How to succeed with the Funded Trading Programs over the long-run.
What is a Funded Trading Program?
funded trading programs are fund management scheme created by companies or an institutions to independent Traders to trade funds on their behalf based on some pre-determined principles laid down by the said Companies. The prop trading firms offer you sufficient capital, buying power, and leverage with a funded trading account so that you can significantly profit from the financial market. Visit Prop Firm EA to learn how to trade on funded trading programs with a forex robot.
Some Prop firms will first allow the trader to go through a two phase challenge before being granted access to the actual Funded Trading Programs, meanwhile other prop firms will just grant access to traders direct funding for them to manage.
Rather than being a Solo Trader, some talented Traders will prefer to be a funded trader due to the many advantages which comes as a funded trader such as:
• Availability of huge capital which will be difficult to get as a Solo Trader.
• Limited Liability. The trader is not liable for any loss which may be incurred on the funded trading accounts. He/she may however loses only his initial registration fee.
• Discipline and Proper risk management: All funded trading programs are designed with a well defined risk management rules. This instills some form of discipline on the side of the trader so as to be able to remain funded in the long-run. 95% of Solo Traders lose money because of indiscipline.
• Continuous monthly income/by-weekly stream.
• Growth in the Long-term.
How to succeed with the Funded Trading Programs over the long-run.
Global Statistics show that 99% of traders who join any Funded Trading Program end up breaching one of their rules within the first month of trading thereby being kicked out from the program by the prop firm. Funded Trading Programs are meant only for experienced independent traders who have been trading Solo over the years and have acquired significant market experience to manage risks properly. These are some of the ways which traders can survive with the funded trading accounts for a long period of time;
1. Adhering to the proper risk management rules:
The most important aspect to remain funded over time with any funded trading program is to follow strictly to their money management rules. Different Prop firms have different management rules which the trader should read and understand very carefully before joining their programs. For example My Forex Fund has a drawdown of 12% and a daily drawdown of 5%, meanwhile FTMO has a drawdown of 10% and a daily drawdown of 5%, and some even has loss percentage per trade(5ers has 3% per trade) and this is how it varies between different prop firms across the world. Learn more on how to manage risk properly with a funded trading program
2. Verify if your trading strategy allowed by the Company:
Some prop firms do not allow some styles of trading such as hedging, grid trading, martingale, trading without Stop-losses and Take Profits. It is very important to read very carefully the trading rules of the Company before engaging with them. Meanwhile some other prop firms will allow all kinds of trading approaches.
3. Do Not Chase Price:
Most traders who are caught up with the bad trading habits such as over-trading, high position sizing, going all in all on one trade will hardly succeed with the funded trading programs in the long-run. There is no rush to enter the market. Prop firms prefer quality trades over a large number of trades. Slow down when you find yourself speeding up. Spend time on the accuracy of your entry. Rather miss a trade than rush in one or have a late entry.
4. Pace Your Trades:
You, as a trader have a large time limit to complete all the levels of the trading challenge without hurry. Prop firms are not impressed by the speed. They prefer thoughtful trades and also prefer traders not to over-trade. What impresses prop firms more and makes them proud is having their traders be a part of their platform in the long-term.
• Be a solid trader.
• Invest wisely.
• Research diligently.
CONCLUSION
If you have a small account but want to expand your position in the market and make significant amount of profits which can only be possible with huge Capital, becoming a funded trader might be the best solution. Funded trading programs can lead a trader to acquire fast growth if he/she has the experience to manage accounts properly. Note that it takes so many years to master the arts of trading. It is very important for a trader to have been trading solo before starts considering to trade with prop firms
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