Having used forex funds for a long time, I’ve realized that I’m not getting the return on my investment that I could be getting. This is primarily because the company I’m using for these investments doesn’t offer a profit target that aligns with the market. In addition, their customer service is also relatively poor. I’ve been searching for a new company that offers forex funds that are profitable and fast-growing prop firms.
Fastest growing prop firm in the world
Prop trading firms are a growing phenomenon in the Forex industry. With a Prop firm, you can trade in various markets, including currencies, stocks, commodities, and futures. They offer traders access to capital and allow them to control the risk of their investments. They also provide a high level of leverage.
Prop firms can differ significantly in price, risk, and trading parameters. Some firms quickly fund traders, while others require a lengthy evaluation process. Some firms offer immediate funding, while others limit you to trading only the forex market. To make a well-informed decision, comparing different firms before you sign up is essential.
One of the fastest-growing prop firms, Funded Trader, matches up well with FTMO regarding profitability and scaling opportunities. The firm also offers a great price point. The firm requires a one-time fee of $315, which is entirely refundable if you pass the evaluation process.
BluFX’s account parameters are much more straightforward compared to other prop firms. You have a choice between a Pro Account and an Anniversary Account. The Pro Account gives you unlimited scale, while the Anniversary Account has a $20K minimum deposit. The drawdown limits are also higher than other prop firms. This makes it easier to withdraw your profits.
Other prop firms, such as Fidelcrest, offer traders a chance to earn an additional 80-90% of their earnings as a funded trader. They also provide a comprehensive list of tradable assets. The trading platform is easy to navigate and is supported by a live team of experts.
Another prop firm that can provide a fast start is Topstep. Expert traders staff this Chicago-based company. They also provide a library of training materials and group training sessions led by experienced traders. The digital trading coach, “Coach T,” is also available. The firm offers a 5% stop-loss requirement, which only applies to low-risk accounts.
As with any prop firm, it is essential to consider the firm’s price before signing up. Fortunately, most firms have a refund policy if you are dissatisfied with the service.
Equity-based drawdown
If you have traded forex funds, you have probably encountered an equity-based drawdown. This is where your account goes down from peak value to its lowest value. It’s not something you can just get out of. You need to adjust your trading strategy and implement reasonable risk management procedures.
You can’t just sit back and watch your account decline. You need to manage your losses and increase your capital actively. This is especially important when you are using leverage. With leverage, losses are magnified.
You can start limiting your trades and lowering your stake if your portfolio has a significant drawdown. If you can’t recover your losses, you must use your remaining capital to generate a profit. You will need a minimum of 1% gain for each 1% drop.
A significant drawdown can indicate a high-risk trading system. To minimize the impact of this type of scenario, you need to limit your trading activity and stick to your favorite currency pair. You can also tighten your stop loss.
For example, a 50% drawdown means losing 50% of your capital. You will have to work hard to recover from the loss. You must make a 100% profit on the remaining capital to return your investment.
Evaluating your trading system based on your investment goals, risk tolerance, and drawdown is essential. Consider overhauling your trading strategy and risk management if your portfolio has a significant drawdown. You may need to change your default contract size, or you may need to cut your position size.
When you have a lot of open positions, you’re putting your portfolio at risk. For example, if you have an ETF valued at $11,000. You make a winning trade, and the value of the ETF falls to $6,000. If you have a losing trade, the value of the ETF falls even further.
You can see the size of your drawdown on an underwater equity curve chart. This helps you to recognize the regularity and the frequency of your drawdowns.