At PropFirmMatch, the top firms are distinguished not just by the figures, but by the balance they offer between ambitious profit targets and prudent drawdown limits. Evaluating the top prop trading firms involves a detailed research of several key performance indicators, with the PT:DD (Profit Target to Drawdown) ratio being a critical metric in assessing a firm's financial health and risk management strategy. This ratio reveals the balance between a firm's profit objectives and its tolerance for losses before a stop-out occurs. Firms with a higher PT:DD ratio are seen as favouring a cautious approach, targeting higher returns for each unit of risk they take on. In contrast, a lower PT:DD ratio indicates a firm's inclination towards taking on more risk, with the aim of securing relatively lower profits. Our blog zeroes in on firms offering 100K accounts with a 1-step evaluation, providing a fair and like-for-like comparison based on their PT:DD ratios.
Firms offering 100K Accounts With A 1-step Evaluation Based On Their PT:DD Ratios
The Trading Pit [Ratio: 1:1.25]
Leading the list of prop trading firms with a PT:DD ratio of 1:1.25, The Trading Pit stands out for allowing traders a higher profit relative to their drawdown. The firm, situated in Liechtenstein and having been in operation for a year, offers a specialized 100K 1-step account plan to traders. This plan is supported across various platforms, including MetaTrader 5 (MT5), MetaTrader 4 (MT4) for CFD trading, and niche platforms like ATAS, Quantower, R/Trader, and Bookmap specifically for Futures trading. The account plan is centered around achieving an 8% profit target in its singular phase. Upon meeting this target, traders are rewarded with a 60% share of the profits. Risk management is emphasized with a maximum daily loss limit of 5% and a total drawdown limit of 10%, while the pay-out frequency is established at every 7 days following the first pay-out. Trading Pit offers a range of trading instruments, including Forex, Cryptocurrencies, Indices, Commodities, Shares, and Futures. This extensive selection enables traders to diversify their portfolios and explore opportunities across multiple markets.
Instant Funding [Ratio: 1:1]
Instant Funding, operating from the United Kingdom for one year, presents a balanced PT:DD ratio of 1:1, signalling a firm that places equal weight on profits and drawdowns. Traders are offered a 100K 1-step account plan supported on both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The singular phase plan outlines a profit target of 10%, leading to an 80% share of the profits upon achieving the target. The plan sets parameters of a maximum daily loss limit of 3% and a total drawdown limit of 10%, while the pay-out frequency is set at every 14 days. Additionally, Instant Funding offers access to a diverse portfolio of trading instruments, including Forex, Cryptocurrencies, Indices, and Commodities. This variety allows traders to diversify their trading strategies across different markets.
Glow Node [Ratio: 1:0.85]
Securing the third spot on our list, Glow Node stands out with a PT:DD ratio of 1:0.85. The firm, operating within the United Kingdom and established for a year, provides a 100K 1-step account plan for traders and utilizes MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The account plan is designed with an objective, where traders are tasked with achieving a 10% profit in the singular phase. Upon reaching this milestone, traders are entitled to an 80% profit share. The risk management parameters are in place, with a maximum daily loss limit of 4% and a total drawdown limit of 8%, while the pay-out frequency is set at every 14 days. Glow Node offers trading in a diverse selection of instruments, including Forex, Cryptocurrencies, Indices, Metals, and Oil. This range allows traders to diversify their portfolios and take advantage of various market dynamics.
Maven [Ratio: 1:0.75]
Maven, holding the fourth position on our list with a PT:DD ratio of 1:0.75, presents a 100K 1-step account plan for traders. The firm, based in Canada and having been in operation for a year, uses the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The account plan is structured around an objective, where traders need to achieve an 8% profit. Upon reaching this target, traders benefit from an 80% profit share. Risk management aspect of the plan entails a maximum daily loss limit set at 3% and a total drawdown limit at 5%. The pay-out frequency is set at every 10 days, providing traders with timely returns. Additionally, Maven offers a selection of trading instruments that includes Forex, Commodities, Cryptocurrencies, and Indices. This range allows traders to diversify their trading activities across multiple markets, while managing risk.
For Traders [Ratio: 1:0.67]
Completing the list, For Traders, situated in the United Arab Emirates and operational for less than a year, has a PT:DD ratio of 1:0.67. Their 100K 1-step account plan caters to the needs of traders across various financial markets and is accessible through both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The plan sets a profit target of 9%, with traders entitled to 90% profit split upon achieving this goal. The pay-out frequency is established at every 14 days, while risk management is emphasized through a maximum daily loss limit of 3% and a total drawdown limit of 6%. For Traders offers a broad spectrum of trading instruments, including Forex, Commodities, Cryptocurrencies, Indices, and Stocks, the latter being available as an add-on. The diverse range of options enables traders to explore and capitalize on opportunities across multiple markets.
Summary
In conclusion, the list of top prop trading firms based on PT:DD ratios, as featured on PropFirmMatch, aims to help traders align their investment choices with their risk and profit objectives. The Trading Pit leads with a PT:DD ratio of 1:1.25, Instant Funding and Glow Node present balanced PT:DD ratios, while Maven and For Traders offer plans that have relatively lower profit targets compared to its potential drawdown. As the landscape of prop trading continues to evolve, such metrics become important tools for traders in selecting a firm that not only meets their financial goals but also complements their trading strategy. Moreover, understanding and utilizing the PT:DD ratio becomes vital in selecting a firm that aligns with a trader’s financial strategy and risk appetite.
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