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 5%ers alternative and comparison. That’s what we’re going to be covering in this video, so stick around.
Off the top, you’ll see, we’ve got the prop firm and the challenge type. We’ve got Traders with Edge Turtle account, Traders with Edge Hare account. The 5%ers Low Risk and the 5%ers Aggressive.
The account size, we’ve tried to match them up as best we can. Traders with Edge has a 25K and the 5ers has a 20K account. The maximum account size after scaling is $3 million for Traders with Edge, both accounts, and it’s $4 million for the 5ers, how the account scaling works is once you’re on a funded account with the prop firm and you’ve reached certain targets, they will continue to add funds to your account and allow your account to grow.
So you’re taking the same trades, but you’re obviously making more money because you’ve got a bigger account.
Do they have a rapid scaling plan? Yes. Both companies have a rapid scaling plan.
On Traders with Edge, if you go to challenges and scaling plans, you’ll come to a page that looks like this. We’ve got a description of an organic and a rapid scaling. We’ve got two types of scaling that you can choose from. We’ve got videos, examples, charts that will show examples of how much faster your capital will grow if you use a rapid scaling versus a traditional-type scaling.
You’ve even got a calculator down here that you can go and you can select your parameters and see just how much more money you would make using a rapid scaling than a traditional-type scaling plan. So back to the 5ers alternative. In comparison, you can see here, the number of phases. This is where Traders with Edge and the 5ers differ quite a lot. There’s one phase of the Traders with Edge Turtle, and two phases for the Hare.
So what this means is you trade on a demo account and once you’ve passed one phase on the Turtle, you go straight onto a funded account and you receive a profit share.
The Traders with Edge Hare, you’ve got two phases. Once you pass those two phases, then you go onto a funded account.
With the 5ers. You go straight onto a funded account from day one. However, pay attention to some of the other metrics. If we scroll down, you’ll see the price in US dollars. The 5ers actually charges in euros. So we’ve converted it to US dollars at the current rate. So it’s an approximation, it’s not exact.
The Traders with Edge Hare. You’ll see that it’s US $250 for the Turtle. 280 for the Hare. The 5ers low risk is around $412. The 5ers aggressive is around $797 at the time of shooting this video. If we continue to scroll down, you’ll see, “Is the fee refundable?” The fee is not refundable on the Traders with Edge Turtle, or either of the 5ers accounts.
The Traders with Edge Hare account is refundable and how it works is once you’ve passed both phases of the challenge, and then you’re on your funded account. When you are eligible for your first payout, we will refund that $280 back to you with your first payment. So it actually costs you nothing to do the challenge when you pass.
Target for phase one is 10% for the Traders with Edge Turtle and Hare, the target for phase one on the 5%ers Low Risk is 7%, and 5%ers Aggressive is 12%.
It’s worth noting at this point with the 5ers account. Once you pass phase one, they’ll increase your capital to 80,000 and you’ll continue from there.
The target for phase two is not applicable for the Turtle account because you would be on a funded account already. The Traders with Edge Hare account, your target is 5%. Once you hit 5%, then you go onto a funded account with the 5ers, your target for phase two, well, we’re calling it phase two, so after you’ve passed phase one, every other phase, you need to hit 10% to progress to the next level of funding.
The maximum drawdown is 5% of the Traders with Edge Turtle. It’s 10% for the Traders with Edge Hare,, it’s 0.3% for the 5ers Low Risk it’s 0.8% for the 5ers Aggressive.
So you’ve got quite a small drawdown available there on the 5ers. The daily drawdown is 2.5% for the Turtle. It’s 5% for the Hare, and with the 5ers it’s not applicable. You’ve just got that one maximum drawdown number there. The profit share, this means once you’re on a funded account, how much profit do you keep as the trader for any profits that you’ve made? So if you’ve made $10,000 on an account, Traders with Edge, you keep 80%.
So you’d keep $8,000 of that. With the 5ers you keep just 50%. The minimum trading days for phase one is 10 minimum trading days at Traders with Edge. And there’s no minimum trading days on the 5ers. Minimum trading days for phase two is only applicable on the Hare account, and there’s 10 minimum trading days.
The trading period for phase one. So you’ve got 365 days to pass the Turtle challenge. So you’ve got a full year there. You’ve got 30 days to pass the Hare challenge. You’ve got 180 days to pass the 5ers Low Risk, and you’ve got 60 days to pass the 5ers High Risk.
The trading period for phase two is only applicable again for the Traders with Edge Hare. And you’ve got 60 days to make that 5%. Can you hold over weekends? You cannot hold over weekends on any account except for the Traders with Edge Turtle account.
Can you use EAs? Yes, you can use EAs on all accounts. The only thing is with Traders with Edge, we say contact us to request approval for an EA before you use it. The reason for this is every prop firm has a rule that says you cannot trade exactly the same strategy as someone else who’s trading for that prop firm.
So you can’t copy someone else’s trades who is already trading at that prop firm. You can’t use the same EA on the prop firm, as someone else is using. I will make one clear distinction here, though. At Traders with Edge, you can absolutely use EAs to help you calculate your position size, place your stop loss and your profit targets and manage the trade. You can absolutely do that. And we actually recommend that you do do that to make your trading easier and more precise.
It’s just with the automated EA that will do the entries and exits and everything else for you that we say, “Need to seek approval.” By the way, what will happen with any other prop firm is if you trade with an EA that someone else is using, you will lose that account.
So they might say that you can use it upfront, but actually you’ll lose the account if someone else is using that same strategy.
Are you allowed to trade with signals? Yes. You can trade the signals on all accounts.
Are you allowed to trade news? Yes. You can trade news on all accounts.
Do you get a free retry? You don’t get a free retry on the Turtle account, because it doesn’t make any sense. You’ve got a full year to pass the challenge. So it doesn’t make sense that you get a free retry on that.
The Traders with Edge Hare and the 5ers Aggressive, both have a free retry. How this works is once you’ve reached the end of the trading period, but you haven’t reached the profit target. Your account’s still in profit and you haven’t violated any rules. Then you’ll get issued a free retry. With the 5ers Low Risk account. You can get an extension on your trading challenge account.
Can you trade Forex? Yes, to all accounts.
Can you trade digital currencies? Yes, you can on Traders with Edge. You cannot at the 5ers.
Can you trade commodities? Yes, you can trade commodities on all.
Can you trade indices? You can on Traders with Edge. You cannot at the 5ers.
Can you trade share and stock CFDs? Again, you can trade it with Traders with Edge, but you cannot with the 5ers.
Trading competitions, Traders with Edge has competitions, seems like 5ers do not.
How their competitions work is. You go and enter your trade on a demo account. You’ll be trading against a bunch of other traders online, you can invite your friends. And then at the end of the period, the top traders will win a challenge account, which they can then use to go on and get funded giveaways.
Do they have giveaways? Traders with Edge does have giveaways. It seems like the 5ers don’t at the time of recording this video.
Here’s an example of a giveaway that we ran recently, where you could enter your name and email address to go in the draw to win one of three $50,000 prop challenge accounts. You don’t have to trade or do anything. We just randomly select the winners. We may or may not have that giveaway running at the time that you see this video, but that’s an example of a giveaway that we have.
Do the prop firms have education? Yes, they both have education.
Do they have affiliate programs? Yes. Traders with Edge pays up to 20% for any referral that you send to Traders with Edge, you can sign up to the affiliate program. It costs nothing to join. You get a tracking link. Anyone that you refer to us, we will pay you up to 20% for that referral and for the lifetime of the client. So if you refer someone today and in three years time, they make a purchase. We will honor that and we will pay you a commission for referring that person to us.
The 5ers has a 10% affiliate program.
So that pretty much concludes our 5ers alternative and comparison. If you’ve got any questions, please talk to us on live chat at traderswithedge.com Join the telegram group. Post a comment below the video, and we look forward to seeing you as one of our next funded traders.
The 5%ers (The-Five-Percenters) is a Funded Trading Company and Growth Program.
Established by two professional forex traders, whose visions were to create an open career-building platform for forex traders.
Their mission remains to provide traders across the globe with a secure, fair, and honest trading framework, one that enables growth and prosperity with the highest standard of ethics.
They provide unique career enhancers for worldwide Forex traders, including a hyper growth plan to boost capital levels and earn profits.
