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 Trader alternative and comparison, that’s what we’ll be covering in this video.
So you’ll see up the top here, we have the prop firm and challenge type. We’re comparing the Traders With Edge Turtle, the Traders With Edge Hare account, the Funded Trader Standard account, and the Funded Trader Rapid account. You’ll see they’re all a 100k account. The max account size, after scaling, is $3 million on both the Traders With Edge accounts, and $1.5 million on the Funded Trader accounts. You’ll notice that the Traders With Edge accounts both have rapid scaling available. If you want to find out more about how the rapid scaling works, go up to the challenges, click on the scaling plans tab, and you’ll see a page like this, that shows both scaling plans we have available, the organic and the rapid scaling. It explains how they both work. There are some examples written out here. You can see graphs of the difference, of how much bigger the account can grow with the rapid scaling account. And then finally, down the bottom, you’ll see a calculator that you can use to calculate what your scaling would be, based on the type of scaling that you choose.
Back to the comparison. Number of phases. The Traders With Edge Turtle account is a one phase account and all the other accounts are a two phase. The price of the Turtle, you can see, is $750. The Traders With Edge Hare is $590, which is slightly more than the Funded Trader Standard. However, you need to consider that the account size after scaling is twice the account size, and you can get to a much larger account much faster with Traders With Edge. Is the fee refundable? On the Turtle account, it’s not a refundable fee, because it’s a one-step challenge. On all the other accounts, it is a refundable fee, once you pass your challenge account and you’re eligible for your first payout. The target for phase one on the Turtle, the Hare, and the Funded Trader Standard account are all 10%. And the target on the Rapid account is 8%. The target for phase two. There is no target for the Turtle, because it’s a one-step account, and by this stage, you would already be on a live funded account. The Traders With Edge Hare target is 5%, same with both the Funded Trader challenges.
The maximum drawdown is 5% for the Turtle, 10% for the Hare, 12% for the Funded Trader Standard account, and 8% for the Funded Trader Rapid account. The daily drawdown is 2.5% for the Turtle account, 5% for the Hare account, 6% for the Funded Trader Standard account, and 5% for the Funded Trader Rapid account. The profit share is 80% for all accounts. However, the Funded Trader may increase it up to 90%, after you’ve been trading with them for some time and you’re eligible for scaling.
All right, let’s keep going. Minimum trading days on phase one is 10 days for Traders With Edge, both accounts, it’s five days for the Funded Trader Standard account, and zero days for the Funded Trader Rapid account. The minimum trading days for phase two. There is no minimum trading days for the Turtle, because you’d already be on a funded account. Minimum 10 days, Traders With Edge Hare, five days for the Funded Trader Standard, and zero days for the Funded Trader Rapid.
The maximum time for phase one is 365 days for the Turtle, so you have a full year to pass that challenge. The Hare account is maximum of 30 days. And both the Funded Trader accounts are 35 days. The maximum days for phase two are not applicable for the Turtle, and maximum of 60 trading days for phase two for all other accounts. Can you hold over weekends? Yes, you can, on the Turtle account, you can’t on the Hare account, and you can on both the Funded Trader accounts.
Can you use EA’s? You can’t use EA’s with the Funded Trader at all. You can use EA’s with Traders With Edge. However, you need to seek approval first. The reason for this is, you can’t use the same EA that everyone else is using on your challenge account or you will lose that account. All prop firms that allow you to use EA’s have the same rule, that you can’t use exactly the same strategy as someone else who’s trading with them. So it’s better to seek approval, get the EA approved, and then you can use that with Traders With Edge.
Traders with edge allows signals, but the funded trader does not. On all accounts, you can trade news. You don’t get a free retry on Traders With Edge Turtle account, because you’ve got a year to pass the challenge, which is more than sufficient. But you do get a free retry on all the other accounts, if the maximum time is expired, you are in profit, and you haven’t violated any rules.
You can trade Forex on all accounts. You can trade digital currencies on all accounts. You can trade commodities. You can trade indices. You can trade share CFDs or stock CFDs only on Traders With Edge. You can’t trade those with the Funded Trader.
Both companies have trading competitions, where you can sign up and battle it out against people online to see who wins over a set period of time. The prizes are usually prop firm prop challenge accounts, or discounts, giveaways. Yes, both companies have giveaways. Traders With Edge currently has a giveaway, where we’re giving away three $50,000 prop challenge accounts. You don’t need to trade to be in the competition, you simply just enter your name and email address and you’re in the draw to win. This may or may not be available by the time you see this video, but we run all sorts of giveaways like this from time to time.
Trader education. Traders With Edge does have education available for traders. We want you to improve, we want you to succeed, and we want you to keep your funded trading accounts. The Funded Trader currently doesn’t have any education available. This may change in the future.
The affiliate program for both of them pays up to 20%. Traders With Edge pays 20% for the lifetime of the client. So if someone purchases today and then they purchase in a year’s time, you’re still getting paid a commission on that sale in a year’s time. So it’s kind of like a passive income stream, once you’ve referred someone.
That concludes The Funded Trader alternative and comparison. If you’ve got any questions, put it in the comments below or visit the website, traderswithedge.com, and speak to us on live chat.
The Funded Trader is a proprietary firm incorporated on the 12th of May, 2021. It has the same founders as The Forex League and VVS Academy and was started to provide their community with the service they wanted and to achieve their trading goals.
The founders of The Funded Trader set out to create the prop firm after trading and reviewing other available funding platforms and finding aspects that could be imporved to provide the trading community what it needs. They have created a firm which revolves around retail traders and offer opportunities and support to traders along their journey. The company believes that every retail trader deserves the opportunity to succeed in trading based on their performance and commitment.
The company is very passionate about trading education and exemplifying passion for the industry. Each team member brings experience from their field which allows the company to offer unique products and services to help each individual trader in their trading journey. They are partnered with Nash Markets and Purple Trading Seychelles as their brokers.
Their office is based in Texas, USA.
What is The Funded Trader
The Funded Trader is a popular prop trading firm that offers traders the opportunity to earn profits by providing them with a funded trading account. But what exactly is The Funded Trader and how does it work?
At its core, The Funded Trader is a program that allows traders to prove their skills and gain access to capital without the need for their own funds. The program starts with a challenge, where traders must demonstrate their ability to consistently make profitable trades while adhering to strict risk management guidelines. If successful, traders are given a funded trading account with capital provided by The Funded Trader.
One of the benefits of The Funded Trader program is that traders can keep a large portion of the profits they earn, with some traders able to earn as much as 80% of the profits they generate. Additionally, traders can use their own preferred trading strategies and tools to execute trades, including the use of Expert Advisors (EAs) and other automated trading systems.
The program offers several different account levels to suit traders of varying skill levels and risk tolerance, with account sizes ranging from $10,000 to $500,000. The company charges a fee for the challenge, with the cost varying depending on the account level chosen.
Overall, The Funded Trader offers traders an opportunity to earn profits without the need for their own capital, provided they can pass the initial challenge and adhere to the program’s risk management guidelines. It’s a popular alternative for traders who may not have the capital or resources to trade on their own or are looking for an additional source of trading funds.
Is The Funded Trader Legit?
The Funded Trader is a prop firm that allows traders to profit by completing trading challenges and receiving funded accounts. Before investing your time and money in a prop firm, as with any other, you should confirm its legitimacy.
The Funded Trader has a solid reputation in the trading community, and many traders have passed its challenges and received funded accounts. The company is also open about its process and fees, with detailed instructions on how to participate and what is required to pass the challenges. Furthermore, The Funded Trader has a strong online presence, as evidenced by positive feedback from traders who have used their services and also provide high quality customer service through email and live chat, adding another layer of credibility.
However, it is important to note that prop trading is a high-risk activity, and traders should always conduct thorough research before investing their time and money. Although The Funded Trader has a good reputation, there are no guarantees in trading, and traders should always exercise caution and risk management techniques to protect their investments. In conclusion, The Funded Trader appears to be a legitimate prop firm based on its reputation and online presence.
When investing in any trading activity, traders should always conduct their own research and exercise caution.
How much do funded traders make?
Funded traders are individuals who are provided with capital by proprietary trading firms to trade in the financial market. These traders use the firm’s capital to trade and earn a share of the profits they make. The amount of money that funded traders make can vary greatly and depends on several different factors, including their trading strategy, risk management, and the amount of capital they are provided with.
One of the most important factors that determine how much funded traders make is their trading strategy. Obviously, traders who have a strategy that is more profitable and more consistent are able to earn more from their payouts than other traders. Risk management is also crucial in determining a trader’s profitability. Funded traders who are able to manage risk well and limit their losses are more likely to generate consistent profits and make more money over time.
Another important factor that determines how much funded traders make is the amount of capital the firm provides. The more capital a trader is given, the more money they can potentially make. However, keep in mind that firms only offer capital to traders who are able to pass their evaluations by reaching a profit target and staying within their risk limits.
In conclusion, the amount of money that funded traders make can vary greatly and depends on several factors, including their trading strategy, risk management, and the amount of capital they are provided with. There is no one answer to the question, how much do funded traders make. It depends heavily on the type of strategy that you have and the capital that you are provided with.
