How to Trade Position Trading on The5%ers
Position Trading on The5%ers is rated excellent fit. There are no major rule conflicts. The5%ers offers 5 rules that actively support this strategy. Recommended timeframes: Daily, Weekly, Monthly.
Long-term holds lasting weeks to months, based on macro trends, fundamentals, and higher timeframe technical analysis. Minimal screen time needed but requires significant drawdown tolerance and overnight/weekend holding.
The5%ers uses static drawdown -- your floor is fixed at account opening and never moves up. This gives position trading traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.
The5%ers allows overnight holding in all phases, which is essential for position trading setups that need to develop over multiple sessions.
The5%ers permits holding through weekends, so your position trading positions can run without forced Friday closes.
The5%ers has no consistency rule. If your position trading produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
The5%ers offers forex, commodities, indices markets, which align well with Position Trading's typical instruments.
These timeframes align with both Position Trading's typical setups and The5%ers's rules. Use higher timeframes for analysis and lower for entries.
Position Trading on The5%ers allows 1-2% risk per trade since you take fewer setups. On a $60,000 account, that is $600-$1,200 per trade. With 4% max drawdown, budget for 5-10 losing trades in the worst case.
- Exceeding the 4% daily loss limit by revenge trading. After 2-3 losing position trading 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. Position Trading has defined risk parameters -- increasing size beyond your plan to speed up the evaluation is the fastest path to blowing the account.
| phase 1 | funded | |
|---|---|---|
| Daily Loss | 4% | 4% |
| DD Type | Static | Static |
| Overnight | Yes | Yes |
| News | allowed | allowed |
| Weekend | Yes | Yes |
| Consistency | None | None |