This podcast interview features Bernd Skorupinski, a record-holding FTMO trader, discussing various aspects of prop trading, including the challenges of the industry, choosing the right trading plan, the importance of consistency, and the psychological aspects of trading. The conversation also touches upon the differences between various trading styles and the misleading nature of some marketing practices within the prop firm space.
Those are excellent follow-up questions, all directly answerable from the provided transcript. Let me elaborate on how the transcript answers each:
The transcript doesn't detail specific early challenges Skorupinski faced, but it extensively discusses the general challenges of the prop firm industry, such as the low barrier to entry leading to many poorly run firms with unreliable payouts and a lack of regulation. He mentions a personal experience where a prop firm went bankrupt after he'd earned a significant profit, highlighting a key risk. He doesn't describe his personal experience in overcoming these but implies his success is built on choosing reputable firms, building his own trading edge, and focusing on consistently profitable strategies.
Skorupinski highlights risk-reward ratio as a primary KPI. He specifically mentions aiming for "two risk-reward ratios per month on average," using a fixed dollar risk approach to maintain consistency. He also references win/loss ratio and other unspecified KPIs as tools for evaluating trading performance.
Skorupinski defines consistency as his strategy delivering a consistent number of risk-reward ratios (specifically, two per month on average) regardless of the account size. His strategies for maintaining consistency while scaling involve using a fixed dollar risk approach (adjusting position sizes according to account size) and milestone planning. This involves proving his edge works at one level of risk before increasing risk to a higher level.
Skorupinski observes some influencers receiving funded accounts with profit caps for marketing purposes, presenting a false image of consistent profitability. He finds this misleading and unethical to traders who genuinely build their skills and edges. He argues that transparency and ethical practices that benefit traders should be prioritized over profit-driven marketing schemes.
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