Truth Behind Prop Firms- A Recent Analysis Based on Statistics!

In our conversation today, we will shed light on the intricate challenges traders face in prop trading

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Hello, everyone. We’re always working really hard to present you guys with reputable and trustworthy prop trading firm options within the industry. As you know, we cover and provide you guys with in-depth reviews of some of the leading proprietary trading firms, daily prop news, special discount codes, prop fact articles regarding specific aspects within the prop firm industry, prop comparisons, and so much more. Today, we will shed light on the intricate challenges traders face in the ever-evolving world of proprietary trading, Truth Behind Prop Trading Firms. A comprehensive review of leading firms, including My Forex Funds and The Funded Trader, has provided a nuanced understanding of the industry. The analysis delves into the heart of prop trading, offering traders invaluable insights into success strategies and pitfalls to avoid. So, let’s take a look at the Truth Behind Prop Trading Firms.

Truth Behind Prop Trading Firms

So, during the month of Feb 2022, My Forex Funds distributed a total of $6,202,218. Now, this is with all of their funded Traders, with the largest payout being $53,708. But looking at the fact that this was recorded a year and a half ago, when it comes to the passing rate, only 31% of traders who purchased an evaluation with My Forex Funds managed to get through phase one. 45% of the traders successful in Phase One managed to also pass Phase Two and then successfully become funded.

Within that month of February, they recorded 7,000 newly funded traders. Now, with the numbers that they have gathered, we can calculate that only 3.5% percent of the traders who successfully passed the second evaluation phase and became funded managed to receive their first profit split. This means that, in total, only 0.28% of individuals who decided to join the My Forex Funds evaluation program managed to secure themselves with a refund and earned the first withdrawal of their profits. 

Notably, 74% of traders who joined The Funded Trader failed their challenge in the first week, while an additional 14% of Traders failed their challenge in the second week of trading. This statistic shows us that approximately 88% of Traders fail their evaluation challenge within the first two weeks of trading, and one of the reasons behind the results is the time pressure that is set with the maximum trading period during each evaluation phase. 

The Second Statistics- Truth about Prop Firms?

Now, the second statistic is the comparison between challenge accounts failing due to a daily drawdown breach and the maximum drawdown breach. Interestingly enough, though, over 68% of Traders fail due to them breaching the daily drawdown rule, showing that most Traders lack an efficient risk management plan or just the discipline to follow it.

Another statistic that was covered was how long Traders keep their funded accounts on average. So approximately 48% of traders that had a funded account with The Funded Trader bailed their account in the first week of trading, and an additional 14% in the second week, showing us that around 62% of Traders lose their accounts within the first two weeks of trading, resulting in them not receiving their refund or first withdrawal on their newly funded account.

More Interesting Facts- The Funded Trader Statistics

Additionally, traders who make it past the first two trading weeks on their funded accounts enjoy a higher rate of success due to the fact that they avoid gambling and stick to their predetermined risk management plan like every disciplined Trader should.

And lastly, the statistic that everyone has been looking forward to is the pass rate of phase one, which was 31%. However, keep in mind that after passing phase one, there’s also phase two and the funded stage, in which you have to generate a profit to be eligible for your first payout. So, it’s by no means an easy task after successfully completing phase one.

Well, this is not even the Tip of the Iceberg. There is a lot you need to know, so why don’t you watch the full Video:

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