03:57
account which we're going to use to
00:03:58
hedge or protect our downside risk so we
00:04:01
could do that with a broker like Plexi
00:04:02
trade or Au Securities or you could use
00:04:04
any other broker that you'd like now the
00:04:07
way that this works is if we're taking
00:04:09
buy trades on our challenge account then
00:04:11
our hedge account we want to take sell
00:04:13
trades and if in our PL fir account
00:04:15
we're taking sell trades then in our
00:04:17
personal account we want to take buy
00:04:18
trades now also since this is a
00:04:20
significantly smaller account we want to
00:04:23
take smaller trades so let's say for
00:04:24
example we're taking buy trades with a
00:04:27
one lot okay then we may want to take
00:04:29
sell sell trades with a smaller lot like
00:04:31
0.1 or if we're taking sell trades of
00:04:33
one lot then we want to take buy trades
00:04:35
of say 0.1 now what does this all mean
00:04:37
this means that if we're making money on
00:04:40
our challenge account then that's good
00:04:42
because we're passing a prop from
00:04:43
challenge but that also means that we're
00:04:45
losing money in our hedged account with
00:04:48
our real money in it now also if we're
00:04:50
losing money on our challenge account
00:04:52
which happens more often than not for
00:04:54
most people and that means that we're
00:04:56
actually going to be making money in our
00:04:57
hedged account now in order to make this
00:04:59
happen of course you could do it
00:05:01
manually but there's other technology
00:05:03
like copy Traders or mirror traders that
00:05:05
may be able to do this or also we've
00:05:07
built an in-house platform called our
00:05:09
hedge bot that basically does this all
00:05:11
for you automatically if you take a
00:05:13
trade on your challenge account it'll
00:05:15
automatically take a trade on your
00:05:17
personal hedged account with the
00:05:19
appropriate lot size so it does all that
00:05:20
calculation for you and again I think
00:05:22
there are solutions out there that you
00:05:23
can do it for free but our hedge bot is
00:05:25
pretty Advanced and uh has been working
00:05:27
for you know tons and tons of people
00:05:28
already and we Contin to develop this
00:05:30
every month to make it better and better
00:05:32
so if you're interested in giving that a
00:05:33
try you can go over to www.pr
00:05:36
farming.com and see a demo on exactly
00:05:38
how this all works okay so now let's
00:05:40
jump over to this calculator and let's
00:05:42
break down the math of how this would
00:05:43
actually work and play out in real time
00:05:46
and again this math you may need to go
00:05:48
over another time and rewind this video
00:05:50
but it's important that you do because
00:05:52
this strategy can change everything for
00:05:54
you when it comes to being a more
00:05:55
profitable propor Trader so in this case
00:05:58
we're saying $100,000 account that cost
00:06:00
us $400 in this case we're saying the
00:06:02
profit Target is 8% and the max loss is
00:06:06
also 8% okay now in this scenario all
00:06:09
we're going to do is we're going to
00:06:10
deposit $600 into our real hedged
00:06:13
account now let's break this down so
00:06:14
with the first phase of the challenge
00:06:16
there's two scenarios you can either
00:06:17
pass or you can fail okay if you pass
00:06:20
you then get a funded account with that
00:06:22
funded account you can either pass and
00:06:24
make your profit Target of 3% say an
00:06:27
example or you fail to make a profit
00:06:30
okay so let's break this down so phase
00:06:32
one we paid $400 and let's say that we
00:06:34
fail if we fail to pass this phase that
00:06:37
means that we've lost $400 on our
00:06:40
challenge fee but in our real account
00:06:42
we'll have made back the $400 okay so
00:06:45
our real account balance went from $600
00:06:47
up to $11,000 okay in this scenario and
00:06:50
we simply withdraw that $400 profit you
00:06:53
cost us 0 to give this a try and we just
00:06:55
simply rinse and repeat that process
00:06:58
until we're able to pass the chall all
00:06:59
now let's say for example that we are
00:07:01
able to pass the challenge in phase one
00:07:04
which is scenario number two that means
00:07:05
that we won't make anything on our
00:07:07
challenge fee but we will move on to a
00:07:09
funded account and our real account will
00:07:11
have lost $400 meaning that our account
00:07:13
Drew down from $600 to $200 okay so
00:07:16
essentially it cost us $400 for the
00:07:18
challenge fee plus an additional $400
00:07:21
that we lost in our real account so
00:07:23
basically cost us $800 to get funded
00:07:25
$100,000 which is pretty good right now
00:07:28
we move on to the fund funed account so
00:07:30
now we have a $100,000 funded account in
00:07:32
this case we're going to say let's go
00:07:33
for a 3% profit split let's say that we
00:07:36
earn an 80% profit split with this prop
00:07:38
firm which is pretty standard and then
00:07:40
let's say uh in this case we're going to
00:07:42
need an additional $1,000 that we put
00:07:44
into our hedged account okay so the way
00:07:47
that this works is once we get the
00:07:48
funded account we have two options
00:07:50
either we're going to fail to hit our 3%
00:07:52
goal or we're actually going to pass and
00:07:54
hit our 3% goal so if we fail to hit our
00:07:56
3% goal that means that number one will
00:07:59
lose the $400 challenge fee which sucks
00:08:02
but our real account will have made back
00:08:03
the $800 which is what it cost us to get
00:08:06
funded and the reason we've made back to
00:08:08
$800 is because we've set our recovery
00:08:11
amount to $800 okay so what happens here
00:08:13
our real account balance goes up to
00:08:16
$3,000 and we've basically washed or
00:08:19
we've made a net zero gain and we can
00:08:21
simply rinse and repeat this process
00:08:24
okay now the other option is to go ahead
00:08:26
and actually pass and make a $3,000
00:08:29
profit which in case of making 80%
00:08:32
profits will make $2,400 if this happens
00:08:34
with this particular prop firm we will
00:08:36
not get back our $400 challenge fee with
00:08:39
some prop firms you can so you can
00:08:40
toggle that on to yes and by the way
00:08:42
I'll include this calculator Down Below
00:08:44
in the description so you can play
00:08:46
around with it for yourself but in this
00:08:48
scenario again we passed and we hit the
00:08:50
profit Target of $3,000 our real account
00:08:53
will have lost $300 okay but since we
00:08:56
hit the $33,000 and we got a $2,400
00:08:59
payout okay what will happen is we'll
00:09:01
gain a net of $1,300 which is awesome
00:09:05
not as good as making $2,400 but will'll
00:09:07
gain a net $1,300 and we'll get to keep
00:09:10
the funded account which is really
00:09:11
really cool because any other profits
00:09:13
from that point on on that account are
00:09:15
pure profits now how did I get this
00:09:17
$1,300 net profit well I basically said
00:09:19
if on this profit split of $3,000 I made
00:09:22
$2,400 well it already cost me $800 here
00:09:26
plus it cost me another $300 here here
00:09:29
that means that it cost me $1,100 and I
00:09:32
got a $2,400 payout $2,400 minus $1,100
00:09:37
gives me $1,300 and I get to keep this
00:09:39
funded account okay so here's what it
00:09:40
actually looks like on metatrader so you
00:09:43
can see here I had my prop firm
00:09:44
challenge over to the left and then over
00:09:46
to the right I basically had my hedge
00:09:48
bot running now you can see here for
00:09:50
example I took a Buy trade of 2.31 lots
00:09:54
and it happened to lose $1,400 now over
00:09:56
here I took a sell trade of 1.3 lots and
00:09:59
I happened to make $75 so you can see
00:10:02
here on my trades here that I was taking
00:10:05
buys over here I was actually taking
00:10:06
sells and then when I was actually
00:10:08
taking sales I was actually taking Buys
00:10:11
so when I was losing money on the prop
00:10:13
firm account I was actually making money
00:10:15
in my hedged account which is brilliant
00:10:17
and in this case you saw that I made
00:10:20
$395 of the
00:10:21
$417 that was the amount that I was
00:10:24
actually trying to recover and again I
00:10:26
know this is different than the $400
00:10:27
that I showed you the challenge actually
00:10:29
ended up costing me 417 and again I
00:10:31
didn't recover 100% of the recovery
00:10:34
amount that I was looking to recover but
00:10:36
I got pretty close and I recovered about
00:10:38
95% which is amazing because I've cut my
00:10:41
downside Risk by 95% in this case so now
00:10:44
remember that Japanese poker player that
00:10:46
I was telling you about that was totally
00:10:48
brilliant and understood probabilities
00:10:49
and statistics unlike anybody that I've
00:10:51
ever met before he got so excited about
00:10:53
our product and about this strategy in
00:10:56
general simply because he was saying
00:10:58
when he was playing poker he was going
00:11:00
up $100,000 or down $100,000 in a day
00:11:03
and if you can imagine four or five
00:11:04
losing days in a row that could get
00:11:06
really psychologically taxing so the
00:11:08
cool part about hedging is that your
00:11:11
draw Downs are going to be way shallower
00:11:13
and your upside potential is a lot
00:11:15
higher in this scenario okay because
00:11:18
we've cut down the vast majority of our
00:11:20
downside Risk by hedging or protecting
00:11:23
ourself and he likened it to like buying
00:11:25
free lottery tickets in the sense that a
00:11:28
likened getting a funded account kind of
00:11:31
like getting a lottery ticket in a sense
00:11:34
uh because you know this account could
00:11:36
make thousands of dollars worth of
00:11:37
profit and at the same time you know the
00:11:40
downside risk was very very low right if
00:11:42
you could essentially buy lottery
00:11:44
tickets for 95% cheaper or 100% cheaper
00:11:47
than other people do then you'd probably
00:11:49
want to buy as many lottery tickets as
00:11:51
humanly possible because your Edge is
00:11:53
way stronger than anybody else that's
00:11:55
hedging which is a game changer but now
00:11:57
I want to show you how we can take this
00:11:58
to the next level and how you could
00:12:00
potentially make money when you fail
00:12:02
prop firm challenges in this scenario
00:12:04
this is called over hedging okay so
00:12:06
instead of before on hedging where we
00:12:09
were just trying to recover this $400
00:12:11
challenge fee now in this scenario we're
00:12:14
going to not only try to recover the
00:12:15
$400 challenge fee but we're also going
00:12:18
to try to recover $600 worth of profit
00:12:21
meaning that even if we happen to fail
00:12:24
our prop firm challenge that we're going
00:12:26
to make back our challenge fee plus
00:12:28
we're going to make 600 $1 profit okay
00:12:30
so this is going to work essentially the
00:12:32
exact same way okay again we have our
00:12:34
challenge account over here and we have
00:12:36
our hedge account over here and again
00:12:38
the same idea if we're taking buy trades
00:12:40
on our challenge account we're taking
00:12:41
sell trades and vice versa also if we're
00:12:44
making money with our prop firm account
00:12:46
then we're losing money on the personal
00:12:48
account and the same thing if we're
00:12:49
losing money on the challenge account
00:12:51
we're making money in our hedging
00:12:53
account so let me break down how this
00:12:55
actually works so in this case instead
00:12:57
of just trying to recover $400 we're now
00:12:59
going to try to recover $11,000 and on
00:13:02
the funded account we're going to try to
00:13:04
recover $1600 so the way that this works
00:13:07
is on phase one there's two outcomes
00:13:10
either we can fail or we can pass okay
00:13:13
if we fail the challenge we've
00:13:14
essentially lost the $400 but our real
00:13:17
account will have made $1,000 so we
00:13:20
simply have withdrawn $11,000 we've made
00:13:24
a net profit of $600 and we get to try
00:13:27
again which is awesome right imagine
00:13:29
you're now doing prop farming you're
00:13:30
trading with prop firms and even when
00:13:32
you fail which happens more often than
00:13:34
passing imagine you also make money in
00:13:37
this case $600 this strategy also has
00:13:39
some added risk that I'll talk about in
00:13:41
a second but it's pretty dang cool now
00:13:43
with phase one that's what happens if
00:13:44
you fail if you pass that means that
00:13:47
essentially we'll have lost $11,000 in
00:13:49
our real account so that means that it
00:13:51
costs us $11,000 plus the $400 challenge
00:13:54
fee or it cost us $1,400 to get $100,000
00:13:57
account now when we get the funded
00:13:59
account we're also going to go for a 3%
00:14:02
profit Target now what this means is
00:14:04
that we're going to need to deposit an
00:14:06
additional $900 into our personal
00:14:08
account okay and again the Hedge bot
00:14:11
it's going to take care of doing all of
00:14:12
this stuff for you but this is in case
00:14:14
you're using like a mirror copy Trader
00:14:16
and you want to do this by yourself
00:14:17
manually these are the numbers right so
00:14:19
for example let's say on the funded
00:14:21
account we failed to make our 3% profit
00:14:23
Target that means that we lost our $400
00:14:26
challenge fee but again our hedge bbot
00:14:28
should have recovered about $1,600 so
00:14:31
that means that we gained a net of $200
00:14:34
remember it cost us $1,400 because we
00:14:36
lost $1,000 in our real account plus the
00:14:38
$400 challenge fee so it cost us a total
00:14:41
$1,400 but in this case we recovered
00:14:43
$1,600 so we gained a net $200 so what
00:14:47
does that mean that means even if we
00:14:48
passed phase one lost money on our real
00:14:50
account and then got a funded account
00:14:52
and failed to actually make a payout
00:14:54
we're still net profitable a little bit
00:14:55
which is pretty cool now the other thing
00:14:57
that can happen on the funded account is
00:14:58
you could pass meaning that you make
00:15:00
your $3,000 profit Target we're still
00:15:03
going to lose our challenge fee our real
00:15:05
account will have lost $600 and we'll
00:15:07
gain a net $400 which is pretty awesome
00:15:10
so how did I get we gained a net $400
00:15:13
well 80% of the $3,000 profit Target is
00:15:16
$2,400 now we have to subtract our cost
00:15:19
that went into it which was $400 plus
00:15:22
$600 plus $11,000 that's a total of
00:15:26
$2,000 that we lost in this process but
00:15:29
we got a $2,400 payout and we gained net
00:15:32
$400 and the best part is we get to keep
00:15:34
this funded account which is awesome
00:15:36
because you don't have to hedge anymore
00:15:38
and that entire account was essentially
00:15:40
risk-free and you had very minimal risk
00:15:44
on it and now you can get as many
00:15:45
payouts as you want to so this is really
00:15:48
really powerful as you can see and this
00:15:50
is actually what I've started doing on
00:15:52
my challenge accounts as well it also
00:15:54
works for Phase 2 challenges as well
00:15:56
you'll just need a little bit more
00:15:57
Capital to actually be able to play this
00:15:59
strategy out but in the calculator you
00:16:01
can play with the numbers as well and
00:16:03
you can see how it works as well it's
00:16:04
just a little bit uh requires a little
00:16:06
bit more Capital now this strategy
00:16:07
doesn't come without risk and so I want
00:16:09
to make sure that you're aware of the
00:16:10
risks the biggest risk here are that you
00:16:13
are going to need more Capital to hedge
00:16:15
with and the number one biggest risk is
00:16:17
if you work with some shady prop firm
00:16:19
that you go through this process and
00:16:21
you're get to the point where you're
00:16:23
owed a payout and the prop firm doesn't
00:16:25
pay you out for some reason so I really
00:16:27
only recommend using using this strategy
00:16:30
with really reputable prop firms like
00:16:31
ones like E8 that's been great or ftmo
00:16:34
or fivers or some of these prop firms
00:16:36
that have been around the block for a
00:16:37
long time and have a really good reviews
00:16:39
online I wouldn't do this with just any
00:16:41
new prop firm even if they're a lot
00:16:42
cheaper which means you need less money
00:16:44
to hedge so the biggest risk is that
00:16:46
you've lost money by hedging to protect
00:16:48
your downside risk on your real account
00:16:50
and the prop firm doesn't pay you out
00:16:52
okay so just be careful with this this
00:16:54
is something that I'm using now with
00:16:56
prop firms that I have a good history
00:16:58
with that I've received multiple payouts
00:16:59
on so anyways if you'd like to try this
00:17:01
if you'd like to trade with us and join
00:17:03
increase your pass rate to uh Way Beyond
00:17:07
the 5 or 6% that is what normal people
00:17:09
do and you'd like to have the hedging
00:17:11
and all that sort of stuff done for you
00:17:13
then go on over to www.pr farming.com
00:17:15
and you can check out a demo of how that
00:17:17
all works and we look forward to seeing
00:17:18
you in the next video as well
