The ONLY Prop Firm Rules That Matter Right Now — Transcript

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1. 0:00YouTube, what is good? We're back with a
2. 0:01brand new video. In this video, we are
3. 0:03going to be talking about the only prop
4. 0:04firm rules that matter right now and the
5. 0:06ones that you should be focusing on if
6. 0:08you are a beginner looking to pass an
7. 0:09eval account or you're looking to get
8. 0:11your first payout. In this video, I'm
9. 0:13going to break down the rules that you
10. 0:14should be focusing on. In this video,
11. 0:16we're going to cover Tradovate, My
12. 0:17Funded Futures, Topstep, and Lucid 50K
13. 0:19accounts.
14. 0:24So, these are the four things that I
15. 0:25check before I buy a prop firm account.
16. 0:27The first thing that I check is where is
17. 0:29the consistency rule at? Is it on the
18. 0:31eval or the funded stage? Because
19. 0:32usually there's going to be a
20. 0:33consistency rule whenever you're looking
21. 0:35to trade the flex accounts or the MFFU
22. 0:37builder account. There's going to be
23. 0:39either a 40% or 50% consistency on
24. 0:42either the eval or the funded account.
25. 0:45And I'd much rather trade the
26. 0:46consistency rule on the funded account
27. 0:48rather than the eval account because I
28. 0:50don't like taking a whole lot of time on
29. 0:52the evaluation. But, on the funded
30. 0:54account, it's totally fine if there is a
31. 0:55consistency rule. But, if you guys are
32. 0:57just starting out, you want to
33. 0:58understand where is the consistency rule
34. 1:01at? Is it in the evaluation or is it on
35. 1:03the funded account? Next thing I look at
36. 1:05is the payout cap. How much and how
37. 1:07often can you even take payouts? Some
38. 1:08accounts have a 5-day winning rule. Some
39. 1:10accounts have a dollar amount that you
40. 1:12have to make per day. There's different
41. 1:13ways that you can get a payout with each
42. 1:15prop firm and you want to understand
43. 1:16what is the payout cap. Most of the time
44. 1:18it's usually going to be around that
45. 1:19$2,000 mark per payout. But, you just
46. 1:22want to check and make sure what that
47. 1:24payout cap is. Then, you want to
48. 1:25understand what the buffer is, right? Do
49. 1:27you need to have a buffer in your
50. 1:28account? Because most accounts, whenever
51. 1:30you have those winning days or the
52. 1:32dollar amount days, then you don't need
53. 1:34a buffer. But, there's some accounts
54. 1:36where there isn't any winning days or
55. 1:38dollar amount days and instead you have
56. 1:39to get past the buffer like $2,100
57. 1:42to take your first payout out of the
58. 1:44account. So, basically you need to get
59. 1:46$2,100 and then even more to take your
60. 1:49first payout. Now, with other accounts,
61. 1:51some accounts you can make 5 days of
62. 1:54$150 and then take your payout right
63. 1:57then and there. So, it just depends on
64. 1:59if you want to trade with a buffer or
65. 2:00not. Do you want to build that buffer up
66. 2:02or do you want to take your first payout
67. 2:04immediately? Then, what counts as a
68. 2:06winning day? Like I said, some accounts
69. 2:08you need $150, some accounts you need
70. 2:11$200, some accounts you just need five
71. 2:13winning days, some accounts you don't
72. 2:15even need any winning days and instead
73. 2:17you need to pass that buffer. So, these
74. 2:19are the four things that I'm going to
75. 2:20check whenever I go to buy a new prop
76. 2:22firm account and you should, too. So,
77. 2:24this is going to be the 50% math, right?
78. 2:26So, if we're looking at uh consistency
79. 2:29rule, right here we have profit this
80. 2:31cycle, $1,000. The biggest day that you
81. 2:34had had is $700. So, let's say you had a
82. 2:37$700 win one day, another day you had
83. 2:39300. Your biggest day is 70% of your
84. 2:43total profits. 70% is over the 50% rule,
85. 2:47right? So, you need more profit to get
86. 2:50past the account. You need to gain more
87. 2:52profit on other trading days. This is
88. 2:55just 50% math, right? You need 1,500 and
89. 2:571,500 per day, basically, if you want to
90. 3:00pass it quickly, right? So, this is the
91. 3:02math whenever you're using that 50%. So,
92. 3:04these are the payout caps that whenever
93. 3:06I last looked, these were updated. So,
94. 3:08we're going to go over the payout caps
95. 3:09for the Trade the Five Select plan, 50%
96. 3:12of your profit up to $2,500,
97. 3:15a minimum of 250 with a split of 90/10,
98. 3:19right? So, pretty good, right? Then you
99. 3:21have the Trade the Five Select daily
100. 3:22where you can take daily payouts. You
101. 3:24can take up to $1,250
102. 3:27per day with a minimum of $250 at a
103. 3:3090/10 split. The MFFU Builder account,
104. 3:34$2,000 per cycle, you have five payouts
105. 3:37until you're moved, right? And then you
106. 3:39have a $500 minimum because you need to
107. 3:42be past the buffer, right? So, you need
108. 3:44$2,600 to even take your first payout at
109. 3:48an 80/20 split. Then you have Topstep,
110. 3:50which is 50% up to $2,000,
111. 3:55at a minimum of 125 with a 90/10 split.
112. 3:58Then you have Lucid Flex, 50% profit up
113. 4:01to $2,000 with a $500 minimum at a 90/10
114. 4:04split. Right, so these are all the uh
115. 4:07payout caps for each account that I was
116. 4:09looking at. These are the four that I
117. 4:11would go with. I would only use these
118. 4:13four if I was just starting out. Um and
119. 4:16you can see a pretty much most of these
120. 4:18are identical, right? I mean, they're
121. 4:20pretty much the exact same. It's just
122. 4:21like which company do you want to go
123. 4:23with? Right, so you can see the payout
124. 4:24caps are rather similar. And then we
125. 4:27have the buffer. Which ones have a
126. 4:28buffer? Well, if we take a look at the
127. 4:30Tradovate Select, in the Flex plan you
128. 4:31don't have any. So, if you go with Flex
129. 4:33payouts, you don't have any buffer uh
130. 4:35buffer. But, if you go with the daily
131. 4:37payouts where you take a daily payout
132. 4:39every single day, Tradovate Select,
133. 4:41$2,100 buffer. Then you have the MFU
134. 4:44Builder account, $2,100 uh $2,100 no
135. 4:47matter what, unless you do the $1,600
136. 4:50with the add-on. Then Topstep, none.
137. 4:53Lucid Flex, none. So, once you get past
138. 4:55those winning days, bang, you can take a
139. 4:57payout on these two accounts and also
140. 4:59the Flex plan with Tradovate Select.
141. 5:02Builder account is the only one that you
142. 5:03can't do that. Now, it might be good and
143. 5:05it might be bad, depending on if you are
144. 5:08more experienced or not. And if you're a
145. 5:10total beginner, then maybe it's not
146. 5:12worth it, right? You want to get that
147. 5:13first payout really quickly. I would go
148. 5:15with either the Flex, Topstep, or Lucid
149. 5:18Flex. Then we have what counts as a
150. 5:20winning day, right? So, that this might
151. 5:22make other accounts look better than
152. 5:23other ones, right? So, MFU Builder
153. 5:26wasn't as good in the last slide, but
154. 5:28maybe this one it is. So, looking at
155. 5:30Tradovate Select, um we have the Flex
156. 5:33plan. Five winning days at $150 each,
157. 5:36right? So, 150 bucks, five days, you can
158. 5:39take a payout. The MFU Builder account,
159. 5:42two trading days per cycle, right?
160. 5:44That's it. So, all you need to get your
161. 5:45first payout as long as you're above the
162. 5:47buffer. So, you have to remember that.
163. 5:50Topstep, five days at $150 or three days
164. 5:53at 40%, right? So, a little mix and
165. 5:56match here. Then you have Lucid Flex,
166. 5:58five winning days at $150 each, right?
167. 6:01So, a $40 green day doesn't count. You
168. 6:04need to hit these winning days if you
169. 6:05want to work towards a payout or it's
170. 6:07not going to count towards those winning
171. 6:09days. If you don't get the winning days,
172. 6:11you can't get your you can't get a
173. 6:12payout, right? So, you have to
174. 6:13understand the winning days and what
175. 6:15accounts count where. The next thing
176. 6:17we're going to talk about are the rules
177. 6:19in each account that end your account,
178. 6:21right? So, that blow the account
179. 6:22completely. The end of day trailing
180. 6:24drawdown. All 450k's are at $2,000 end
181. 6:28of day drawdown. So, that means if you
182. 6:30hit that $2,000 loss at the end of the
183. 6:32day, you blow the account. Now, there is
184. 6:34an add-on for MFFU to make it cheaper
185. 6:36for $1,500. So, if you go below that
186. 6:391,500 trailing drawdown, you lose the
187. 6:42account. So, let's say you make $1,000
188. 6:45one day. That trailing drawdown now goes
189. 6:47to $49,000.
190. 6:49If you hit $49,000, the account is gone.
191. 6:52The next is the daily loss limit.
192. 6:55Daily loss limit puts a soft pause on
193. 6:57your account. So, if we take a look at
194. 6:58the MFFU account, $1,000 loss in a
195. 7:01singular day is a soft pause. TradiFy,
196. 7:04there's none. Daily, there's a thousand.
197. 7:06Topstep and Lucid is optional, right?
198. 7:08So, there is daily loss limits if you
199. 7:10want to add them. MFFU is the only one
200. 7:13that has the daily loss in the account,
201. 7:16right? So, if you lose $1,000 with the
202. 7:18builder account, then it pauses your
203. 7:20account for the day and you can't trade
204. 7:22for the rest of that day, which
205. 7:24honestly, if you were just starting out,
206. 7:26I would recommend having a daily loss
207. 7:28limit in the funded in the eval just so
208. 7:31you're not blowing through these
209. 7:32accounts, right? Put that daily loss
210. 7:34limit on. TradiFy funded rule, hold
211. 7:36time. 50% of trades plus profit from
212. 7:39trades held over 10 seconds or no
213. 7:41payout, right? So, some accounts, there
214. 7:43are going to be hold times within the
215. 7:46account, but I've never had an issue
216. 7:48with it, so I've never seen it. I'm just
217. 7:50looking at the rules, right? So, these
218. 7:51are pretty easy rules, right? Just don't
219. 7:54hit that Actually, no. You should have a
220. 7:56daily loss limit, right? Don't blow the
221. 7:58account or fumble the account just
222. 8:01because of a daily loss. Put a daily
223. 8:03loss on if you're just starting. The end
224. 8:05of day trailing drawdown,
225. 8:07that'll blow the account. Right? So,
226. 8:09these are the rules that could blow your
227. 8:11account. How to recap this entire thing,
228. 8:12the consistency rule. Is it eval or
229. 8:15funded? Number two, what is the payout
230. 8:17cap per cycle? Number three, what is the
231. 8:19buffer for the account and does it have
232. 8:21a buffer? And number four, what counts
233. 8:23as a winning day? Is there no winning
234. 8:25days? Is it $150? Is it $200? Right? So,
235. 8:28this is the recap. If there's only one
236. 8:30thing you remember from this video,
237. 8:32passing the eval is the easy part. Read
238. 8:34the payout rules and get that first
239. 8:36payout is the harder part. Follow the
240. 8:38rules, you'll get your payout. Trade
241. 8:40good and you'll get your payout. There's
242. 8:42a waitlist for class one on my website.
243. 8:44And if you want to go to my website to
244. 8:46get free trade markups and free PDFs for
245. 8:48my videos, you can head over. It's in
246. 8:50the link in the description. Other than
247. 8:51that, I'm out. Peace.