Money Mastery Since 2020

BBCapitalz uses a money management plan that utilizes the concept of capital partitioning. Capital partitioning with the use of leverage and compound interest. This money management model helps both the Over-capitalized and Under-capitalized individual. You as a Investor/Copy-trader have to know whether you are Over-capitalized or Under-capitalized.

The Prop Firm

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IN FACT,

The prop space is mainly known for helping traders access more capital. BUT THE TRUTH IS THAT THIS IS THE MODEL THEY USE.

You are to pay a small fee to prove that you can handle a particular funded account and if you successfully pass the evaluation, then you are to trade a live account.

But the rules for this model is that you aren't to lose 10% of your whole capital.

Meaning in actuality you do not have access to the full trading capital but only 10%.

Meaning, you are to trade 10% like a 100% without blowing a 10%.

Making sure that the prop trading company's exposure is just 10%.... i.e. they have a threshold of 10%.

FORMULA FOR THE MONEY MANAGEMENT PLAN

A = AUM (The total amount the trading capital is to be traded as)
C = Trading Capital (The amount needed to be deposited into a trading account which is only used to facilitate trading, nothing more.)
T = Threshold / Risk Tolerance Percentage (we as a company use only 10%)

A = C/T

Using the Formula for an Over-Capitalized Investor

  1. If the initial amount this investor has is $100,000, then the trader will have to calculate his trading capital using a 10% threshold.
    So,
    A = 100,000, C = ?, T = 10%
    Using the formula A = C/T
    100,000 = C / 10%
    C = 100,000 × 10% = 10,000
    Therefore, the trading capital to be deposited into the trading account should be $10,000.

Using the Formula for an Under-Capitalized Investor

  1. If an investor has only $3,000 to invest and is also willing to risk the entire amount, then the trader will have to calculate his AUM using a 10% threshold.
    So,
    A = ?, C = 3,000, T = 10%
    Using the formula A = C/T
    A = 3,000 / 10%
    A = 30,000
    Therefore, the AUM that the $3,000 dollars will be traded as is $30,000.