“Realize that if you take it slow and steady, and follow the rules, it begins working for you. You have proof that what you’re doing is working.” – Fadi
This week we take a look at Fadi; one of our Funded Trader who has just earned a $10k payout! He shares not only his simulated trading journey; but principles on risk management, psychology, and a look into his strategy.
Funded Trader Earns $10k Payout
What’s your educational background?
I went to undergrad for psychology, and I went to grad school for experimental psychology, so my background is in research and statistics.
How did you start in Forex?
About 5 years ago I got into crypto. I hit big on this investment, and I started trying to day trade crypto. I was on this broker called Bit7, which didn’t even have a stop loss feature. I realized it was quite difficult just trying to trade Bitcoin, so I got into forex. Five years later, here I am.
How much time have you dedicated to studying?
On average, 60 hours a week. Even during grad school. I was studying for my exam until midnight and then studying simulated trading from midnight until 7 am.
What do you wish you did differently, concerning your studies?
I wish I knew that psychology was 1000x more important than technical analysis. I spent the first few years spending way too much time on the charts, even after I understood the basic concepts of technical analysis. I wish I could go back in time, and focus on the process and emotions of trading
What is a hard lesson that simulated trading has taught you?
It taught me that things can go bad very quickly. There were times that I was up $5,000 and by the end of the day the account would be gone. I learned that it’s gotta be slow and steady, and if you think you’re going to hit the lottery on every trade, you’re not going to get anywhere!
How did you learn to deal with losses?
I used to lose my mind when it happened. Over time, with experience you begin to realize that if you take it slow and steady, follow the rules, it begins working for you. You have proof that what you’re doing is working.
What advice would you give to your former self regarding trading?
Spend 10 hours maximum on the charts each week. Focus on how you handle open trades. Find a community, because simulated trading gets very lonely.
What motivated you to become a Funded Trader instead of simulated trading your own personal account?
I saw that I was getting nowhere trading $500 accounts on various brokers. You think you will flip the $500 to $5000 simulated trading GBPUSD, but it’s not going to happen 99% of the time. It’s hard to make a living without sufficient capital in trading, and it’s hard to scale. Unless you have a stable job and can pour money into your simulated trading account, trading will most likely not happen for you.
Have you ever traded with another prop firm?
Yea, I have. I have received payouts with other prop firms and blown many accounts in the past. Just like every other trader in the industry.
How many times have you blown an account?
More than I can count? Let’s say 15, at least, in the last 3 years.
What do you do when you blow an account to come back stronger mentally?
I focus on the proven strategy. Before I do anything, I focus on risk management. They always say in this industry, “risk 1%, risk 1%,” and that’s what I’ve done for the most part in my amateur career as a trader. I’ve been simulated trading 0.5% when starting at the initial balance, so when the stop loss hits, the $500 loss doesn’t affect me at all compared to a $1,000 loss. After I have a solid buffer of five to six thousand, I bump the risk anywhere from 0.8 to 0.9 percent.
What are your favorite pairs to trade and why?
The majors. USDCAD, GBPJPY, GBPAUD. CADJPY and EURAUD would have to be my two favorite crosses. Sometimes I’ll do EURCAD, NZDCAD. I chose these pairs because they stuck out to me during my backtesting. What I found was that the .618 Fibonacci retracement works so well. It’s almost as if the Canadian banks set their entries right on the .618 retracement. It just works so well on the CAD pairs.
What would you say your simulated trading style is?
An intraday trader. I will hold it sometimes if the position is open, I will let it ride for a few days, which can turn into a swing. Normally, I’m in and out of a trade within 8 hours.
Do you use any Fundamentals?
Absolutely. I’m on DailyFX every day. They post articles every day, weekly webinars. I keep up to date on all the economic releases and geopolitical situations. I do think it plays a big role, but some people say that’s all priced into the charts. Regardless, I believe banks make purchases of currencies based on what’s going on in the world.
What would you say your main confirmations are for entering a trade?
I like looking for rejection. When I see the price action rejecting a poi, I can enter a trade. When I see the momentum rising, I know the banks and commercial traders are interested.
How many setups are you getting a week?
I’ve been getting several. Ideally, I wish I was getting 2 trades per day, 10 trades per week. I would look to take a trade a few hours before the London open, and trade during the New York session. I’m not a robot, so I’m no perfect trader, but as far as my strategy is concerned, looking for broken levels, trading the trend, etc. I can find a trade every day for sure.
What is your average win rate?
My win rate is about 38% which is solid. It says 43% on the dashboard, but I’m shaving off 5% because of all the breakevens.
Long term, what do you believe The Funded Trader will do for the industry?
I think if it continues on this trajectory, it will disrupt this industry. What Angel was saying, how much has been done in the last 9 months is incredible. How you are the first to have $400,000 accounts. No one has done that. I like these types of simulated trading conditions. The challenges are affordable. There are always discounts. The community is strong in the discord. TFT will be here in the long term. Keep on making improvements and compete. Many lives will be changed, myself included. I have a long-term goal with TFT, so I’m banking on it.
