Price Action 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: 15m, 1H, 4H, Daily.
Trading based purely on candlestick patterns, support/resistance, and chart structure without indicators. Includes pin bars, engulfing candles, inside bars, and key level reactions. Versatile across all markets and timeframes.
The5%ers uses static drawdown -- your floor is fixed at account opening and never moves up. This gives price action traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.
The5%ers has no consistency rule. If your price action produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
The5%ers offers forex, indices, commodities markets, which align well with Price Action's typical instruments.
These timeframes align with both Price Action's typical setups and The5%ers's rules. Use higher timeframes for analysis and lower for entries.
For price action 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 price action 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. Price Action 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 price action 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 |