How to Get Funded At A Prop Firm and Succeed
In the TRADING LAB we go over the plan on how to Tryout for a prop firm and more importantly how to succeed at it.
There are a lot of prop firms out there that you can tryout for, by putting up a couple hundred dollars. They usually have pretty strict requirements such as stop loss levels, % risk per trade, profit targets, days/months to achieve the profit targets and other requirements.
First you need to know that about 4% of traders who tryout for prop trading succeed, or 96% fail.
If you aren’t consistently profitable already, then doing the tryout won’t do anything for you and you’ll just be giving your money away.
Before you consider trying out and joining a prop firm you need to have a system that you know the performance of. The Systems Mastery course is the tool we use to build our systems and to have our metrics so that we can apply them to the requirements of these prop firms.
For example, City Traders Imperium, their requirements are among the strictest of all of them. But they also will fund you up to (and likely well beyond if you perform) a $2 Million Dollar account.
But, your max loss is 4% (from any level). If your account has a drawdown from all time highs, that is 4%, you are disqualified. This is only in the trial phase, when funded you are only limited to 4% from the account balance, not highs.
The profit target is +12.5% so a 3:1 profit/loss ratio.
You have 30 trading days to achieve this, but a trading day is considered any day that you make any purchase. So if you have a strong swing trading system that catches a good trend and you only make a few buys it’ll take a long time to achieve the 30 day rule, even if you hit the profit targets.
There is also a limit to max risk exposure you can have, and it isn’t all that big. You can hold overnight/weekends and through any economic/news release event.
The requirements aren’t easy, to say the least.
If you risk 1% and had a bit of a drawdown, you can lose the account in 4 trades, and we know most traders don’t understand the MEGA edge that position sizing is.
If you are considering trying out for a prop firm I suggest you build a trading strategy and risk management that stays within the firms requirements. If you can't do that yet, reach out!
We’ve gotten numerous traders funded at City using the tactics from the Consistently Profitable Trader course, and the System Mastery Course. this framework we built is the secret weapon to getting funded and earning $50k a month trading millions of dollars.
Sign up for the free newsletter
I will send you proprietary research, strategies and insights that you won't find anywhere else, exclusive only to email subscribers.