The5ers Challenge Analysis

Looking into the5ers challenge? This guide will help you get started.

The5ers (aka The Five Percenters) is an excellent prop trading firm which allows you to utilize MetaTrader4 along with various trading techniques to get funded easily. This detailed guide will explain the

The5ers Funding Programs and Challenges: Rules and Requirements 

The5%ers provides traders with a selection of three distinct programs to select from:

• Instant funding program accounts
• High-stake challenge
• Bootcamp program account

1. Instant Funding Program Accounts

Apply For	$10,000	$20,000	$40,000
Evaluating Funding Capital	$5000	$10,000	$20,000
Evaluation Target	10%	10%	10%
Stop Out	6%	6%	6%
Daily Pause	3%	3%	3%
Profit Split	Up to 100%	Up to 100%	Up to 100%
Time Limit	12 Months	12 Months	12 Months
Leverage	1:30	1:30	1:30
One Time Fee	$260	$450	$850
Bonuses	From $15	From $25	From $50
	Sign Up	Sign Up	Sign Up

The Instant Funding Program offered by The5ers allows traders to bypass the evaluation process entirely and commence generating profits right now. It is advisable to concentrate solely on adhering to the 3% daily pause & 6% maximum loss regulations. It is important to be aware that there are no specific trading day limits for completing level 1. Anyone will receive profit splits ranging from 50% to 100% depending on the profit they generate through trading with a leverage ratio of 1:30.

Instant Funding Program Account Scaling Plan

Program Level	Account Balance	Profit Split	Bonus
Level 1	$5,000	50%	$15
Level 2	$10,000	75% (50% if starting account size)	$50
Level 3	$20,000	75% (50% if starting account size)	$100
Level 4	$40,000	75%	$200
Level 5	$80,000	75%	$400
Level 6	$160,000	75%	$800
Level 7	$320,000	75%	$1,600
Level 8	$640,000	80%	$3,200
Level 9	$1,280,000	100%	N/A
Level 10	$4,000,000	100%	N/A

As shown in the attached spreadsheet, the Instant Funding Program accounts offer a framework that can be expanded. To be able to increase the size of their account, all they have to do is meet the sales goal set for their current level of instant financing. 

The fact that taking dollars doesn’t stop the account from growing is another good thing to think about. The account can be scaled once the total amount of money made by all users reaches 10%.

As an example:

The designated objective for profit in this account category is established at 10%.

Within the first 14 days, anyone can experience a 4% increase in their earnings and decide to withdraw 50% of their income.

During the following 14-day period, anyone achieves a 7% increase in their earnings and once again withdraws 50% of the income.

By achieving a cumulative profit of 11%, they have not only met but also surpassed the profit target of 10%, making their account eligible for scaling up.

Instant Funding Program Account Rules

• Profit Target: Each trader is required to attain a predetermined percentage of profit before concluding an evaluation phase, initiating profit withdrawals, or expanding their account. The profit target remains consistent at 10% for all scaling levels.
• The Maximum Loss: The permissible overall loss for a trader, irrespective of the account size, is limited to 6% before the account is considered in violation.
• Daily Pause: The daily pause feature functions as a safeguard against significant losses, allowing traders to minimize their potential financial setbacks. Once the daily pause level is met, any ongoing trades are immediately terminated, and the account remains dormant until the start of the next trading day. Every account, regardless of its size, has a uniform daily pause restriction of 3%.
• Risk of Third-Party Copy Trading: Engaging in copy trading services risks replicating the precise trading technique adopted by other traders who are already utilizing the same third-party service. Exceeding the maximum capital allocation regulation increases the likelihood of a funded account or withdrawal request being refused.
• Third-Party EA Risk: Utilizing a third-party EA can potentially subject the users to the danger of adopting the exact trading technique as other users of the same EA, similar to third-party copy trading. Exceeding the maximum capital allocation regulation may lead to the rejection of a funded account or withdrawal.

2. High-stake Challenge

	Step 1	Step 2	High Stakes Trader
Max Trading Period	Unlimited	Unlimited	Indefinite
Minimum Profitable Days	3	3	3
Maximum Daily Loss	5%	5%	5%
Maximum Loss	10%	10%	10%
Profit Target	8%	5%	10% for growth
Cost	$495		Refund
Profit Care	95% Reward		80%-100%

The main goal of The5ers high-stake challenge is to identify traders who demonstrate exceptional expertise and commitment. The traders are rewarded based on their steady performance during the two-phase evaluation process. The evaluation program account provides the users with the opportunity to participate in trading with a leverage ratio of 1:100.

Account Size	Price
$5000	$39
$20,000	$165
$60,000	$300
$100,000	$495

During Evaluation Phase One, traders must attain an 8% profit objective while strictly following the 5% limit on daily losses and the 10% cap on overall losses. There is no specified timeframe for achieving the profit target in the phase one evaluation account, but, traders must demonstrate at least three consecutive profitable days before progressing to phase two.

During Evaluation Phase Two, traders are required to achieve a profit target of 5% while adhering to the regulations of a maximum daily loss of 5% and a maximum loss of 10%. Similar to phase one, there is no prescribed timeframe for achieving the profit objective in the phase two assessment account. 

Nevertheless, traders are required to achieve a minimum of three days with positive returns to advance to a funded account. Traders will receive a refund on their account payment if they complete the phase two review.

Upon completing both evaluation rounds, traders are granted access to a funded account, which has a minimum withdrawal policy of $150. The condition of having at least three days of profit is applicable in both evaluation stages, in addition to following the rules of not exceeding a 5% loss each day and a 10% maximum loss. The initial payout is made 14 calendar days after the initial position is placed in the funded account, followed by payouts every two weeks. 

The profit distribution is determined by an 80% allocation based on the profits created in the funded account. There is a possibility of an increase of up to 100% in the profit split, along with an additional monthly salary for individuals who meet particular scaling level requirements.

High-stake Challenge Scaling Plan

To go to the next account level, participants in the high-stakes challenge must meet a 10% profit target, a prerequisite for qualifying. This challenge also includes a scaling strategy. Traders are allowed to scale their accounts once per pay period, which allows them to increase the size of their accounts periodically. 

Another advantageous factor to consider is that withdrawals do not hinder the scalability of the account. Scaling eligibility is achieved after accumulated profits surpass the 10% profit threshold.

Account Balance	Balance Target (10%)	Payout Ratio
HS-$5,000	$5,500	80%/20%
$7,500	$8,250	80%/20%
$10,000	$11,000	80%/20%
$12,500	$13,750	80%/20%
$15,000	$16,500	80%/20%
HS-$20,000	$22,000	80%/20%
$30,000	$33,000	80%/20%
$40,000	$44,000	80%/20%
$50,000	$55,000	80%/20%
HS-$60,000	$66,000	80%/20%
$70,000	$77,000	80%/20%
$80,000	$88,000	80%/20%
HS-$100,000	$110,000	80%/20%
$125,000	$137,500	80%/20%
$150,000	$165,500	80%/20%
$1750,000	$192,500	85%/15%
$200,000	$220,000	85%/15%
$250,000	$275,000	90%/10%
$300,000	$330,000	90%/10%
$350,000	$385,000	10%/0% plus $4,000 monthly salary
$400,000	$440,000	10%/0% plus $4,000 monthly salary
$450,000	$495,000	10%/0% plus $4,000 monthly salary
$500,000	–	10%/0% plus $10,000 monthly salary

High-stake Challenge Rules

• Profit Target: A predetermined percentage of profit that traders must attain before concluding an evaluation phase, withdrawing earnings, or expanding their accounts. Phase 1 entails setting a profit target of 8%, whereas Phase 2 necessitates achieving a profit target of 5%. Having a funded account requires strict compliance with the minimal withdrawal policy.
• Maximum Daily Loss: It refers to the amount of money that a trader can lose in a single day before their account is considered to be in violation. Every account, regardless of its size, has a uniform maximum daily loss restriction of 5%.
• Maximum Loss: This term denotes the highest possible amount of money that a trader can lose before their account is deemed to be in breach of regulations. The maximum allowable loss for all account sizes is limited to 10%.
• Profitable trading day: It is defined as a day in which a trader earns a profit of at least 0.5% of their initial balance. Profit is calculated by comparing the Midnight Balance and Midnight Equity with the Previous Day Balance, and selecting the lower value between the two.
• Prohibition of News Trading: Traders are prohibited from initiating or terminating any deals for 2 minutes before and following the announcement of high-impact news. The purpose of this measure is to mitigate the risk of traders’ incurring unforeseen losses as a result of abrupt fluctuations in the market.
• Risk of Third-Party Copy Trading: When utilizing copy trading services, it is important to acknowledge the possibility of others adopting the same technique as they use. Exceeding the maximum capital allocation regulation can potentially result in the refusal of a funded account or withdrawal.
• Risk of Third-Party EA: Exercise caution while utilizing a third-party EA, as there is a possibility that others may be employing the same method as they adapt. Exceeding the maximum capital allocation regulation may lead to the refusal of a funded account or withdrawal.

3. Bootcamp Program Account

The Bootcamp program offered by The5ers is a cost-effective opportunity for traders to demonstrate their trading abilities. Upon entering, users are required to pay a portion of the whole sum as an initial payment, with the remaining amount to be paid upon completion of the demo stages.

	Starting Balance	Maximum Loss(5%)	Profit Target (6%)
Challenge 1	$25K	$1,250	$1,500
Challenge 2	$50K	$2,500	$3,000
Challenge 3	$75K	$3,750	$4,500

	Starting Balance	Maximum Loss(5%)	Profit Target (6%)
Challenge 1	$100K	$5,000	$6,000
Challenge 2	$150K	$7,500	$9,000
Challenge 3	$200K	$10,000	$12,000

The aforementioned demo stages necessitate a fee of 95€ for the $100k account or 225€ for the $250k Bootcamp account. Traders can utilize a leverage ratio of 1:10 without being subject to any minimum trading day or trade prerequisites.

The profit objective for each of the three demonstration phases is established at 6%, along with a maximum threshold for losses of 5%. There are no limitations on the maximum number of trading days during the demo phases. Nevertheless, an account will expire after 21 days of inactivity.

Compliance with stop-loss rules is obligatory for all positions, and traders must not exceed a risk threshold of 2% of their starting account value. Any account that breaches this regulation on more than three occasions will be liable to be terminated.

After completing all three demonstration levels, traders are qualified to progress to the live trading stages. This sequence enables the expansion of accounts and the potential to generate income.

Bootcamp Program Account Scaling Plan

Demo Stages	Account Size
Demo stage 1	$25,000/$100,000
Demo stage 2	$50,000/150,000
Demo stage 3	$75,000/200,000

Bootcamp Program Account Rules

• Profit Target: A predetermined proportion of profit that must be achieved before concluding an evaluation phase, withdrawing gains, or expanding the size of an account. Require a profit objective of 6% for overall demand, however obtaining a profit target of 5% is necessary during live trading stages.
• Daily Pause: A safeguard against significant financial losses. All active trades are terminated once the daily pause level is met, and the account stays inactive until the following trading day. Every account, regardless of its size, has a uniform daily pause restriction of 3%.
• Maximum Loss: The highest allowable decrease in value that can occur before the account is considered to be in violation. The setting is adjusted to 5%, whereas the live trading phase imposes a maximum loss threshold of 4%.
• Stop-loss required: Traders are obligated to establish a stop-loss for each position before initiating a transaction.
• Stop-Loss Risk Per Position: A predetermined percentage-based requirement to limit potential losses for each position before entering a transaction. Traders are required to enforce a 2% stop-loss risk for every position.

Tips for Passing The5ers Challenge

Passing The5ers Challenge requires careful planning, discipline, and a well-executed trading strategy. Here are some tips to increase your chances of success:

1. Understand the rules: Familiarize yourself with The5ers Challenge rules, including profit targets, risk management guidelines, and trading restrictions. Ensure you fully comprehend the requirements before starting the challenge.
2. Develop a proven trading strategy: Having a reliable and tested trading strategy is crucial for success in The5ers Challenge. Backtest your strategy and ensure it can adapt to different market conditions. Focus on risk management and consistency in your trading approach.
3. Practice disciplined trading: Discipline is key to passing The5ers Challenge. Stick to your trading plan, avoid emotional decision-making, and follow risk management guidelines strictly. Consistency and adherence to rules will set you apart as a disciplined trader.
4. Keep a trading journal: Maintaining a trading journal can be immensely helpful in analyzing your trades and identifying areas for improvement. Record your entry and exit points, reasons for trades, and any relevant observations. Use this information to refine your strategy and enhance your performance.
5. Seek guidance and education: The5ers provides resources, webinars, and live events to support traders on their journey. Take advantage of these educational opportunities to expand your knowledge and enhance your trading skills. Continuous learning is essential for long-term success in trading.

What are The5ers Challenge Fees?

To participate in The5ers Challenge and gain access to a funded trading account, traders are required to pay a one-time fee. The fee varies based on the chosen account size, ranging from $100 to $1000. It is important to note that the fee is not refundable, and traders must pay the remaining balance after successfully completing the challenge.

The funded trading accounts offered by The5ers provide traders with the opportunity to trade with a substantial amount of capital, up to $2,000,000. Traders receive a profit split ranging from 50% to 90% in their favor, depending on their performance and the specific terms of their agreement.

Overcoming Difficulties in The5ers Challenge

While The5ers Challenge provides a unique opportunity for traders, it is not without challenges. Traders may face difficulties during the evaluation process and while trading with a funded account. Here are some common challenges and strategies to overcome them:

1. Meeting profit targets: The profit targets set by The5ers can be challenging to achieve. To overcome this, traders should focus on developing a robust trading strategy, managing risk effectively, and staying disciplined in executing their trades.
2. Adapting to market conditions: Market volatility and unpredictability can pose challenges for traders. It is essential to stay updated with market news, economic releases, and changes in market conditions. Regularly analyze your trades and adapt your strategy accordingly.
3. Emotional decision-making: Trading can be an emotional experience, especially when real money is at stake. Traders must learn to manage their emotions and stick to their trading plan. Avoid impulsive decisions driven by fear or greed.
4. Technical issues: Technical glitches or platform malfunctions can disrupt trading activities. Traders should have a backup plan in place, such as an alternate trading platform or access to technical support, to minimize the impact of technical issues.
5. Continuous learning: The5ers Challenge is a journey of growth and improvement. Traders should embrace a mindset of continuous learning and seek opportunities to enhance their trading skills. Stay updated with industry trends, attend webinars, and engage with the trading community to broaden your knowledge.

Frequently Asked Questions on The5ers Challenge (FAQs)

What is The5ers Challenge?

The5ers Challenge is a trading evaluation program that allows traders to showcase their skills and potentially receive funding for trading. It consists of three stages designed to assess traders’ abilities and adherence to risk management guidelines.

How does The5ers Challenge work?

Traders sign up for The5ers Challenge and go through a three-step evaluation process. Each step has specific trading objectives and requirements. Successful completion of the challenge grants traders access to a funded trading account.

What is the maximum drawdown allowed in The5ers Challenge?

The maximum drawdown allowed in The5ers Challenge is 10%. Traders must manage their risk effectively and avoid exceeding this drawdown limit.

Can I use my own trading strategy in The5ers Challenge?

Yes, traders are allowed to use their own trading strategies as long as they comply with the risk management guidelines set by The5ers. It is essential to ensure that your strategy aligns with the objectives and requirements of the challenge.

Is The5ers Challenge worth it?

Participating in The5ers Challenge can be a valuable opportunity for skilled traders looking to gain access to funding. However, it requires dedication, discipline, and a solid trading strategy. Traders should carefully consider their abilities and commitment before embarking on The5ers Challenge.

The5ers Challenge Summary

In conclusion, The5ers Challenge offers a unique path to trading success by providing skilled traders with the opportunity to prove their abilities and gain access to a funded trading account. By following the guidelines, developing a proven trading strategy, and staying disciplined, traders can increase their chances of passing the challenge and achieving their financial goals. Remember to always trade responsibly and stay informed about the risks involved in trading.