Audacity Capital Ability Challenge Analysis

Looking to join the Audacity Capital Ability challenge? Then you’ve come to the right place.

We have explained the rules and requirements of the Ability challenge and shared some useful tips for passing the program. Let’s get started:

Terms of Audacity Capital Ability Challenge

Here are the basic rules of the Audacity Capital Ability challenge :-

	Challenge	Verifications	Live Account
Period	Unlimited	Unlimited
Minimum Trading Time	4 Days	4 Days	4 Days
Maximum Dally D.D	7.5%	5%	5%
Maximum Absolute D.D	15%	10%	10%
Target	10%	10%
Profit Share	–	–	Upto 85%

Audacity Capital’s ability challenge account is designed to find traders who demonstrate solid and disciplined trading strategies. These traders are awarded based on their performance during the two-phase evaluation period. The capacity for challenge offers the opportunity to engage in trading with a leverage ratio of 1:100.

Account Size	Price
$15,000	$129
$30,000	$189
$60,000	$339
$120,000	$459
$240,000	$779
$480,000	$1,559

In the first part of the ability challenge, traders must achieve a profit objective of 10% without exceeding their maximum daily loss limit of 7.5% or the maximum loss limit of 15%. 

To advance to phase two on their ability challenge account, individuals must engage in trading for a minimum of four consecutive calendar days and achieve their profit target within an unrestricted trading period.

In the second part of the ability challenge, traders must achieve a profit objective of 10% without exceeding their daily loss limit of 5% or the overall loss limit of 10%. To advance to funded status on their ability challenge account, customers must engage in trading for a least 4 consecutive calendar days and achieve their profit target within an unrestricted trading session.

Upon completing both phases of the ability challenge, participants are granted a funded account that does not need them to meet any profit targets. They are obligated solely to adhere to the regulations of a 5% cap on daily losses and a 10% limit on overall losses. 

The initial payment will be sent 30 days after the individual open their first position on their funded account. To comply with the current regulations, it is necessary to engage in trading for a minimum of 4 consecutive calendar days, using constant lot sizes. Their profit allocation will be 75% of the profit generated from their financed account. 

However, if they manage to get a minimum of 10% profit throughout a one-month trading term, their profit share will be elevated to 85% just for that particular trading month.

Audacity Capital Ability challenge Account Scaling Plan

The ability to challenge accounts also possesses a scaling strategy. Traders can increase the size of their accounts every three months, with a maximum limit of $2,000,000. 

To accomplish this, it is necessary to attain a monthly profit of over 2.5% and ensure that the trader has received at least one payout.

The trading products available for challenging accounts include currency pairings, commodities, along indices.

Audacity Capital Ability Challenge Account Rules

Profit target: It is a predetermined percentage of profit that a trader must achieve to successfully finish an evaluation phase, extract earnings, or increase the size of their account. The profit target for phase one is set at 10%, whilst for phase two it is set at 5%. Funded accounts do not have predetermined profit objectives.

Maximum Daily Loss: It refers to the most amount of money a trader can lose in a single day without violating the account’s limits. In phase one, the maximum daily loss restriction is set at 7.5%. In phase two, it is reduced to 5%. Furthermore, a 5% maximum daily loss limit applies to their funded account.

Maximum Loss: The most amount of financial loss that a trader can experience before their account is breached. The loss threshold is capped at 15% during phase one, 10% during phase two, and 10% for their funded account.

Minimum Trading Days: The shortest duration during which they must engage in trading activities before they are eligible to conclude an assessment phase or make a withdrawal. Both the ability challenge phases and the funded account require a minimum of 4 trading days.

No News trading: This refers to the restriction imposed on traders, preventing them from engaging in trading activities during periods of significant news releases. News trading is only permitted during the two ability challenge phases.

Weekend holding: This refers to the prohibition of traders from maintaining open positions over the weekends. Please be aware that weekend holding might be arranged upon request. Individuals are only allowed to maintain positions over the weekend throughout both ability challenge phases.

The Consistency Rule: It mandates that traders maintain uniform position sizes, implement effective risk management strategies, and manage both losses and gains consistently. Implying that the attributes of the account outcomes should not exhibit significant variations.

Audacity Capital Ability Challenge: Tips for New Traders

As a highly experienced forex prop trader, I’ve navigated numerous challenges and learned valuable lessons along the way. Here are some key tips to help you, as a beginner, increase your chances of winning the Audacity Capital Ability challenge:

1. Understand the Rules Inside Out

Before you start trading, make sure you fully understand the challenge’s rules. Know the profit targets, maximum drawdown limits, and any trading restrictions. This knowledge allows you to tailor your trading strategy to fit within these parameters, maximizing your chance of success.

For example, unlike many prop challenges, the Audacity Capital Ability challenge doesn’t have a time limit. This means you can focus on strategies which are solely focused on reaching the target profit without the time restraint.

2. Develop a Solid Trading Plan

A well-thought-out trading plan is crucial. This should outline your trading strategy, risk management rules, and how you plan to achieve the challenge’s goals. Decide on the currency pairs you’ll focus on, determine the best times to trade, and establish how you’ll manage losses. Your trading plan should be your blueprint throughout the challenge.

3. Prioritize Risk Management

The most common reason traders fail prop challenges is not due to lack of profitable trades, but because they fail to manage risk effectively. Set strict rules for how much of your account you will risk on a single trade and stick to it. Use stop-loss orders to protect each trade, and remember, preserving your capital is as important as making profits.

4. Start Small and Scale Gradually

Resist the temptation to take large positions early on. Start with smaller trades to get a feel for the market and the challenge conditions. As you become more comfortable and accumulate profits, you can gradually increase your trade size, always adhering to your risk management rules.

5. Keep Emotions in Check

Trading can be an emotional rollercoaster, especially in a high-stakes environment like a prop trading challenge. It’s essential to maintain discipline and not let emotions drive your trading decisions. Whether you’re on a winning streak or facing losses, stick to your trading plan and risk management rules.

6. Learn from Every Trade

Maintain a trading journal where you document each trade, including your rationale, the outcome, and any lessons learned. This practice can be incredibly insightful, helping you to refine your strategy and avoid past mistakes.

7. Stay Informed

Keep abreast of market news and events that could impact currency movements. Economic indicators, geopolitical events, and central bank decisions can all cause volatility in the forex market. Use this information to make informed trading decisions.

8. Leverage Educational Resources

Many prop firms offer educational resources, webinars, and mentorship programs. Take advantage of these to enhance your trading knowledge and skills. Learning from experienced traders can provide valuable insights that you can apply to your own trading.

9. Practice Makes Perfect

Consider practicing your strategy on a demo account before taking on the challenge. This can help you refine your approach and get accustomed to the trading platform without any risk.

10. Stay Persistent and Learn from Failure

Even experienced traders face setbacks. What sets successful traders apart is their ability to learn from failures and persist. If you don’t succeed in your first challenge, analyze what went wrong, adjust your strategy, and try again.

Winning a prop trading challenge as a beginner is certainly challenging, but with diligent preparation, a disciplined approach, and continuous learning, you can significantly increase your chances of success. Remember, every trader’s journey is unique—focus on developing your skills and finding a strategy that works best for you.

Audacity Capital Ability Challenge: Conclusion

The Audacity Capital Ability challenge has easy to follow rules and a great trading platform to work with. You can start small and climb your way up to millions in funding.

What are your thoughts on the Ability challenge? Let us know in the comments.