My Thoughts on FTMO / Funded Trading Accounts (and Why I'm Doing the Challenge)
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- Опубликовано: 22 май 2024
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I go through the positive and negative aspects of prop trading firms, as well as explain why I'll be doing the FTMO challenge myself.
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FUNDING:
I give my thoughts on funded prop trading accounts (specifically FTMO). Should you do it and is it worth it? I go through the positive and negative aspects, as well as explain why I'll be doing the FTMO challenge myself in 2022.
Currently funded with My Forex Funds...so long I get my split...I'm happy, if whether they connect my account to a real or not I have no problem. The aim is to accumulate the profits to actually fund you own big account, which can be traded without any rules or restrictions.
Sir I don't mean no disrespect, are you from South Africa and if yes which TRIBE are you from Zulu, Xhosa etc
My name is Mncedisi Mhlongo by the way...
Hola Mncedisi, yes I am South African, very inclined to Zulu due to the influence of my maternal side but my father is Xhosa...bit of a half and half 😂. Which part of SA are you from?
Hi how long did t take you to learn forex and how long did it take you to get funded (1sf try? Any tips you can share to pass?
@@mondemdlulifx Sorry man I just got your message now...
I'M from Durban, doing my Final year at Mangosuthu University of Technology, you know how tough it is in S.A.
Please can you give me advice from fellow South Africa to other...
Good to see you here
@@mondemdlulifx If I master the Duomo Initiative and do Demo Trading for like 3-6 months after...
Do I stand a chance of getting Funded?
I completely agree. These prop firms are giving people with small capital the ability to scale faster. Most people starting their trading journey blow account after account, and by the time they build consistency, now need to learn to scale. So the fee to do a challenge for this trader is a smart investment in themselves. Plus, the pressure to follow rules as a funded trader will only make you a better trader, as discipline is an extremely important factor to success. Now for what they do behind the scenes? Who cares. Why worry about what a company may or may not do to match your negative bias. Even if they do, they're still giving you REAL payouts to the cent for being a GREAT trader. Win-win scenario.
Spot on
I couldn’t have articulated it any better than this 💥
FACTS!!!
Worded perfectly!
Ask yourself just one sole question Carlos : where is the money allocated coming from ?... then you will better understand how this kind of company earn money.
I agree to every single point you said and have thought of these things in the same way that you are doing right now
I agree, went through a similar thought-process. But once I understood that they (FTMO etc.) can theoretically make far more money with profitable traders than their nominal cut I felt relieved. Because this means that there is no conflict-of-interest in their side of the business. Indeed they depend on the success of each trader, regardless of account size.
What did find out I’ve been trying to figure this out for the longest
Your thinking is incorrect. It is as you feared. FTMO evaluate your trading on demo AND “fund” you on a demo. Once you’re “funded” your trades never execute into the market because it’s all demo money. Any profit split you make is paid to you out of the pot of revenue generated from “challenges”. If people stop taking challenges to get “funded” then FTMO have zero money to pay out for successful profit splits. If someone manages to be an incredibly profitable trader they’re in essence cleaning out FTMO’s pocket. FTMO is the casino and the casino doesn’t like paying out…
@@dominicgilbert519 You are right. I can't tell about the FTMO-it may be partially so but majority of 'prop firms' follow the process you just mentioned. Its a wonderful evolved version of ponzi scheme. Money comes from the failing traders. I wonder how FTMO is sustaining this because FTMO has rown really big and, there are, of course profitable traders. Not everyone is dumb. Maybe they have more organic option of generating funds. But with that said, to gain access to a $100k account (never mind $200k) is so out of reach for most of us.And it doesn't matter till they give away the trader's profit no matter how.
@@dominicgilbert519 this comment didn't age well considering the 400k payout FTMO just made to a trader!
@@dominicgilbert519 false once a trader has a good equity curve without large drawdowns the firm uses an API to copy their trades in their own account..Traders may be trading demo but the firm copies the activity via API with their own money.
Excellent video.
Thank you for sharing your insights, experience, and knowledge.
Sharing your experience and knowledge benefits the trading community as a whole.
The 'prop firm funded trader' route seems to have become 'very popular' these days....
There is both good AND bad in the 'funded prop trader funded account' industry.
Due diligence is essential....
Please keep posting more of your positive and informative videos.
You nailed it... Excessive risk on small account can be avoided with prop firms
Thank you, was waiting for this!
Great video, spot on! Regarding the demo account aspect, the CEO of My Forex Funds said in an interview that they use software that analyzes traders accounts based on risk management, profitability, etc. to determine which trades actually get executed in live markets.
Very interesting!
~ Nicholas
Good luck on your challenge, your different way of viewing the pros and cons of prop firms was very useful.
Thanks!
~ Nicholas
good man it show your character as a person to change your mind when new or more information comes in to play well done
Thanks Carlton!
~ Nicholas
Connor is smart, you guys are smart. I never thought about this. Thanks Nick once again very eye opening, I wanna learn more about it
Thank you for doing this!!!!
wow what a genuineguy
Very informative video!
I agree with your opinion, wonderful video as always. I felt these prop trading firms blessing for those traders who don't have enough trading funds in hand. Presently, i have two funded accounts and growing slow.
Wow, you are very consistent to have two funded accounts. Can you tell me more about how you did it?
Risk management is key
Congrats Parminder!
~ Nicholas
Thank you
Nic you're awesome. Thanks for what you do.
Thanks Bryan!
~ Nicholas
This is the single most undervalued and undeapreciated RUclips channel I know. And I know a lot of channels. I mean A LOT.
Thanks, really appreciate that!
~ Nicholas
There are companies that give you live accounts. 5ers and city traders imperium. The rules speak a lot about their business model. The rules are made for traders to pass not fail.
Good luck Nick. Great video
Thanks Ben!
~ Nicholas
As someone who does not have capital to start trading. I think this is a very good opportunity to scale my trading. As long as i get my payout i don't care what they have to do to pay me. For me its a win win situation. Investing a few hundreds tho get to trade 200k, thats a win.
You don't really trade 200k, you only trade whatever the risk is allowed
only if you live in USA you can use the excuse that you don´t have enough funds... The rest of the world basically can use 1:500, 1:1000 leverage and flip even U$50 account into thousands...
Great video
3:10 They're actually incentivized to help traders win. If a trader is shown to produce consistent winning results, they simply mirror the trades of that account in their real accounts. It would stand to reason that they could actually make more money in the long run from winning traders than from the small fees they receive from the vast majority, even though that's their bread and butter. Either way, they win whether you win or lose.
I can't tell about the FTMO-it may be partially so but majority of 'prop firms' follow the process you just mentioned. Its a wonderful evolved version of ponzi scheme. Money comes from the failing traders. I wonder how FTMO is sustaining this because FTMO has rown really big and, there are, of course profitable traders. Not everyone is dumb. Maybe they have more organic option of generating funds. But with that said, to gain access to a $100k account (never mind $200k) is so out of reach for most of us.And it doesn't matter till they give away the trader's profit no matter how.
Their rules are realistic, I like their transparency too as they use C trader software. They have vested interest with Good traders
Thank you Nik ;)
Third. Ftmo is great, if you don't have money
Great stuff. Looking forward to learning more. I've been tempted but am a naturally suspicious guy.... by that I mean, I don't trust anything or anyone. 🤣
Best of luck
Yeah you are probably write on all you say .but I've nearly passed .and just going to use um to fund my own account it's just a stepping stone the way I look at it
Good luck James!
~ Nicholas
@@Duomoinitiative yes thank you .I need it lol
Great video, this has always been my idea about prop firms and ftmo in particular, I wish I could see a little of explanation from ftmo side about their business model, at least a hint hahah, I'm doubting their continuity to be honest, I think they live of challenges commissions, thanks nicholas, great video
They are literally dozens of testimonials and i even know someone who is a funded trader with ftmo
@@koolkrieg yeah so what ? I just wanna know a bit how they operate, I know they pay and they are legit, I just wanted to know a bit about their business model that's all
@@mohamedyacineelkedim2094 its quite easy. Some rich dude invests his money in successful traders to make more money with very little downside because the accounts are not actually real money. They are demo accounts and copy the trade to a real broker
@@koolkrieg it's not that "easy", wake the fuck up
@@mohamedyacineelkedim2094 it is, i just described how it is, can't you accept it? What is your problem?
3:40 5%ers got somthing like this.this Will be swing or Day trade account? And Yes please make WEEKLY review.
if you are profitable on the 30th day but not reached the target, you can take up the challenge again for free. You can take it up for free any number of times as long as you are profitable on the 30th day.
I think you can take it for free only once, after you have to pay again the challenge..
@@Daniel_L_R no unlimited free retries for FTMO
plus the 14 day extension if 5% above
No you can only take free retry if you're profitable AND haven't broken any of the risk management rules
Please I got stuck try to open an FTMO trial DEMO account. I got to a stage and found that the trading platform and instruments are not like what I'm used to operate my trading processes.
Not like what your used to lol what does that mean…your still a newbie and don’t understand it’s seems
@@CalvinCooke18 this is exactly what must be going on with him. Lol
how much does it cost to open or apply for an account?
its actualy true. many prop firms copy trades from good traders. i know of hedge funds that get traders from prop firms.
Nice
1. I hate that some firms use fees to pay traders their share in profits and don't link successful traders to live accounts. It's short-sighted, reckless, and against the whole point of starting a prop firm.
2. Yup, who cares if a firm copies your trades on a $10m account and only pay you based on a $200k account? They are putting up the capital and taking on the financial risk, so THEY deserve the lion's share of the profits, not the trader!
3. Connor's right. As long as you're happy with the deal you signed up for, that's all that matters.
Good video, mate. Keep up the good work!
Too be fair the way how most of the successful prop firms work is this, just majority of the payouts does comes from traders that have failed there challenge.
But the successful traders, that has a proven track record, for a set amount of months or years with that company and are holding a huge account with that company than those are the traders that these prop firms actually copy.
@@j.rjunior5584 Yeah, I understand if a new firm does this since they have not found any consistently successful traders yet, but if I heard that FTMO or 5%ers (or some other firm that has been around for ages) was doing this, I would be really disappointed and concerned.
The business model would be a ticking time bomb (as we have seen with a few firms).
I can raise 10-20k dollars. So is the funded account not a good option for me?
As long as the outome is income, I am game
Do you want to manage account to pass challenge?
In depth review. Thanks a lot man
Your initial thoughts about prop trading firms are correct 👌. (can see their business model setup)
But with that said, to gain access to a $100k account (never mind $200k) is so out of reach for us living in 3rd world countries.
Rather hustle, take the risk of $500-$1000 , go through the process and just focus on getting that refund and 1st month's/payout.
if you make 13-15% ROI from a $100k account a month, and get a 65-80% profit spit...
🙌🙌🙌 thats mad!!!!.... you winning!!
Can easily survive for 6 months off that money...
13-15% per month, sounds too optimistic...
5-8% per month is ideal If you ask me, but of course it all depends on performance.
@@VladDim exactly man,the returns this guy has projected is crazy,not impossible but it's risky
statistically realistic returns are lower I would say 1% max if you do not want to blow up
@@Max-ot8vy a lil bit more than that but true😂
@UC5yUBriNUN8z5feZ-QyXbqQ exactly, scaling is the way to go,trade smarter not harder,some prop firms provide funding above 500k so even 1-2%returns can be decent on those account s
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be consistent with ur personal account before u jump on a funded account.. funded account are just a way to properly u to have a bigger pot into ur personal account
Completely agree.
~ Nicholas
The other aspect is you are a sub contractor and don’t have to pay capitol gains taxes (in the US).
Does the funded account come with a happy ending
i think if your trading is consitant for a long periond of time u have trust and prove that your system is working then its one of the best things to do too get more Money ,
but if u struggle with small accounts not beeing consitant making 10% a month its a wast of money
Yes, consistency has to come first.
~ Nicholas
What's your opinion on ment funding, they offer a 1M account.
I haven't heard of them until now, so I don't have an opinion unfortunately.
~ Nicholas
If funding accounts work the way you explain, why do they bother shutting down your account if it doesn't really matter? Just for appearances?
Duomo, you are correct, but Connor is realistically correct and have an opportunity that most people will never have. Even people who can trade well.
The smart guys use this to build there own personal bag to trade with and then move away from the Prop firms.
You're right. I don't even think it's necessary to move away from them, just keep trading both accounts and enjoy the extra capital.
~ Nicholas
theyre not real prop firms. they are exactly what they call it, challenge accounts. It is still a good roi only if you can pass the challenge and get a at least 1 payout but the thing is youre not getting a 100,000 account, you're getting a 10,000 account, or whatever risk is allowed for the account. It is still a god ROI since they also refund you the fee ( some do not). If youre a good trader with consistent results, i think it can be a good option but many traders are not good traders and will fail.
Well said
Is this challenge only for forex or stock?
Depends on the firm, for example ftmo has some stocks like APPL, Netflix, Walmart, etc.
They also got us30, Nasdaq 100, etc.
Audacity have no test. From what I have heard they only have an interview. Then again you pay a monthly fee. The way I see it is they really want good traders and not make money from the monthly fee alone.
Yes they are great. No challenge. 10% DD. 500k max fund. I got my payout same day with double account
You even get it back if you pass
I want to get funded account.
The point of funded accounts is to put the profits into your own account and grow it unless you are already blessed with 100k which the majority of people aren't..I think prop firms are great just don't break the rules.
Live account or demo i dont care as long as im paid
Dont judge the book by its cover
my friend is a complete idiot, paid someone a lot of money to learn how to chart and strategy and passed both tests first time. All of us had doubts but it takes someone trained that knows what they are doing and it is very possible.
Maybe he wasn't such an idiot then after all? 😂
~ Nicholas
They still won't lose money because they get a percentage from live accounts as well.
trading with a prop firm makes you a stricter trader
Facts. Definitely has it's own pros and cons. But as long as you get paid all that matters
so are you gonna give out 10k-200k to an aspiring trader living paycheck to paycheck or will they have to flip there $500 account to a million dollars gotta be realistic these prop firms give the average joe a great shot at making trading for a living possible....
In a nutshell, as everything in life: If you are not prepared or not quite know what you’re doing. You craft not polished yet, FTMO isn’t for you, period
Yes, it is a ponzi but they must be doing some sort of shadow trading if they think long term. I mean, where is Funding talent now ?
I can't tell about the FTMO-it may be partially so but majority of 'prop firms' follow the process you just mentioned. Its a wonderful evolved version of ponzi scheme. Money comes from the failing traders. I wonder how FTMO is sustaining this because FTMO has rown really big and, there are, of course profitable traders. Not everyone is dumb. Maybe they have more organic option of generating funds. But with that said, to gain access to a $100k account (never mind $200k) is so out of reach for most of us.And it doesn't matter till they give away the trader's profit no matter how.
they're unrealistic, max dd is 10% and the profit target is 10% if you calculate it you must hit 100% to get funded in one month that's crazy
You are wrong bro. That's why you aren't a professional trader.
@@OOOOO0KKKKKKKK ok mr pro , read it again idiot
Bro if your loosing 10% on your account then I dunno for you Ftmo seems easy icl
@@OOOOO0KKKKKKKK he is absolutely correct. You are only allowed to lose 10% but on real account you can lose whatever you have i.e 100% of your account.
people dont understand this. for you to pass the funding, you must treat the max loss as your 100percent
💥🇿🇲💥
When they say you get funed for "$50k", "$100K"...it's not true. You don't have "$100K" to trade with..you have the draw down amount to trade with...That is your account...5K or whatever the drawdown is. So...do you have 5K to trade on your own? You are better off. This is a SIM account anyway, that comes free with most trading firms. So how do you get paid? From the pool of people that pay the fees to do challenges and monthly subscriptions. The goal from the prop firm is to make money on fees/subscriptions/etc. Like they say...90% or more fail.
exactly. cash is cash. greed sets in before people can even trade. even if it were an 80/20 split to THEM, its still money you didnt have. stock up, then leave them if you want.
You cost FTMO and potential traders dearly by giving an uninformed opinion about FTMO. I’m glad it seems as you’ve informed yourself, adjusted your public opinion, and learned from this initial error in judgment. Hopefully, real traders seeking funding that, because of your initial biases weren’t willing to entertain props, will get the opportunity to attempt to get funding from these prop firms. Kudos to you for admitting you were wrong.
Second 😉
Bro could u please sponsor my funded account?? 😅
Help traders then brother
First👍
Being too cynical isn't always profitable.
Guys unless you live in USA and are limited by that crappy low leverage, there is ZERO need to waste your time and trade for other people. Drop the excuse that you don´t have funds, you can open an account even with US$50 and using 1:500, 1:1000 leverage easily flip it into thousands. Don´t make rich people richer, this FTMO process looks like a sort of pyramid scheme. Instead of giving them U$500 - 1000 in qualification fees, just open an account with that money...
This is just the usual commercial for those who pay the gentleman commissions to entice people in need to his sponsor. And of course lose money. Come on, not difficult to understand.
That’s not true. We are not associated with or sponsored by FTMO or any other prop trading company. Never have either.
I made contact with EFX to learn a strategy with a fee of course.. Then they said we can help you get a funded account after about 9 to 6 months. Min $100k. By watching your video, its sounds quite complicated. I feel uncomfortable about it all.... Your feedback would be appreciated...