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 Trading Capital alternative and comparison. That’s what we’re going to be going through in this video compared to Traders With Edge. So up the top here we have the prop firm and the challenge type. We have Traders With Edge Turtle, Traders With Edge Hare account, and the Trading Capital only has one type of account at the time of recording this video. You’ll notice that we’ve got a $100K account across all. The maximum account size after scaling for both the Traders With Edge accounts, you’ve got up to $3 million with the Trading Capital, they fund you up to $1 million. Rapid scaling is available on both Traders With Edge accounts, but the Trading Capital don’t offer that.
The number of phases for the Turtle is a one-phase challenge. Traders With Edge Hare is a two-phase, same as Trading with Capital. The price in US dollars is $750 for the Turtle account Traders With Edge and $590 for the Hare. $649 for the Trading Capital. The trading fee is not refundable on the Turtle challenge account because it’s a one-phase account, it is refundable with both the Traders With Edge Hare account and the Trading Capital account. The target for phase 1 on the Turtle is 10%, same thing for the Hare and it’s 8% on the Trading Capital. Target for phase two, there is no phase 2 on the Turtle, so it’s not applicable. Once you pass the phase 1, then you’re on a funded account. With the Traders With Edge Hare account, the target for phase 2 is 5%, same with the Trading Capital.
Maximum draw down is 5% in Traders With Edge Turtle, 10% for the Hare and 12% for the Trading Capital. The daily drawdown for the Turtle is 2.5% and 5% for both the Traders With Edge Hare and the Trading Capital. The profit share is 80% for Traders With Edge and 85% with the Trading Capital. The minimum trading days for phase 1 is 10 for all accounts. The minimum trading days for phase 2 is 10 for both the Hare and the Trading Capital, but there’s obviously no minimum trading days for the Turtle because you’d be on a funded account by then.
The trading period for phase 1, you’ve got 365 days, so one full year to pass on the Turtle account. You’ve got 30 days on the trades with Edge Hare and 28 days on the Trading Capital. The trading period for phase 2 is not applicable for Turtle. On the trades with Edge Hare, you’ve got 60 days to complete it. On the Trading Capital. You’ve only got 28 days. You can hold over weekends on the Turtle account. You can’t hold over weekends on the Hare account, but you can hold the Trading Capital.
Use of EAs, you can with all of them. Traders With Edge, you just need to request approval before going ahead. This is so that you avoid violating the rule of trading the exact same strategy as someone else. Most prop firms won’t tell you this upfront, but if you violate the rule by using an EA that everyone else is using, then you’ll violate the rule and you’ll lose your challenge account. With the Trading Capital, you don’t have to ask for approval to start with, but if they find that you’re using an EA with someone else, then you’ll lose your account.
All accounts allow signals, all accounts allow news trading, free retry. You don’t get a free retry on the Traders With Edge Turtle account because you’ve got one year to complete it, so there’s no need for it. You do get a free retry if you can’t make the profit target within the allocated time, but you are in profit and you haven’t violated any rules on both the Traders With Edge Hare and the Trading Capital. You can trade FX on all. You can trade digital currencies on Traders With Edge, but you can’t trade digital currencies with the Trading Capital. You can trade commodities on all, you can trade indices on all, you can trade share and stock CFDs on all.
Trading competitions and giveaways. Traders With Edge has trading competitions where you can sign up, you can battle it out with other traders online, you trade for a period of time and whoever’s on the top of the leaderboard, then wins prizes, which are typically challenge accounts or discounts. The Trading Capital don’t have any such thing at this point in time. Also, trading giveaways, so currently Traders With Edge has a competition where we’re giving away three $50,000 prop challenge accounts. Depending on what time you see this video, it may or may not be running, but Traders With Edge does have giveaways. Trader education. Traders With Edge does have education for their traders. At this point in time, it seems like the Trading Capital don’t.
The affiliate program, so Traders With Edge has an affiliate program that pays up to 20% commission for anyone that you refer to Traders With Edge and it’s for the lifetime of the client. If you refer someone today and they make a purchase, then you earn a percentage of that purchase. If they buy again in one year’s time, then you also get that. So it’s a good passive income opportunity. The Trading Capital pays 10%.
The other thing to keep in mind with the Traders With Edge scaling plan that most other prop firms don’t have, while we will allow you to scale your account to $3 million. Once you’ve traded with us for at least two years, then what happens is we will take you to what we call phase five, which is the big league and we’ll introduce you to large institutions that will fund you with up to $30 million.
That concludes the Trading Capital alternative and comparison with Traders With Edge. If you’ve got any questions, put them below or visit the website traderswithedge.com and talk to us on live chat.
The Trading Capital was started in 2019 and is located in the heart of Square One and beside the beautiful Monroe towers in Mississauga, Ontario, Canada.
The firm began as private-only access for close friends, family and colleagues, operating through email and word-of-mouth. As they moved into 2021, they became open to the public and launched their website to give people the access to their platform
The company doesn’t do any fancy marketing or advertising which lead to their slow yet steady growth and development. They have a vision for their company to ensure that they will serve with passion while carrying the goal to help people achieve their dreams.
The pandemic situation also affected their operations. The company’s physical offices are not in use anymore. They are however, still in service and still in pursuit to serve traders around the Globe. The company believes that they will endure and grow amidst troubling times.
The Trading Capital also warns its traders to be more disciplined in trading. They keep telling traders that trading in financial markets is a high risk activity and it is advised not to risk more than one afford to lose. Nevertheless, The Trading Capital does not provide investment services and operates entirely under demo accounts at all times for all users.
