What is prop trading ?

Proprietary trading, or prop trading, is when a financial firm or institution uses its own capital to trade financial markets, instead of trading on behalf of clients. Traders working for the firm are provided with the capital to execute trades, and in return, the firm shares in the profits (and sometimes the losses). Prop traders focus on various markets, such as forex, stocks, futures, and options, using strategies to generate returns for the firm.

How to get started with TradeFi ?

To begin with, you will sign the Trader agreement and deposit the sim funded account activation fee. After account activation by TradeFi, you will need to demonstrate your trading skills through reliance on data-driven insights, economic indicators, and price action to make informed trading decisions. To be successful, it is also essential to have a solid understanding of trading strategies.

Why Do Prop Firms Provide Traders with Funding ?

Prop firms provide funding to traders because they benefit from a share of the profits generated by successful trades. By offering capital, the firm can leverage the skills of talented traders without having to directly manage day-to-day market activities themselves. This mutually beneficial arrangement allows traders to access larger capital pools and more opportunities, while the firm profits from the trader’s success.

How do TradeFi manage risk ?

TradeFi manage risks through a combination of strict internal controls, risk management software, and strategic trading guidelines. This includes set drawdown limits (the maximum allowable loss) and position size restrictions to protect capital. Additionally, traders are expected to adhere to predefined risk parameters for each trade. Many firms also use real-time monitoring and automated risk management tools to ensure that risk exposure is kept within acceptable limits.

Do I need to be experienced to begin ?

While experience can help, you don’t necessarily need to be a seasoned trader to start proprietary trading. However, a strong understanding of financial markets is advisable. Moreover, understanding how to extract insights from economic data, risk management, and price action theory to make informed trading decisions will help you succeed.

What are the key TradeFi programs and their features ?

TradeFi programs summary:

  • TradeFi Funded Trader Program offers flexible, trader-friendly funding options with high profit splits (90%) and drawdown controls (TradeFi (one-step) and TradeFi instant).
  • The program emphasizes consistent, disciplined trading and strictly prohibits manipulative and high-risk strategies.
  • Profit Score and drawdown rules are central to maintaining account health and eligibility for payouts.
  • Traders benefit from rapid payouts and the option to scale accounts, fostering growth for consistent performers.
  • Compliance with prohibited strategies and risk management rules is strictly enforced to protect program integrity.

What are the distinguishing features of TradeFi as compared to other prop trading firms ?

The TradeFi programs stands out for its clear rules, attractive profit-sharing, and multiple avenues for securing funding. By promoting responsible trading practices and awareness of market conditions, TradeFi creates an environment conducive to long-term success. This structured approach not only benefits the brokerage but also cultivates a community of disciplined, successful traders who align with the TradeFi values.

Can traders use automated trading systems TradeFi one-step evaluation?

Expert Advisors (EAs) are allowed on sim funded accounts, but not during the evaluation process.

What happens if a trader fails to meet the drawdown limits?

The account will be permanently deactivated, and the trader will lose their active status.

Are there specific trading strategies prohibited under TradeFi programs?

Yes, strategies such as high-frequency trading, arbitrage, and other manipulative techniques are strictly prohibited.