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Funded Trading Questions

We get asked questions about our funded trading service every day. If you don’t find an answer to your personal question in our Frequently Answered Questions or you’d like some more in-depth understanding of how we work, then you may find this page useful. This is where we copy some of the more interesting questions and answers. Our intention is to update this page frequently.

Scroll through comments below for these Q and As.

You can find our Frequently Asked Questions here.

You are welcome to use a comment to ask us for further detail on any funded trading issue. Alternatively, you can email us via our contact form here.

Hi James, hope you are well. I may be interested in your funding option, you say there is a beta version coming out soon. I understand well that there is never the perfect prop firm as the majority set rules for people to fail. Will you be changing your 1:2 RR as this is not always possible ( not sure why you would penalise a winning trade under this amount ) especially if you are a scalper. Also the % win rate that has to be met. My win rate is between 40 and 65% depending on market conditions. I do know very profitable traders with a win rate of 15%. So I do find these rules a bit odd to be honest.

If a prop firm was to open with, 75% profit split, 60 days to hit a 10% target, 2 retakes if in profit but target is not hit, 12% DD , EAs allowed, trading over the news allowed, holding over the weekend allowed, competitive pricing and up to 500,000 funding. This would then be the best offering.

Best regards.

Name withheld.

 

Thanks for the email and your interest in our funded trading offer.

The program we are introducing is different from all the other firms out there. There are of course many different combinations of win rate v risk reward that can create a decent profit for a trader and our funded traders will have the freedom to trade in a way that suits them. Getting to be a funded trader is however a fixed route. And this is due to how our back office works.

The reality is that most (if not all) of the competitors don’t really want successful traders. They just want traders that can pass the test and do a quick youtube video to say “look aren’t I great, I got funded”. You’ll find lots of these. But what you won’t find is any youtube videos of funded traders that have consistently been paid a wage from trading a funded account year after year.

Our model wants and requires successful traders who can trade our money for years. Proof that we actually want good traders is that we will give a funded trader a $20k starting cash bonus that’s not dependent on any future trades – nobody else does anything even close to that. And that’s because they make their money from the fee rather than the trading. We however use our trading pot and the individual talented trader task trades to help generate funds from which we can give the bonus and also open a funded account.

Our fixed task reduces the chance of small series of random “luck” trades hitting the profit target of the funding task. Pass our test and you are unquestionably a talented trader and not somebody who happened to get a series of winners in a random sample of trades taken on their 4th or 5th funded trading task.

We accept that your personal trading to date might not suit a 1:2 risk reward style of trading, however I’m pretty sure that if during your normal trading you start to look to identify 1:2 potential trades, this will probably help you in your standard trading and may contribute to making you more profitable. In the Trade Room Plus live trade room I’ve been moving towards taking more 1:2 trades and my personal profitability so far is good.

 

Dear Michael

I am working on trading strategies to accommodate the rules of the funded trading tests.
I am having difficulty determining what is meant by 25 pips or points minimum stop size in this context.
Can you clarify with regard to the following examples which are most relevant to my trading, please?

DAX is usually quoted to 2 decimal places. Can I assume that 25 pips means 0.25 points on an index value of 15,000?
My expectation was that you meant 25.00 points, but this poses a challenge for me on intraday trading. For example, using Fibonacci levels for stops and targets this week I had a short entry at 38% retracement of a down move from the open with a stop just above the 50% retracement, and a minimum target as a test of the low at the 0%.

The initial move down was approximately 100 pts, which makes the numbers easy. I went short at the 38% for a minimum of 38 points, with a stop just over 12 pts, actually around 14 pts. On a 1:2 risk/reward under your rules this would give me a target of 24 to 28 pts according to where I placed the stop, well within the 38 pts targeted for minimum profit on the trade.

Now if your minimum stop is 25 pts I would have to make a profit of 50 pts, which makes the trade less probable, and I would be less likely to take it as part of a funded trading test. Hence my request for clarification.

(As a matter of interest the trade did not reach the target, it went just 20 pts most of which I took).

Similarly, for the SPX, do you have a full 25 pts in mind? This would make it untradeable. Perhaps you mean 2.5 pts, which is about the minimum I would use ordinarily.

On the DOW, I assume it’s the full 25 pts? I rarely trade the DOW, preferring the SPX.

That leaves my last query, the EUR/USD. The norm here would be to count a pip as 0.0001 against the quoted price, e.g. if I was to short the EUR/USD at 1.1263, my stop would be at least 25 pips away at 1.1288. I trust this is correct?

With this information I can start work on one of my demo accounts to get used to implementing the trading rules.

Many thanks

Name withheld

 

Hi, we’re getting this confirmed this week as part of the next week is adding the indices to the system.

I would speculate that the SPX will be 0.1 and the DJIA and DAX will be 1.

So SPX is at 4000, minimum stop is 3997.5.

DJIA is at 30,000, minimum stop is 29,975.

DAX is at 14,000, minimum stop is 13,975.

Not sure on the FTSE, but I’d expect it smaller than 1. Not sure ont he NASDAQ.

I’ll confirm as soon as I know.

Simon.

Hi. I’m a U.S. day trader, completing an Evaluation with LeeLoo Trading; but am investigating alternatives. I have a fully custom, multi-threaded custom Order Entry and Analytics platform hosted within NinjaTrader 8, and requiring a full Rithmic Level 2 (unaggregated) Market data feed, with trading into MNQ or NQ futures. LeeLoo can provide this environment. I use high performance, technicals driven scalping, employing many dozens of individual trades to achieve a “macro trade outcome” and with partial profit-taking during the macro trade progress. This allows me to trade/scalp in any market conditions; with a high expectation of a positive daily cumulative equity. This code has been about 12 months in development; and is near to its final form, etc. I have not confirmed with LeeLoo that their “performance accounts” will be able to handle the volume and speed of my order entries; and I think the only practical way to do it, is to have a fully LIVE account; since trade copying is unlikely to be accurate.
Do you offer access to CME futures and Rithmic full Level 2 Market Data through NinjaTrader 8? THANKS FOR THE INFO.

Thank you for your message and interest in our Funded Trading.
 
Good luck with your trading system, it will however not be compatible with our system for finding talented traders. If you were able to pass our initial program then we would be able to set you up with the access you’d require once you become a funded trader with us.
 
Regards
 
Michael
 

 

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10 Responses

  1. Personally I feel there shouldn’t be a minimum stop size. A 1:2 win is a 1:2 win.

    What’s the reason for a minimum stop size ?

    Cheers

    1. The minimum stop size is there to account for broker slippage and trade fills and consequently will be as small as our system will allow. Minimum stop sizes are being assessed right now and we will have a more definitive list shortly and will depend on market type. I expect you won’t have a problem with them.

  2. Hi, we’re getting this confirmed this week as part of the next week is adding the indices to the system.
    I would speculate that the SPX will be 0.1 and the DJIA and DAX will be 1.
    So SPX is at 4000, minimum stop is 3997.5.
    Simon

    Hi, Quoting from above by Simon. This minimum stop of 2.5 points on ES is more like it. Who ever trades the one ES contract with a 25 point ($1250) stop looking for a 50 point ($2500) target? Your program looks interesting but no mention of commissions/fees. I use hotkeys on a gaming keyboard to place all orders into NT8. After passing your qualification using your portal can the account be set up to trade directly thru NT8?

    What is the minimum stop on ES?

    Thanks
    Stewart

    1. We’ll shortly have a full list of the stop sizes required and we are actively looking at making ES significantly smaller.

    2. There are no commission or fees for trading charged. We are not like the other funded trading models. You’ll be able to carry on using NT8 but you’ll need to manually enter your trades on our portal. Our test traders have not found this to be a problem. Yes, we ask you to make a change to your trading, but we will be rewarding you with real cash.

    3. There are no commission or fees for trading charged. We are not like the other funded trading models. You’ll be able to carry on using NT8 but you’ll need to manually enter your trades on our portal. Our test traders have not found this to be a problem. Yes, we ask you to make a change to your trading, but we will be rewarding you with real cash.

  3. Michael If I had a strategy on nq which risk 10 ticks and got 20 ticks would you allow a trader to use this as a 1 to 2 risk to reward just curious. Thanks

    1. We’ll have a definite answer to this as soon as our liquidity provider is connected. This is currently being done and should be ready soon.

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