Are you looking to pass a funded trading challenge? These top tips will help. The Funded Trading Plus Programs are designed to help us find unquestionably great traders. The rules are simple for you to follow and unlike many of our competitors are not designed to increase the chance that you will fail. Trading skill is all we are interested in. If you can consistently trade profitably you will be invited to join our funded trader program.
Before suggesting some tips let’s focus on what you don’t need to do. These are used by most other Funded Trading firms and are the main reasons why most traders fail these firms tests and are an opportunity for the firms to take further subscriptions or reset fees from their users:
There are no news events you need to avoid.
There is no minimum time window.
There is no maximum time window.
You can use EA’s and other trading tools.
Our top tips to pass funded trading tests
1. Focus on a small number of markets
You are better off learning the individual quirks and personality of a few rather than randomly trade across all the markets we have available to you. No market responds in the same way as another consistently and it may be better to become an expert in less rather than more and spread yourself too thinly.
2. Use technical analysis rather than fundamental analysis
Fundamental analysis looks at the intrinsic value of the market and makes predictions into the changes of the value in the future. Most classic fundamental analysis is done on a long-term timeframe i.e. weeks, months, or years. As such this analysis is best deployed by fund managers who may hold a large number of markets over a long period.
Learn about the differences between Fundamental and Technical analysis here.
3. Set aside a set window for your trading each day
Profitability in trading usually follows when a trader becomes consistent and works a set time period each day. The length of time and what time of day you have available will influence which markets you trade and what style of trading you will use.
4. Don’t change your trading style
You may need to make some changes to your trading style but don’t drastically change it. This is your opportunity to shoot for gold, making changes now is more likely to lead to failure rather than success.
You will need to examine your past trading and whether you can meet the main goal of the task using your trading strategies.
5. Don’t close a losing trade to early
This one is simple but not necessarily obvious, especially if you are used to closely managing your trades to reduce the loss on trades. Mass data from brokers show that the number 1 reason for trader loss is setting an unrealistic stop for a trade and closing a trade too early. Give your trades space to breath.
6. Consider protecting trades from loss
If your trade is in a winning position you should consider if you can move your stop to a breakeven entry position. If the market then hits your stop this trade is not going to damage your account balance. Give the trade space but keep reviewing it to see if still meets your trade plan. It’s usually good practice to take some profit when you do make the breakeven decision.
7. Be realistic and control risk
You need to be able to take a good number of trades to pass our evaluation programs. You must consider your risk and whether you will be able to execute enough positive trades versus negative trades to pass our test. You must have an idea of what your average win rate is and the risk-reward ratio you normally use. You must use these metrics to decide what the right amount of money you should be risking on each trade.
8. Use Trade Room Plus
The Trade Room Plus live trade room is a great source of mentoring and learning in a live trading environment. Interaction with other like-minded trading professionals will help keep you focused and may give you good trade ideas. The professional traders at Trade Room Plus helped create Funded Trading Plus and are able to guide you through the program.
How to pass funded trading tests
Here are 8 tips to help you pass funded trading tasks:
- Focus on a small number of markets
- Use Technical Analysis
- Set aside a daily trading window
- Don’t change your trading style
- Don’t close losing trades to early
- Consider protecting trades from loss
- Be realistic about risk
- Use Trade Room Plus
Please comment on this post, note anything you think this post is missing and we’ll update it. Here are some questions to help you:
Which do you think is the most important tip and why?
What tip would you add?