Strategies/Supply & Demand/The5%ers

How to Trade Supply & Demand on The5%ers

hours holds2-stepExcellent fit

Supply & Demand 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: 1H, 4H, Daily.

About Supply & Demand

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.

Typical timeframes:1H4HDaily
Best instruments:forexindicescommoditiesfutures
Hold time: hoursOvernight: YesNews: Optional
Rules That Support This Strategy (4)
+Static drawdown

The5%ers 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.

+Overnight holding allowed

The5%ers allows overnight holding in all phases, which is essential for supply & demand setups that need to develop over multiple sessions.

+No consistency rule

The5%ers 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.

+Supports forex, indices, commodities

The5%ers offers forex, indices, commodities markets, which align well with Supply & Demand's typical instruments.

Recommended Timeframes
1H4HDaily

These timeframes align with both Supply & Demand's typical setups and The5%ers's rules. Use higher timeframes for analysis and lower for entries.

Position Sizing

For supply & demand 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.

Common Rule Violations When Trading Supply & Demand on The5%ers
  1. Exceeding the 4% 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.
  2. 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.
  3. 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.
The5%ers Rules Quick Reference
phase 1funded
Daily Loss4%4%
DD TypeStaticStatic
OvernightYesYes
Newsallowedallowed
WeekendYesYes
ConsistencyNoneNone
Supply & Demand on Other Firms
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The5%ers Account Rules

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