Funding Pips Challenge Analysis

When it comes to choosing a prop firm for trading, it’s crucial to have a clear understanding of the offerings and account rules. Funding Pips is a new player in the market, and in this comprehensive review, we will delve into their evaluation program account rules and explore the Funding Pips challenge programs they offer to traders. By the end of this article, you’ll have all the information you need to make an informed decision about whether you should join a Funding Pips challenge or not.

Funding Pips Funding Programs and Challenges: Rules and Requirements 

Funding Pips Evaluation Program Accounts

Funding Pips offers diverse evaluation program accounts with varying sizes and prices, each designed to identify talented and consistent traders.

Evaluation Program Structure

• Leverage: Trade with 1:100 leverage
• Account Sizes and Prices:
  • $5,000 – $32
  • $10,000 – $60
  • $25,000 – $139
  • $50,000 – $239
  • $100,000 – $399

Evaluation Phases

• Phase One:
  • Objective: Reach an 8% profit target.
  • Limits: Stay within a 5% maximum daily loss and 10% maximum loss.
  • Time Requirements: No minimum or maximum trading day requirements.
• Phase Two:
  • Objective: Reach a 5% profit target.
  • Limits: Same as Phase One.
  • Time Requirements: No minimum or maximum trading day requirements.

Payouts and Profit Split

• Funded Account: Achieved after completing both evaluation phases.
• Withdrawals: Minimum of 1% of the initial account balance.
• Payout Frequency: Initial payout after 5 days; subsequent payouts every 5 days.
• Profit Split: Ranges from 80% to 90%, based on funded account profits.

Evaluation Program Scaling Plan

• Increases: Based on successful payouts and total profit.
• Drawdown Increases: Daily and maximum drawdown increase with successful scaling.

Example Scaling Milestones:

• After 4 Payouts (10% Total Profit):
  • Qualify for a 20% account increase; maximum drawdown increases to 11%.
• After 8 Payouts (20% Total Profit):
  • Qualify for a 30% account increase; daily drawdown increases to 6%, maximum drawdown to 12%.
• After 12 Payouts (30% Total Profit):
  • Qualify for a 40% account increase; maximum drawdown increases to 13%.
• After 16 Payouts (40% Total Profit):
  • Qualify for the Hot Seat with unique benefits.

Hot Seat Benefits

• Double initial account balance
• Personal support and advanced trading tools
• On-demand payouts
• Increased profit split to 90%
• Potential access to $2,000,000 by scaling
• Customized trading conditions
• Monthly bonuses

Monthly Bonuses (Hot Seat Status)

• $5,000 – $100
• $10,000 – $200
• $25,000 – $300
• $50,000 – $400
• $100,000 – $500

Trading Instruments:

• Available Instruments: Forex pairs, commodities, indices, and cryptocurrencies.

Evaluation Program Account Rules:

• Profit Target: 8% for Phase One, 5% for Phase Two; no targets for funded accounts.
• Maximum Daily Loss: 5% for all account sizes (increases to 7% when scaling).
• Maximum Loss: 10% for all account sizes (increases to 14% when scaling).
• No Hedging Allowed: Hedging strategies are not permitted.
• Third-Party Copy Trading and EA Risk: Caution regarding potential denial of funded account/withdrawal if exceeding maximum capital allocation rule.

Understanding Funding Pips Rules

Before diving into the specifics of Funding Pips’ offerings, let’s take a closer look at their evaluation program account rules. These rules play a pivotal role in shaping the trading experience and determining the success of traders within the firm.

Phase 1 and Phase 2 Profit Targets

Funding Pips operates on a two-phase evaluation program. In Phase 1, traders have a profit target of 8%, while Phase 2 has a lower profit target of 5%. However, once traders progress to funded accounts, there are no specific profit targets to meet.

Maximum Daily and Overall Loss Limits

To ensure risk management and protect traders from significant losses, Funding Pips imposes maximum daily and overall loss limits. Regardless of the account size, traders are not allowed to exceed a 5% daily loss. Additionally, there is a maximum loss limit of 10% for all account sizes.

Mandatory Stop-Loss and Time Limit

Traders using funded accounts are required to set a stop-loss on every position before opening a trade. It’s important to note that this mandatory stop-loss rule doesn’t apply to evaluation accounts. The stop-loss must be placed within 30 seconds of executing the position. Failure to do so will result in the automatic closure of the trade. Traders are given two chances to rectify this mistake before their account is closed. It’s worth mentioning that the stop-loss count resets on a weekly basis.

No Martingale or Hedging Strategies

Funding Pips strictly prohibits the use of martingale and hedging strategies while trading. Traders are expected to adhere to this rule to maintain a fair and transparent trading environment.

Highlights of Funding Pips Challenge Programs

Now that we have a clear understanding of the account rules, let’s explore the offerings provided by Funding Pips. These offerings are designed to support traders at different stages of their professional journey, from student to practitioner and ultimately master traders.

Evaluation Process and Support

Funding Pips has developed a comprehensive two-phase evaluation process to assess the trading talents of individuals. This evaluation process is followed by a funded phase, where successful traders receive financial backing to overcome funding challenges. By providing this support, Funding Pips aims to nurture and develop traders’ skills, enabling them to progress in their trading careers.

Advantages of Funding Pips Challenge

Funding Pips prides itself on offering a range of advantages that set them apart from other prop firms. Let’s take a closer look at these key advantages:

Clear Profit Targets

With clearly defined profit targets in both Phase 1 and Phase 2, traders have a tangible goal to work towards. This clarity allows traders to focus their efforts and track their progress effectively.

Risk Management Measures

The maximum daily and overall loss limits implemented by Funding Pips ensure that traders are protected from substantial losses. These risk management measures provide a safety net and help traders maintain a disciplined approach to trading.

Emphasis on Stop-Loss Placement

The mandatory stop-loss rule enforced by Funding Pips encourages traders to prioritize risk management. By requiring traders to place a stop-loss within 30 seconds of executing a position, Funding Pips ensures that trades are protected and potential losses are minimized.

Supportive Evaluation Process

Funding Pips‘ thorough evaluation process, followed by the funded phase, provides traders with the opportunity to showcase their skills and receive financial backing. This support is instrumental in helping traders overcome the financial challenges often associated with prop trading.

Conclusion

In conclusion, Funding Pips presents a compelling proposition for traders looking to join a prop firm. With clearly defined evaluation program account rules and a range of advantageous offerings, Funding Pips aims to provide a supportive and transparent trading environment. By adhering to the rules and taking advantage of the opportunities presented, traders can position themselves for success in the funding challenge. Evaluate your options, consider the rules and offerings, and make an informed decision that aligns with your trading goals.