Why Your Funding Account Fails
44sIt directly addresses a common painful mistake traders make with funded accounts, sparking curiosity for the solution.
▶ Play ClipAI Summary
The video addresses a common mistake traders make with funding accounts and challenges: treating them like their own capital. The speaker, who claims to have withdrawn over $390,000 from funding accounts, provides a definitive risk management strategy for passing challenges efficiently.
Chapters
[00:01]
The Core Mistake
Most people treat funding accounts and challenges as if they were their own capital, which is incorrect. This leads to inefficient progress and potential failure.
[00:13]
Challenge Requirements
Challenges typically require an 8% or even 10% profit target in phase one. Risking only 0.5% or 1% per trade makes it take too long to pass the account.
[00:40]
Time Efficiency
If it takes more than a month to pass a funding account, you are doing it wrong. The goal is to pass it relatively quickly.
[00:52]
Phase One Risk
In phase one, you should risk between 1.5% and 2% per trade, not more, to avoid excessive risk and potential issues with the funding company.
[01:04]
Phase Two Risk
In phase two, risk a maximum of 1.5% of the account because the profit target is only 5% to switch to a funded account.
[01:16]
Funded Account Risk
Once funded, risk around 1% to 0.5% per trade, as all profits are withdrawable.
The key to passing funding challenges is to take slightly higher risk in phase one and phase two to meet profit targets quickly, then reduce risk once funded to protect withdrawable profits.
Tutorial Checklist
Study Flashcards (5)
What is the typical profit target for phase one of a funding challenge?
easy
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What is the typical profit target for phase one of a funding challenge?
easy
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8% or even 10%.
00:13
What risk percentage per trade is recommended in phase one?
medium
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What risk percentage per trade is recommended in phase one?
medium
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Between 1.5% and 2%.
00:52
What is the maximum risk per trade recommended in phase two?
medium
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What is the maximum risk per trade recommended in phase two?
medium
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1.5% of the account.
01:04
What risk percentage is recommended once funded?
medium
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What risk percentage is recommended once funded?
medium
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Around 1% to 0.5% per trade.
01:16
How long should it take to pass a funding account?
easy
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How long should it take to pass a funding account?
easy
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No more than a month.
00:40
💡 Key Takeaways
💡
Treating Funding Accounts as Own Capital
Identifies the root cause of failure for most traders.
00:01
⚖️
One-Month Rule
Provides a concrete time benchmark for passing challenges.
00:40
🔧
Phase One Risk 1.5-2%
Offers specific risk percentages to expedite passing.
00:52Full Transcript
[00:01] your challenge and funding accounts, stick around because I'm going to give you the definitive solution. Look, what happens to the vast majority of people is that they try to treat Funding accounts and especially challenges as if they were their
[00:13] own capital. And that's not how it works. Challenges usually Challenges usually require an 8% or even 10% profit target in phase one. Por lo tanto, si tú vas arriesgando un 0 y5% o incluso un 1% por
[00:28] trade, esto va a hacer que básicamente te tengas que llevar muchísimo, muchísimo tiempo para pasar esa cuenta, porque obviamente lo que nos interesa en las cuentas de frondeo es pasarla medianamente rápido. If it takes you more than
[00:40] a month to transfer a Frondeo account, let me tell you that you're doing it wrong and that's not the right way to go. And listen, I'm telling you this from experience , having withdrawn over $390,000 in payouts from a funding account. I'm going to
[00:52] put some here. What you have to do, here comes the solution, is do, here comes the solution, is to risk the sea in phase one. En la fase uno, normalmente tiene que arriesgar entre un 1 y5% y un 2% por trade, no
[01:04] más, porque si no vas a arriesgar demasiado y probablemente tengas problemas en un futuro con la empresa de frondeo. And then, in phase two, I would tell you to risk a maximum of 1.5% of the account. Because?
[01:16] Basically, because they only ask for 5% of the goal to switch to a you can manage, the funded account from which you can already withdraw money. And once you're funded, I would tell you to go around 1% to 0.5% per
[01:33] trade, because all the money you make there will be withdrawable. That's the solution: to take a little more risk in phase one and in phase two.
