Welcome to today’s blog post, where I will outline my Prop Firm Trading Plan for managing over $1.3 million in funded accounts through Prop firms. In this blog post, I’ll share the details of my plan, including the costs involved and the estimated timeline to achieve this goal. If you’re ready to learn, let’s dive in!
Prop Firm Trading Plan: Introduction and Background
My name is Petko Aleksandrov, and I’ve been an active trader for the past 10 years. In previous videos, I have discussed how I utilize Expert Advisors to pass Prop firm challenges like FTMO. I’ve demonstrated my success in completing the FTMO challenge and verification with the EAs I create, and subsequent trading in a funded $10,000 account using the Waka Waka Expert Advisor. However, the quickest way to reach over $1 million in funded accounts is through different Prop firms.
Diversification and Portfolio Building
Just like investing in stocks, diversification is essential when it comes to Prop firm challenges and funded accounts. It is unwise to concentrate all your efforts and capital in a single company. Therefore, my plan is to pass one Prop firm challenge every month, collaborating with various firms. By doing so, I will gradually build a diversified portfolio of different accounts across different Prop firms.
Prop Firm Trading Plan: Realistic Steps to Build a $1.3 Million Portfolio
In this section, I will provide you with a realistic blueprint to construct a portfolio consisting of $1.3 million in funded accounts. Before proceeding, please note that I won’t cover the details of passing challenges in this blog post, as I have already addressed that in my previous videos on YouTube.
The Importance of a Trading Plan
To achieve success in Prop firm trading, it is crucial to have a well-defined trading plan. This plan should outline your goals, risk tolerance, and trading strategies. I highly recommend creating a comprehensive trading plan that encompasses both manual and algorithmic trading methods. It will serve as a roadmap on your journey to building a substantial portfolio.
Prop Firm Trading Plan: Utilizing Proven Trading Systems and Expert Advisors
As part of my trading plan, I have developed proven trading systems that combine manual and algorithmic approaches. These systems have helped me pass Prop firm challenges successfully. To further support your trading journey, I offer an FTMO course where I share these systems and provide Expert Advisors that can assist you in passing challenges.
Managing Costs and Time frame
Now, let’s discuss the costs and time frame associated with building a $1.3 million portfolio through Prop firm trading. As you progress through different challenges and accumulate funded accounts, you will encounter costs such as challenge fees, profit splits, and subscription fees for trading platforms or Expert Advisors. It is essential to factor in these expenses while formulating your plan.
Prop Firm Trading Plan: Tracking Progress and Adjusting Strategies
Throughout your journey, it is crucial to track your progress and evaluate the performance of your trading strategies. Regularly reviewing your trading plan and making adjustments when necessary will help you stay on track towards your goal. Keep in mind that trading is a dynamic process, and adapting to changing market conditions is vital for long-term success.
Introducing the Waka Waka Expert Advisor
Before we explore the Prop firm challenges, let me introduce you to the Waka Waka Expert Advisor. This fully automated trading system has been successfully trading in my $10,000 FTMO funded account, generating a profit of $42. The Waka Waka Expert Advisor will play a crucial role in my trading plan as I intend to utilize it across different Prop firm challenges once I secure funding. Manual trading across multiple accounts can be overwhelming, and employing an automated system helps maintain consistency and efficiency.
Prop Firm Trading Plan: The Trading Pit Challenge:
Now, let’s delve into the Trading Pit, my next target challenge. I have opted for the 100,000 Euro account, which is the largest available option. At the time of recording this video, the cost stands at around a thousand Euro. Moreover, the advantage of this challenge is the extended duration of 90 days, providing ample time for trading activities. In Phase one, the profit target is set at 8%.
Notably, the features of the Trading Pit challenge include a static 3% daily drawdown, a maximum drawdown of 10%, and leverage of 1 to 30. Excitingly, the Profit Share can reach up to 80%, while the Max capital Growth can potentially reach an impressive $700,000. Additionally, the Trading Pit allows for scalability up to a staggering $5,000,000, which presents remarkable opportunities for growth.
Alternative Options: Futures Challenge
For those interested in Futures trading, the Futures Challenge presents a viable alternative. This challenge offers different pricing, which is comparatively cheaper, and provides a larger challenge account balance. However, given my specialization in Forex trading, I will be focusing on the VIP challenge account specifically tailored for Forex Trading.
Prop Firm Trading Plan: Prop Firm Overview:
Let’s now explore the different Prop firms I plan to engage with, along with their associated costs and funded account sizes.
- The Trading Pit: For this Prop firm, I have chosen to invest 999 Euro. Successfully passing this challenge will result in a funded account of 100,000 Euro.
- FTMO, the second Prop firm on my list, offers a $200,000 account for a cost of 1080 Euro. Similarly, to my experience with the $10,000 Challenge, successfully completing this challenge will result in an additional 181,000 Euro added to my funded portfolio.
- My Forex Funds: Moving forward, I will be taking on the Forex funds challenge, where the largest account available is $300,000. The associated cost for this challenge is 1389 Euro, providing an opportunity to secure a funded account of 272,000 Euro. Phase one targets an 8% profit, while Phase two aims for a 5% profit.
- True Forex Funds: The fourth Prop firm on my journey is True Forex Funds. Upon examination, the largest account size available here is 160,000 Euro. The initial payment required for this account is 998 Euro.
- The Trading Capital: Finally, I will be considering Тhe Trading Capital, a well-known Prop firm based in the US. Their biggest account offering is $500,000, equating to 454,000 Euro. This evaluation ranges from $50,000 to $500,000. The associated fee for this account is approximately 1800 Euro, based on the current EURUSD price.
Additional Cost: Waka Waka Expert Advisor:
In addition to the challenge fees, I want to highlight another expense: the Waka Waka Expert Advisor. At the time of writing this blog post, the cost of the Expert Advisor is $1980. However, this purchase provides me with 10 activations, of which I have already used two. I utilized one activation for testing purposes on a demo account, and the second one for trading my 10K FTMO funded account. Therefore, I have sufficient activations remaining for the other funded accounts.
Backtesting the Waka Waka Expert Advisor:
Now, let’s examine the backtest results of the Waka Waka Expert Advisor. I will simulate the trading of a combined balance of $1.3 million, which represents the hypothetical scenario of having all the funds in a single account. Using the data from April 2022 to April 2023, let’s analyze the approximate performance of the Expert Advisor over one year. Moreover, the backtest will provide valuable insights into the potential profitability of the system.
Prop Firm Trading Plan: Steady and Automated Trading:
For those who missed my previous review of the Waka Waka Expert Advisor and its application on my FTMO funded account, I have included a link in the description below. It’s important to note that this Expert Advisor is reliable and fully automated. It consistently generates stable profits while adhering to the rules and regulations of FTMO, the Trading Pit, or any other Prop firm that I choose to utilize. This ensures compliance and compatibility with the objectives of different Prop firms.
Backtest Results and Profitability:
Upon examining the backtest, we can observe a minor drawdown. However, overall, the report reveals a profit of approximately $116,000 over the past year. This equates to a respectable return of nearly 10%. Achieving such consistent and automated profit with a sizeable account demonstrates the effectiveness of the Waka Waka Expert Advisor. Moreover, this performance aligns with the trading goals and expectations of various Prop firms.
Prop Firm Trading Plan: Starting Small and Growing:
If you are new to Prop firms, I recommend avoiding jumping into high-risk challenges right away. Instead, consider starting with a free trial or small-scale challenges. For instance, if you have a thousand dollars available for Prop firm challenges, it would be wise to divide that amount into smaller challenges until you become comfortable with the trading system. This allows you to carefully select the Expert Advisor or manual strategy that best suits your preferences and trading objectives.
Realistic Expectations and Calculating Costs:
The purpose of this video was to demonstrate the importance of structuring a well-defined trading plan. By accurately calculating the costs and expenses associated with each challenge, selecting an appropriate Expert Advisor for the funded account, and successfully completing the challenges, you can develop realistic expectations regarding potential earnings.
Prop Firm Trading Plan: Conclusion:
Creating a profitable Prop firm trading plan requires careful consideration of various factors. Additionally, diversifying across multiple Prop firms, incorporating reliable Expert Advisors, and starting with manageable challenges contribute to long-term success. By analyzing backtest results, considering performance metrics, and calculating associated costs, you can ensure a well-informed approach to prop firm trading.