Lux Trading Firm
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Be careful of their "risk consistency" rule
To me their "risk consistency" rule is not complient with proper trading. It is obvious that a corner stone of risk management is to adapt risk exposure according to market conditions. For example traders will adapt their position size to market volatility (it is insane to trade with the same amount of risk when the vix is at 40 or at 20...) or for a given strategy traders will start with low exposure (this is what two times US investing championship winner Mark Minervini calls "dipping your toes in the water") and increase if successful and decrease when less successful. Their "risk consistency" rule forces the trader to choose an amount of risk at the beginning and stick with it until the end of evaluation, no matter how the market conditions change or your strategy works. You can never adapt your risk to volatility or use progressive exposure. If you dip your toes in the water you'll never going to be able to enter if it's warm and if you dive at first in cold water you risk hydrocution... After spending 6 month getting the 3K required to pass the evaluation stage 1 on a 50K account (with 50K you only have 5K to trade in reality that's why it's long) I got noticed by mail, at my request in order to access the next step, that I broke their "risk consistency" rule and cannot access to the next stage. I realized then that I did not pay enough attention to this rule when I signed their form, probably because I didn't expect such a rule to exist. During the process everything seemed right without any notification that I broke this rule, letting me lose my time in that program. I traded in a swing trading style, with a risk of 200$ to 400$ per trade (0.4 to 0.8%) and used progressive exposure with a maximal total opened risk of 600$ (1.2%). Of course I signed the form after reading it twice, so I'm the one to blame for that. One star is for putting such a rule and for letting me loose my time without any alert for breaking of their "risk consistency" rule. I hope this can prevent traders like me to make the wrong choice of prop firm. PS after luxtradingfirm answer : Hello lux trading firm, You can share the details of my trades with pleasure. Make a video out of it too, it would be great, even if I doubt that you would be fair when I read your answer (I broke many rules etc). And by the way think to explain how a trader can deal with your locking rule under changing market conditions such a substantial increase of market volatility, as they could be forced to risk twice they wanted risk just to follow your risk % consistency rule. There something though that I understand in your answer, you have to preserve your real money. And you should not worry for the one star since it's only rating my experience with you, which is really far from good, as people can read my review and judge by themselves if what I am telling is non sense or not. 2nd PS : An increase of volatility occurs in parallel with and increase of fear and uncertainty, so not only do you have moves of bigger magnitude but also moves become more erratic. Having bigger SL and reduced lot sizes is not enough because volatile markets are not just a bigger form of calm markets. The proper way to adapt is to also reduce exposure i.e. lower risk per trade percentage, which cannot be done with your risk consistency rule. Preventing traders to risk 0.5% in volatile markets when they risk 1% in calm markets is not understandable. But again this is only my review and in the same way I would rate one star a 3* restaurant if they served me fish and chips, because I think most people would feel like me and be disappointed.