Scalping on The5%ers is rated excellent fit. There are no major rule conflicts. The5%ers offers 4 rules that actively support this strategy. Recommended timeframes: 1m, 5m.
Ultra-short-term trading targeting small price movements (a few ticks to a few points). High frequency, small targets, tight stops. Requires fast execution and low spreads. Positions held for seconds to minutes.
The5%ers uses static drawdown -- your floor is fixed at account opening and never moves up. This gives scalping traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.
The5%ers has no consistency rule. If your scalping produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
The5%ers allows EAs and automated trading. Scalping can benefit from automation for execution speed and consistency.
The5%ers offers forex, indices markets, which align well with Scalping's typical instruments.
These timeframes align with both Scalping's typical setups and The5%ers's rules. Use higher timeframes for analysis and lower for entries.
With The5%ers's 4% daily loss limit, scalpers should risk 0.25-0.5% of account per trade. On a $60,000 account, that is $150-$300 per trade. This allows 4-10+ trades before approaching the daily limit.
- Exceeding the 4% daily loss limit by revenge trading. After 2-3 losing scalping 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. Scalping 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 scalping 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 |