MyFundedFX and E8 (E8 Pro V.1) have introduced a groundbreaking prop model, marking a significant departure from traditional trading models. This new model has sparked mixed reactions across the trading community, with a notable 60% expressing dissatisfaction according to a recent tweet here.
Detailed Breakdown of MyFUndedFX 1 Step Max
1. Profit Targets and Structure
- PHASE 1: The profit target is set at 8%.
2. Daily and Maximum Drawdown
- Soft-Breach Daily Drawdown (DD): Both PHASE 1 and the FUNDED stage enforce a 2% balance-based soft-breach daily drawdown limit. Reaching this limit halts trading for the day without penalizing the trader’s account status.
- Static Max Drawdown (DD): An 8% drawdown limit is consistent across both phases, ensuring that traders keep losses within a manageable range.
3. Profit and Trading Controls
- Max Daily Profit: A 2% cap on daily profits applies in both stages, aimed at discouraging high-risk trades.
- News Trading: Allowed during PHASE 1 to leverage market volatility but is restricted in the FUNDED stage to maintain risk control.
- Leverage: Consistent leverage of 1:100 is provided in both stages, balancing opportunity with risk.
4. Operational Flexibility
- Time Limit: Traders can progress at their own pace without a deadline, reducing the pressure associated with time-bound challenges.
- Payout Time: Profits are paid out within 7 days.
- Profit Split: Traders receive 80% of the profits.
5. Trade Holding Options
- Overnight and Weekend Holding: Both stages allow traders to hold positions overnight and through weekends, offering flexibility to strategize over longer periods.
This model could signify a pivotal shift towards sustainable trading practices. The traditional high-risk, high-reward approach is giving way to a model that promotes long-term stability. While the cap on daily profits might deter high-frequency, high-volume traders, it offers a structured and less volatile environment for serious traders focusing on sustainable growth.
The MyFundedFX 1 Step Max model, combined with the changes introduced by the new proprietary trading models, sets a precedent for future industry practices focused on sustainability. The capped profit and drawdown limits could become industry standards, aligning with broader financial regulations and risk management principles. This shift might redefine what it means to succeed in proprietary trading, emphasizing steady gains over speculative spikes.
