I passed a $200,000 Funding challenge and a $50,000 funding challenge in a single trade - here’s how!
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That is correct, I just personally only care about the drawdown I have to work with.
Their step 1 is competitive vs the competition, their step 2 is way out of line vs the competition.
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Step 2 is the same, but for me, I cannot pass due to my drawdowns, and I also like to be able to trade freely without restrictions 
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I understand… In my personal accounts (offshore & AMP) I normally trade with 30% max drawdowns. That being said, other than the worse tax treatment (ordinary income tax vs 60/40 cap gains tax), I actually prefer trading with prop firms vs. trading my own capital.
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What are the underlying groups/services that runs the CedarFX collection of brokers and the ProsperityFX collection of brokers?
Different companies may use the same service, such as a prime broker.
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-Yeah, you cannot do that. The account could be 100 Million, but it is the draw-down that matters. Draw-down versus profit target is what you have to look at. As such, most challenges require flipping an account or more in order to pass, so you have to be prepared for that.
Regarding broker funding, all of the offerings that I have looked at are bad, comparatively speaking. I would not bother with them.
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who will you consider to have the best broker challenge?
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They look the same as FTMO challenge if not better, you sure you guys got it right, take a look
FTMO Challenge
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Careful with prop firms that have various consistency rules. Could easily get denied for funding.
From ProsperityFX
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I may be repeating what has been posted…the actual size of the account is irrelevant, if I give you a million dollar account with max DD of 1% or a 100K account with max loss of 10%, it’s still 10K max loss. All of your risk will be based on max loss of 10K. If you normally risk 2% per trade in a personal account, that 2% will be based on the 10K, not the 100K. If you normally risk 5%, if you base it on the 100K and not the max loss, 1 loss and you would lose 5K and violate daily DD in 1 trade. In a personal account, you can lose 100% if you want to, it is your account. So you trade the max loss as if it was 100% of a personal account and ignore the actual “balance” in the prop account.
So if a firm is asking for 10% stage 1 and 5% stage 2 with 10% max loss, they are asking for 100% and 50% , some firms are 8% and 5% targets. MFF is the best offer asking for 8% with 12% DD (67%) in 30 days and then 5% with 12% (43%) in 60 days.
You mentioned your DD being too large to pass, once again if you factor DD against the max loss of the firm you simply adjust your position size…YOU CAN LOSE 100% of the max loss they allow. Anyone can pass, just need to adjust size to fit YOUR strat.
So, these offshore broker offerings are asking for 10% with 10% loss in both stages, literally 100% and 100% both in 30 days and they are more expensive than the other firms I use.
Last but not least, what do you have once you pass…you have max allowable loss * profit split. Divide that number by the fee you paid to get your true value. Example, if you pass a 200K MFF challenge, you get $24K in DD * 75-85% split, so 18,000-20,400. You paid $979, which is also refunded with your first split. You do not really have a 200K account, you have 18-20.4 K, but once again you paid $979 and it is refunded.
Right now, MFF and FTMO are by far 1 and 2, TrueForexFunds, E8 and TheFundedTrader round out the top 5. All things considered…value, trading conditions, having their own feed, verified payouts. Here is a visual to show the value, but once again the other factors I just mentioned are extremely important.
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Here is other things considered…payouts, server, reviews. Combine this with the value table and it will become clear which firms to use.
Hope all of this helps. I have been using props for right about 2 years now. You can PM me if I can be of any assistance. You have been a great help in this thread and that’s what it’s all about…helping each other.
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I get where you coming from, but i will use that 100k account size as my 2% risk.
For example lets say they give me 100k account size, now this is base on how i trade and my example.
I’m trading eur/usd, i always use 100 pip stop loss on my Position Size Calculator, although i have no set stop loss
so my 2% risk on a 100 pips stop loss on a 100k account, the Position Size will be 2 standard lots, giving me 500 pips loss to fail the challenge at a 10k loss.
any way my unique way of trading is one of my edge so i won’t talk to much on this subject
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Also want to mention, I take no credit for the sheets…all credit goes to a user on Forex Factory.
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Got it. My point is, if you adjust the risk to be based on allowable loss, at 2% per trade, you would need 50 losers in a row to fail a challenge. To be able to secure a 200K account, which is really a 20K account as discussed above for a fee of $979 gives you a 20 X better return on your trades than you are currently getting. When you max out across multiple firms, you can literally have upwards of 2.5 million, which is equivalent of trading a 250K personal account. Not for everyone, obviously, but for folks that know what they are doing (such as yourself), you truly can make a lot more money for the same effort and the big plus is none of your own money is at risk. No worries about broker disappearing, black swan event, etc.
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Some of the guys passing these challenges with one trade or very quickly have my kind of mindset, but my drawdown will fail any challenge since some of my trades go past the NY 5pm close time, we all have our own unique edge. In addition, I only trade exotic pairs now, and man, it’s not for the faint of hearts.
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Terrible Rules , Is why i like trading my own account without restrictions
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20 years ago I read a book about a star trader who was making 12 million per month as a trader for a company. When he saw the amount they paid him on that 12 million, 600k, he decided to start trading his own money. However, he got traders block and never made one trade for his own account; he was never comfortable trading his own money.
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-None of the broker funding options that I have looked at would be a consideration for me. I have only looked at 4, though, as some of them seem to be brand new. There may be better offerings now, but I doubt it.
-They are not the same when you look at the fine print. Most of the broker funding offerings have some kind of review team in place or special consistency rules that may or may not be clearly defined, that get applied regardless of whether or not you pass the challenge.
I stay away from any offer like that because they can deny you an account for any arbitrary reasoning, even if you pass the challenge. You may get your money back, but you won’t get your time back and any emotional stress that you may have endured during the process cannot be reversed.
That being said, there may be prop firm offers that may be more in line with your risk appetite, but you will have to weigh the pros/cons yourself to see if they might be a good fit.
Hope that helps.
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