Battle of the Trader Funding Companies

 Just a quick post about trader funding companies. Suddenly, there are lots of them out there. Its great for traders as it takes away one of the reasons that so many traders never reach CP (consistent profitability).

Having said that, trading to "pass" the evaluations to get funded by these companies is not as straight forward as it looks. There are a number of metrics which have to be met as one sees when doing the due dilligence. Meeting these metrics will probably require a change in the way most people manage their trades. One of the metrics is a trailing stop loss on the account. The trailing stop loss on the account trails the tick by tick high water mark of the account. If your trade makes a new high in profit but you close it out at less than that high then the difference will tighten your accounts trailing stop loss. This means that a scalping style is less likely to have you fail the evaluation. If you usually exit on pullbacks in the profit on a trade then the medicine is to lower your size, perhaps even to use micros. The price on doing this is that you may not reach the profit target of the evaluation within the 30 days and have to pay another month of fees to continue. I failed evaluations several times before I worked out how to manage my trades so I can complete an evaluation within the 30 days and not be stopped out.

The other thing that you should know is that after you pass an evaluation, to get funded, you need to sign a contract wich contains a non disclosure requirement as well as some other conditions from some companies, which I can't disclose, that may not be what you expect. None of the funding companies that I have seen display the contract before you pass the evaluation.

Having said all that, giving me 90% of the profit I make but zero risk is a great deal, especially if you run mutiple simultaneous accounts. 

Presently, there seems to be a battle between some of the funding companies cutting their eval prices so its a great time to get involved if you want to get funded. Have a good look around and ask questions from them to clarify anything you are not clear on.

For me, its all about the order flow.