Wajahat's رحلة التداول

Introduction and Background of Wajahat

• Wajahat introduces himself as an experienced trader with 11 to 12 years of intermittent trading activity, primarily as a part-time trader due to his full-time aviation career.
• He discovered the proprietary trading platform Audacity Capital incidentally through ads and found the concept of trading with firm capital new and interesting.
• The process to qualify for trading with the firm involved multiple interviews focusing on his background and trading approach.
• Wajahat has an IT background, which makes him comfortable working with algorithmic trading (EAs) and AI tools.
• Before managing the firm's capital, Wajahat traded only his personal funds, which was less organized and infrequent.

Trading Instruments and Market Focus

• Wajahat primarily trades forex (approximately 80%), but he has experience trading other assets as well, including indices, cryptocurrencies, and commodities, through different brokers.
• He avoids currency pairs with high spreads because his strategies are mostly short-term and sensitive to transaction costs.
• He appreciates Audacity’s offering of pairs with consistently low spreads, which suits his trading style.

Trading Strategy and Use of Algorithmic Tools

• Wajahat's approach combines manual technical analysis with algorithmic execution to save time and avoid missing opportunities.
• Weekly and monthly Fibonacci retracement levels are used to shortlist currency pairs likely to move in a particular direction in the upcoming week.
• After identifying pairs on a higher timeframe (weekly/monthly), Wajahat programs his Expert Advisors (EAs) or trading robots to trade on a shorter timeframe (15 minutes) based on moving averages (EMAs).
• The main EMAs used are the 200-day EMA and other average EMAs to determine entry points and trade management.
• Trade size management is conservative, starting with 0.01 micro lots; the EA can scale up to a maximum of 0.05 lots per pair by adding up to four additional trades as the market moves favourably.

Risk and Money Management

• Wajahat practices strict risk control by limiting the maximum drawdown risk to about 3-4% per trade when trading the firm’s capital, scaling down from his personal trading where he risked 30-40% drawdown on micro lots.
• This adjustment reflects his increased responsibility trading with someone else’s capital and his focus on disciplined risk management.
• His risk management philosophy emphasizes protecting capital and maintaining consistent small losses rather than seeking high-risk, high-reward trades.

Transition to Prop Firm Capital and Operational Constraints

• Wajahat notes a notable challenge with the firm's policy that prohibits trading during high-volatility news announcements, requiring him to monitor and pause trading accordingly.
• He receives high-volatility alerts via email, which helps enforce discipline and aligns with risk control protocols.
• Wajahat prefers not to hold trades over weekends since weekly trend targets are typically met by then, reducing overnight risk exposure.
• His profit target is to reach 10% growth in roughly two months, a timeline he believes is achievable with consistent application of his strategy.
• Wajahat admits some inconsistency due to personal time constraints, resulting in gap weeks without trading.

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Views on Algorithmic Trading vs. Discretionary Trading

• Wajahat breaks down his perspective on trading methods into three key points:
• 1. Being right or wrong on market direction is less important than effective risk management—cutting losses quickly and letting profits run.
  2. Emotional discipline is critical, and automated bots help eliminate human emotional errors by adhering strictly to predefined parameters.
  3. Despite the usefulness of EAs, human intervention remains necessary.
  4. • The market’s volatility means one cannot fully rely on automation without monitoring.
     • Wajahat personally chooses pairs and sets directional bias manually, then lets the EA manage entries and trade execution on a short timeframe.
• He emphasizes that automation is a tool to reduce screen time and emotional fatigue, not a full replacement for trader oversight.

Summary of Trading Workflow

• Manual analysis on higher timeframes (weekly/monthly) to select pairs and define trade direction using Fibonacci levels.
• Automated execution and management on a 15-minute timeframe using EMAs and EAs.
• Conservative scaling of trade size starting from micro lots to control risk.
• Monitoring and pausing trading during high-volatility events, adhering to the firm’s rules.
• Avoidance of holding trades over weekends to minimize risk.

Experience with the Prop Trading Firm - Audacity Capital

• Wajahat initially had reservations about prop firms, fearing:
• • Changing rules mid-way.
  • Delays or issues in profit sharing.
• His experience with Audacity Capital has been smooth, fast, and reliable, which positively changed his perception.
• He highlights the advantage of increasing capital allocation over time, which:
• • Reduces pressure to achieve high percentage returns.
  • Allows for stricter risk management while still increasing absolute monetary gains.
• Wajahat appreciates the firm’s transparent and timely profit-sharing mechanism, recognizing the effort behind each successful trade.

Closing Remarks

• The interviewer thanks Wajahat for sharing his insights and congratulates him on reaching his first target with the firm.
• Wajahat expresses gratitude and looks forward to further progress with the funded account.

Key Insights and Conclusions

• Combining manual higher timeframe analysis with algorithmic short-term execution can offer an effective balance between strategic insight and operational efficiency.
• Strict risk management and conservative lot sizing are essential, especially when trading with proprietary capital.
• EAs help reduce emotional trading errors but require regular human oversight due to market volatility and firm-specific constraints such as news-event restrictions.
• Prop trading firms like Audacity can provide reliable infrastructure and capital access, with smooth profit sharing and clear rules, alleviating common trader concerns.
• Wajahat’s approach illustrates a pragmatic, disciplined methodology leveraging his IT skills while maintaining manual strategic control.

Quantitative Summary Table

FAQ

Q: Why does Wajahat combine manual analysis with EAs?
A: Manual analysis on higher timeframes identifies promising pairs and directional bias; EAs execute trades on shorter timeframes to save time and reduce emotional decisions.

Q: How does Wajahat control risk when trading firm capital?
A: By reducing lot sizes to micro lots, targeting a maximum drawdown risk of about 3-4%, and adhering to strict money management rules.

Q: Does Wajahat fully trust EAs to trade autonomously?
A: No, he believes EAs are useful tools but require daily monitoring and human intervention due to market volatility.

Q: What was Wajahat’s initial concern about prop firms and how was it resolved?
A: He feared rule changes and profit-sharing delays; his experience with Audacity was smooth and timely, alleviating those concerns.

Q: What is Wajahat’s trading time commitment?
A: He trades part-time, mainly conducting analysis on weekends and letting EAs trade during the week; some inconsistency due to personal schedule.