What is Knight Challenge in The Funded Trader? It’s exciting to start the journey of becoming a funded trader, and the Funded Trader Knight Challenge gives traders a one-of-a-kind chance to show how good they are. We will go into great detail about the Knight Challenge in this in-depth guide.
We will talk about its one-phase evaluation process, simulated profit goals, drawdown rules, and the attractive promise of a quick payout within 7 days of purchasing the Simulated Funded Account. We will also discuss in depth the details of the scaling plan for the Knight Challenge.
It will show funded traders how to increase the size of their simulated accounts based on consistent performance. The scaling plan adds a dynamic factor to the challenge by allowing for higher payouts and changes to the daily drawdown.
So read until the end because I also added my opinion to The Funded Trader’s Knight Challenge. I bet after reading it thoroughly, you have no need to go anywhere searching regarding the knight challenge.
What is Knight challenge in funded trader?
The Funded Trader presents the Knight Challenge, which is a special challenge. It only has one phase of evaluation and gives traders an unlimited number of calendar days to reach a 10% simulated profit target. But to be successful, you have to follow the funded trader knight challenge rules, like staying away from the highest daily simulated drawdown and relative simulated drawdown percentages.
We’ll get into the details of these rules and highlight how important they are for completing the task. [What is Knight Challenge in The Funded Trader]
Simulated Profit Target and Drawdown Rules:
Traders who want to complete the Knight Challenge need to understand what the 10% simulated profit target means. We are going to talk about how this objective can be used to judge trade skills.
Also, it’s important to know the daily and relative drawdown rules so you don’t make mistakes that could get your account closed. Traders get a true simulation of the trading environment with a simulated feed that acts like the real market.
The change to the simulated daily drawdown is an important part of the scaling plan we must keep in mind. The daily drawdown limit goes up from 3% to 4% when scaling. This gives traders the freedom to pick the method that fits their trading strategies and risk tolerance the best.
| Objective | Description |
|---|---|
| 10% Simulated Profit Target | Traders must achieve a 10% simulated profit as a measure of trade skills in the Knight Challenge. |
| Simulated Environment | Trading occurs in a realistic simulated environment, replicating the real market conditions. |
| Daily Drawdown Rules | Daily drawdown limit is 3%, scaling to 4% when scaling, offering flexibility for risk tolerance. |
| Relative Drawdown Rules | Adherence to relative drawdown rules is crucial to prevent mistakes leading to account closure. |
| Scaling Plan | Incorporate the adjusted daily drawdown (3% to 4%) in the scaling plan for strategic flexibility. |
Fastrack payout and additional facility
One of the best things about the Knight Challenge is that you might get paid within 7 days of getting the simulated funded account. This fast payout makes the challenge stand out in its field and gives winners a cash incentive to take part.
The Knight Challenge is the most flexible challenge, with no limits on lot sizes and the option to use EAs and Trade Copiers, which give traders a lot of tools to make their plans work better.
While the Knight Challenge is an easy way to get funded as a trader, breaking the rules can result in the simulated trading account being closed. Traders don’t have to give up because they can start over by opening a new trade account and joining the program. [What is Knight Challenge in The Funded Trader]
Understanding the knight challenge scaling plan
The Knight Challenge stands out because it gives funded traders the chance to make their simulated accounts bigger by following a clear scaling plan. Traders can add 25% of their original demo account simulated balance to the balance of their simulated funded account.
We’ll go over the specifics of this plan and show all the calculations in Google Sheets, which you can see below. When combined with the generous 90% payout split, this scaling plan is great for traders who want to make more money over time.
| Scaling Plan | Description |
|---|---|
| 25% Increase in Simulated Balance | Funded traders can grow their simulated funded account by adding 25% of their original demo account’s balance. |
| Generous 90% Payout Split | With a 90% payout split, traders get a significant share of profits, making the Knight Challenge a lucrative opportunity. |
| Strategic for Long-term Earnings | The scaling plan, coupled with the favorable payout split, provides a strategic path for traders to increase earnings over time. |
The review Process and the criteria for scaling
In this section, we will discuss how simulated funded accounts are reviewed regularly in the Knight Challenge. Every three months, traders can expect a review where their stability and ability to make money are looked at closely.
We’ll go over the requirements for scaling in account size, stressing how important it is to keep making money. Traders must either get a 6% average virtual return over the three months or a 2% virtual return every month during the review period in order to get a 25% increase in the amount of money they started with.
How do I scale an account?
The Funded Trader performs scaling entirely automatically. Just keep in mind that when you make a withdrawal, the account balance must be equal to the starting balance before scaling can happen. This means that the scaling will only happen while you are waiting for a withdrawal. [What is Knight Challenge in The Funded Trader]
Note: Your payout date must be after the mark date. Your virtual account will be able to be scaled from the day you make your first trade. For instance, if you get your simulated funded account on May 1st but don’t make your first trade until May 3rd, your account will be scaled on August 3rd. (period of 3 months)
Scales for simulated daily drawdown and simulated maximum drawdown
With the new initial simulated funding balance, the daily and highest overall simulated drawdown amounts will also be changed.
This means that when the scale goes up by 25%, the daily and highest simulated drawdowns also go up by 25%.The maximum daily drawdown limit exceeds 3% to 4%, while the maximum drawdown is fixed at 6%.
| Drawdown Changes with Scaling | Description |
|---|---|
| Initial Funding Balance Adjustment | Changes in the initial funding balance affect both daily and highest overall simulated drawdowns. |
| 25% Scale Increase | Scaling up by 25% increases daily and highest simulated drawdowns by the same percentage. |
| Max Daily Drawdown Limit | Under scaling, the maximum daily drawdown limit adjusts from 3% to 4% for flexibility. |
| Max Overall Drawdown | The maximum overall drawdown remains fixed at 6%, limiting potential losses during scaling. |
As an example:
The daily simulated drawdown will go from $3K (3% of $100K) to $5K (4% of 125K), and the total simulated drawdown will go from $6K (6% of $100K) to $7.5K (6% of 125K). This happens when the $100K Knight Account that wasn’t equipped with the simulated drawdown add-on is scaled up to $125K.
The daily drawdown will stay at $5,000 (4% of 125K), and the total simulated drawdown will stay at $7500 (6% of 125K). This is the same for a Knight Account with $100K in simulated funds that was bought with the simulated drawdown add-on. [What is Knight Challenge in The Funded Trader]
| Simulated Drawdown Changes with ScalingDescriptionInitial Account BalanceThe $100K Knight Account scales up to $125K, affecting daily and total simulated drawdowns.Daily DrawdownDaily drawdown increases from $3K to $5K (4% of $125K) with scaling.Total DrawdownTotal drawdown increases from $6K to $7.5K (6% of $125K) with the scaled account.Simulated Drawdown Add-OnWith the add-on, a $100K account maintains $5K daily and $7.5K total drawdown when scaled to $125K. |
|---|
The highest possible simulated funded account balance
In simple words, the Knight Challenge gives traders a way to make their simulated trading accounts bigger. In order to do this, traders must make two withdrawals in a three-month period. What’s cool is that every time they take money out, they can make their account 25% bigger. This increase can go up to a ceiling of $1.5 million in simulated funds.
Let’s look at an example: One trader can grow or make each account bigger, starting with two simulated accounts, each with $200,000. After two transfers and scaling, they can make each account with $200,000 grow to $750,000 in a simulated account. If they use the growing plan to its fullest, they can get a total of $1.5 million in a simulated account.
Basically, the Knight Challenge’s scaling plan lets traders gradually increase the amount of money in their fake accounts. This gives them a chance to reach the maximum limit of $1.5 million by strategically withdrawing money and scaling. Click on the below button for all the calculations about scaling that we discussed above.
My Opinion on cracking the knight challenge
Traders need strategies for long-term growth in order to get the most out of the scaling plan. They should apply different trading methods that fit with the Knight Challenge’s goals and retest it again if you fail, until you make sure you make money in the long run, handle the risk well, and understand the dynamics of the market. [What is Knight Challenge in The Funded Trader]
Traders can be successful in the funded trading program for a long time if they understand the details of the scaling plan and use the tested trading strategies very well.
Conclusion: What is Knight Challenge in The Funded Trader?
Finally, the Knight Challenge scale plan makes the path to becoming a funded trader more interesting. The program pushes traders to not only show off their skills but also their consistency and ability to make money.
It does this by giving them strategic growth chances, daily drawdown adjustments, and a thorough review process. Participants can get through the challenges offered by The Funded Trader and reach the full potential of their funded trading journey by knowing the details of the scaling plan and using effective trading strategies.
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Read also: “Unlocking Profits: A Comprehensive Guide on How does The Funded Trader Pay You”
I’m a seasoned trader with over 3 years of experience in financial markets. Throughout my journey, I’ve navigated various market conditions and developed my skills in trading strategies, risk management, and market analysis. Now I am also developing myself as a good digital marketer.