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Trading a Funded Account

35 min readFunded trader guide

Congratulations! You've passed your challenge and obtained a funded account. This is where the real work begins. This guide will teach you how to manage your account like a professional, maximize your profits, and avoid the traps that cause 80% of funded accounts to fail.

The difference between a trader who keeps their account for 6 months and one who keeps it for 5 years? Discipline and long-term strategy. Here's how to become that second trader.

The First Week: Critical Transition

The Necessary Mental Shift

❌ Challenge Mentality

  • • Profit target to reach
  • • Time pressure
  • • Calculated but high risk
  • • Mandatory daily trading
  • • Focus on performance

✅ Funded Account Mentality

  • • Capital preservation first
  • • No time pressure
  • • Minimal risk (0.25-0.5%)
  • • Selective and patient trading
  • • Focus on consistency

🎯 Golden Rule: For the first 7 days, do NOT seek to make profit. Seek to adapt to the psychological pressure of a real account.

7-Day Adaptation Plan

Day 1-2: Pure Observation

  • • NO trades
  • • Observe the market with your live account
  • • Note the setups you WOULD have taken
  • • Calculate theoretical results

Day 3-4: Micro-Trading

  • • Maximum 1 trade per day
  • • Risk: Only 0.1%
  • • Objective: Perfect execution, not profit
  • • Focus on routine and process

Day 5-7: Progressive Ramp-up

  • • Maximum 2 trades per day
  • • Risk: 0.25% per trade
  • • Start performance journal
  • • Establish definitive rules

Sustainable Profit Strategy

Realistic Monthly Targets

1-3%

Funded Beginner

Month 1-3

3-5%

Confirmed Trader

Month 4-12

5-10%

Consistent Expert

Year 2+

Realistic Revenue Calculation

100K Account at 3%/month:$3,000 × 80% split = $2,400/month
200K Account at 5%/month:$10,000 × 80% split = $8,000/month

The 3-2-1 Strategy

Optimal Weekly Structure

3

Max Trading Days

Mon, Wed, Thu

2

Max Trades per Day

Quality > Quantity

1%

Weekly Target

4% per month

💡 Why it works: Fewer trades = Fewer emotional errors. Most funded traders lose their account through overtrading, not lack of skill.

Live Account Drawdown Management

3-Level Protection System

⚠️ Level 1: Alert (-2%)

Increased Vigilance
  • • Reduce position size by 50%
  • • Maximum 1 trade per day
  • • Review market analysis
  • • Focus on A+ setups only

🛑 Level 2: Stop (-4%)

Mandatory Pause
  • • STOP trading for minimum 3 days
  • • Complete analysis of losing trades
  • • Strategy backtesting
  • • Return with only 0.1% risk

☠️ Level 3: Danger (-6%)

Emergency Measures
  • • Stop trading for minimum 1 week
  • • Contact prop firm support if available
  • • Complete revision of trading plan
  • • Consider coaching/mentoring

🚨 Reminder: Most prop firms have a maximum drawdown of 10-12%. At -6%, you're halfway to losing your account. ACT IMMEDIATELY.

Progressive Recovery Plan

DrawdownRisk/TradeTrades/DayObjective
0 to -2%0.5%2-3Normal
-2% to -4%0.25%1Breakeven
-4% to -6%0.1%1Survival
-6%+STOP0Analysis

Optimal Payout Strategy

When to Request a Payout?

✅ Recommended Strategy

Bi-Weekly Payout

  • • Every 2 weeks
  • • Minimum 2% profit
  • • Withdraw 80% of profits
  • • Keep 20% as buffer

Advantage: Regular income, constant motivation

❌ Errors to Avoid

Common Traps

  • • Waiting too long
  • • Withdrawing 100% of profits
  • • Payout after a loss
  • • Ignoring fees

Risk: Psychological pressure, fragile account

Example Calculation (100K Account)

2-week profit: $3,000

Trader share (80%): $2,400

Requested payout: $2,000

Buffer kept: $400

Result: $4,000/month net + security

Step-by-Step Payout Process

1

Check eligibility

Minimum trading days, minimum profit achieved

2

Screenshot performance

Keep a record for your files

3

Request via dashboard

Usually in the trader area

4

Choose method

Bank wire, PayPal, Crypto (depending on prop firm)

5

Wait for processing

Usually 24-72h

6

Confirm receipt

Check amount and fees

Scaling and Growth Strategy

12-Month Scaling Plan

Growth Timeline

Month 1-3:1 account, focus on consistency
$100K
Month 4-6:Request scaling or 2nd account
$200K
Month 7-9:3rd account if profitable
$300K
Month 10-12:Maximum scaling possible
$500K+

Scaling Conditions

  • • Minimum 3 months of consistent profits
  • • No rule violations
  • • Total profit > 10%
  • • Formal request to prop firm

Multi-Account Strategy

Advantages

  • • Risk diversification
  • • More total capital
  • • Different strategies possible
  • • Protection against losses

Caution

  • • More complex management
  • • Copy trading rules
  • • Multiplied stress
  • • Possible additional fees

💡 Pro Tip: Never take more accounts than you can manage comfortably. Better 2 well-managed accounts than 5 neglected ones.

The 20 Rules to Last 5+ Years

Trading & Strategy

  1. 1. Never more than 0.5% risk per trade
  2. 2. Maximum 3 trades per day
  3. 3. No trading Friday afternoon
  4. 4. Stop after 2 consecutive losses
  5. 5. Only one mastered strategy
  6. 6. Detailed journal mandatory
  7. 7. Weekly performance review
  8. 8. Monthly strategy backtesting
  9. 9. Continuous education (books, courses)
  10. 10. Mentor or trader group

Mindset & Lifestyle

  1. 11. Trading = Business, not gambling
  2. 12. Strict morning routine
  3. 13. Daily physical exercise
  4. 14. 7-8h minimum sleep
  5. 15. Regular vacations (without trading)
  6. 16. Separate savings account
  7. 17. Don't depend 100% on trading
  8. 18. Celebrate small victories
  9. 19. Accept losses as business cost
  10. 20. Long-term vision (years, not months)

Managing Specific Situations

Trading During News

High Impact News to Avoid

  • • NFP (Non-Farm Payrolls)
  • • FOMC Decisions
  • • CPI/Inflation Data
  • • Central Bank Speeches
  • • GDP Releases

Safe Strategy

  • • Stop trading 30min before
  • • Close open positions
  • • Wait 30min after
  • • Analyze the reaction
  • • Enter on confirmation

Weekend Management

Friday Golden Rule

Close ALL your positions on Friday before 8pm GMT. Weekend gaps can destroy an account.

If in profit

Secure the gains

If at loss

Accept and close

In Case of Rule Violation

Immediate Actions

  1. 1. STOP trading immediately
  2. 2. Screenshot all evidence
  3. 3. Contact prop firm support
  4. 4. Honestly explain the situation
  5. 5. Ask if reset is possible

Note: Some prop firms offer a "grace period" or the possibility of a reset for a fee.

Career Evolution as a Funded Trader

5-Year Roadmap

Year 1: Foundation

Master 1 strategy, 1-2 accounts, $100-200K capital

Target: $3-5K/month

Year 2-3: Expansion

3-5 accounts, diversification, $500K-1M capital

Target: $10-20K/month

Year 4-5: Mastery

Personal fund, mentoring, multiple sources

Target: $30K+/month

Additional Opportunities

  • • Become trader for hedge fund
  • • Create your own prop firm
  • • Sell training/signals
  • • Account management for private clients
  • • Write books/create content

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