Detailed Guide On The Funded Trader Competition

Navigating the world of prop firm challenges can be daunting, especially when trying to prove your trading skills. The funded trader competition is a game-changer, offering a chance to show what you can do and earn a funded account. This article dives into how to trade efficiently with a funded account and make the most of these challenges.

AquaFunded’s funded trading program makes the process easier. It's designed to help you reach your goals without the hassle.

What is The Funded Trader?

The Funded Trader is a proprietary trading firm that offers traders opportunities to access capital without risking their funds. Incorporated as The Funded Trader LLC on May 12, 2021, and located in Liberty Hill, Texas, the firm is managed by CEO Angelo Ciaramello. They provide various account options to suit different trading styles. With partnerships with Voyage Markets and Thaurus LTD, they ensure robust broker support. Their offerings include six account types and multiple evaluation processes, allowing traders to select what fits them best.

Account Options and Evaluations

The Funded Trader offers six account types, including three two-step evaluations, two one-step evaluations, and a three-step evaluation. One standout is the new Knight Challenge, a one-step evaluation with a 3% max daily drawdown, 6% overall max drawdown, and a 10% profit target. These evaluations allow traders to demonstrate their skills and earn a funded account. Whether you prefer a more straightforward challenge or something more complex, they have options that cater to various preferences.

Profit Splits and Payouts

Traders can expect profit splits ranging from 80% to 90%, offering a generous share of the profits for successful trading. Those with Rapid accounts enjoy the advantage of payouts every two weeks, providing quick access to their earnings. The firm prioritizes rewarding traders for their performance and ensuring timely compensation.

Leverage and Drawdown Limits

The Funded Trader provides leverage up to 200:1, allowing traders to amplify their gains. However, they also enforce strict drawdown limits to protect against excessive losses. Traders face a 5% max daily and 10% overall drawdown, encouraging disciplined risk management. These measures ensure that while traders have the opportunity to profit, they also have built-in safeguards.

Trading Instruments and Markets

Traders can access 44 forex pairs, gold, silver, and nine indices. This extensive selection allows for diversified strategies and the ability to capitalize on various market conditions. Whether you’re a forex enthusiast or prefer trading commodities, their offerings cater to multiple preferences.

Trading Days and Profit Targets

With no minimum trading days for Rapid accounts and only three for Standard accounts, traders have flexibility. They can focus on achieving their targets without time constraints. The profit targets vary, with 8% for phase one of Royal and Rapid accounts, 5% for phase two, and 10% for phase one of the Standard and Knight Challenge. These targets are designed to challenge traders while remaining attainable.

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Key Features of The Funded Trader Competition

Unique Pathways: The Funded Trader Challenges

The Funded Trader offers six distinct challenges designed to test your trading mettle. These challenges provide a chance to manage account sizes from $5,000 to $200,000 with varying leverage and evaluation requirements. Here’s a breakdown.

Standard Challenge: For the Risk-Aware Trader

The Standard Challenge assesses your ability to handle risk and achieve profitability. You can trade with leverage up to 1:200 in the two evaluation phases, which then reduces to 1:100 once funded. Aim for a 10% profit in phase one without exceeding a 5% daily or 10% overall loss. You can trade as long as needed but must meet at least three trading days to move on. Phase two lowers the profit target to 5% with the same loss restrictions. Again, trade as many days as necessary, but hit at least three active days. After passing both phases, enjoy withdrawals every two weeks and an 80–90% profit share.

Rapid Challenge: Swift and Simple

For this challenge, you’ll need to manage risk efficiently with leverage up to 1:100. The first evaluation phase has an 8% profit target with a 5% daily loss cap and an 8% overall loss limit. There are no day restrictions; just hit that target. Phase two lowers the profit target to 5% but keeps the same loss rules. Once you clear both stages, you can start making withdrawals after 14 days. Your profit split ranges from 80% to 90%.

Royal Challenge: The Strategic Approach

With the Royal Challenge, you’ll use leverage up to 1:50 to meet your goals. The first phase targets an 8% profit, and you must trade for at least five days. The loss limits are 5% daily and 10% overall. Phase two requires a 5% profit target with the same loss rules and a five-day minimum. Once funded, you can make bi-weekly withdrawals, starting 30 days after your first trade. The profit share ranges from 75% to 90%.

Knight Pro Challenge: One Step to Glory

This single-phase challenge offers leverage up to 1:30 for seasoned traders. You need to make a 10% profit without exceeding a 5% daily loss or an 8% trailing loss. Trade as long as you want, but maintain at least three profitable days. Once you succeed, you can withdraw profits on demand, with a split of 80% to 95%.

Knight Challenge: Precision Required

The Knight Challenge demands precision, with a 10% profit target and stricter loss limits of 3% daily and 6% trailing. Leverage is up to 1:30. There are no day restrictions—just hit your target. Afterward, you can withdraw weekly, starting seven days from your first trade. Profit sharing ranges from 80% to 90%.

Dragon Challenge: Three Steps to Triumph

This challenge tests your endurance with three evaluation phases and leverage up to 1:100. Each phase has specific targets: 8% for phase one and 5% for phases two and three. The loss limits remain constant at 5% daily and 10% overall. Once you complete all stages, you can start weekly withdrawals and enjoy a profit split of 75% to 95%. Plus, you can scale your drawdown limits as you progress.

Looking for a funded trading program that offers more flexibility and competitive features? AquaFunded, based in Dubai, provides traders access to significant capital accounts and profit splits up to 95%. AquaFunded is a standout choice in the prop trading market with easy-to-achieve profit targets and quick payouts. Start into AquaFunded's funded trading program today!

The Funded Trader Competition Vs. AquaFunded Trading Challenge

The Funded Trader Challenge: A Closer Look at Structure

The Funded Trader and AquaFunded each offer unique trading challenges designed to test your skills and consistency. The Funded Trader typically follows a two-step process. You must first meet profit targets in the initial phase, then repeat the feat in the second phase while adhering to strict trading parameters. AquaFunded, on the other hand, offers multiple challenge types — one-step, two-step, two-step pro, and three-step — catering to different trading styles and risk appetites. Their account sizes range from $25K to $200K, giving traders more flexibility.

Profit Targets and Loss Limits: What to Expect

When it comes to profit targets and loss limits, both platforms maintain relatively similar standards. The Funded Trader’s targets are moderate, often 8-10% per phase, with daily and maximum loss limits around 5% and 10%, respectively. AquaFunded sets similar profit targets, with the one-step challenge typically having slightly higher targets of around 10-12%. However, they also impose tighter risk restrictions, with a 6-8% drawdown limit, and offer leverage up to 1:100.

Payouts and Scaling Programs: Growing Your Account

Both platforms offer competitive payout structures and scaling programs. The Funded Trader usually provides a fixed payout percentage of around 75-85% of profits, with options to increase based on consistent performance. Their scaling plans allow you to increase your account size, gradually rewarding long-term success. AquaFunded, however, offers up to 95% for top-performing traders. Their scaling model also provides gradual increases in account size, though it may require meeting additional performance targets over specific timeframes.

Fees and Refund Policies: What You Need to Know

Both platforms charge an upfront fee for their challenges, which is refunded once you complete the challenge successfully. The Funded Trader’s fees vary by account size, while AquaFunded’s are typically more competitive, especially for single-step challenges. They may also offer refunds contingent on passing the challenge or reaching certain milestones.

Pros and Cons of The Funded Trader

The Perks of Joining a Funded Trader Community

Having a solid support system can be invaluable in trading. A top-notch community, like The Funded Trader's Discord with 85,000+ members, fosters learning and collaboration. Traders share insights, strategies, and tips, building a collective knowledge pool. This environment bolsters confidence and keeps traders engaged, providing an edge in the competitive trading world.

The Cost of Cutting Costs

Competitive pricing is a double-edged sword. While lower prices can attract more participants, they may also signal instability. The Funded Trader's frequent discounts undercut rivals like FTMO but were unsustainable. A focus on low costs can compromise quality and lead to financial trouble. Traders should be cautious when a firm prioritizes price over stability.

Flexibility in Trading Rules: A Double-Edged Sword

Looser trading rules can be appealing to traders seeking flexibility. The Funded Trader only banned a few strategies, allowing for creativity and diversity. However, lax rules can also encourage reckless behavior, such as gambling. A balance between freedom and discipline is crucial for long-term success. Traders should assess whether a firm's rules align with their values and goals.

Fast Tracking Success: Eliminating Minimum Trading Days

Removing minimum trading days can be a boon for skilled traders eager to showcase their abilities. This approach rewards proficiency and speed, offering a faster path to success. However, it can encourage risky behavior, as traders may rush to meet targets. A responsible firm will balance speed with stability, ensuring traders have the support they need to succeed.

Regulatory Risks: A Looming Threat

Regulatory scrutiny is a significant concern for traders, especially after the CFTC's actions against My Forex Funds. The Funded Trader's US-based operations and similar business model make it a potential target. Traders should know these risks and consider how they might impact their accounts and earnings. A firm with a strong compliance framework is more likely to weather regulatory storms.

The Reality of Demo Accounts: Profits Without Market Exposure

Funded accounts that remain in demo mode can be a red flag. While traders receive real profits, they never interact with live markets. This arrangement can limit growth and development, as traders miss out on valuable experience. A firm that offers live accounts provides a more authentic trading experience and can help traders build the skills they need for long-term success.

The Payout Problem: A Matter of Trust

Payout issues can damage trust and credibility. The Funded Trader's troubles with Deel as a payout provider led to delays and uncertainty for traders. A reliable payout system is essential for maintaining confidence and ensuring smooth operations. Traders should prioritize firms with a proven track record of timely and accurate payouts.

Changing Drawdowns: A Sign of Instability

Frequent changes to drawdown limits can indicate a lack of stability. The Funded Trader's adjustments to max daily and overall drawdowns suggest financial strain. This uncertainty can harm traders, who rely on consistent rules to plan and execute strategies. A firm with a stable drawdown policy is more likely to support traders' success.

Size Matters: The Risks of Rapid Growth

Rapid growth can strain resources and lead to mismanagement. The Funded Trader's $700 million in simulated funding accounts is a testament to its popularity and cause for concern. A firm that expands too quickly may need help maintaining quality and support. Traders should be wary of firms that prioritize growth over stability.

4 Tips To Pass The Funded Trader Competition

1. Start with AquaFunded

AquaFunded is a prop trading firm based in Dubai. It allows traders to trade with large capital accounts and earn up to 95% of the profits. AquaFunded has designed a unique funding model with an achievable 8% profit target and rapid bi-weekly payouts. You can even get your first payout within seven days. With a focus on new and seasoned traders, AquaFunded provides a platform for those who prefer using the firm's capital to minimize personal risk. Its UAE-based operations and competitive terms make it a trusted choice for traders eager to scale their profits. AquaFunded doesn't just aim to fit into the crowded prop trading market; it strives to stand out and offer a reliable platform for success. If you're ready to take on the market with reduced risk, AquaFunded is the place to start.

2. Choose Your Market Wisely

The path to becoming a funded trader begins with picking a market. Most prop firms offer funded trader programs in one market, so deciding which market you want to trade is crucial. You should already have a proven trading strategy in the market in which you aim to get funded. Too many traders try to develop their plans during the challenge, which is a recipe for disaster. Think of it as trying to learn brain surgery while operating on a live patient for the first time. That will never end well. So, ensure you have a proven strategy before considering a challenge. If you’re still developing your plan, start with backtesting. If you’re profitable in multiple markets, carefully evaluate which one you want to focus on—for now. Also, consider where you have the best results. Are you a better Forex trader, or do you excel in Futures? Jumping between markets and challenges will only dilute your focus. Pick one market and stick with it.

3.  Vet the Prop Firm and Its Founders

Do some research on the company and its founders. Find out how they get their funding, how long they've been around, and what traders say about them. Watch YouTube interviews and read blog posts. You want to ensure the company is reputable and will likely be in business for long. If the company goes out of business, you're out of business, too.

4. Practice Before You Pay

Now that you've selected a funded trader program, it’s time to pass the challenge before you begin. Yes, you heard that right. Once you know the criteria for passing your chosen challenge, practice passing it in a demo account or trading simulator before paying for the challenge. Only after you’ve successfully passed the challenge several times should you pay to take it. This approach increases your chances of success and boosts your confidence in taking trades.

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Join Our Funded Trading Program Today - Trade with our Capital and Keep 90% of the Profit.

AquaFunded is setting a new standard in the world of funded trading programs. Operating out of Dubai, this firm allows traders to access large capital accounts with up to 95% profit splits. What makes AquaFunded stand out? It’s all about simplicity and speed. With profit targets as low as 8% and bi-weekly payouts, traders can even get their first payout in 7 days. This isn’t just for seasoned pros. AquaFunded caters to traders of all experience levels who want to trade with reduced risk using the firm's capital. If you're looking to scale your profits with a reliable platform, AquaFunded might be worth exploring.

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