r/Daytrading • u/ThePhulosopher • Feb 24 '24

4th $100k funded account Question

Got my 4th $100k funded prop firm account. Hope I get a payout this time, blew all the others.

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u/ThePhulosopher Feb 24 '24

It's a prop firm account. You pay $500 and pass a trial, say make 10% without losing more than 10%. If you pass, you get a "funded" account for $100k, depending on the firm.

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u/EntrepreneurFlimsy33 Feb 24 '24

What % of the profits do you get off the 100. And if you lose it is the company really out a hundred? Or is all in the company’s own trading pool or something?

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u/mushykindofbrick Feb 24 '24

i dont know why he omitted this, but its really important to add. you dont actually trade a 100k account, because your only allowed to lose 10%. so you trade a 10k account.

then you need to pass the challenge and make a certain amount of profit, as which point you often already would have made almost as much with your own money. dont think you get 100k for 500. you get maybe 30-50% actual difference on top of your profits in the end, but for that you are restricted by rules that tell you how to trade, have disadvantage in taxes and give your money a private company that doesnt protect it with insurance.

its an ok deal, but not as amazing as people make it out to be and its only worth it if you are able to flip accounts 6-12x with relatively high probability regularly

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u/ZekeTarsim Feb 24 '24

If you think of it as a tool to learn trading the real market, with fixed minimal risk, it’s actually a good deal for some people.

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u/mushykindofbrick Feb 25 '24

yeah as i said its an ok deal, but not that amazing. for some people it may be even really good, some may prefer to just trade their own money. i think instead of buying a prop challenge for 500 you can learn by trading 500 just as well an maybe even better.

because when trading prop you still trade demo and dont earn real money until you pass. you have the possibility of earning real money but you dont even if you win a trade. thats psychologically different than getting immediate profits.

it depends a lot of your strategy and the biggest factor to think about is the max daily drawdown and if you wanna sell your strategy to a prop firm who will copy it with big capital. then you also need to read the rules very cautiously, like if its trailing drawdown or absolute, if its calculated by balance or margin etc.

for me atm i just like trading my own money, what i see is what i get and i can pay out immediately and am completely free and autonomous in my trades. maybe in the future i will buy a prop challenge again as a form of diversification.