We calculate the daily loss limit based on the previous day’s end of day equity. This is calculated at 5PM EST, so ensure you know what time of day this is in your location.
All of this is calculated for you automatically inside your traders dashboard in real time, so you don’t need to calculate any of it, but you do need to understand it.
Example 1:
The day’s starting balance was $100,000. You open a position and it goes into $10,000 profit and you close the trade before the end of the day. At the end of this day your account equity is $110,000 which is carried over to the second day.
The second day your daily drawdown limit is reset with the new High-Water Mark being $110,000. If your daily drawdown limit is 3% on the Turtle account then the lowest your equity can reach is $110,000 – $3,300 = $106,700.
Example 2 (Violation): The day’s starting balance was $100,000. You open a position and it goes into $10,000 profit but you did NOT close the trade before the end of the day. Instead you moved your stop-loss to breakeven. At the end of this day your account equity is $110,000 which is carried over to the second day.
On the second day the trade goes back to breakeven and is closed by your stop-loss. Even though the individual trade did not lose from the balance, you have lost more than the allowable amount (3% on a Turtle account) on a single day and this will be a hard violation and the account will be closed.
The Maximum Drawdown is static, which means it is calculated based on the initial balance and not the equity.
For example:
The Maximum drawdown of a 100K Turtle account is 6% of the initial balance. This means that the Maximum drawdown level is always 100K minus (100K x 6%) = 94K.
If you violate this rule, the account will be closed.
The minimum time to complete the Turtle Challenge is 10 trading days. There must have been at least one trade opened on 10 different days to successfully pass the challenge.
A trader may not reach the profit target with one large trade, then use significantly smaller lots to pass the minimum trading days.
When the account is reviewed if there is a large difference in lot size used to pass minimum time rule the challenge will be failed.
Trades must be fully executed trades, they can not just be opened and closed. Pending orders do not count towards the total.
You can take as much time as you need to complete the Turtle Challenge, as there is no maximum time limit. You are free to trade at your own pace as long as you do not breach the inactivity period.
All challenge and funded accounts are traded on a demo account so we can manage our risk. Your funded account is connected to a real funded account, which you are paid from.
To ensure trades can be copied effectively to the real account we can not tolerate any form of manipulation on any account.
Manipulation includes but not limited to:
Tick scalping – constantly opening and closing trades in less than 30 seconds. We realise sometimes trades are closed instantly for one reason or another, so if there are occasional trades that are opened and closed in less time we won’t close your account.
Arbitrage.
Hedging between accounts.
Delayed or frozen data feeds.
Unrealistic fills that don’t take into account slippage, where a huge lot size is used and closed within a small amount of pips.
Allowing others to trade your account.
Copying others trades.
Lot size manipulation – Traders cannot use a much smaller trade to pass the minimum days after hitting the profit target or to fill the minimum trading days. As a guide, the deviation can not be greater than a factor of 5. – Example 1: If your smallest lot size is 1 and your largest is 5 on similar assets, this is okay. – Example 2: If your smallest lot size is 0.1 and your largest is 5 on similar assets, this is not okay. – Example 3: If your trade 1 lot on EURUSD and hit your profit target and then trade 1 lot on LTCUSD to pass minimum days, this is not okay as LTC has a contract size of 1 while EURUSD has a contract size of 100,000. In this example, a 100 pip increase in LTCUSD would be equivalent to $10 but a 100 pip increase in EURUSD would be equivalent to $1,000. – Example 4: If you have 5 trades of EURUSD opened at the same time, each with a lot size of 1, your net position size is 5 Lots. Thus, if your smallest lot size is 0.5 lots, this is not okay.
Taking advantage of the demo environment is also not permitted.
Traders cannot trade digital currencies over the weekend to pass the minimum days.
You can add a customization to increase your daily drawdown to 6% and maximum drawdown to 12%.
We calculate the daily loss limit based on the previous day’s end of day equity. This is calculated at 5PM EST, so ensure you know what time of day this is in your location.
All of this is calculated for you automatically inside your traders dashboard in real time, so you don’t need to calculate any of it, but you do need to understand it.
Example 1:
The day’s starting balance was $100,000. You open a position and it goes into $6,000 profit and you close the trade before the end of the day. At the end of this day your account equity is $106,000 which is carried over to the second day.
The second day your daily drawdown limit is reset with the new High-Water Mark being $106,000. If your daily drawdown limit is 5% on the Hare account then the lowest your equity can reach is $106,000 – $5,300 = $100,700.
Example 2 (Violation):
The day’s starting balance was $100,000. You open a position and it goes into $6,000 profit but you did NOT close the trade before the end of the day. At the end of this day your account equity is $106,000 which is carried over to the second day.
On the second day the trade goes back to breakeven and is closed by your stop loss. Even though the individual trade did not lose from the balance, you have lost more than the allowable amount (5% on a Hare account) on a single day and this will be a hard violation and the account will be closed.
If you violate this rule, the account will be closed.
You can add a customization to increase your maximum drawdown to 12% and daily drawdown to 6%.
The Maximum Drawdown is static, which means it is calculated based on the initial balance and not the equity.
For example:
The Maximum drawdown of a 100K Hare account is 10% of the initial balance. This means that the Maximum drawdown level is always 100K minus (100K x 10%) = 90K.
The minimum to complete each phase of the Hare Challenge is 5 trading days. There must have been at least one trade opened on 5 different days to successfully pass each phase of the Challenge.
A trader may not reach the profit target with one large trade, then use significantly smaller lots to pass the minimum trading days. When the account is reviewed if there is a large difference in lot size used to pass minimum time rule the Challenge will be failed.
Trades must be fully executed trades, they can not just be opened and closed.
All challenge and funded accounts are traded on a demo account so we can manage our risk. Your funded account is connected to a real funded account, which you are paid from.
To ensure trades can be copied effectively to the real account we can not tolerate any form of manipulation on any account.
Manipulation includes but not limited to:
Tick scalping – constantly opening and closing trades in less than 30 seconds. We realise sometimes trades are closed instantly for one reason or another, so if there are occasional trades that are opened and closed in less time we won’t close your account.
Arbitrage.
Hedging between accounts.
Delayed or frozen data feeds.
Unrealistic fills that don’t take into account slippage, where a huge lot size is used and closed within a small amount of pips.
Allowing others to trade your account.
Copying others trades.
Lot size manipulation – Traders cannot use a much smaller trade to pass the minimum days after hitting the profit target or to fill the minimum trading days. As a guide, the deviation can not be greater than a factor of 5. – Example 1: If your smallest lot size is 1 and your largest is 5 on similar assets, this is okay. -Example 2: If your smallest lot size is 0.1 and your largest is 5 on similar assets, this is not okay. -Example 3: If your trade 1 lot on EURUSD and hit your profit target and then trade 1 lot on LTCUSD to pass minimum days, this is not okay as LTC has a contract size of 1 while EURUSD has a contract size of 100,000. In this example, a 100 pip increase in LTCUSD would be equivalent to $10 but a 100 pip increase in EURUSD would be equivalent to $1,000. – Example 4: If you have 5 trades of EURUSD opened at the same time, each with a lot size of 1, your net position size is 5 Lots. Thus, if your smallest lot size is 0.5 lots, this is not okay.
Taking advantage of the demo environment is also not permitted.
Traders cannot trade digital currencies over the weekend to pass the minimum days.
The profit target to reach the next stage of the Instant Standard Account is 10%. Traders are free to make withdrawals from their account which will not affect their profit target to scale.
For example, if you make 6%, make a 6% withdrawal from your account and then make another 4% profit, you are still eligible to scale to the next level.
Aggressive Account
The profit target to reach the next level of the Instant Aggressive Account is 20%. Traders are free to make withdrawals from their account which will not affect their profit target to scale.
For example, if you make 12%, make a 12% withdrawal from your account and then make another 8% profit, you are still eligible to scale to the next level.
The Maximum Drawdown for the Instant accounts are static. This means that no matter the profit you are in, your Maximum Drawdown limit is always calculated from the initial account balance after scaling.
For example, if you have a $80,000 account.
For the Instant Standard Account:
$80,000 – 5% = $76,000 is the lowest equity your account can reach before violating this rule.
For the Instant Aggressive Account:
$80,000 – 10% = $72,000 is the lowest equity your account can reach before violating this rule.
If you violate this rule, the account will be closed.
The minimum time to scale to the next level of both the Instant Funding Accounts is 5 trading days. There must have been at least one trade opened on 5 different days to qualify to scale your account.
A trader may not reach the profit target with one large trade, then use significantly smaller lots to pass the minimum trading days. When the account is reviewed if there is a large difference in lot size used to pass minimum time rule the Challenge will be failed.
Trades must be fully executed trades, they can not just be opened and closed.
All accounts are traded on a demo account so we can manage our risk. Your funded account is connected to a real funded account from which you are paid.
To ensure trades can be copied effectively to the real account we can not tolerate any form of manipulation on any account.
Manipulation includes but not limited to:
Tick scalping – constantly opening and closing trades in less than 30 seconds. We realise sometimes trades are closed instantly for one reason or another, so if there are occasional trades that are opened and closed in less time we won’t close your account.
Arbitrage.
Hedging between accounts.
Delayed or frozen data feeds.
Unrealistic fills that don’t take into account slippage, where a huge lot size is used and closed within a small amount of pips.
Allowing others to trade your account.
Copying others trades.
Lot size manipulation – Traders cannot use a much smaller trade to pass the minimum days after hitting the profit target or to fill the minimum trading days. As a guide, the deviation can not be greater than a factor of 5. – Example 1: If your smallest lot size is 1 and your largest is 5 on similar assets, this is okay. – Example 2: If your smallest lot size is 0.1 and your largest is 5 on similar assets, this is not okay. – Example 3: If your trade 1 lot on EURUSD and hit your profit target and then trade 1 lot on LTCUSD to pass minimum days, this is not okay as LTC has a contract size of 1 while EURUSD has a contract size of 100,000. In this example, a 100 pip increase in LTCUSD would be equivalent to $10 but a 100 pip increase in EURUSD would be equivalent to $1,000. – Example 4: If you have 5 trades of EURUSD opened at the same time, each with a lot size of 1, your net position size is 5 Lots. Thus, if your smallest lot size is 0.5 lots, this is not okay.
Taking advantage of the Demo environment.
Traders cannot trade digital currencies over the weekend to pass the minimum days.
Traders may place an average of up to 10 trades per day.
A Trading day starts from 00:00 GMT +2 (+3 depending on daylight savings) and ends at 23:59 GMT +2 (+3). This is the time that is displayed in your Platform 4 / Platform 5.
The stop loss needs to be placed before the order is placed, whether that is a market or limit order, or else the system will close the order automatically.
This will be done at market price at the time and you will receive an email from us notifying you of the fact the trade has been closed.
Not having a stop loss is a soft rule and will not result in you automatically losing the account.
The Funded Academy Alternative & Comparison, that’s what we’re going to cover in this video.
You’ll notice up the top, we’ve got the Prop Firm and the Challenge type, got Traders With Edge Turtle Account, Traders With Edge Hare Account, and the Funded Academy Challenge. The maximum account size after scaling, is the amount that the Prop Firm will fund you up to. So if you purchased a hundred thousand dollar account and you are a profitable trader consistently, most firms will add more funds to the account and grow it for you, so that you receive a bigger profit share. The maximum account size from Traders With Edge is $3 million. From Funded Academy, the maximum they will allow you to have, is up to $2 million. The other thing about Funded Academy is they don’t have any scaling at all. So, if you want more funds, up to the $2 million, you have to purchase more challenges. While they might be $725 for the first a $100K, you need to keep purchasing more challenges and passing them, until you get up to the $2 million mark. The Traders With Edge Turtle Account, on the other hand, does have a scaling plan. Once you purchase your first a $100K account, and you’ve traded that, if you’re consistently profitable, we’ll continue to top up your account and you don’t have to purchase any more challenges.
I’ll explain quickly what a rapid scaling plan is. If you’re on the website, Traders With Edge, you go to Challenges, Scaling Plans, you’ll see a page that looks something like this. Now up the top, we’ve got the differences between the Scaling Plans and how they work. If you scroll down, there’s a video that explains more in detail. It gives some examples, they’re written out. You can see with the charts, just how much faster a Rapid Scaling Plan grows than a Traditional or Organic Scaling Plan. If you continue to scroll down further, you’ll see a calculator that we’ve built for you, so that you can go and you can select whatever account size you might have, and you can play around with all the numbers to figure out how much more profit would you make if you had a Rapid Scaling Account than if you had a Traditional Prop Scaling one.
Back to our Funded Academy Alternative & Comparison. So, if we scroll down a little bit, you see the number of Phases. You’ll see both the Turtle and the Funded Academy Accounts are a one Phase account, which means you just pass one Phase and then you go straight onto a funded account. The trades with Edge Hare Account is a two Phase account. The price for the Turtle is $750. The Traders with Edge Hare Account is $590, and the Funded Academy Challenge is $725. The reason why both the Turtle and the Funded Academy Accounts are more expensive, is because they are a one Phase account, and so you go straight onto live funds after you pass. The fee on the Turtle Account and the Funded Academy Account is not refundable. However, it is refundable with the Traders With Edge Hare Account. Once you’ve passed both Phases of the challenge, and you’re eligible for your first payout, you will receive a refund with your first payout.
We continue down, you see Target for Phase 1 on all of them, is 10%. The target for Phase 2 is not applicable for the Turtle or the Funded Academy, because you’d already be on a live funded account by this stage. Traders With Edge Hare, Phase 2 Target is 5%. The maximum drawdown for both the Turtle and the Funded Academy is 5%, while the Maximum Drawdown is 10% for the Hare. Your Daily Drawdown Maximum is 2.5% for the Turtle, 5% for the Hare, and 4% for the Funded Academy. The Profit Share for Traders With Edge is 80%, from day one. The Funded Academy Maximum is 70%.
Minimum Trading Days on Phase 1 is 10 Trading Days for Traders With Edge and zero days for the Funded Academy. Minimum Trading Days for Phase 2 is not applicable for the Turtle or the Funded Academy, because there is no Phase 2. And the Minimum Trading Days for the Hare Account is minimum 10 days. The Trading Period for Phase 1 is 365 days for the Turtle. The Funded Academy says, “You’ve got forever to pass it.” Whether you believe that or not, if you can go back to them in 10 years time and say that you passed it, probably not. And you’ve got 30 days to pass on the Hare Account. Trading Period for Phase 2 is not applicable for both the Funded Academy and the Turtle Account. You’ve got 60 days to pass Phase 2 on the Hare Account.
Can you hold over weekends? You can hold over weekends on the Turtle Account, but you cannot hold over weekends on the Hare Account or the Funded Academy. Can you use EA’s? Yes, you can use EA’s on all of them, but seek approval Traders With Edge before you use the EA. What most platforms have in place, is you cannot use exactly the same strategy as someone else, or you will lose your account. So they say that you can use EA’s upfront, but then if you use an EA that’s exactly the same as someone else, you will lose your account, because they don’t want more than one person trading a strategy, at any given time.
Can you use Signals? Yes, you can. And you do News Trading? Yes, you can. Do you get a Free Retry? You get a Free Retry on the Traders With Edge Hare Account. How it works is, if the time has run out, you are in profit and you haven’t violated any rules, then you’ll get a free retry to do the challenge again. Again, it doesn’t make any sense to have a free retry on the Turtle Account or the Funded Academy, because you have so long to pass the challenge. Can you trade Forex? Yes, you can, on all of them. Can you trade Digital Currencies? Yes, to all. Commodities? Yes, to all. Indices? Yes, to all. Share and Stock CFDs? Yes, to all.
Do they have Trading Competitions? Traders With Edge has competitions. You can enter the competition. You can battle it out with your friends online. The top three people who win, typically get awarded a Challenge Account as a prize. Currently, it doesn’t seem like Funded Academy does run these types of competitions. Do they have Giveaways? Traders With Edge has giveaways, consistently. It seems like Funded Academy does not. Here’s an example of one of the giveaways that Traders With Edge ran. You could enter your name and email into the prize draw and be one of the winners who won a $50,000 Challenge Account. Do they have Trader Education? Traders With Edge has education, yes. Funded Academy, it seems like they don’t.
Do they have an Affiliate Program? Traders With Edge has an affiliate program. We pay up to 20% for the lifetime of the client. So if you referred a trader to us today, and they made a purchase, we’ll pay you a percentage of that sale. And then if they purchased again in six months time, we would also pay you a percentage, as well. So it’s kind of like having a passive income stream. At this point, it seems like Funded Academy doesn’t have an affiliate program.
So that concludes our Funded Academy Alternative & Comparison. If you’ve got any other questions, please chat to us on Live Chat. Leave a comment below the video and make sure you subscribe on our telegram channel for more updates.
Funded Academy is a proprietary firm incorporated on the 29th of July, 2021. It is registered under the Corporations Act 2001 and is taken to be registered in New South Wales. The company is limited by shares. They have offices located in New South Wales, Australia while offering traders capital with decent profit splits. They are partnered with TradersWay, FxChoice, and Tc Bridge as their brokers which traders can choose from for their challenge accounts. However, for extended accounts, traders must use EightCap.
Traders at Funded Academy are encouraged to become successful traders. Funded Academy look for traders who are disciplined individuals who are able to properly manage risk and focus on long-term consistency. Aside from these main qualities, the company also values traders that shows hardwork, humility and passion in their craft.
Funded Academy is dedicated to spreading the values of quality and limitless trading globally. They provide their clients with the widest opportunities available in financial markets.
Their headquarters are located in New South Wales, Australia.
