How and When to Capitalize Trading Account if You Took Profit With S BRIEF

First of all, when trading with S BRIEF, users are advised to learn the difference between two concepts namely “desired income goal” and “reasonably expected income goal”.

When using S BRIEF in line with the basic strategy called “Until the direction changes” and our Capital Requirements with a maximum risk correctly, the T45 team reasonably expects regular annual income performance to be no greater than 30–60%. Т45 strategies are not designed for higher income performance (probably desired by mostly users) and if greater returns are reached, it should be considered accidental and not expected to happen ever again.

Rule #1

If you trade in accordance with S BRIEF and take the maximum defined risk, you should not expect annual income to be above the range of 30–60%.

The second concept for users to pay close attention to is performance control. For example, while trading with S BRIEF, if the account balance has increased by 10%, then the current annual performance is 120%. Another example: if the account balance has doubled over two years of trading, then the current annual performance equals 50%.

Rule #2

It is essential to always maintain performance control of your account while trading with S BRIEFs.

The main advantage of investing with S BRIEFs is the possibility to sustain a high income level and hence an opportunity to implement a regular capitalization.

How and when to capitalize profits?

A sustainable capitalization of accrued profits (i.e. without getting into a severe drawdown) is only possible when current annual performance equals or lower than a bottom of the range of the reasonably expected income goal of the strategy you align with. When trading in accordance with the “Until the direction changes” strategy the bottom of the range is no more than 30% annually.

Rule #3

Capitalize profits only after experiencing a сorrection and taking into consideration your current annual performance and the reasonably expected income goal.

Also Iteration. In general, an iteration period for capitalization of profits when trading with S BRIEFs is one year, subject to the rules described above.

Rule #4

Do not hurry. One year is a basic safe iteration period for capitalization.

The T45 service cannot restrict users from trading aggressively and breaking the rules mentioned above. However, it is strongly recommended to keep calm and always have additional capital to fully maintain your initial trading position without cutting any volume out of it.

Rule #5

Do take risks, but always make sure they are covered. Do take risks, but never allow the market to make you step back from your strategy.

Good luck trading and subscribe to the T45 service!