LMI prop - account types review. Opinions wanted.

#1
I want to try myself in futures trading. Don't want to invest too much form the very beginning and I think that trading with a prop firm can be a good start to test the skills with a moderate risk. Demo is good, but not the same as trading when you actually risk something.
LMI (Liberty Markets Investments) looks good enough, I've heard some good reviews about it from the traders that have started their career there but later moved on to trade with their own capital.
I'd really appreciate some help with choosing the account type that has the best conditions. I mean the price of the practice : trading conditions ratio. All accounts have different max drawdowns, profit targets and price.
There must be some mathematical method to understand which accounts gives better chances to win a funded account. Any ideas?
 

mastermind007

Well-Known Member
#2
They hire noobs?
 
#3
I want to try myself in futures trading. Don't want to invest too much form the very beginning and I think that trading with a prop firm can be a good start to test the skills with a moderate risk. Demo is good, but not the same as trading when you actually risk something.
LMI (Liberty Markets Investments) looks good enough, I've heard some good reviews about it from the traders that have started their career there but later moved on to trade with their own capital.
I'd really appreciate some help with choosing the account type that has the best conditions. I mean the price of the practice : trading conditions ratio. All accounts have different max drawdowns, profit targets and price.
There must be some mathematical method to understand which accounts gives better chances to win a funded account. Any ideas?
That probably should depend on your trading style.
And you can always start with the cheapest account simply to test all the conditions and understand whether LMI is actually worth any attention at all.
 
#4
The mini account has got only $500 max drawdown allowed, which is very little for futures. IMO that's a meat grinder for traders.
Intuitively, 50k or 30k accounts looks more or less fair, but I'm afraid I'm missing something here. There must be some reliable scientific method to calculate the risk:reward ratio for this particular problem.
Ideas, anybody?
 
#5
I can think of dividing the max trailing drawdown by the profit target. This way you will get the proportion of allowed risk to required profit. The bigger is the %, the better.
 
#7
I can think of dividing the max trailing drawdown by the profit target. This way you will get the proportion of allowed risk to required profit. The bigger is the %, the better.
That actually makes sense, thanks! I used to think that the ratio is the same for all account types and that's how they caculate the profit target, but it's actually not :cool:
MINI and medium accounts have around 71% of the profit target risk. Small has got the most favorable 79% and with larger accounts you have to make nearly twice as much money as you are allowed to risk.
 
#9
That actually makes sense, thanks! I used to think that the ratio is the same for all account types and that's how they caculate the profit target, but it's actually not :cool:
MINI and medium accounts have around 71% of the profit target risk. Small has got the most favorable 79% and with larger accounts you have to make nearly twice as much money as you are allowed to risk.
Exactly ;)
The only problem, there is another variable there, which is the max allowed daily risk. I assumed it can be ignored, but in fact depending on your trading system, that can be the most crucia; element to consider for your decision.
 

Schatz

Well-Known Member
#10
There is high chance that one would end up losing whatever little money he/she has got.. if you have some money and u know how to trade u don't need them.. Usually the rules are very difficult to follow .. Does anybody made any of this kind of program through ? Would love to hear the experience
 

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