Prop firm evaluation
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Which is most important in prop evaluation absolute drawdown or relative drawdown ?
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probably not really the forum for that sort of question - but generally absolute drawdown is better because it allows you to essentially build a 'buffer'. Also the different firms will say how their max daily loss is calculated (max drawdown from peak equity/ starting day balance/ starting day equity etc). Generally balance-based drawdown is more favourable than equity-based drawdown unless you're using a trailing stop.
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also firms will all have different rules as to whether they allow EAs, grid, hedging, martingale, whether you can trade around news, whether you can hold trades overnight, etc. Remember, prop firms are essentially running a casino/ ponzi scheme where the money they pay the successful comes from the unsuccessful, so it is within their interests to make it as difficult as possible and make as many little tricky rules as possible to catch you out. so make sure you read all the fine print!
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this is an opener. Casino hmmm ... in such a way that you'll still give them back what they gave you ... hmm
Thanks,
