Summary of "How To Pass A Funded Account 101"

The video "How To Pass A Funded Account 101" provides a clear and practical guide on how traders can successfully pass a funded trading account, which allows them to trade with significant capital and earn payouts. The presenter emphasizes the importance of preparation, discipline, and strategy to avoid common pitfalls that lead to failure.

Main Financial Strategies and Business Trends:

Passing funded accounts is highlighted as a fast and efficient way for traders to access large capital without starting with significant personal funds.
Funded accounts require traders to demonstrate consistent profitability, disciplined Risk Management, and adherence to strict trading rules.
Prop firms enforce strict drawdown limits and contract size restrictions to minimize risk and ensure traders are genuinely profitable.

Key Methodology / Step-by-Step Guide to Pass a Funded Account:

Be Profitable
- Prove profitability on a demo account before attempting a Funded Account.
- Aim for consistent profitability over at least three months.
- Target a 10% gain per month using sound Risk Management.
- Avoid purchasing funded accounts if previous attempts or live accounts have consistently failed.
Have a Trading Plan
- Define when you trade: focus on high volatility sessions like New York or London, avoid low volatility times like the Asian session.
- Define what you trade: specialize in a limited number of pairs or instruments to master their behavior.
- Define how you trade: have a clear entry and exit strategy, understand your edge, and execute trades consistently.
- Avoid random or excessive trading across multiple pairs or sessions.
Risk Management
- Understand and adhere to the Prop Firm’s daily and total drawdown limits (typically a 3-5% daily drawdown and 10-12% total drawdown).
- Risk no more than half of the daily drawdown limit per day (e.g., if daily drawdown is 5%, risk max 2.5% per day).
- Allocate risk per trade based on the number of trades you plan to take (e.g., if 5 trades/day, risk 0.5% per trade).
- Account for slippage, spread, and discrepancies between charts and broker prices.
- Avoid “full porting” (losing the entire account) by strict adherence to risk limits.
Psychology
- Maintain confidence in your Trading Plan and Risk Management.
- Avoid fear, greed, and overconfidence.
- Be disciplined: stick strictly to your trading and Risk Management plans.
- Be able to ride trades to their logical conclusion (take profits or accept stop losses without panic).

Summary of the Core Formula:

Profitability + Trading Plan + Risk Management + Psychology = Passing a Funded Account

The presenter stresses that many traders fail because they skip foundational steps like proving profitability or having a plan, and instead rely on hope. He shares personal experience of losing multiple funded accounts due to lack of preparation and urges viewers to develop the necessary skills first.

Presenter:

The video is presented by an experienced trader who also owns a Prop Firm, sharing insider knowledge about funded accounts and prop trading rules.

This video serves as a foundational tutorial for traders aiming to pass funded accounts by focusing on consistent profitability, disciplined planning, strict risk control, and strong Trading Psychology.