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.
We’re on the Traders With Edge website and as you can see at the top, we’ve got the prop firm and the challenge type: Traders With Edge Turtle, the Traders With Edge Hare and The Prop Trading evaluation. The account size is $100K, so that we’re comparing them all on the same basis. The maximum account size after scaling means once you’ve passed a challenge account, if you are consistently profitable, the prop firm will continually add to your account to increase the amount that you can trade.
The maximum amount with Traders With Edge is $3 million. With The Prop Trading, it’s $1 million. The rapid scaling, is that available for both firms? It’s only available for Traders With Edge. It’s not available with The Prop Trading.
What does rapid scaling mean? Well, if you’re on our website, traderswithedge.com, and you go up to challenges, scaling plans, you’ll see a page that looks like this. It’s got both the scaling plans that we offer, and it gives a detailed description of them. There’s a video that explains the differences. There are some examples, there are some charts, and you can see just how much faster your account grows using the rapid scaling plan versus using the standard traditional type scaling. If you continue to scroll down, you’ll see there’s a calculator that we’ve made for you to be able to compare a standard scaling with a rapid scaling and how much that would equal for you.
So back to The Prop Trading comparison. If we scroll down, you’ll see the number of phases on the Turtle account is one phase, and both the Traders With Edge Hare and The Prop Trading evaluation account are two phase. The price in US dollars is $750 for the Turtle account. As it’s a one phase account, they’re typically a little bit more expensive. The Traders With Edge Hare is $590 and The Prop Trading evaluation’s $499. Just keep in mind that the maximum account size for Traders With Edge is $3 million versus The Prop Trading, which is only $1 million.
Is the fee refundable? It’s not refundable for the Turtle account, because it is a one phase account. It is refundable for both the Traders With Edge Hare and The Prop Trading evaluation account. Once you’ve passed your challenge, and then you’re eligible for your first payout, then you’ll receive your refund.
The target for phase one on the Traders With Edge accounts is 10%. On The Prop Trading evaluation, it’s 8%. The target for phase two on the Turtle account is not applicable because by this time, you would already be trading on a live account. The Traders With Edge Hare and The Prop Trading evaluation are both 5% for phase two.
The maximum drawdown for the Turtle account is 5% and it’s 10% for both the other accounts. The daily drawdown for the Turtle is 2.5% and it’s 5% for the Hare account and The Prop Trading account. The profit sHare across all of them is 80%, and the minimum trading days for Traders With Edge is 10 days. The minimum trading days for The Prop Trading is zero days. The minimum trading days for phase two is not applicable with the Turtle account, because you’d already be on a funded account. For the Hare account, it’s 10 minimum trading days. And for The Prop Trading, it’s zero. The maximum trading days, you’ve got one year to pass the challenge on the Turtle account, and you’ve got 30 days on both the Hare account and The Prop Trading account. The maximum trading days on phase two is not applicable for Turtle. And it’s 60 days on both the other accounts.
Can you hold over weekends? Yes, you can on the Turtle account and you can on The Prop Trading, but you can’t on the Traders With Edge Hare account. Can you use EAs? You can use EAs with both firms. Just check for approval with Traders With Edge first, before using the EA. This is because pretty much every firm has a rule that says that you can’t trade exactly the same strategy as other traders. And so what most firms won’t tell you is, if you go and you purchase an EA from somewhere and a bunch of other people are using that same strategy, well, you’ll lose your account, because too many people are using that same strategy. And it’s a big risk to the prop firm. They don’t necessarily always tell you that up front, but they will tell you once you lose your account because you’re using the same strategy with someone else. That’s why at Traders With Edge, we say you can use EAs, just get approval first, and then you can use them.
Both companies allow signals. Both companies allow news trading. You don’t get a free retry on the Turtle account because you’ve got one year to pass the challenge. So it doesn’t really make sense to offer a free retry on that. Both of the other accounts, you do receive a free retry. If you’re in profit when the time runs out and you haven’t violated any other rules, then you’ll get one free retry.
You can trade forex on all accounts. You can trade digital currencies. You can trade commodities on Traders With Edge, but you cannot with The Prop Trading. You can trade indices on all and you can trade share or stock CFDs with Traders With Edge, but you can’t with The Prop Trading.
Do they have trading competitions? Traders With Edge offers trading competitions where you can enter a competition and you trade a demo account against other people online. At the end of the period, typically 30 days, whoever wins, then they win a prop trading account. We do offer that, but The Prop Trading doesn’t offer that.
In terms of giveaways, both companies offer giveaways. An example of giveaways that Traders With Edge has run in the past is enter your name and email address to enter into the draw to win one of three $50,000 challenge accounts. Now that’s just an example of one of the giveaways that we’ve run in the past, and we’ll probably run at some point again in the future. Do the firms offer trader education? Yes. Both firms offer trader education.
Affiliate programs, Traders With Edge offers up to 20% commission for anyone you refer for the lifetime of the client. If you refer someone today and they make a purchase in two or three years, then you still get paid for that referral. So it’s kind of like having a passive income stream. The Prop Trading has an affiliate program. They don’t have any information about what the percentage is that they pay or how long they track the referral for.
So this concludes our The Prop Trading comparison and review. If you’ve got any other questions, then please post them in the comments below or view the website traderswithedge.com, and speak to us on live chat. And don’t forget to join our telegram group with other traders.
The Prop Trading is a prop firm based in Australia, offering services for traders around the world. They are offering trading accounts with access to forex, crypto and indices, with a mission to bring traders one step closer to their successful trading journey. Will Gomes, who is from the greater Brisbane area, is the acting managing director of the prop trading company.
With the mission to create an innovative, stimulating, safe and pressure free trading environment for traders, and to empower them to embrace opportunities with confidence, The Prop Trading aspire to become the partner of choice for traders around the globe. Not only that but they also aspire to create a collaborative, sincere, diverse and mutally beneficial relationship among their partners which is one of the reasons that the company still thrives despite the challenges that it faces.
The company believes that prop firms can be an absolutely great way for retail traders to reach that next level in their trading, from making small profits as a hobby, to managing large capital and trading for a living. Carrying that idea, they strive to be different and vows to make a huge impact on traders’ success. Like many of the firms in the industry right now, there is a 2 step process for their funding.
They are situated in Australia with their main headquarters located in Herston, QLD AU.
