Account Recovery Status

Performance Analysis of a $200 000 Prop Firm Account Size

Date: 1st June 2023

This report presents an analysis of the performance of a $200 000 prop firm trading account size that commenced operations on 10th April 2023.

The objective of the challenge is to achieve a profit of $16,000 with no specific time limit. The report focuses on key metrics such as maximum losses, win rate, average risk-reward ratio (RRR), average loss, and average win to evaluate the progress towards the stated objective.

Analysis:

The performance of this account size has been mixed since its inception. The maximum losses suffered have been substantial, with a loss of $15,432, significantly impacting the overall capital. Additionally, no gains have been made so far, indicating a considerable gap between the current performance and the target profit of $16,000.

The win rate of 44.95% suggests that less than half of the trades have been profitable. This indicates room for improvement in the trading strategy to increase the number of successful trades and improve overall profitability.

The average RRR of 0.86 implies that, on average, the potential reward is slightly less than the risk undertaken in each trade. A higher RRR would be desirable, as it would indicate a more favourable risk-reward profile.

The average loss of $665.78 is greater than the average win of $575.06, indicating that the losses incurred per trade outweigh the profits generated. This further emphasizes the need to refine the trading strategy to minimize losses and maximize profits.

Recommendations:

1. Evaluate and Refine Trading Strategy: It is essential to thoroughly assess the current trading strategy to identify any shortcomings and areas for improvement. This may involve analyzing the types of trades taken, entry and exit points, risk management techniques, and market analysis.
2. Improve Risk-Reward Ratio: Strive to achieve a higher risk-reward ratio by identifying trade setups that offer a more favourable potential reward relative to the risk undertaken. This can be accomplished by adjusting position sizing, setting appropriate stop-loss and take-profit levels, and fine-tuning entry and exit criteria.
3. Enhance Risk Management: Implement robust risk management practices to minimize losses. This includes setting appropriate stop-loss levels for each trade, diversifying trades, and avoiding excessive leverage.
4. Continual Monitoring and Evaluation: Regularly monitor and assess the performance of the trading account to identify patterns, trends, and areas for improvement. This includes tracking key metrics, reviewing trade logs, and maintaining discipline in adhering to the trading strategy.

The $200 000 account has faced significant challenges since its inception, with substantial losses and no gains made towards the target profit of $16,000. However, by analyzing and refining the trading strategy, improving the risk-reward ratio, implementing effective risk management practices, and maintaining a disciplined approach, it is possible to enhance the account's performance and work towards achieving the stated objective. Continuous monitoring and evaluation of the account's performance will be crucial in identifying areas for improvement and ensuring progress towards the target profit.