How I Handle Threat and Diversify Throughout A number of Prop-Agency Accounts
One of the vital frequent errors I see amongst prop-firm merchants is concentrating an excessive amount of danger in a single technique or a single account. Even worthwhile programs can undergo tough durations, and when the whole lot is stacked collectively, one unhealthy section can wipe out months of labor.
Over time, I’ve constructed a construction that focuses on danger separation, diversification, and longevity, relatively than chasing short-term returns. This strategy has allowed me to generate constant payouts for over a yr, with greater than 20 payouts and over $36,000 USD withdrawn from FTMO-style accounts, whereas managing roughly $400,000 in funded capital.
This text explains precisely how I construction my accounts and why I do it this fashion.
Core Precept: Methods Fail Quickly, Constructions Ought to Not
I don’t depend on a single “excellent” technique. As a substitute, I commerce a number of uncorrelated Professional Advisors, every primarily based on completely different market behaviors:
Any particular person system can underperform for weeks or months. The aim is to not keep away from drawdowns solely, however to ensure no single drawdown can damage your entire operation.
My Setup: 8 Uncorrelated Professional Advisors
Let’s assume I’m operating 8 uncorrelated EAs and 4 × $100,000 prop-firm accounts.
Reasonably than cloning the identical setup all over the place, I deliberately assign completely different roles to every account.
Account 1: Extremely-Secure, Lengthy-Time period Revenue Core
Objective: Stability and longevityRisk: Very lowGoal: ~1–2% monthly
This account will not be thrilling — and that’s the purpose.
It acts as a base revenue account, meant to remain funded long-term and produce regular payouts. If the whole lot else fails, this account is designed to maintain going.
Account 2: Diversified however Larger Threat
Objective: Managed growthRisk: ~2× the ultra-safe accountGoal: Larger month-to-month returns
All 8 EAs are nonetheless operating collectively
Identical diversification advantages
Barely elevated danger per commerce
Right here, I settle for extra volatility. I’m comfy shedding this account if it generates robust payouts first. Even one good cycle can produce a number of thousand {dollars}, which already offsets the danger.
This account balances diversification with efficiency.
Accounts 3 & 4: Cut up Methods, Cut up Threat
Objective: Threat separation and redundancy
As a substitute of operating all programs collectively, I cut up them:
Why do that?
If a selected group of programs hits a foul interval, it solely impacts one account
The opposite account might stay steady or worthwhile
Totally different system combos behave otherwise, even in the identical market
This dramatically reduces the prospect of a number of accounts failing on the similar time.
Why This Works Higher Than a Single “Excessive-Threat” Account
Many merchants attempt to push one account exhausting to succeed in targets sooner. That strategy normally ends in:
My construction accepts that:
Some accounts could also be misplaced
Others are designed particularly to not be misplaced
General capital and payouts keep constant
It’s a portfolio mindset, not a single-bet mindset.
The Massive Benefit: Psychological and Statistical Stability
This construction offers two main advantages:
1. Psychological Stability
When one account is down, others are sometimes up. This removes the urge to intervene with programs or improve danger emotionally.
2. Statistical Robustness
Uncorrelated programs + separate accounts = fewer excessive outcomes. You’re not betting the whole lot on one market regime.
Remaining Ideas
This strategy will not be about maximizing returns in a single month. It’s about:
Staying funded
Producing constant payouts
Surviving unhealthy market durations
Treating prop-firm buying and selling like a enterprise, not a chance
If you happen to commerce a number of programs, I strongly advocate pondering not solely about how they commerce — however the place and the way they’re allotted.
