What are the rules for funded traders (Funded SIM and Funded LIVE)? (2024)

FAQs

What are the rules for funded traders (Funded SIM and Funded LIVE)? ›

The 40% Rule

Because of this, it is the policy of ETF that at the time of any withdrawal request from an Elite Sim-Funded account, your best profitable day cannot exceed forty (40) percent of the total profit, including withdrawals.

The 40% Rule

Because of this, it is the policy of ETF that at the time of any withdrawal request from an Elite Sim-Funded account, your best profitable day cannot exceed forty (40) percent of the total profit, including withdrawals.

Members of The Funded Trader are able to have a maximum of simulated Funds $1.2M in active challenge accounts and a maximum of $600k in active simulated funding accounts. For clarification, these maximum limits mean that you are only able to trade up to $600k in active simulated funded accounts at any given time.

Once traders have been granted a funded account, the profits they generate from their trades are divided between themselves and the firm backing their account. The profit-sharing percentage typically falls within the range of 75% to 90%, with the remaining percentage allocated to the firm that funded the account.

A Simulated Funded Account is any account in which a trader may be entitled to remuneration payable as a percentage of the simulated profit generated in their account based on the payout associated with the demo account, subject to our Terms of Use and Customer Agreement (Note: A payout means you are paid based on data ...

What is the payout structure? To be eligible for a payout cycle in an Elite Sim-Funded account, all three criteria must be completed: safety net (max drawdown + $100), active trading days, and 40% consistency. Once eligible, you may request a payout and your trading activity will be audited.

Just keep in mind that our maximum capital allocation on FTMO Accounts is $400,000 per trader/strategy. If you are successful and consistent in the long run, your FTMO Account balance can be increased according to our Scaling Plan.

The rules for the funded trader are the same rules as the evaluation. Rule 1: Do not hit or exceed the maximum trailing drawdown. This is the maximum amount you can lose (and as on the evaluation, the limit is calculated End-of-Day). Rule 2: Close all positions 10 minutes before the close of the CME Globex trading day.

Funded traders are only required to report the amount they have received as payouts. For example, if you earn $5,000 in your funded account but only request a $1,000 payout, you will have to report $1,000 worth of income.

The max daily drawdown amount is always fixed to 5% of the initial balance unless you purchased the simulated Drawdown add-on, which grants you a 6% simulated max daily drawdown. Please note the max daily drawdown includes commissions and simulated swap fees.

How long do you have to withdraw from funded trader? ›

In the Standard and Royal Challenges, first-time withdrawals can only be requested 30 days after the first trade has been placed. For the Rapid Challenge, requests can be made 14 days after the first trade.

Summary. You usually will not owe anything if you lose a prop firm's funds. When you trade with a prop firm, you are risking the fee you pay to attempt the challenge or open the account, while the firm risks the capital they have provided you to trade.

For instance, if you have a funded trading account, you do not have to worry about the stress of getting a license. You can simply use the firm's license to trade, provided you comply with their regulatory requirements.

No funded trader accounts are not real accounts. They are demo accounts where you are not trading on legit markets. You are trading on fake prices that closely mirror the underlying market. Some even let you trade when the real stock markets are closed, on synthetic indices, which are completely made up.

For a withdrawal of the entire accounts profits: Depending on your account's lifespan - Under 45 calendar days: You receive 20% of net reserves when closing the account. 46 to 90 calendar days: You receive 50% of net reserves when closing the account. 90+ days: You receive 90% of net reserves when closing the account.

Improved Trading Skills

Funded trading programs have strict risk parameters and position-sizing rules. This can help you develop disciplined trading habits, manage risk aggressively, and avoid emotions in your trades. All in all, it can be an excellent learning opportunity for you.

Elite Trader Funding covers all fees on payouts. Elite Trader Funding reserves the right to payout funds from the account to the trader at any time and under special circ*mstances. Traders will receive 100% of their first $12,500 earned and then 90% of any amount after that; this applies to the user, not per account.

Daily loss limit. Funded accounts also have end of day drawdown. Requires a minimum of 5 trading days.

If you discover that 80% of your outcomes, profits or losses, were generated by 20% of your trades (or something close to it), then you've just seen, with your own eyes, the Pareto Principle at work. The Pareto Principle is all about “uneven distribution” of outcomes to causes.

Users utilizing our simulated-funded platform are limited to a total number of three (3) Accounts at any given time, with very few exceptions being granted on a case-by-case basis.