What is The Funded Trader Standard Challenge? The Funded Trader Standard Challenge gives people who want to become traders a chance to show how good they are and get money to start their journey. The goal of this blog post is to go over all the details of the Standard Challenge, especially after its big update on July 8, 2023. This update adds features, price changes, and virtual add-ons that will change the game. It is important for both new and experienced traders to understand how this program works.
The standard challenge has been changed.
There are the following changes that took place:.
As many stimulated trading days as you want
Since there are no time limits in the Standard Challenge, traders can choose to have as many simulated trading days as they want. With this change, traders can show off their trading skills in a more relaxed and welcoming space.
Prices that are lower and virtual add-ons
Prices for all Standard Simulated Challenge test accounts have gone down because the Standard Challenge has been improved. Traders can now also buy virtual add-ons that make the task more fun and allow them to customize their experience.
Changes to the parameters for simulated loss
By default, the maximum loss that is simulated is set to 10%, and the daily loss that is simulated is set to 5%. Traders can also buy an add-on called “Drawdown,” which raises the simulated maximum drawdown to 12% and the daily loss to 6%. [What is The Funded Trader Standard Challenge]
As a free add-on for demo accounts
You can now buy an EAs (Expert Advisors) add-on for the Standard Challenge, which is a cool new feature. With this option, traders can use EAs on their demo accounts, which makes their trading strategies more automated and effective.
Changes for demo accounts created before July 8, 2023
People who bought demo accounts before the July 8th update will be able to keep the same conditions for their Standard Simulated Challenge trial accounts. In this, a maximum drawdown of 12% is simulated, as well as a daily decline of 6%. The original time frames for Phase 1 were 35 days, and Phase 2 was 60 days. These traders need to understand how the changes will work and what rewards might come from them.
Maximum Daily Drawdown
Maximum Daily Drawdown: 5% (or 6% with the Drawdown Add-On).
The Maximum Daily Drawdown in the Standard Challenge shows the biggest drop in the test account’s value that can happen in a single working day. This math is based on the projected sum or equity, whichever is higher, at 5 p.m. EST, when the day changes.
With this account, the Max Daily Drawdown is set to 5% of the original balance.
Traders can raise this cap to 6% by buying the simulated drawdown add-on.
Reset Time
Every day from 4:57 PM to 5:03 PM EST, the Max Daily Drawdown starts over. To keep things running smoothly, it’s best not to make trades during this time. [What is The Funded Trader Standard Challenge]
The new Daily Breach Level is shown on the dashboard. This is the amount that the account’s virtual equity must stay above in order to avoid a breach.
Maximum Total Drawdown
Maximum Total Drawdown: 10% (12% with Drawdown Add-On)
The maximum total drawdown is a key parameter that shows how much risk a trader is willing to take generally.
This means that for both open and closed positions, the equity must not drop below 90% of the original demo account balance. The default limit is set at 10%.
If you add the drawdown add-on, this cap goes up to 12%, and the virtual equity has to stay above 88% of the initial balance.
The Funded Trader – Standard Challenge Drawdown Examples is give below
Standard Challenge Drawdown Example
How to play the TFT Standard Simulated Challenge
Limit on Challenge Time
There is no time limit on reaching the simulated profit goal in either part of the Standard Simulated Challenge’s two-step evaluation process. Traders can now focus on results instead of meeting strict deadlines, thanks to this change.
Fewest Days of Trading
Participants must trade for at least three days in order to pass the task. This rule makes sure that traders have enough information and knowledge to be properly judged.
No More Free Retries
Since time limits are no longer in effect, you can no longer get free retries for Phase 1 or Phase 2 Standard Challenge test accounts. Now that there are no time limits in the simulation trading period, traders need to plan their strategy. [What is The Funded Trader Standard Challenge]
Goals for Making Money in Each Phase
Simulated Profit Target for Phase 1
Traders have to reach a simulated return goal of 10% in Phase 1. This goal sets the stage for testing a trader’s ability to make money within the challenge limits.
Simulated Profit Target for Phase 2
The simulated profit target for Phase 2 is 5%, which is a little smaller than the previous one. As traders move through the evaluation process, they must show that they can stick to profitable tactics and change them as needed.
Modeled Cases of Drawdown
No Virtual Add-On Bought
If traders don’t buy the virtual Drawdown add-on, the biggest loss they can experience in a day is 5%, and the biggest loss in everything they own is 10%. For risk management during the simulated trading time, it is very important to understand these limits.
When You purchased a virtual add-on
People who buy the virtual Drawdown add-on can take out more money than they originally planned. The maximum daily drawdown is raised to 6%, and the maximum total equity loss is raised to 12% with this add-on. People who trade may evaluate the pros and cons of these higher limits against the extra cost of the virtual add-on.
Virtual Account Switching for Add-Ons
After a good trade, traders may need to change the type of account they have. But clients can’t go from a Standard Challenge that doesn’t have any virtual add-ons to one that does and back again, because that’s against the rules. [What is The Funded Trader Standard Challenge]
The process includes contacting customer service to ask for a refund. It’s important to remember that you can only get your money back if you haven’t made any deals with the account.
Violations and the Results
Any violation of the rules listed above will lead to the demo trade account being closed. Traders who break the rules will not be able to use that account to move forward in the program. An important part of the post is that traders can start over by opening a new demo trading account and joining the program.
Conclusion: What is The Funded Trader Standard Challenge?
Finally, The Funded Trader Standard Challenge is a site that is always changing and growing where traders can show off their skills and get funding. You can also compare all the challenges to make an informed decision. The update on July 8, 2023, makes big changes. It gives you more options, lower prices, and the chance to use virtual add-ons. Traders must get used to the new rules, profit goals, and drawdown scenarios if they want to do well in this difficult but profitable program. Following the rules and knowing what will happen if you don’t are very important for success in the Funded Trader Standard Challenge.
Happy Trading
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