Funded Trading Fundamentals

Summary

This meeting discussed the fundamentals of funded (prop) trading, specifically how challenges and profit splits work, key rules to pass challenges, and strategies for risk management and profitability.
Dan Chang (Champ) provided step-by-step guidance for selecting an account, passing the evaluation, and building a sustainable trading plan, drawing on personal experience and student case studies.
The session emphasized the importance of discipline, journaling, and continuous education to achieve success as a funded trader.
The meeting concluded with encouragement for traders to persevere, invest in their education, and leverage community resources to maximize their chances of long-term profitability.

(no date – Dan Chang): Make the trading strategy worksheet, risk plan, and to-do list available for free download as referenced in the presentation.
(no date – Dan Chang): Provide details and sign-up information for the trading course/waitlist in the relevant channels as mentioned.
(no date – Interested attendees): Review educational resources and consider joining the trading community or course as desired.

Funded (prop) trading allows traders to trade with larger simulated accounts after passing an evaluation challenge for a fee.
Profit splits range from 80% to 100% of profits after passing, with no hidden "catch" other than the challenge fee and the inherent difficulty of maintaining profitability.
Account sizes and challenge fees vary, but the percentage goals and loss limits are typically consistent regardless of size.

Common challenge format (e.g., FTMO): two-phase evaluation with specific profit targets (+10% in phase one, +5% in phase two) and strict maximum loss rules.
Minimum trading days often apply; no maximum time limit is set, but strong discipline is required.
Passing both phases grants access to a funded account with profit splits; other firms (like CK Capital) may offer lower profit targets or different drawdown buffers, catering to different trading styles.

Choose a challenge/account size based on personal risk capital and likelihood of needing multiple attempts (e.g., 10% rule – only 10% of traders succeed).
Match challenge structure (profit target, drawdown limits) to personal trading style (scalping, swing trading, etc.).
Carefully review account size, cost, and rules before committing; consider both standard and swing options where available.

With consistent risk management (e.g., risking 1% per trade, aiming for 2:1 risk/reward), a trader can model potential annual incomes at various account sizes.
Example: a $100,000 account, trading with a 40% win rate and 1:2 risk/reward, could potentially earn $8,000/month or $96,000/year, assuming consistency and no rule breaches.
Demonstrated potential via case studies and student performance journals; importance of realistic expectations is emphasized.

Success requires a comprehensive trading plan ("trading playbook") covering strategy, psychology, and ongoing performance measurement.
Steps include: thoroughly testing a proven strategy, maintaining consistent journaling (to review wins/losses and accountability), and actively engaging with a supportive community.
Importance of regular review and adaptation based on individual performance and psychological resilience.

Two main risk management plans:
1. Static Risk: Risk the same (e.g., $1,000) per trade regardless of outcome for simplicity and clear performance tracking.
2. Dynamic Risk: Begin with higher risk per trade, then reduce risk after losing streaks to prolong account life and reduce drawdown, capping total risk exposure.
Recommendation: Use static risk for early challenges to focus on process; advanced traders can apply dynamic risk to maximize funded account longevity.

Success in prop trading demands clear expectations, passion, and persistence; giving up is the only true failure.
Education (courses, webinars, mentorship) is an investment; traders are encouraged to learn from multiple sources and build their own adaptable routine.
Community, journaling, and regular review are essential tools for improvement.
Promotional note: Access to tools, courses, and community resources offered for those interested, with limited spots and further details provided through the presenter's channels.

Promote disciplined, strategy-based trading with robust risk management — Rationale: Consistency and self-accountability are cited as the fundamental factors determining long-term success in funded trading.
Launch or promote trading course/waitlist — Rationale: Ongoing education and community support are considered crucial to help attendees become and remain profitable.

Will additional detailed materials (e.g., worksheets, to-do lists) be distributed to all meeting attendees directly, or only via the public links mentioned?
Are there plans for follow-up webinars or Q&A sessions to address implementation challenges as attendees progress?