Choosing the right trading strategy for success at a lucid prop firm can be challenging. Many traders rely on tools like MACD, SMA 200, Bollinger Bands, and RSI to guide their decisions. But the real question is: which strategy delivers consistent profits, not just a high win rate?
Let’s break down two different strategies and see which might help traders perform better in a lucid prop firm evaluation.
Comparing Two Trading Strategies
We’ll compare:
- Bollinger Bands with RSI
- MACD with SMA 200
This analysis uses the EUR/USD daily chart, looking at how each performs on a day-to-day basis. We’ll examine profit and loss, win rates, and risk levels — all key factors when trading for a lucid prop firm account.
Strategy 1: Bollinger Bands with RSI
This strategy combines Bollinger Bands, which measure volatility, with the Relative Strength Index (RSI), which signals overbought or oversold conditions.
Performance Results:
- Total Profit/Loss (P&L): Negative
- Maximum Drawdown: $1.14
- Total Trades: 23
- Win Rate: 60%
- Profit Factor: 0.8
Even with a 60% win rate, this strategy lost money overall. The profit factor below 1 means it loses more than it gains for each dollar risked. The equity curve trends downward, which is a red flag for any lucid prop firm trader.
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Strategy 2: MACD with SMA 200
This strategy pairs the Moving Average Convergence Divergence (MACD) with the 200-day Simple Moving Average (SMA). MACD tracks momentum shifts, while the SMA helps identify the dominant trend.
Performance Results:
- Total Profit/Loss (P&L): Positive
- Maximum Drawdown: $0.37
- Total Trades: 42
- Win Rate: 47%
- Profit Factor: 1.399
Even with a win rate under 50%, this strategy made money overall. A profit factor above 1 means it has a positive edge — something every lucid prop firm trader needs to pass evaluations.
Accuracy vs. Edge: What Matters Most for Lucid Prop Firm Traders?
The results are clear: winning more trades doesn’t always mean making more money. The Bollinger Bands with RSI strategy had a higher win rate but still lost money, while the MACD with SMA 200 had a lower win rate but produced profits.
At a lucid prop firm, it’s your edge — not just accuracy — that matters. A profitable edge means you consistently make more than you lose over time.
The Bottom Line for lucid prop firm Traders
When trading for a lucid prop firm, focus on:
- Profit Factor: Above 1 is essential.
- Equity Curve: Consistent upward growth over time.
- Risk Management: Small drawdowns mean greater survival chances.
A strategy with fewer wins but better returns is often more valuable than one with a high win rate and poor profitability.
Disclaimer:
This content is for informational purposes only and does not constitute financial, investment, or trading advice. Trading and investing in financial markets involve risk, and it is possible to lose some or all of your capital. Always perform your own research and consult with a licensed financial advisor before making any trading decisions. The mention of any proprietary trading firms, brokers, does not constitute an endorsement or partnership. Ensure you understand all terms, conditions, and compliance requirements of the firms and platforms you use.
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