Multiple prop challenges?
Why get multiple prop accounts from the same company
by Deeyana Angelo
New age of remote prop trading
Following COVID-19 outbreak, the world has changed forever.
Mistrusting prop firms were forced into remote working options, which pushed the remote infrastructure to new highs.
This gave rise to an entirely new industry - online prop firms.
Prior to 2020, we only had a couple of options for those of us who wanted to do remote prop trading within the futures market.
But not, we have about 12 new established legitimate prop trading firms who are all based on a similar business model:
Offering online challenges for a monthly subscription for a chance to acquire a funded account.
Sometimes, these accounts offer more than 10x the amount of initial subscription fee.
For example: a drawdown of $7,500 for $675.
For those of us who know what we're doing with intraday trading, this is an insane opportunity.
These online prop firms are constantly criticised for 'encouraging gambling' with many unskilled traders callilng them scams.
Because if you misbehave and break the few rules the challenge has, you can pay for a 'reset' to start all over again.
But no one is forcing people to trade like lunatics and to keep pressing the reset button. If you are one of these people then please DON'T sign up for these challenges. You are better off going to see a psychologist because if you are constantly pressing RESET multiple times in a day or in a week, this is NOT trading.
But it IS a sign of a deeper addiction problem.
So quasi-traders need not apply.
Mistrusting prop firms were forced into remote working options, which pushed the remote infrastructure to new highs.
This gave rise to an entirely new industry - online prop firms.
Prior to 2020, we only had a couple of options for those of us who wanted to do remote prop trading within the futures market.
But not, we have about 12 new established legitimate prop trading firms who are all based on a similar business model:
Offering online challenges for a monthly subscription for a chance to acquire a funded account.
Sometimes, these accounts offer more than 10x the amount of initial subscription fee.
For example: a drawdown of $7,500 for $675.
For those of us who know what we're doing with intraday trading, this is an insane opportunity.
These online prop firms are constantly criticised for 'encouraging gambling' with many unskilled traders callilng them scams.
Because if you misbehave and break the few rules the challenge has, you can pay for a 'reset' to start all over again.
But no one is forcing people to trade like lunatics and to keep pressing the reset button. If you are one of these people then please DON'T sign up for these challenges. You are better off going to see a psychologist because if you are constantly pressing RESET multiple times in a day or in a week, this is NOT trading.
But it IS a sign of a deeper addiction problem.
So quasi-traders need not apply.
Multiple accounts?!
I am only talking about those of you who have experienced reasonably consistent returns week after week, month after month, but you're still effectively making peanuts.
Because you just don't have a way of SCALING UP your existing capital SAFELY.
And THAT is where the online prop firms come into their full use and value.
However the nature of these firms is that they have so-called 'gated withdrawals'.
This means for the first 2 months, they have a minimum amount of days and a minimum withdrawal amounts. This is why multiple accounts from the same company are useful.
Most of the gated withdrawal rules state that you need to have the initial drawdown offered covered with profits made.
Example: A $300k account (nominal sum!) offers a max DD of $7,500.
Once you've made $7,500 anything over this amount becomes eligible for withdrawal. But the minimum WITHDRAWAL amount must be $1,000 and no more than $3,000.
So if you have 3 accounts from the same company, this means your initial MINIMUM withdrawal amount will be $3,000 instead of $1,000.
Your MAXIMUM withdrawal will be $9,000, rather than $3,000.
Think of this initial 3 month period as your TRIAL PERIOD at a new job. Typically after the 4th month, there are no max or min withdrawal amounts because by then, you will have proven yourself to the firm that you are indeed a skilled capable trader who can navigate most market conditions like a genuine pro trader.
Welcome to the big leagues.
Because you just don't have a way of SCALING UP your existing capital SAFELY.
And THAT is where the online prop firms come into their full use and value.
However the nature of these firms is that they have so-called 'gated withdrawals'.
This means for the first 2 months, they have a minimum amount of days and a minimum withdrawal amounts. This is why multiple accounts from the same company are useful.
Most of the gated withdrawal rules state that you need to have the initial drawdown offered covered with profits made.
Example: A $300k account (nominal sum!) offers a max DD of $7,500.
Once you've made $7,500 anything over this amount becomes eligible for withdrawal. But the minimum WITHDRAWAL amount must be $1,000 and no more than $3,000.
So if you have 3 accounts from the same company, this means your initial MINIMUM withdrawal amount will be $3,000 instead of $1,000.
Your MAXIMUM withdrawal will be $9,000, rather than $3,000.
Think of this initial 3 month period as your TRIAL PERIOD at a new job. Typically after the 4th month, there are no max or min withdrawal amounts because by then, you will have proven yourself to the firm that you are indeed a skilled capable trader who can navigate most market conditions like a genuine pro trader.
Welcome to the big leagues.
