Building A Trading Track Record
Just quickly following up with a question from David, about which platform or trading platform is best for building a track record.
Now, it really does come down to what your goal is with the software to be honest, so if your goal is to build a track record just for journaling purposes, or whether the goal is to build a track record to be able to sell signals. For example, or whether your goal might be to build a track record that you can use to get noticed by a prop firm or a hedge fund, or to find some investors. Now when it comes down to just journaling.
I’d say a good option, a free option out there to consider is something like Myfxbook, which is, which basically integrate with most brokers, and it allows you to connect your MT4 trading account, with them, which basically gives you a way to track all of your trades with a third party verification.
So this can act as a great way to keep a automatic journal of all your trades that you take. It obviously to keep track of all of your stats as well like your growth and your drawdown, etc. And it can help you to track and record in case you want to sell your signals on some of the many sites out there that do signal services.
Now the cool thing about doing it for journaling, or building a track record for signals is that you don’t need a massive trading account. You can start with a very small trading account of maybe $2,000 or five, and you can start building your track record, with a platform like Myfxbook.
Now turning to build, turning to building a track record to be able to find investors or maybe being able to get accepted or noticed by a prop firm or a hedge fund, you will probably want to consider a funding account or a funded account of some sorts.
This is not to say that investors might not accept a Myfxbook track record, but what serious investors or prop firms will be looking for isn’t just a track record, but whether you are used to managing real money firstly, and by that real large accounts of real money, so any meaningful funded account would be better for that particular purposes.
Now for that you can look at the various options out there available on the market. One of the more popular ones out there is called FTMO and there’s also other options called AudaCity Capital, there’s also another one called BluFX. There’s really no specific one that we would encourage anybody to use.
All of them have different rules. They have different terms and conditions. They have different allocations, and of course, different ways of operating and working with the traders.
So the best way to find out which one is the best one would be to do your own due diligence on them, and basically compare a few of them against each other, and then choosing the one that fits best with your particular trading styles.
For example, if you’re a trader that only takes, let’s say, swing trades that usually runs for a week or two at a time, or maybe more than a funded account that doesn’t allow you to keep trades open overnight might not be the best option for you to take just as an example. Or maybe you usually trade multiple pairs at a time, but some of the funded programs only allows you to have a certain amount of trades running at any given time.
So it might not be, that specific one might not work for you. So don’t only look at the offers, but also make sure that the terms and conditions will fit into your particular trading style.
So once you completed one of the programs, and you have a track record that basically proves you have successfully managed real money, that is a lot more attractive for investors as well as firms compared to just a journal, for example.
Now apart from that, and if you manage a funded account successfully, of course, depending on the profit split that you get, you also stand a chance of making a decent amount of profit as well which is always a great bonus.
So it really does depend on what you’re goals are, if it’s just journaling, I’d say something like Myfxbook is fine, but if you’re doing it to attract some investors maybe want to do some fund management or maybe attract prop firms. Then it might be best to look for a possible funded account as that type of track record will be much more valuable for you, if that is your goal in the long term.