LEVEL 5: THE $100,000 TRADING CHALLENGE

There are several challenges here within this level of account size that will enable a trader
to prepare for full-time and professional trading. This level should be used if traders have
achieved at least a 55-to-45 win-loss ratio. At this level, the trader has evolved to handle
the pressures of trades that can result in gains or losses of $1000 per trade. For example,
a 50-pip loss on a two-big-lot trade results in a $1000 loss. At a level of $100,000 in the
account, such a size loss is 1 percent of the total. If the risk per day is 2 percent, the
trader has to be very careful on the trades that follow.
1. Scan all majors and cross-pairs.
2. Use standard lot sizes, with a six-lot maximum.
3. For the first 25-trade sequence, have the goal of trading 7 trades in a row correctly,
with a minimum pip gain of 10 pips; if this goal is achieved, repeat the goal of the
next 25 trades.
4. For a sequence of 25 trades, put on trades only with the goal of 20 pips per trade.
5. Use a 2 percent risk per day for all trades.
6. Learn to optimize your trading setups by back-testing.




By Abe Cofnas