How to Trade Supply & Demand on FundedNext
Supply & Demand on FundedNext is rated excellent fit. There are no major rule conflicts. FundedNext offers 5 rules that actively support this strategy. Recommended timeframes: 1H, 4H, Daily.
Identifies zones where price previously made strong moves away from, indicating unfilled institutional orders. Traders wait for price to return to these zones and enter with tight stop losses. Works across all timeframes.
FundedNext uses static drawdown -- your floor is fixed at account opening and never moves up. This gives supply & demand traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.
FundedNext allows overnight holding in all phases, which is essential for supply & demand setups that need to develop over multiple sessions.
FundedNext's 5% daily loss limit is generous enough for most supply & demand setups. At 1% risk per trade, you can absorb 5 consecutive losers before hitting the daily cap.
FundedNext has no consistency rule. If your supply & demand produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
FundedNext offers forex, indices, commodities markets, which align well with Supply & Demand's typical instruments.
These timeframes align with both Supply & Demand's typical setups and FundedNext's rules. Use higher timeframes for analysis and lower for entries.
For supply & demand on FundedNext, risk 0.5-1% per trade. On a $50,000 account, that is $250-$500 per trade. With a 5% daily loss limit, you can take 2-4 setups per day without excessive risk.
- Exceeding the 5% daily loss limit by revenge trading. After 2-3 losing supply & demand 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. Supply & Demand 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 supply & demand setups are not presenting clearly, forcing trades leads to death by a thousand cuts against the daily loss limit.
| phase 1 | phase 2 | funded | |
|---|---|---|---|
| Daily Loss | 5% | 5% | 5% |
| DD Type | Static | Static | Static |
| Overnight | Yes | Yes | Yes |
| News | allowed | allowed | allowed |
| Weekend | Yes | Yes | Yes |
| Consistency | None | None | None |