How to Trade FVG (Fair Value Gap) on The5%ers
FVG (Fair Value Gap) on The5%ers is rated excellent fit. There are no major rule conflicts. The5%ers offers 3 rules that actively support this strategy. Recommended timeframes: 5m, 15m, 1H, 4H.
Targets imbalances in price where a three-candle sequence leaves an unfilled gap. Traders wait for price to retrace into the FVG zone before entering in the direction of the initial displacement move. Often combined with ICT/SMC.
The5%ers uses static drawdown -- your floor is fixed at account opening and never moves up. This gives fvg (fair value gap) traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.
The5%ers has no consistency rule. If your fvg (fair value gap) produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
The5%ers offers forex, indices markets, which align well with FVG (Fair Value Gap)'s typical instruments.
These timeframes align with both FVG (Fair Value Gap)'s typical setups and The5%ers's rules. Use higher timeframes for analysis and lower for entries.
For fvg (fair value gap) on The5%ers, risk 0.5-1% per trade. On a $60,000 account, that is $300-$600 per trade. With a 4% daily loss limit, you can take 2-4 setups per day without excessive risk.
- Exceeding the 4% daily loss limit by revenge trading. After 2-3 losing fvg (fair value gap) trades, the emotional urge to "make it back" leads to oversized positions that breach the daily cap.
- Oversizing positions to hit the profit target faster. FVG (Fair Value Gap) has defined risk parameters -- increasing size beyond your plan to speed up the evaluation is the fastest path to blowing the account.
- Over-trading on slow market days. When fvg (fair value gap) setups are not presenting clearly, forcing trades leads to death by a thousand cuts against the daily loss limit.
| phase 1 | funded | |
|---|---|---|
| Daily Loss | 4% | 4% |
| DD Type | Static | Static |
| Overnight | Yes | Yes |
| News | allowed | allowed |
| Weekend | Yes | Yes |
| Consistency | None | None |