The Apex Trader Funding program offers aspiring traders a unique opportunity to access funded trading accounts without the need to risk their own capital. This comprehensive guide outlines a six-step process to successfully navigate the evaluation phase and secure funding. Whether you are a seasoned trader or just starting, understanding these steps can significantly enhance your chances of success.
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Step 1: Create an Account
The first step in the journey is to create an account with Apex Trader Funding. This process may seem straightforward, but it can become confusing due to the various account options available. You will encounter different plans such as Rithmic, NinjaTrader, and Tradovate. Selecting the appropriate plan is crucial, especially when aiming for the 50k account, which comes with a startup cost of $187 per month.
However, savvy traders can reduce this initial cost. For example, by using a discount code, you could potentially start with as little as $94. This initial investment is relatively low compared to the potential profits you can earn with a funded account, making it an attractive option for many traders.
Step 2: Choose an Account Size
Choosing the right account size is vital for your trading strategy. The 50k account is often recommended due to its balance between profit goals and trailing thresholds. For this account, you need to achieve a profit of $3,000, with a trailing threshold of $2,500. This setup provides a reasonable chance for traders to succeed without excessive risk.
In contrast, opting for a smaller 25k account means that your profit goal is only $1,500, with a trailing threshold of $1,500. While this may seem appealing, the ratio of profit goal to trailing threshold becomes less favorable as account sizes increase. For instance, a 300k account requires a profit of $20,000 but only offers a trailing threshold of $7,500, which can be quite limiting.
Step 3: Understand the Rules
Every funded trading account comes with specific rules that must be adhered to. Understanding these rules is essential for maintaining access to the funds provided by the program. Key rules include a trailing drawdown, daily account liquidation, and a minimum trading period of seven days to pass the evaluation.
The trailing drawdown is particularly important, as it ensures that traders do not engage in excessive risk-taking. Accounts are liquidated at the end of each trading day, meaning that any open positions will be closed automatically. This rule can be a disadvantage for traders looking to swing trade, as it limits their ability to hold positions overnight.
Step 4: Connect Tradovate to TradingView
Effective trading execution is crucial, and connecting your Tradovate account to TradingView can significantly enhance your trading experience. TradingView offers a more user-friendly interface compared to the Tradovate platform, allowing traders to execute orders more efficiently.
Once connected, you can easily monitor your account balance and place trades directly from TradingView. This integration is beneficial for maintaining focus on market analysis and trade execution without the added stress of navigating a less intuitive platform.
Step 5: Set Your Risk Management
Risk management is a critical component of successful trading, especially when working with a trailing drawdown. It’s essential to determine the appropriate amount to risk per trade. A common recommendation is to limit your risk to 1% of your account balance.
For example, if you have a $50,000 account, risking $500 per trade is generally considered acceptable. However, it’s important to remember that the trailing threshold can complicate this calculation. If you experience consecutive losses, your remaining trailing drawdown will diminish, potentially leading to liquidation.
To illustrate, consider a scenario where you risk $500 per trade and encounter two consecutive losses. Your account balance decreases, which also reduces your trailing threshold. This scenario highlights the importance of adjusting your risk management strategy based on your current account status.
Step 6: Execute Without Emotion
The final step is perhaps the most challenging: executing trades without letting emotions dictate your decisions. Maintaining discipline is vital to passing the evaluation. Regardless of your trading strategy or indicators, it’s crucial to adhere to your risk-to-reward ratio and follow your plan without hesitation.
For example, if you identify a demand zone on a chart and plan to enter a long position, stick to your plan. Execute the trade, set your stop loss, and take profit levels, and then allow the trade to play out. Avoid second-guessing your decisions based on emotions, as this can lead to unnecessary losses and hinder your progress.
Conclusion
Successfully passing the Apex Trader Funding evaluation is a significant achievement that can open the door to lucrative trading opportunities. By following these six steps—creating an account, selecting the right account size, understanding the rules, connecting Tradovate to TradingView, setting risk management strategies, and executing trades without emotion—you can enhance your chances of securing funding.
Remember, trading is a journey that requires continuous learning and adaptation. Engage with communities, seek mentorship, and always strive to improve your trading skills. With dedication and the right approach, you can thrive in the world of funded trading.
