How Prop Firms Work: A Beginner’s Guide

Are you curious about how professional traders make money from the markets, but not sure where to start? Or maybe you’ve heard about prop firms but don’t fully understand what they are or how they work? Don’t worry, you’re not alone!

In this beginner’s guide, we’ll break down what prop firms are, how they work, and how you can get involved—even if you're just starting your trading journey. Let’s dive in and make this fun and easy to understand!

What is a Prop Firm?

A prop firm (short for proprietary trading firm) is a company that trades financial markets using its own money (not clients’ money) to make profits. The exciting part? They hire traders like you to trade on their behalf. Essentially, you use their capital to make trades, and in return, you get a share of the profits you generate.

Example: Let’s say you’re hired by a prop firm. They give you $100,000 to trade with. You make a profit of $10,000. The firm might take 20% of that profit, but you get to keep 80%.

However, a lot of prop firms often provide training, support, and resources to help you improve your trading skills.

How Do Prop Firms Make Money?

Prop firms make money by taking a cut of the profits their traders generate. The better you are at trading, the more money the firm earns, and the more you earn in return. It’s a win-win situation—you both benefit from good performance.

However, here’s where the reality check comes in: prop firms make a significant portion of their money from traders who fail their evaluations. Let me explain.

Most prop firms require you to pass a trading challenge or evaluation before they give you their capital to trade with. This is designed to assess your skills and risk management. Here’s the catch: a lot of traders fail these evaluations, and that's how prop firms profit from the upfront fees they charge for these challenges.

While this might sound a bit harsh, it's important to recognize that the challenge can be tough by design—it’s how these firms minimize their risk and ensure they only give funded accounts to traders who can manage it well.

So, while the evaluation process is an opportunity for you to prove your skills, don’t expect it to be handed it to you. Many traders fail simply because they don’t follow the strict risk management rules, or they try to chase profits too aggressively. Prop firms know this, which is why they make money from the fees paid by traders who don’t pass the test.

How Do You Get Started with a Prop Firm?

1. Choose the Right Prop Firm
   Before anything, research the best prop firms that fit your trading style and goals. Some prop firms focus on futures trading, while others specialize in stocks or forex. Some well-known prop firms include Apex Trader Funding, MyFundedFutres, and TradeDay.

2. Pass a Challenge (or Evaluation)
   Most prop firms require you to pass a trading challenge or evaluation before they give you their capital to trade with. This is designed to test your skills and risk management. For example, you might need to grow a demo account by 10% but can’t lose more than 5% of it. It’s a way for the firm to ensure you’re a responsible and capable trader.

   But again, let me reiterate—most traders fail these evaluations. It’s tough, and the rules are strict. Prop firms make a big chunk of their money from the evaluation fees paid by traders who don’t make it through. This is a key part of the prop firm business model.

   • The Challenge: You need to meet profit targets while adhering to strict risk management rules.

   • The Reality: Many traders, especially beginners, fail because they take too much risk or fail to hit the profit targets. Prop firms know that and factor it into their model. So, while they offer the potential to trade with real money, they also profit heavily from traders who don’t pass.

3. Start Trading with Real Capital
   Once you pass the evaluation, the firm will fund you with real capital to trade. You’ll follow their risk rules (e.g., maximum daily drawdown limits) and trade their money, but you get to keep majority of the profits!

Key Features of Prop Firms You Should Know

1. Leverage
   Prop firms often offer high leverage, which means you can control more capital than you deposit. For example, if you have $10,000 and the firm offers 10x leverage, you can trade with $100,000. While leverage can increase your profits, it also increases risk, so it’s important to manage it carefully.

2. Profit Sharing
   The profit-sharing agreement can vary from one firm to another. Generally, the trader keeps a percentage of the profits they make. Some firms offer 70% to 80% of the profits, while others may go as high as 90%—the better the agreement, the more you’ll earn!

3. Risk Management
   Prop firms have strict risk management rules to protect their capital. For example, they may set a daily or weekly loss limit (like you can’t lose more than 1% of the account balance in a single day). These rules are important because they ensure that you don’t risk too much and blow up your account.

4. No Personal Risk
   One of the best things about trading with a prop firm is that you don’t risk your own money. If you make mistakes, you don’t lose your savings or personal funds. Your job is to focus on making consistent profits while following the rules.

5. Training and Support
   Many prop firms offer training programs to help you improve your skills, strategies, and market knowledge. Some even provide mentorship and support from experienced traders. This is a great opportunity for beginners to learn the ropes of trading without feeling overwhelmed.

Pros and Cons of Trading with Prop Firms

Pros:

• No personal financial risk: You trade with the firm’s capital.

• Access to larger capital: You can trade with more money than you would be able to personally.

• Profit-sharing: You get to keep a percentage of your profits.

• Learning opportunities: Many prop firms offer training, resources, and mentoring.

Cons:

• Challenges and evaluations: You have to pass a test to prove your skills.

• Strict risk management: The firm’s rules might feel limiting if you're a risk-taker.

• Fees: Some firms charge an upfront fee for the evaluation or to access tools.

• The risk of failure: Many traders fail their evaluations—this is how prop firms make much of their money.

Tips for Succeeding in a Prop Firm

1. Master Risk Management
   This is the most important part of trading. You can’t make money if you blow up your account! Stick to the firm’s rules and always trade with a clear risk management strategy.

2. Start Slow
   Especially if you're new, focus on consistency over big profits. Slowly build up your skills and profits over time. Trading is a marathon, not a sprint!

3. Take Advantage of Training
   If the firm offers educational resources or mentorship, take full advantage of them! These programs can dramatically improve your trading knowledge and skills.

4. Stay Disciplined
   Trading requires mental discipline. Stick to your strategy and avoid emotional decisions. Trading with someone else's money is a privilege, so treat it seriously!

In Conclusion

Prop firms are a great opportunity for beginner traders to start trading with real capital and make money without risking their own savings. But it’s important to recognize that many traders fail the evaluation, and prop firms make a large portion of their income from these failed attempts. However, if you can make it through the evaluation and follow the rules, the rewards can be significant.

So, if you’ve been thinking about jumping into trading but didn’t know how, a prop firm could be the perfect way to get started!

Top two recommended prop firms I personally use:

Apex Trader funding (click here)
discount code for best deal: bob

myfundedfutures (click here)
DISCOUNT CODE FOR BEST DEAL: BREAK

Apex Trader Funding 3.0 Updated Payout & Consistency Rules

Apex Trading Rules: A Comprehensive Overview

Apex has introduced several key updates to its trading guidelines that will shape the experience for traders. These updates emphasize responsible trading, risk management, and the protection of both the trader and Apex’s interests. Below is an outline of the major rule changes, including the new payout structure, consistency rules, and trading practices.

Payout Structure: Simplified and Flexible

No More Specific Payout Windows
Traders can now request payouts at any time, as long as they meet the new payout requirements. Previously, traders had to wait for specific windows within the month to request withdrawals (such as between the 1st-5th or 15th-20th). Now, traders can request payouts whenever they’ve completed the necessary trading days and met the profit conditions, without being restricted to these specific windows.

New Payout Criteria
To be eligible for a payout, traders must:

• Complete a minimum of 8 trading days.

• Ensure that at least 5 of those days show a profit of $50 or more.

Additionally, a "Safety Net" rule is now in place. The safety net is determined by the drawdown based on the account size plus an extra $100. Only after meeting this requirement can the trader request a payout, but there’s no longer a need to wait for a designated payout period.

Example:
A trader completes 8 trading days with 5 days showing at least $50 in profit. As long as the safety net is met, they can request their payout immediately without waiting for a specific time window. After review, the payout will be processed and typically approved within two business days, with the funds transferred within 3-4 business days. International traders may experience a slight delay due to banking processes.

30% Consistency Rule: Managing Profits Wisely

The 30% Consistency Rule ensures traders maintain a healthy, balanced trading approach by limiting the amount of profit that can come from a single day. When requesting a payout, no one day’s profit can exceed 30% of the total profit accumulated since the last payout or the start of the trader’s account.

Example:
For a trader with a $50,000 account, if their highest profit day was $1,500, they need to have accumulated at least $5,000 in total profits to request a payout. If their total profits are below $5,000, they must continue trading until they reach this level.

Forward-Looking Rule:
Once a payout has been made, the 30% rule resets based on the new account balance. This ensures that the payout process encourages steady, incremental growth.

Safety Net for Payouts: Protecting Account Integrity

The Safety Net rule applies to the first three payouts a trader makes. It acts as a safeguard to ensure that traders have enough cushion in their accounts before requesting withdrawals. The safety net is defined as the drawdown based on the account size, plus an additional $100.

Example:
For a $50,000 account, if the drawdown is $2,500, the safety net is calculated at $2,600. To request a payout, the trader must have their account balance above this threshold. A trader can still request a payout of $500 even if it means dipping slightly into the safety net, but to request more, their balance must exceed the safety net by the requested amount.

Note:
From the fourth payout onwards, the safety net rule no longer applies, offering more flexibility for advanced traders.

Faster Access to Full Payouts

Apex now offers traders quicker access to 100% of their profits. After the sixth payout, traders are eligible to access their full profit balance. This new approach allows traders to reach full payout status much more quickly than before, bypassing the need to wait for a set time period.

Example:
A trader following an 8-day payout cycle can expect to reach full payout eligibility within about two months, as long as they maintain the necessary trading requirements.

Key Trading Requirements: Consistency and Real-World Practices

Apex stresses the importance of using a genuine, real-world trading strategy. This ensures that traders are developing practices that reflect actual market conditions. Manipulative strategies, including high-frequency trading or exploiting the simulated environment, are strictly prohibited.

Dollar-Cost Averaging (DCA)
DCA is allowed, where traders can enter additional trades in the same direction as the original position, even if the market moves against them. There are no specific rules regarding the size of contracts or entry points for these additional trades. However, traders must maintain a responsible risk-to-reward ratio.

Example:
A trader may enter a position and then add more contracts as the market moves against them, but only if the risk-to-reward setup remains reasonable and consistent with their overall strategy.

Managing Risk with Consistent Contract Sizes

While traders have the flexibility to adjust contract sizes based on market conditions or their account balance, they must ensure that changes are part of a consistent, well-thought-out strategy. Irregular fluctuations in contract sizes—such as trading 10 contracts one day and then only 2 the next—just to meet payout requirements, are not permitted.

Scaling Contracts Based on Account Growth
As a trader’s account balance grows, they are allowed to scale up their contract size to reflect their increased capital. However, any reductions in contract size must be made with clear justification, such as higher market volatility or other strategic reasons.

Risk Management and Drawdown Rules

Apex enforces strict risk management rules to help traders manage their losses. One of the most important guidelines is the 5:1 risk-to-reward ratio, which applies to all trades.

Example:
If a trader targets a profit of 10 ticks, their stop loss must not exceed 50 ticks. This ensures that the trader is not risking too much on any single trade.

30% Negative Drawdown Rule
Traders must ensure that their open trades do not exceed a 30% negative drawdown from their profit balance. This helps avoid large, unchecked losses that can deplete the account.

Example:
For a $50,000 account with a $4,000 profit, the trader can afford a maximum drawdown of $1,200 (30% of $4,000) on open trades.

In the case where an account exceeds its safety net or reaches higher profit thresholds, the drawdown limit may increase to 50%, allowing traders more flexibility as they build their capital.

General Trading Practices: Maintaining Accountability

Apex ensures that all traders adhere to its guidelines by actively monitoring trading activity. Traders will have access to detailed reports that track their performance and compliance with the rules.

Example:
If a trader's payout request is denied, they can use the detailed report to understand which rule may have been violated and take corrective action moving forward.

News Trading and Flipping Trades: Strategic Practices

Apex allows traders to engage in news trading, but under specific conditions. The One-Direction Rule prohibits traders from holding both long and short positions during a significant news event. This ensures focused decision-making and discipline during volatile market movements.

Flipping Trades
Traders can also flip positions by opening and closing trades rapidly within the same day. However, to count toward their trading days, traders must meet the minimum profit requirement for at least 5 trading days in a row.

Example:
A trader opens and closes several trades in one day, earning $60. Since they’ve met the $50 minimum profit requirement, this counts as one of their qualifying days.

Summary: Core Trading Guidelines

• Use a Genuine Strategy: Traders must stick to strategies that reflect real-world trading conditions and avoid market manipulation tactics.

• DCA: Allowed if applied responsibly and consistently, without violating other rules like the 30% daily profit cap.

• News Trading: Allowed with the one-direction rule to ensure disciplined, focused decision-making during high volatility.

• Flipping: Traders can engage in flipping, as long as they meet the minimum profit criteria over at least 5 trading days.

• Risk Management: Adhere to a 5:1 risk-to-reward ratio and stay within the 30% (or 50%) drawdown limit, based on account growth.

By following these clear, well-defined rules, traders can ensure a consistent, responsible approach to trading that aligns with real-world market conditions, ultimately setting themselves up for success in the long term.

Apex’s Commitment to Fair Enforcement

Apex is committed to transparent and consistent rule enforcement. This ensures that all traders are treated fairly, and any violations are communicated clearly so that traders can address them promptly. The aim is to foster a professional, transparent trading environment where both traders and Apex are accountable.

Example:
If a trader’s payout is denied due to a rule violation, they’ll receive a detailed explanation of why it happened and how they can rectify the issue for future requests.

The Squid Game of Day Trading: How to Profit from Volatile Low-Float Stocks

Day trading volatile, low-float stocks in the $1 to $10 price range can feel like playing Squid Game—with high stakes, unpredictable outcomes, and the constant tension of victory or elimination. As Squid Game Season 2 continues to capture attention, it's the perfect time to explore how the brutal competition in the show mirrors the world of volatile stocks that gap up on news and catalysts. Like the players in Squid Game, day traders must be prepared for anything and have a solid strategy to survive in a market that can turn on a dime.

This article will break down the profit potential of trading these volatile stocks, the importance of strategy, risk management, and knowing when to walk away—lessons borrowed directly from Squid Game.

The Profit Potential of Volatile Low-Float Stocks

Low-float stocks—those with a relatively small number of shares available for trading—are known for their wild price swings, especially when there’s breaking news, earnings reports, or other catalysts that drive significant attention. Stocks trading between $1 and $10 are typically in this category, and their volatility is what attracts day traders.

The excitement of these stocks is undeniable. On any given day, a low-float stock might gap up 50%, 100%, or even more, as traders rush in on news of a new product launch, partnership, or positive earnings report. This price action can create quick profits for those who know how to capitalize on it. But, just like in Squid Game, the danger is just as real. The same volatility that creates opportunities can also quickly erase gains, making this a high-risk, high-reward game.

The Thrill and the Risk

In Squid Game, contestants enter a life-or-death competition for the chance of unimaginable wealth, only to face elimination at every turn. Day traders chasing the volatile, low-float stocks are often driven by the same desire for rapid profits, but the risks are equally high.

These stocks are typically thinly traded, meaning that small trades can have outsized effects on price movements. When you see a stock gap up dramatically, it can quickly be manipulated, either by institutional traders or retail investors hoping to ride the momentum. As a result, the price can swing in unpredictable ways, sometimes reversing within minutes or seconds.

This type of market behavior is a Squid Game in itself—players who don’t read the signs or manage risk properly might end up “eliminated” from the game of trading with major losses.

The Importance of Strategy: Playing to Win

In Squid Game, the smartest players don’t just rely on luck—they think through each move and make calculated decisions to avoid falling into traps. The same goes for day trading low-float, volatile stocks. Having a well-thought-out strategy is essential to navigating this high-risk environment.

1. Set Clear Goals

Before you dive into these stocks, establish clear trading goals. Are you looking for a quick, one-day profit from a gap-up, or are you aiming for a more consistent income stream from multiple trades? Setting your goals helps you focus and prevents you from getting caught up in the excitement, just like the players in Squid Game who are constantly recalibrating their approach based on new challenges.

2. Use Technical Analysis and News Catalysts

Low-float stocks that gap up are often driven by a catalyst—news, earnings, or even rumors. Technical analysis can help you identify key support and resistance levels, potential entry points, and profit-taking opportunities. But it’s not just about charts; paying attention to the news and understanding the context behind the gap-up is critical.

In Squid Game, players must adapt quickly to changing rules and situations. Similarly, a day trader must be able to shift strategy depending on how a stock reacts to news and price action.

3. Use a Reliable Scanner: Trade Ideas

To successfully navigate the fast-paced world of low-float stocks, having access to a reliable scanner is indispensable. A stock scanner allows traders to quickly identify high-potential opportunities based on key metrics like price movement, volume spikes, and news catalysts.

One of the most powerful tools for this purpose is Trade Ideas. This platform offers real-time scanning and alerts tailored to your specific trading strategy, making it easier to find those volatile, low-float stocks that are poised to make significant moves. Whether you're looking for stocks that are gapping up on news or those with unusual volume, Trade Ideas helps you pinpoint these opportunities in real time, saving you precious time and effort.

Just like in Squid Game, where players need quick access to information and the ability to act fast to survive, a scanner like Trade Ideas gives traders the edge they need to react swiftly to market movements. A good scanner helps you stay ahead of the game by filtering out noise and highlighting the trades that matter. Without it, you risk missing crucial opportunities or getting stuck in a position that isn’t moving.

4. Implement Stop Losses and Take-Profit Strategies

Just like the players in Squid Game who employ strategies to protect themselves from getting eliminated, day traders must be disciplined in managing risk. Always use stop-loss orders to protect yourself from large losses, and set take-profit levels to secure gains when the stock reaches your target. The last thing you want is to get greedy and let your profits evaporate or suffer catastrophic losses.

The Vital Role of Risk Management: Surviving the Game

While the allure of big profits from volatile, low-float stocks is enticing, risk management is what separates the survivors from the eliminated players. In Squid Game, poor decisions or failure to adapt led to elimination. In day trading, failure to manage risk can have the same outcome: losing your capital and being “eliminated” from the game.

1. Use Position Sizing

In Squid Game, resources are scarce, and contestants are always mindful of how much they have left. Similarly, in day trading, position sizing is key. Don’t over-leverage yourself—know how many shares you can afford to trade based on your risk tolerance and your overall portfolio size.

2. Adapt to Market Conditions

In Squid Game, each new round brings a different challenge. Similarly, in day trading, the market conditions can change rapidly. A volatile stock might gap up in the morning, but by afternoon, it could have reversed or settled. Always be ready to adapt. Stay updated on news, market sentiment, and trends, and be prepared to adjust your strategy accordingly.

Knowing When to Walk Away: The Power of Leaving the Game Early

One of the most critical lessons Squid Game teaches is the importance of knowing when to walk away. In Season 1, contestants vote on whether to leave the deadly competition or continue playing. The decision to quit is a powerful one, often driven by the realization that life and safety are worth more than the game’s promise of riches.

Similarly, in day trading, one of the hardest skills to master is walking away when you’re ahead. In fact, some of the most successful traders are those who know when to close their position and lock in their profits, rather than letting greed take over.

Don’t Let Greed Dictate Your Decisions

When you're in profit, the temptation to keep playing can be overwhelming. But just like in Squid Game, staying in the game longer than necessary can be dangerous. Greed leads to risky behavior, and in the world of day trading, that often results in a reversal of fortune.

If you’ve hit your target profit or have reached a reasonable point where the risk outweighs the reward, it’s okay to walk away. Don’t let the fear of missing out (FOMO) drive your decisions. Understand that there will always be another opportunity to trade. Knowing when to exit—whether it's taking profits early or deciding not to trade at all on a given day—is crucial for long-term success.

Don’t Chase Losses

In Squid Game, many contestants stayed in the game longer than they should have, only to meet a tragic end. In day trading, chasing losses is one of the most dangerous habits a trader can adopt. If you've taken a loss, don’t double down on a bad trade or keep trying to recover the money you lost. Sometimes, the best move is simply to walk away, regroup, and come back with a clear head the next day.

Squid Game Lessons: Surviving Day Trading

The new season of Squid Game is filled with intense challenges, where only the cleverest, most resourceful participants survive. As traders, we face similar challenges when navigating the world of small-cap stocks. The key to success lies in preparation, strategy, discipline, and the ability to manage risk—just like the smartest players in Squid Game.

Small-cap stocks can offer tremendous profit opportunities, but only for those who are well-prepared and understand the risks involved. Just like the players in Squid Game, the most successful traders don’t just hope to win—they play with purpose, they stay disciplined, and they always manage their risk.

And perhaps the most important lesson? Know when to walk away. Whether you're walking away with profits in hand or choosing not to play at all, the decision to exit the game is just as vital as the decision to enter. Play wisely, and you might just win big.

Unlock Explosive Penny Stock Gains: Paddle In vs. Momentum Master — Which Trade Ideas Plan is Right for You?

If you’re serious about trading penny stocks, you know that timing is everything. These stocks are highly volatile, with prices fluctuating rapidly, creating opportunities for quick profits — or substantial losses. To stay on top of this fast-paced market, you need the best trading tools available. That’s where Trade Ideas shines. But with multiple pricing plans, it’s essential to understand which one is best suited for your trading needs.

In this blog, we’re going to take an in-depth look at two of Trade Ideas' most popular plans: Paddle In and Momentum Master. We’ll explore how each plan caters to different trader profiles, and why Trade Ideas, as a whole, stands as the most powerful and efficient trading scanner for penny stocks. We’ll also dive into why penny stocks are so volatile and how Trade Ideas helps you stay ahead of the game.

Trade Ideas: The Ultimate Penny Stock Scanner

Before we dive into the specifics of each plan, let’s talk about what makes Trade Ideas the best tool for trading penny stocks in the first place.

Penny stocks — defined as stocks that trade for less than $5 per share — are famous for their wild price swings. Due to their low float (the number of shares available for trading) and relatively low trading volumes, penny stocks are highly susceptible to big price movements on small news or events. This makes them both an attractive opportunity for traders looking for quick gains and a risky endeavor for those who don’t have the right tools to spot these movements in real-time.

That’s where Trade Ideas comes in.

Trade Ideas is not just a stock scanner; it’s an AI-powered trading assistant that constantly monitors the market for price gaps, breakout patterns, and high-volume movements. With its cutting-edge algorithms, Trade Ideas helps traders find those penny stocks that are gapping up — meaning their prices are rapidly increasing — and alerts you the moment it happens. This instantaneous analysis gives you an edge over other traders who might be slower to react.

Now, let's compare the Paddle In and Momentum Master plans to see which one can help you take advantage of these opportunities most effectively.

The Paddle In Plan: A Beginner-Friendly Choice

The Paddle In plan is ideal for traders who are just getting started with Trade Ideas or those who want a simple yet powerful tool to help them find penny stock opportunities without diving into advanced strategies. The Paddle In plan provides access to:

• Real-Time Alerts: Get instant notifications when penny stocks start gapping up or meet specific criteria that you’ve set, such as breaking a key resistance level or achieving high volume.

• Basic Scanners: The Paddle In plan includes a range of pre-set scanners that can quickly detect breakout stocks, including penny stocks that are making significant moves.

• Basic AI Features: Trade Ideas’ AI, called Holly, can scan for trends and help you spot potential setups. While not as advanced as in the Momentum Master plan, it provides a great starting point for new traders.

• Customizable Alerts: The plan allows you to set alerts based on your preferred conditions, such as stocks gapping up by a certain percentage or reaching a specific volume threshold.

For newer traders, the Paddle In plan is a cost-effective option to get started with Trade Ideas. The simplicity of the features lets you focus on the most essential aspects of penny stock trading without being overwhelmed by more complex strategies or unnecessary features.

The Momentum Master Plan: Advanced Features for Experienced Traders

If you're an experienced trader or you're looking to take your trading game to the next level, the Momentum Master plan offers significantly more advanced features. This plan is tailored for active traders who want to get a more in-depth look at market momentum and capitalize on the fast-moving, high-volatility nature of penny stocks. Here’s what you get with the Momentum Master plan:

• Advanced AI (Holly Grail): This plan unlocks access to the full power of Trade Ideas' AI algorithms. Holly Grail can backtest thousands of strategies in real-time, helping you to identify profitable setups based on historical data. It can also recommend trades that have the highest probability of success based on past performance.

• Full Scanners with Customizable Filters: You get complete access to Trade Ideas’ powerful stock scanners, allowing you to customize filters to find the exact type of penny stock setups you want to trade. Whether it’s stocks gapping up, experiencing unusual volume, or breaking out of a pattern, you can filter for all these conditions.

• Real-Time Alerts with Enhanced Speed: The Momentum Master plan gives you instant alerts on stocks gapping up or hitting new highs. These alerts come with minimal delay, which is crucial for catching fast-moving penny stocks that can turn on a dime.

• Multiple Layouts & Workspaces: Trade Ideas allows you to design multiple workspaces that can track different types of penny stocks or various strategies. Whether you’re watching stocks on a 1-minute chart or a daily chart, you can have everything organized to keep an eye on what matters.

• Simulation Mode (Paper Trading): Practice your strategies risk-free with paper trading in real-time market conditions. This is invaluable for refining your trading approach without putting real capital at risk.

For traders who understand the rapid nature of penny stocks and want a comprehensive suite of tools for spotting profitable opportunities, the Momentum Master plan is the way to go.

Why Penny Stocks Move So Fast (and Why Trade Ideas Helps)

Before we wrap up, let’s take a moment to discuss why penny stocks are so volatile and how Trade Ideas helps you spot these movements in real-time.

Penny stocks are typically very volatile because of two main factors:

1. Low Float: Penny stocks often have a small number of shares available for trading. This makes it easier for relatively small amounts of buying or selling to drastically affect the price. A single large order can send the stock soaring or plummeting.

2. News Sensitivity: Because penny stocks are often from smaller companies, even small news events, such as a new product release or a partnership, can have a big impact on their price. Conversely, rumors or negative news can cause a steep decline in price.

These factors mean penny stocks can often experience wild price swings within minutes or even seconds.

Trade Ideas excels at identifying these opportunities instantly. With its sophisticated gap scanners and real-time alerts, it can pinpoint penny stocks that are moving fast, allowing traders to react quickly and capitalize on these fleeting opportunities. By automating this process, Trade Ideas gives you the speed and accuracy needed to stay ahead of the market.

Which Plan is Right for You?

• Paddle In: If you're just starting or want a solid, easy-to-use scanner with essential penny stock alert features, Paddle In is a great choice.

• Momentum Master: If you're an experienced trader looking to get more advanced features like enhanced AI-driven alerts, more customization, and faster response times, Momentum Master is the plan you want.

Conclusion

When it comes to trading penny stocks, the volatility and rapid price changes make it critical to have the right tools at your disposal. Trade Ideas stands out as the top trading scanner on the market due to its real-time alerts, powerful AI, and fast speed — all of which are vital for capitalizing on penny stock opportunities.

Whether you’re just getting started with the Paddle In plan or are ready to take full advantage of the advanced features in the Momentum Master plan, Trade Ideas ensures that you’re always one step ahead in the fast-paced world of penny stock trading.

Trade Ideas: Revolutionizing the Way Traders Find Opportunities

If you’re a trader—or even just someone interested in the world of trading—chances are you’ve heard of Trade Ideas. But do you really understand how it can transform your trading game? Whether you're a novice looking for insights or a seasoned pro searching for an edge, Trade Ideas is one of the most innovative and effective tools for discovering high-quality trade opportunities.

So, let’s dive into everything you need to know about Trade Ideas, and why it’s making waves across the trading world.

What is Trade Ideas?

At its core, Trade Ideas is a powerful stock scanning and artificial intelligence (AI)-driven platform designed to help traders identify and execute profitable trades. Whether you trade stocks, options, or even crypto, Trade Ideas uses real-time data and sophisticated algorithms to filter through the noise of the market and highlight the best opportunities.

What makes Trade Ideas stand out from the crowd? It’s the combination of advanced AI and customizable trading strategies that can automate your trades or alert you to potential setups. Simply put, Trade Ideas helps you trade smarter, not harder.

AI-Powered Trading with Holly

One of the flagship features that makes Trade Ideas a game-changer is Holly, their AI-powered trading assistant. Imagine having a virtual trading assistant that scans thousands of potential trades in real-time, looking for setups that match your criteria—only this assistant has access to a vast array of data and backtesting capabilities, far beyond what a human trader can handle.

Holly isn't just a robot that spits out trade alerts. It uses sophisticated algorithms to analyze past market behavior, detect patterns, and predict short-term movements. She can adapt to changing market conditions, and her insights are based on historical data, statistical analysis, and machine learning.

What does this mean for you as a trader? Trade Ideas essentially gives you a data-driven edge, providing trade alerts, risk management tips, and suggested entry/exit points that are backed by AI intelligence.

Customizable Alerts: Your Personal Trading Sentinel

Now, let’s talk about Trade Ideas’ alert system, which is one of the platform’s most powerful features. Whether you're a day trader, swing trader, or long-term investor, you can set up highly customizable alerts that suit your trading style.

• Real-Time Alerts: Set up notifications for any market event you care about—be it a stock crossing a certain price, volume spikes, or even unusual options activity.

• Technical Indicators: Combine price action with technical indicators like moving averages, RSI, and MACD, so you’re only alerted when the stock shows specific technical patterns.

• News and Social Sentiment: Trade Ideas also monitors real-time news and social sentiment, so you can react faster to breaking news or trending stocks.

By setting up alerts based on your personal strategy, you can filter out irrelevant market noise and focus on the trades that align with your goals. This means less time sifting through charts and more time executing your strategies.

Trade Automation: Let Your Strategy Work for You

What if you could automate your trades, so you don't have to constantly monitor the market? Trade Ideas gives you the power to do just that with its broker integration feature. This allows you to automate the execution of trades directly from the platform, executing orders in real-time based on your pre-set strategies.

Here’s how it works:

• AI-Driven Decisions: Let the AI analyze and execute trades for you based on criteria you set, such as price movements, volume patterns, and other key metrics.

• Automation & Customization: You can fine-tune the trade automation to match your risk tolerance and trading objectives. You control when to enter, exit, or scale positions—without lifting a finger.

For traders with busy schedules or those who can’t always be glued to their screens, this feature is a game-changer. Trade Ideas can do the heavy lifting for you, so you don’t have to miss out on opportunities.

Backtesting: Testing Your Strategy Before You Trade

Wouldn’t it be nice if you could test your trading ideas before risking real capital? With Trade Ideas, you can. Backtesting allows you to test any strategy against historical market data to see how it would have performed under various market conditions.

This is a critical feature for traders who want to ensure their strategies are robust before applying them in real-time trading. Whether you’re testing a day trading strategy or a longer-term swing trading approach, backtesting helps you refine your tactics and avoid costly mistakes.

Imagine you’ve developed a strategy for trading pullbacks in a trending market. Using Trade Ideas’ backtesting, you can apply your strategy to historical data to see how often it would have been successful, how much you could have profited (or lost), and whether it aligns with your risk tolerance.

Trade Ideas for All Levels: From Beginners to Experts

It doesn’t matter if you’re just getting started or you’re a full-time professional trader—Trade Ideas is designed for all levels of traders. Here’s why:

• For Beginners: With its intuitive interface and step-by-step tutorials, even beginners can start setting up alerts and exploring AI-powered insights with ease. The platform’s accessibility makes it a great option for traders who are learning the ropes but want a powerful tool to boost their trading.

• For Intermediate Traders: Trade Ideas allows intermediate traders to build on their knowledge, using advanced tools like backtesting, custom alert creation, and strategy development to fine-tune their trades.

• For Professionals: For seasoned traders, Trade Ideas offers unmatched flexibility with deep customization options, direct broker integration, and access to a robust library of trading strategies and scanning tools.

Why Trade Ideas is the Secret Weapon You Need

When it comes down to it, Trade Ideas isn’t just another tool—it’s a whole ecosystem designed to make you a better, faster, and more profitable trader. Here’s why so many traders swear by it:

• Time-Saving: With powerful AI algorithms scanning markets 24/7, you save time finding setups. No more endless hours of manual chart scanning or chasing down trade ideas.

• Real-Time Market Data: With Trade Ideas, you're always plugged into live market data, ensuring that your alerts and decisions are based on the most up-to-date information available.

• Automation: Automating your trades doesn’t just save you time—it helps you execute flawlessly, without second-guessing or hesitation.

• Comprehensive: Whether you’re looking for quick trades, deep strategy testing, or long-term investment ideas, Trade Ideas has the tools to cover all your trading needs.

• Community and Support: If you ever have questions or need guidance, Trade Ideas offers a thriving community of traders, as well as dedicated customer support to ensure you're getting the most out of the platform.

Conclusion: Take Your Trading to the Next Level with Trade Ideas

In the fast-paced world of trading, success depends on more than just having a good strategy—it’s about having the right tools to identify opportunities and execute them with precision. Trade Ideas empowers traders with the data, AI, and tools they need to stay ahead of the market. Whether you’re looking to automate trades, test new strategies, or receive customized alerts, Trade Ideas offers everything you need to take your trading to the next level.

Ready to revolutionize the way you trade? Dive into Trade Ideas today and start discovering the opportunities that await you.

Why You Need to Sign Up for TradingView: The Ultimate Platform for Traders & Investors

Whether you're a seasoned trader or just beginning your investing journey, the one thing you need to succeed in today’s markets are the right tools. Enter TradingView—the powerful charting platform that’s taking the trading world by storm. If you haven’t yet discovered what makes TradingView a game-changer, it’s time to pay attention.

With its sleek interface, a robust set of features, and a community of millions of traders sharing ideas in real-time, TradingView is more than just a charting tool—it’s your personal trading hub.

In this article, we’ll explore exactly why TradingView is the platform you’ve been waiting for and why you should sign up today. Ready to unlock your trading potential? Let’s dive in!

1. Stunning, Intuitive Charts That You’ll Actually Enjoy Using

At the heart of every trader’s toolkit is the chart. But let’s be honest—charts can often be overwhelming, filled with confusing indicators and complex layouts. TradingView is changing all of that.

From the moment you sign up, you’ll experience a beautiful, intuitive interface that makes charting feel more like an art than a chore. TradingView’s charts are highly customizable, allowing you to choose from a wide range of timeframes, indicators, and drawing tools that suit your trading style. Whether you're a scalper looking for quick, precise movements or a swing trader tracking longer-term trends, TradingView adapts to your needs.

• Multiple Chart Views: View multiple charts at once for comparative analysis or keep track of several instruments simultaneously.

• Advanced Charting Tools: Draw trendlines, use Fibonacci retracements, and track technical indicators with ease—all at the click of a button.

• Real-Time Data: Get live market data from major exchanges across the globe, so you never miss a beat.

If you’ve ever felt like your charting tool wasn’t up to the task, TradingView will make you rethink what’s possible.

2. TradingView’s Social Community: Ideas, Insights, and Inspiration

Imagine having access to millions of traders from around the world, all sharing their analysis, strategies, and insights on real-time charts. That’s the magic of TradingView’s social network.

• Follow Top Traders: Discover and follow top traders with track records of success. See their trading setups, analyses, and predictions for the market, and learn from the best.

• Share Your Own Ideas: Whether you're just starting out or already a pro, you can publish your trading ideas to the community. Share your strategies, get feedback, and even have discussions with other traders.

• Real-Time Alerts and Ideas: TradingView alerts you whenever new trading ideas, news, or patterns emerge from the community, so you never miss a potential opportunity.

This collaborative approach to trading fosters growth and learning. As a new trader, you’ll gain valuable insights from more experienced traders, and as a seasoned pro, you’ll get a chance to teach, mentor, and connect with others.

3. Seamless Integration with Brokers for Fast Execution

Having the right analysis tool is only half the battle. The other half is executing your trades quickly and efficiently. TradingView seamlessly integrates with a growing list of brokers, allowing you to place trades directly from your charts.

• Direct Trade Execution: With supported brokers, you can buy and sell without ever leaving the TradingView platform. This reduces friction and ensures that you’re always positioned to act on the best opportunities in real-time.

• Paper Trading: If you're new to trading or want to test out a new strategy, TradingView’s paper trading featurelets you simulate real trades without risking actual capital.

This integration makes TradingView not just a tool for analysis but a fully-fledged trading platform for all your market activities.

4. Access to Multiple Markets and Assets

Whether you trade stocks, forex, cryptocurrencies, or commodities, TradingView has you covered. With access to over 50,000+ instruments across stocks, futures, forex, crypto, and indices, you can track and analyze virtually any asset that interests you.

• Crypto Traders: You can monitor Bitcoin, Ethereum, and other altcoins with real-time data from major exchanges, plus the tools to analyze price action, volume trends, and more.

• Forex & Stocks: Dive deep into foreign exchange and equities markets with a wealth of charting options and technical analysis tools.

• Global Market Access: TradingView covers stocks from major exchanges like the NYSE, NASDAQ, and global markets like London, Tokyo, and others, meaning you’ll never miss an opportunity—no matter where in the world it arises.

No matter where your interests lie, TradingView gives you the versatility to trade across all major asset classes, from a single platform.

5. Real-Time News and Economic Calendar at Your Fingertips

In today’s fast-paced market, staying informed is critical to making timely decisions. That’s why TradingView offers integrated news and economic events, right on your dashboard.

• Global News: Stay updated with breaking news from leading financial sources like Reuters, Bloomberg, and CNBC. Whether it’s economic data releases, company earnings, or geopolitical events, you’ll be in the know in real-time.

• Economic Calendar: Keep track of economic reports, central bank announcements, and other key events that can move the market.

Having all this crucial information available in one place allows you to stay ahead of the curve and make more informed decisions.

6. Customizable Alerts: Never Miss a Trade Again

Setting alerts is crucial to trading success. TradingView takes alerting to the next level with incredibly customizable options that notify you about price movements, indicator conditions, or chart pattern formations.

• Price Alerts: Set an alert to notify you when a stock, crypto, or any asset reaches your desired price.

• Indicator Alerts: Want to know when an RSI crosses above 70 or a moving average turns bullish? TradingViewcan alert you to these specific conditions.

• Chart Pattern Alerts: Track complex patterns like head and shoulders, triangles, or flags with automatic alerts, so you don’t miss a setup.

With alerts based on your own criteria, TradingView ensures that you're always on top of the market, no matter where you are.

7. TradingView on Any Device, Anywhere

Whether you’re at home, at the office, or on the go, TradingView has you covered. With a web-based platform and mobile apps for both iOS and Android, you can access your charts and trade ideas anytime, anywhere.

This cross-platform capability means you can check your markets, update your alerts, or even place trades no matter where you are in the world. With TradingView, your trading doesn’t have to stop when you leave your desk.

Why Wait? Join TradingView Today!

Ready to elevate your trading game? TradingView is your one-stop solution for all things trading, offering powerful tools, a dynamic social community, real-time market data, and seamless broker integration—all in one place.

Whether you’re looking to improve your charting, collaborate with other traders, automate your trades, or simply stay ahead of the market, TradingView is the platform that will help you do it all.

Sign up today and start exploring the powerful features that have made TradingView the go-to platform for traders and investors worldwide. Don’t let another opportunity pass you by—join the millions of traders who are already using TradingView to take their trading to the next level!

Apex Trader Funding - Payout Rules Explained (Ultimate Guide)

Apex Trader Funding has payout rules and a payout structure that may seem a bit complicated at first glance but it’s a lot simpler than you think.

I break down all the details in this article so it’s the only resource you’ll need to understand everything regarding Apex Trader Funding’s payout rules and structure and why it’s designed to be more advantageous than the other prop firms.

payout ratio

Apex Trader Funding is one of few prop firms that offers a 90:10 profit/split ratio. The trader keeps 90% and Apex keeps 10%.

Apex Trader Funding also lets you keep 100% of the first $25,000 (an industry high) and that’s PER ACCOUNT. So hypothetically, if a trader had 20 PA accounts with Apex, that’s half a million in profits they get to keep.

PAYOUT REQUEST TIMEFRAME

Apex Trader Funding allows a trader to receive a payout twice a month by submitting a request within the request window. The following is the date range of every month for the request window:

First Request Window: 1st - 5th

Second Request Window: 15th - 20th

The request for the first window is approved any time between the 1st - 14th, depending on the exact date you made the request. If approved, payments are sent out on the 15th of the month and can take anywhere from 3 - 7 business days to reach your bank account.

The request for the second window is approved any time between the 15th - 29th, again, depending on the exact date you made the request. If approved, payments are sent out on the 30th of the month and can take anywhere from 3 - 7 business days to reach your bank account.

You are still allowed to keep trading after a request is made. But just be mindful of how much payout you requested and trade as if that amount was already deducted from your balance so you do not hit your trailing threshold.

PENDING VS. APPROVED

When you request a payout in any one of the two windows, the status will be shown as PENDING until your request is APPROVED. It is extremely important to be aware of your status while trading your account.

If you continue to trade and your status remains PENDING after you submit your payout request and suddenly blow your account, you will no longer get that payout.

BUT… if you continue to trade and your status was APPROVED after you submit your payout request and suddenly blow your account, you will still get that payout.

Once a payout is approved, you will get that payment, regardless if the account is blown or not.

MiniMUM TRADING DAYS

Apex Trader Funding requires you to trade a minimum of 10 days before being eligible for a payout.

A trading day counts as taking a trade anywhere from 6:00 pm EST to 5:00 pm EST the next day.

So for instance, if you take a trade on Sunday night at 7:00 pm EST and another trade on Monday afternoon at 4:00 pm EST, then that still counts as one trading day.

MINIMUM ACCOUNT BALANCE & MAXIMUM WITHDRAWAL FOR PAYOUT

Account Size	Min Balance Required	Max Withdrawal
$25k	$26,600	$1,500
$50k	$52,600	$2,000
$75k	$77,850	$2,250
$100k	$103,100	$2,500
$150k	$155,100	$2,750
$250k	$256,600	$3,000
$300k	$307,600	$3,500
$100k Static	$102,600	$1,000

In order to get approved for a payout, you need to reach the minimum account balance as indicated in the table above for each respective account size plan.

But unlike most other prop firms, Apex Trader Funding doesn’t require you to maintain the minimum account balance once you’ve reached it. You can make a payout request as soon as you reach it and build back up again to the minimum balance required to request another payout.

But do keep in mind, if you decide to withdraw money as soon as you reach the minimum balance required, it will eat into your trailing threshold. For instance, if you have a $50k account size plan and build the account to the minimum balance required ($52,600), you are eligible to request a $2,000 payout. But if you did that, your balance would go to $50,600, leaving you only with a $500 trailing threshold. So it’s best to build a cushion on top of the minimum balance required to leave yourself with enough of a trailing threshold.

Another detail to keep in mind is that when you request a payout and the status is still PENDING, don’t go below the minimum balance. If you do, you will not get that payout because Apex is still reviewing whether you’ve qualified or not by meeting the minimum trading days and reaching the minimum balance required. But once the status is APPROVED, then it’s okay to go below the minimum required balance.

Once you’ve reached the minimum balance, you can only withdraw a certain amount as indicated in the table above under max withdrawal for each respective account size plan. But this restriction only applies for the FIRST 3 MONTHS. Once you’ve requested at least one payout a month for the first 3 months, you are now eligible to withdraw as much profits as you’d like with no restrictions.

The 30% CONSISTENCy rule

In order to be approved a payout, you need to show Apex that you are trading consistently. Therefore, your biggest trading day cannot exceed 30% of your total PnL on the day of your withdrawal request.

The easiest way to keep track of this is by looking at the total balance you’re trying to get to whether it’s the minimum required balance or some other balance you feel comfortable with when you’re ready to request a payout.

For instance, say you want to withdraw money when your balance gets to $55,000 on a $50k account. You take the $5,000 which is the total profits you’ve made and multiply that by .3. So $5,000 x .3 = $1,500. Therefore, your biggest trading day should not exceed $1,500.

If you do exceed it, just keep trading until you meet the 30% consistency rule. The easiest way to keep track of that is by taking your biggest trading day and dividing it by .3. So let’s say you exceed that $1,500 from the previous example and your biggest trading day ended up being $1,800 instead. So you take $1,800 / .3 = $6,000. Therefore, you need to get your balance to $56,000 ($50k starting balance + $6,000 required).

But the 30% isn’t such a black and white rule. If your best trading day goes above 30% by a bit and you show Apex you’ve been a consistent trader, you should still be approved for a payout. The 30% rule is primarily there to get rid of gamblers and people who YOLO trade on their accounts.

OTHER RULES

Other rules include you have to withdraw a minimum of $500 each time you make a payout request.

You are taxed as a contractor and will receive a 1099 at the end of the tax year.

Each account is considered a separate, stand-alone account. So all these rules apply PER account.

RECAP

So just to recap, the following are all rules and details regarding the payout system for Apex Trader Funding…

• Traders keep 100% of the first $25k in profits PER ACCOUNT and then it goes to a 90/10 split

• Traders need to trade a minimum of 10 days for a payout

• Traders need to meet the required minimum balance for a payout

• Traders cannot exceed the maximum withdrawal amount (this restriction drops after 3 months of payouts)

• Traders are only allowed two payouts per month

• Payouts are forfeited if the trailing threshold gets triggered and the status was PENDING but are given out if the status was APPROVED

• Traders need to make sure their best trading day does not exceed 30% of total PnL on day of withdrawal request (rule flexible if Apex sees you’re a consistent trader)

• Traders need to withdraw a minimum of $500 when requesting a payout

• Traders taxed as a 1099 contractor

That is everything when it comes to the rules and regulations on payouts for Apex Trader Funding. As stated earlier, Apex has these rules in place to make it advantageous for the trader while still making sure they’re providing resources to someone who is actually consistent.

Every prop firm has their pros and cons when it comes to payouts. But I truly feel Apex is the best as far as the pros significantly outweighing the cons. These rules and structures are set in making sure the trader fairly gets compensated while not blowing their account.

ENTER PROMO CODE:
BOB
DURING CHECKOUT FOR THE BEST AVAILABLE DEAL IN ANY ONE OF APEX’S EVALUATIONS

Topstep vs. Apex Trader Funding: A Comparative Assessment of Two Leading Firms in the Prop Trading Business

	Topstep	Apex Trader Funding
Evaluation Process	One-step Trading Combine	One-step evaluation challenge
Trailing Drawdown	End of day (except live account)	Unrealized
Daily Loss Limit	$1,000	None
Consistency Rule	Best trading day should be less than 50% of total profits	Best trading day should be less than 30% of total profits
Funded Activation Fee	$149	Varies ($130 - $340) lifetime or $85 per month
Profit Share	90% after initial $10,000	90% after initial $25,000
Minimum Days Required For Payout	5 winning days of $200 or more	10
Educational Resources	Extensive educational materials and coaching	Limited educational resources
Community	Strong community support and networking	Less emphasis on community engagement
Trading Platforms	Supports various platforms	Primarily uses NinjaTrader and Tradovate
Current Promotion	CLICK HERE	CLICK HERE (Use code: POUITLMY)

Topstep and Apex Trader Funding are two major players in the competitive prop trading space and are essential resources for anybody starting off in day trading. Selecting between TopStep and Apex Trader Funding is more than just picking a prop business; it's an important strategic choice that might have a big influence on your trading goals.

I want to provide an insight into both companies, based on my vast expertise in the trading industry. I will begin with an introduction and then go into more detail to analyze their differences and similarities, pros & cons, and overall impressions.

With a focus on the futures market, Topstep and Apex Trader Funding are both experts in providing funded trading programs. Traders can get a funded account and the money they need to make trades in the financial markets by seizing the opportunity provided by these popular prop firms.

Apex offers a more flexible strategy with greater earning potential, while Topstep offers a structured program known as the Trading Combine. This review looks at how each platform helps traders achieve their objectives and strikes a balance between discipline and the urge for fast profits.

What is A Funded Trading Program?

A funded trading program is an arrangement between a proprietary trading business and a trader. The proprietary trading organization will initially test the trader. The exam assesses if the trader has the necessary skills and ability to trade consistently and profitably. The exam is conducted on a virtual account, so the trader will not be trading with actual money. Once a trader passes the exam, they are given a real account that is funded by the proprietary trading business. The earnings earned by the trader on the funded account will be split between the trader and the proprietary trading organization.

If, on the other hand, the trader breaks the firm’s restrictions or incurs enormous losses, the agreement will be nullified. This will result in the trader losing the financed account. The trader must go through the testing procedure once more if they desire a funded account. One important aspect of funded programs is that they typically focus on the FOREX or futures market. But with Topstep and Apex, they are exclusively a futures firm.

The Match-Up:
Apex Trader Funding vs. Topstep

Proprietary trading platforms provide traders with particular outlets for efficiently harnessing institutional capital. Topstep and Apex Trader Funding are at the forefront of this market, with each providing specialized approaches for analyzing and supporting trader growth.

Apex Trader Funding

Apex Trader Funding is a proprietary business that runs a financed trading program. Established by Darrell Martin in 2008, the firm has expanded over the years, giving traders access to capital exceeding $100 million. A trader receives a funded account upon passing the assessment stage, sometimes referred to as the Apex challenge.

The best chance for traders to receive a funded account is through The Apex firm. For this reason, the assessment is simplified so that traders may hit their profit objective without having to worry about a plethora of pointless regulations. This gives traders a greater probability of successfully funding their accounts and trading financially. The program is ideal for individuals who lack funds or do not want to risk their investments on trading.

The first $25,000 in earnings goes entirely to traders when they are granted a Apex-funded account. The traders and the company split the remaining earnings in a 90:10 ratio after that. 90% of the profit goes to the trader and the remaining 10% is retained by the business. This is one of the most lucrative profit-sharing arrangements in the business.

Like a lot of prop firms, Apex Trader Funding uses an unrealized trailing threshold (or drawdown). A drawdown is the amount a trader can not go below or they will lose their funded account or fail the evaluation.

Apex’s unrealized drawdown continues to trail a trader’s profits, regardless if they sell it or not. This can be tricky because if the trader is making a lot of profits but the futures contract that they’re trading has not yet hit their price target, they can lose all that money if the trade falls just short of that price target and reverses. So the trailing drawdown increased by trailing all that profit that was never actually sold, leaving the trader with very little drawdown left.

That’s probably the biggest different between Apex and Topstep… because Topstep uses an end-of-day drawdown that only trails your profits that you have actually sold which is undoubtedly more favorable.

Topstep

Topstep is another private business that offers a paid trading program. It is recognized as one of the fastest-developing businesses in the US and was started by Michael Patak in 2012. This is due to the fact that many traders appear to be seeking Topstep's services when it comes to prop firm trading.

However, in an effort to shorten the evaluation process, TopStep has changed the Trading Combine to a one-stage assessment. This simplicity is consistent with the Apex challenge, which requires only one stage to qualify for a funded account.

Traders keep the first $10,000 in profits after being granted a funded account. The traders and the company split the ensuing gains in a 90:10 ratio. Ten percent goes to the firm and ninety percent goes to the trader.

WHICH FUNDING OPTION IS BETTER FOR YOUR TRADING OBJECTIVES: TOPSTEP OR APEX TRADER?

Topstep is Better for:

1. Traders looking for more stability: The Trading Combine's end of day drawdown eases the pressure for traders to take profits quickly in fear of it eating into their drawdown.

2. Traders seeking a community: Topstep boasts a thriving trading community that provides a sense of friendship and mutual learning opportunities.

3. Traders seeking a safety net: The company's emphasis on risk management includes daily loss caps to assist traders in averting large losses.

4. Traders looking for a test: Clear objectives set by the Trading Combine's performance criteria might motivate traders to achieve success.

5. Traders who want a more gradual approach: The streamlined procedure for obtaining a funded account is intended to efficiently build a trader’s confidence.

6. Traders seeking recurring assessment: Topstep's latest assessment guarantees that traders adhere to their trading plan and maintain their strategic path.

7. Traders looking for a clear set of rules: The firm's clear guidelines can assist traders in being more disciplined and methodical in their approach to the markets.

8. Traders in need of performance evaluation: Frequent evaluations offer insightful information about a trader's areas of strength and growth.

9. Traders who appreciate a helping environment: Topstep offers coaching and educational materials to help traders get through tough challenges.

10. Traders who strive for incremental growth: The business strategy of the company promotes long-term, reliable trading success.

Apex Trader Funding is Better for:

1. Autonomous traders: The fewest possible trading regulations provide traders more freedom to do as they like.

2. Traders looking for quick opportunities: Skillful traders can quickly become funded account holders with the help of the one-step evaluation process.

3. Traders seeking to hold onto their first gains: The trader receives all of the first $25,000 in earnings, which serves as an early incentive for profitable trading.

4. Traders seeking a more level playing field: The capacity to take on greater positions is made possible by the higher starting balance and the number of contracts a trader can buy.

5. Traders who detest daily loss caps: Since there is no daily loss cap, traders are free to concentrate on just their overall drawdown instead of worrying about if they’re close to hitting their daily loss limit.

6. Trading enthusiasts who favor a clear-cut strategy: Profit-sharing is a straightforward and easily comprehensible approach.

7. Traders who know what they're doing: The platform's adaptability is perfect for traders who have a tried-and-true method that might not work in a strict framework.

8. Traders who want to trade various accounts: The ability to trade up to 20 funded accounts (unmatched by any prop firm), using a trade copier, will allow traders to build on overall profits significantly.

9. Profit retentionists: After the initial $25,000, traders may keep the majority of their gains because of the advantageous profit split.

10. Traders pursuing large profits: Ambitious traders may be drawn to the bigger starting balance via a higher account size option because of the possibility of greater gains.

A CLASH BETWEEN TRADING CHANNELS: TOPSTEP VS. APEX

Explore the essential features that TopStep and Apex Trader Funding provide while outlining their strengths and challenges. You'll have the knowledge to select the platform that best fits your trading path after reading this comprehensive comparison.

Pros of Apex Trader Funding:

1. Unmatched Discount on Evaluations: 80 to 90% discounts on all evaluation plans are offered consistently throughout the year for traders to take advantage of.

2. Variety of Account Sizes: Provides a selection of account sizes, ranging from $25k to $300k, to accommodate traders at varying skill levels.

3. One-Step evaluation: A one-step challenge to gain access to a funded account simplifies the evaluation process.

4. Profit Retention: A major incentive for traders is that they keep the first $25,000 in earnings.

5. Trade up to 20 Funded Accounts: This attractive flexibility gives traders 20x their profit potential when using a trade copier.

6. No Daily Drawdown: There are no limitations on daily losses, allowing traders to handle their trades with greater autonomy.

7. Included Real-Time Data: Offers real-time data feeds, which are necessary for making knowledgeable trading selections.

8. Absence of Scaling Plans: Traders can function without the burden of scaling plans, which may restrict their ability to trade.

9. Greater Risk Flexibility With Numerous Accounts : In order to distribute risk and maybe boost returns, traders are allowed to open numerous accounts and trade them on different days from each other.

10. Free NinjaTrader License: This package comes with a NinjaTrader license, saving traders money.

Cons of Apex Trader Funding:

1. Trailing Drawdown is Unrealized: A trader’s profit will be trailed, regardless if the gains are realized or unrealized.

2. Only Two Payout Periods Per Month: For the first 3 months, traders are capped out to a limited amount they can withdraw (depending on account size) per payout period and only two are allowed per month.

3. Lack of Customer Support: A customer support number or live chat is not provided and only a ticket can be submitted via message board for any questions or concerns.

4. High Activation Fees: Although the evaluation discounts are among the industry best, the activation fees (lifetime or monthly) rank pretty high compared to other prop firms.

5. No Free Trials: Before committing to the platform, prospective traders are unable to test it out.

6. Unfavorable Profit Goal to Trailing Threshold Ratio For Some Accounts: Some accounts have a very high profit goal compared to its trailing threshold like the $250k account at a $15k profit goal but only a $6500 trailing threshold.

7. No News Trading: They do not accept strategies that make use of trading during news events.

8. Limitations on Cost-Average: Only allows to buy just once if PnL is in the negative, perhaps limiting a trader’s strategy on averaging down.

9. Less Community Engagement: There could be less sense of a community here than at some other companies.

10. Absence of instructional materials: There are no instructional materials available to aid in the skill-building of novice traders.

Pros of Topstep:

1. End of Day Drawdown: Not having to worry about how much their unsold gains are eating into their drawdown, a trader is granted higher flexibility in attaining their profit goals.

2. Favorable Payout Structure After 30 Winning Days: Traders can withdraw 100% of their profits at any time after accruing 30 winning days of $200 or more.

3. Cheap Combine Costs: Some accounts (like the popular $50k combine) offer a cheap plan compared to other prop firms.

4. Performance coaching: Offers guidance and criticism, both of which are very helpful in enhancing trading abilities.

5. Community Support: Availability of a trading community for networking and strategy exchange.

6. Favorable Profit Ratio: After the withdrawal of the first $10,000 in earnings which the trader gets to keep 100% of, a industry-high 90% to 10% profit sharing follows.

7. Multiple Trading Platforms: Allows traders to select their favorite interface by supporting a range of trading platforms.

8. Educational Resources: Provides learning resources to aid in the development of traders.

9. Customer Service: Offers prompt, helpful customer support via automated chat that is accessible to answer questions from traders.

10. Free Trial: Before committing, new users can begin with a free trial to experience the site.

Cons of Topstep:

1. Profit Withdrawal Cap: Before accruing 30 winning trading days of $200 or more, traders are capped at 50% of the amount of profits they can withdraw from their account.

2. Profit Withdrawal Length: Before accruing 30 winning trading days of $200 or more, traders have to accrue 5 winning trading days of $200 or more to be eligible for a withdrawal.

3. Daily Loss Limit: Although some would argue this prevents traders from overtrading and mounting more losses, others would argue it’s an inconvenience and burdens them with more restrictions to their overall trading strategy.

4. Limited Account Size Options: Only 3 account sizes are provided ($50k to $150k) which is low compared to some other prop firms that offer various.

5. Scaling Plan Restrictions: Once funded, trader has to abide by the scaling rules which designates a certain amount of contracts they can trade depending on their account balance.

6. Restricted Trading Hours: Compared to other platforms, trades have to be closed at 4:10 PM ET which is almost an hour less.

7. Unfavorable Criteria For Live Funded Account: Once trader is transitioned to a live funded account from the combine and express account, they are responsible for $135/month CME data fees and the trailing drawdown will no longer be end of day.

8. Max Contract Size Limited: Compared to other platforms, the number of contracts a trader can take on is smaller.

9. Consistency Rule: Traders cannot have their best trading day be greater than 50% of their total profits.

10. Limitations on Number of Accounts: Traders can only have up to 3 express funded accounts compared to Apex which offers 20.

Choosing between apex trader funding and topstep: handling the consistency criteria

Success in the world of proprietary trading is mostly dependent on consistency. Two prominent companies on the market, Apex Trader Funding and Topstep, take various tacks on this idea, each with a unique set of rules aimed at fostering a disciplined trading style.

Apex Trader Funding: Promoting Organic Consistency

Apex Trader Funding chooses to maintain consistency through organic means. The company encourages traders to use trading plans and techniques that suit their unique styles rather than enforcing a strict consistency requirement.

This way of thinking stems from the idea that traders need to be allowed to establish a reliable trading schedule of their own. It's crucial to remember that even while Apex may be more flexible in their consistency guidelines, traders are still required to show a consistent, methodical approach to making money. Disqualification from the challenge may occur for any violation of the main rules.

Topstep: The Systematic Way to Consistency

TopStep, on the other hand, has implemented a particular measure called the Consistency Target in their Trading Combine software. This policy demonstrates the company's dedication to risk control and the development of a consistent profit-making capability. A trader's best day must not surpass 50% (compared to Apex’s 30%) of their overall profit objective in order to fulfill the Consistency objective. If a trader's greatest day ever happens to be more than this, they have to keep trading until the profit distribution satisfies the firm's requirements.

With the help of this systematic strategy, traders may be confident that their success is based on steady, risk-aware trading rather than on unexpected profits. It is a system that incentivizes perseverance and calculated planning, guaranteeing that traders develop the abilities necessary for sustained market stability.

Both TopStep and Apex trading Funding provide distinctive settings tailored to certain trading types. These businesses offer the foundations to support your trading objectives, whether you desire the flexibility to create your own consistency or the direction of a planned aim.

FINAL THOUGHTS ON
TOPSTEP VS. APEX TRADING FUNDING

As we come to the end of our review for Topstep and Apex Trader Funding, we have seen that both platforms have distinctive advantages and difficulties for day traders wishing to enter the realm of proprietary trading.

Choosing between TopStep and Apex Trader Funding is more than just picking a proprietary trading firm; it's about collaborating with a company that shares your goals and trading philosophy. Topstep offers a wide range of educational resources, including the Trading Combine challenge, which has been redesigned to better serve traders who are dedicated to improving their trading skills and want a structured approach to risk management.

Conversely, experienced traders seeking greater operational autonomy and a larger cut of the profits may find Apex Trader funding to be a more straightforward funding option due to its condensed set of regulations.

I think the biggest trade-offs between the two are the trailing drawdowns and evaluation costs. While Topstep offers the much more favorable end-of-day drawdown compared to Apex’s unrealized trailing drawdown, Apex offers significantly cheaper evaluation costs primarily because of the discounts they provide. For example, a 90% discount, which Apex is offering constantly, would only cost a $50k account plan $16.70 (or $18.70 for Tradovate plans) compared to Topstep at $49 for the same account size.

But Topstep may be particularly appealing to traders looking for a simple strategy that provides a clear path to making big gains as a funded trader because of its easy approach. Another thing that sets Topstep apart is its amazing community structure, which allows traders to grow and learn from one another.

TopstepX, a cutting-edge trading platform designed specifically for futures traders, was also just introduced by Topstep. Enormous features have been added that are exclusive to this product.

In the end, it comes down to personal taste: are you more inclined to choose Apex's uncomplicated strategy and substantial profit-sharing conditions, or TopStep's emphasis on education and a cooperative trading environment? Whichever platform you choose, it all provides a solid foundation for your trading operations, supported by sufficient funds to increase your visibility in the market.

Whatever prop firm you ultimately do end of choosing, just remember that this review ought to be the start of your decision-making process. It's crucial to thoroughly research both prop businesses and consider all pertinent variables before selecting the one that best suits your specific objectives and risk tolerance.