Hey Prop Traders, here’s are some valuable tips, terms explained and prop firm news for November 9, 2024

✂️ BEST NOVEMBER PROP FIRM DISCOUNTS

• THINK CAPITAL 10% DISCOUNT (CODE: BK10)

• AXI SELECT 100% FREE FUNDED TRADER PROGRAM

• APEX TRADER FUNDING 80% OFF FUTURES PROP

• THE5ERS EXCLUSIVE 5% DISCOUNT

📌 PROP FIRM TRADING TIPS

Instant Funding Pitfalls: The Lessons from Fast Track Trading

With the sudden collapse of Fast Track Trading (FTT), the trading community is reminded of the pitfalls inherent in instant funding prop models that promise fast access to capital with ultra-low fees. This event has highlighted the attractiveness of broker-powered prop firms like ThinkCapital, Axi Select, Hantec Trader, Oanda Prop, IC Funded, and DNA Funded—with established financial support, management with extensive experience, and a vested interest in maintaining a solid reputation, broker-backed firms have a greater commitment to responsible funding models and trader protection. ✅

🚨 Too Good to Be True: FTT, a prop firm that launched just six months ago, attracted a surge of traders with its low fees and instant funding. But warning signs appeared quickly. The CEO’s erratic behavior on social media, paired with payout delays exceeding 30 days for some traders, raised serious doubts about the firm’s sustainability and reliability.

💸 The Instant Funding Trap: Instant funding models eliminate the lengthy assessments that typically ensure traders are experienced and profitable before going live. For traders, this quick access is enticing, but for firms, it’s a risk. Without sufficient screening, firms often face an influx of inexperienced traders who quickly blow up accounts, causing financial strain and destabilizing cash flow. This approach often leads to an unsustainable cycle that becomes evident when payouts slow, or, as with FTT, cease altogether.

📉 Unsustainable Math: Low fees and high payout promises can lead to a cash crunch, especially for newer firms without deep financial backing. FTT’s rapid growth became unsustainable, eventually leaving hundreds of thousands of dollars unpaid when the firm abruptly shut down. With social media accounts and the website deleted, many traders fear their funds have vanished permanently, leading to widespread outrage. 💡

The Lesson for Traders: This incident underscores the importance of trading with established firms that are built for long-term success. Broker-powered prop firms like ThinkCapital are held to high standards because they have a reputation to uphold. For firms like ThinkCapital, powered by global broker ThinkMarkets, the brand and regulatory standing are too valuable to jeopardize with unsustainable models or unreliable payout processes. Unlike smaller, unverified firms, they can’t risk the ire of regulators or the loss of trader confidence.

🌟 ThinkCapital also offers a better experience for traders. Its advantages include a swift 48-hour payout, a 90% profit share, and a scaling program that supports traders in growing their accounts to $1 million.

💰 With accessible platforms like TradingView and MT5, ThinkCapital caters to both US and non-US traders. It also offers flexible trading options, allowing news trading, the use of Expert Advisors (EAs), and trade copying.

With transparent, trader-friendly policies, ThinkCapital exemplifies the commitment broker-powered firms bring to the table, making them a reliable choice in a market where stability is paramount. 🛡️

Why Trade Prop with Think Capital

📌 PASS THE PROP TRADING TIP

What is Backtesting?

Backtesting is like a practice round for your trading strategy 🎯. You apply your trading rules to past market data to see how your strategy would have performed 📈, helping you gain confidence and insight before putting real money on the line 💵.

How it Works

• Set Rules: Define your trading signals, like “buy when price crosses above the moving average” 📊.

• Run the Test: Apply these rules to historical data, either with software or manually 🔍.

• Review Results: Check how often the strategy was profitable, the size of gains and losses, and overall consistency 📋.

Pros 👍

• Gauge Profitability: Discover if your strategy has potential without risking real money 💰.

• Understand Risk: Spot potential losses and drawdowns, preparing you mentally and financially 🧠.

• Optimize Parameters: Adjust your strategy’s settings to improve performance ⚙️.

• Save Time and Money: Avoid costly trial and error in live markets ⏱️.

Cons 👎

• Risk of Overfitting: Making your strategy “perfect” for the past might mean it won’t work in the future 📉.

• Market Changes: Just because it worked historically doesn’t guarantee future success 🔄.

• No Emotional Factor: Backtesting doesn’t capture the emotions you’ll feel when trading live 🫣.

Bottom Line

Backtesting is essential for evaluating a strategy’s potential but not foolproof. Done wisely, it boosts confidence and refines your approach 🎯. Just remember, past performance isn’t a guarantee of future success 🚀.

🥇 BEST FOREX/CFD PROP (US & NON-US TRADERS)

📋 BROKERS OFFERING PROP TRADING

1. ThinkCapital - SAVE 10% with BK10 code

2. Axi Select

3. IC Funding

4. Oanda Prop

5. Hantec Trader