فصل 1  Never Lose again BY Matimatical Proven method

Introduction:

Successful proprietary trading requires not only a well-crafted trading strategy but also a robust money management formula. By employing effective risk allocation and risk-to-reward principles, traders can optimize their profitability and achieve success in prop funding account challenges. In this article, we will explore a powerful money management approach that enables traders to make informed decisions, maximize gains, and minimize losses.

Risk Allocation using the Risk Module Approach:

To begin, traders must identify their risk appetite and allocate risk based on a chosen risk module. The following table illustrates the total number of entries and the corresponding risk per entry (if Day 1) for each risk module.

Risk Module: 1 (Extremely Aggressive)

Total Entries: 12

Risk per Entry (if Day 1): $833.33

Risk Module: 2 (Aggressive)

Total Entries: 24

Risk per Entry (if Day 1): $416.67

Risk Module: 3 (Moderate)

Total Entries: 36

Risk per Entry (if Day 1): $277.78

Risk Module: 4 (Risk Averse and Recommended)

Total Entries: 48

Risk per Entry (if Day 1): $208.33

Risk Module: 5 (No Risk)

Total Entries: 60

Risk per Entry (if Day 1): $166.67

Now, let's delve into the profit and loss scenarios for the Risk Averse and Recommended module (Module 4) as an example, which allows 48 total entries.

Here is a breakdown of the profit and loss scenarios based on the number of entries won and lost:

Entries Won: 12, Entries Lost: 0

Gross Profit: $12,480

Total Loss: $0

Net Profit: $12,480

Entries Won: 11, Entries Lost: 1

Gross Profit: $11,440

Total Loss: $208

Net Profit: $11,232

Entries Won: 10, Entries Lost: 2

Gross Profit: $10,400

Total Loss: $416

Net Profit: $9,984

Entries Won: 9, Entries Lost: 3

Gross Profit: $9,360

Total Loss: $624

Net Profit: $8,736

Entries Won: 8, Entries Lost: 4

Gross Profit: $8,320

Total Loss: $832

Net Profit: $7,488

Entries Won: 7, Entries Lost: 5

Gross Profit: $7,280

Total Loss: $1,040

Net Profit: $6,240

Entries Won: 6, Entries Lost: 6

Gross Profit: $6,240

Total Loss: $1,248

Net Profit: $4,992

Entries Won: 5, Entries Lost: 7

Gross Profit: $5,200

Total Loss: $1,456

Net Profit: $3,744

Entries Won: 4, Entries Lost: 8

Gross Profit: $4,160

Total Loss: $1,664

Net Profit: $2,496

Entries Won: 3, Entries Lost: 9

Gross Profit: $3,120

Total Loss: $1,872

Net Profit: $1,248

Entries Won: 2, Entries Lost: 10

Gross Profit: $2,080

Total Loss: $2,080

Net Profit: $0

Entries Won: 1, Entries Lost: 11

Gross Profit: $1,040

Total Loss: $2,288

Net Profit: -$1,248

These scenarios illustrate the potential profit and loss outcomes based on the number of entries won or lost. It's important to analyze and understand these scenarios to gauge the profitability and risk involved in trading strategies.


Implementing the described risk management module in your trading strategy can significantly enhance your chances of success. By following a simple approach of flipping a coin and entering a buy trade on heads or a sell trade on tails, while adhering to the specified risk parameters, you can greatly minimize the risk of losses and confidently tackle any proprietary trading challenge. This systematic method, when combined with the recommended risk-to-reward ratio and disciplined money management, establishes a robust foundation for profitable trading outcomes.



Risk per Entry (if Day 1): $166.67

Now, let's delve into the profit and loss scenarios for the Risk Averse and Recommended module (Module 4) as an example, which allows 48 total entries.


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