Are you struggling to find the best-funded challenge for your trading style? If the answer is yes, then you are in the right place. Choosing the right funded challenge can determine whether you pass or fail the challenge. If the pro-funded challenge doesn’t align with your system and strategy, your chances of passing the challenge are incredibly low. With that said, the following tips can help you choose a funded challenge that fits your style.
Look At the Different Types of Challenges
Your starting point should be to look at the different types of challenges and also deep-dive into how do funded trading accounts work. Generally, there are two types of challenges that you will encounter: the two-phase challenge and the one-phase challenge.
The Two-Phase Challenge
In the two-phase challenge, you will have to pass two different phases before you get your funded account. Irrespective of the challenge you choose, make sure that you have some kind of edge in the market. As a new trader, you are better off with a phase-two challenge. While you still have to be disciplined, the two-phase challenge is probably the easiest in terms of rules that you have to basically abide by.
If you have a consistent strategy and you like trading every single day, then two-phase challenges are probably the type of challenges that you should be looking at.
The One-Phase Challenge
As the name suggests, you only have to pass a single phase or a single step to get to your funded account. Generally, one-phase challenges are a little bit harder to pass. The one-phase challenges are similar to two-phase challenges; however, they are normally a little bit more difficult to pass.
The one-phase challenges have a three-day minimum trading day. The one-phase challenge is more suited for the more experienced traders, those who really understand their strategy, and those who have a very good psychology when it comes to trading.
Assess Profit Splits
Once you have gotten a better understanding of the different types of challenges out there, your next step is to assess the profit splits and payout schedules. These two are very important because, at the end of the day, you want to make money with the prop firms.
Assess Trading Platforms
To select the best-funded challenge that suits your style, you must also assess the trading platforms offered by the prop trading firms. Subsequently, you will also be analyzing the trading conditions because this can really make or break your success based on the strategy or type of trader you are.
Assess the Rules
Assess the softer rules, especially things such as consistency rules, and how these can massively affect your trades. Lastly, make sure to review a prop firm’s reputation through reviews and social media. Look at all the reviews from the most recent to the oldest. Assess whether you are seeing more positive or more negative. This way, you will be able to make an informed decision regarding whether or not the chosen prop firm challenge is aligned with your trading style.
Conclusion
At the end of the day, the type of challenge you choose depends on your preference. Whether you want to test yourself twice or are confident enough to pass in one go, you have options to choose from. Just remember to take a look at the rules and the platform before you make a decision.
