VWAP Trading Guide: Master Volume Weighted Average Price
Learn how to use VWAP (Volume Weighted Average Price) for day trading and prop firm success. Understand what VWAP means and how to trade with it effectively.
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Follow these strategies to increase your chances of success.
Aim for steady daily gains rather than trying to hit the profit target quickly. Consistent trading builds confidence and reduces the risk of exceeding drawdown limits.
Keep position sizes small, typically risking no more than 1-2% per trade. Use stop losses on every position and avoid clustering trades in correlated markets.
Create a detailed trading plan before starting the challenge and stick to it. Define your entry criteria, risk parameters, and profit targets for each trade.
Track your daily drawdown carefully, as it's often more restrictive than the overall account drawdown. Close trading for the day if you approach the daily limit.
Focus on your best trading setups with the highest win rates. This isn't the time to experiment with new strategies or markets you're unfamiliar with.
Spread your trading activity across the required minimum trading days. Don't rush to complete the challenge faster than necessary.
Learn everything you need to know about prop trading with our comprehensive articles.
Learn how to use VWAP (Volume Weighted Average Price) for day trading and prop firm success. Understand what VWAP means and how to trade with it effectively.
Master trailing drawdown in prop trading - understand end-of-day vs intraday drawdown, their pros and cons, and how to trade effectively within these constraints.
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