FAQs
How does the funding service through trading work?
Our service operates on a prop firm model, where we provide clients with trading accounts. The process is straightforward yet performance-focused. Here’s how it works:
Account Allocation: When you sign up for our service, we allocate a trading account to you. This account is part of a larger pool of funds managed by our proprietary trading firm.
Trading Rules and Guidelines: To ensure a balanced approach to risk, there are specific rules and guidelines that you must adhere to while trading. These are designed to protect both your interests and the firm’s capital.
Trading Period: You get a full month to trade using the allocated account. During this period, your trading strategy and decisions are entirely up to you, as long as they comply with the predetermined rules.
Profit Sharing: If you successfully trade without violating any rules, you become eligible for profit sharing. The percentage of the profit you receive depends on the model you have chosen at the beginning. This percentage is a reward for your trading skills and discipline.
Continuous Evaluation: Your trading performance is continuously monitored. Consistent success and rule adherence could lead to opportunities for trading with larger accounts and potentially higher profit shares.
In essence, our funding service through trading provides a platform for traders to showcase their skills, with the added benefit of earning a share of the profits generated. It’s a win-win scenario where we support capable traders, and in return, benefit from their expertise in the trading market.
How does the maximum daily loss rule of 5 or 7% work?
One of the key rules in our trading service is the maximum daily loss limit, set at either 5% or 7%. This rule is crucial in managing risk and maintaining discipline in trading. Here’s how it functions:
Loss Limit Calculation: The daily loss limit is calculated as a percentage (5% or 7%) of the highest account balance achieved on that day. This ensures that the losses are kept in check relative to the account’s performance.
Daily Time Frame: The calculation of the daily loss limit starts at midnight and ends at the conclusion of the day. The account balance at the end of each day serves as the reference point for the next day’s loss limit calculation.
Rule Violation Consequences: If your trading activities result in a loss that exceeds this set percentage at any point during the day, it constitutes a violation of the rule. Such a violation has significant repercussions.
Account Violation and Payout: Upon breaching this rule, the account is considered violated. This means that you will no longer be eligible for the payout phase. Essentially, adherence to this rule is mandatory for continuing in the trading program and for the opportunity to earn profits.
In summary, the maximum daily loss rule is a safety net both for the trader and the firm. It encourages responsible trading and helps in mitigating excessive losses, thereby protecting the interests of all parties involved.
How does the 10 or 14% max loss rule work?
Our trading service implements a stringent risk management rule known as the 10 or 14% maximum loss rule. This rule is essential for maintaining a controlled trading environment.
Here’s an overview of how this rule operates:
Loss Limit Based on Initial Balance: The maximum loss limit is set at either 10% or 14% of your account’s initial balance. This initial balance is the starting point of your trading activity with us.
Calculation of the Loss Limit: The loss limit is calculated as a fixed percentage of the account’s initial balance. It’s a predetermined threshold that you need to be aware of when managing your trades.
Consequences of Rule Violation: If at any point your account incurs losses that exceed this 10% or 14% threshold, it results in a violation of this rule.
Impact on Account and Payout: Once this rule is violated, the account is deemed as breached. This violation has a significant impact: you will not be able to proceed to the payout phase. In other words, adherence to this loss limit is crucial for your continued participation in the trading program and for the opportunity to realize profits.
This rule is in place to ensure that trading risks are kept within manageable limits, safeguarding both the trader and the firm from excessive losses. It encourages responsible and disciplined trading practices.
What is the minimum number of trades required in a 7-day period for basic and pro accounts?
In our trading service, we have established a minimum trading activity rule to ensure consistent participation. This rule varies depending on whether you have a basic or pro account:
Basic Account Trading Requirement: If you hold a basic account, you are required to complete at least 5 trades within every 7-day period, starting from the date your account was activated. Each of these trades must have a minimum duration of 5 minutes.
Pro Account Trading Requirement: For those with a pro account, the requirement is higher. You need to complete at least 10 trades, each with a minimum duration of 5 minutes, within every 7-day period.
Consequences of Not Meeting the Requirement: It’s important to note that if you fail to meet these trading requirements, your account will not be violated. However, you will be ineligible to request a payout for that period.
Rule Reset After Missed Payout: If you miss a payout due to not meeting the minimum trade requirement, the rule is reset. This means you will have another opportunity in the next 7-day period to meet the requirement and become eligible for a payout.
This rule is designed to encourage regular trading activity and to ensure that all participants are actively engaged in the trading process. It’s a balance between maintaining flexibility for traders and ensuring a consistent level of participation in our trading platform.
Why is Trading with a Prop Firm Better than Normal Trading?
Trading with a proprietary trading firm (prop firm) offers several advantages over traditional individual trading. Here are some key benefits:Access to More Capital: Prop firms provide traders with access to significantly more capital than what they might have personally. This means traders can take larger positions and potentially earn higher profits without needing to commit their own funds.
Risk Management: Prop firms often have robust risk management systems and rules in place. This helps in mitigating losses, as traders are bound to operate within these predefined limits, ensuring disciplined trading practices.
No Liability for Losses: When trading with a prop firm, traders typically don’t bear the financial risk of losses. The firm absorbs the losses, which can take a lot of pressure off the trader, especially in volatile markets.
Educational Resources and Support: Many prop firms provide educational resources, training programs, and professional support to their traders. This can be invaluable for both novice and experienced traders in developing their skills and strategies.
Profit Sharing Model: Prop firms usually operate on a profit-sharing model, where traders receive a percentage of the profits they make. This model incentivizes performance and can be more rewarding compared to trading with limited personal funds.
Technology and Infrastructure: Traders with prop firms benefit from advanced trading platforms, tools, and technology. These resources can be costly for an individual trader but are often provided by the firm, enabling more efficient and informed trading.
Community and Networking: Being part of a prop firm allows traders to be part of a community, offering opportunities for networking, sharing insights, and learning from peers.
