Phoenix Trader Funding, a new prop firm based in Paris, France, aims to empower aspiring futures traders. Their program combines key features to help you kickstart your trading career. Phoenix Trader Funding offers a structured program, potentially including a practice account, to prepare you for the live market. Gain experience with real market conditions after successfully completing the evaluation process. They boast a generous 90% profit share on funded accounts, incentivizing strong performance.
Phoenix Trader Funding highlights their focus on risk management, which can be crucial for aspiring traders. This might include elements like. Allowing you to test strategies and hone your skills in a risk-free environment before using real capital. Potentially offering account sizes tailored to your experience level, helping you manage risk as you progress. Providing materials or guidance on responsible trading practices.
While the provided text emphasizes the potential benefits of Phoenix Trader Funding, here are some additional aspects to consider before enrolling. As a new firm, their experience and reputation compared to established prop trading firms might be a factor to explore. Investigate any associated fees, such as evaluation costs or monthly platform charges.
By thoroughly researching these aspects, you can determine if Phoenix Trader Funding aligns with your goals and risk tolerance.
Phoenix Trader Funding offers various challenge accounts to assess your skills and qualify you for funded trading opportunities. Here’s a breakdown of the key aspects:
Practice Accounts (Free with Challenge Purchase):
- Purpose: Simulate real-life trading without risking capital.
- Features: Mirrors funded account properties (balance, position size, profit targets, drawdown limits).
- Benefits:
- Test trading strategies.
- Get familiar with the platform.
- Practice risk management before attempting funded challenges.
- Limitations:
- Cannot be funded.
- Performance doesn’t affect funded challenges (and vice versa).
Funded Challenge Options:
- Classic Challenge (Most Popular):
- Account Sizes: $50k, $100k, or $150k starting balance.
- Profit Target: $3,000, $6,000, or $9,000 depending on the chosen size.
- Risk Management:
- Trailing Drawdown: Limits how much your account value can decline from its peak ($2,000, $3,000, or $4,500 respectively).
- No Daily Drawdown Limit: Intraday losses are unrestricted.
- Trading Requirements:
- Minimum 3 trading days.
- Maximum contract limits (5, 10, or 15 depending on size).
- Fees:
- $149 activation fee (refunded on first payout).
- Monthly fee of $49, $99, or $149 based on account size.
- Real-time Market Data: Included.
- Ascension Challenge (Alternative to Classic):
- Core Concept: Removes trailing drawdown but utilizes fixed daily drawdown limits and scaling plans.
- Key Rules:
- Maximum Position Size: No strict contract limit, but exceeding the account’s maximum size for more than 10 seconds leads to disqualification.
- Daily Drawdown Limits: Vary based on the chosen “Scaling Plan” (failing to meet these limits results in disqualification). Stop-loss orders are highly recommended for risk management.
- Activation Fee: $149 (deducted from your first payout).
- Account Options:
- $50k Challenge:
- Profit Goal: $4,000
- Daily Drawdown: $625 – $1,125 (scaling plan dependent)
- Max Position Size: 2 – 3 contracts (scaling plan dependent)
- Monthly Fee: $270
- $150k Challenge:
- Profit Goal: $10,000
- Daily Drawdown: $1,250 – $2,250 (scaling plan dependent)
- Max Position Size: 3 – 5 contracts (scaling plan dependent)
- Monthly Fee: $540
- $50k Challenge:
- Appeal: Ideal for traders who dislike trailing drawdowns but require discipline in daily risk management.
Challenge Reset Options:
- Renewal: If a challenge fails, your account may be automatically renewed the following month. Renewals that fail are reset for free.
- Instant Reset Fee: $85 (unlimited resets available). Reset cost is independent of the initial account size.
Overall:
Phoenix Trader Funding offers a variety of challenge accounts to suit different risk preferences and trading styles. Carefully consider the rules, fees, and risk management features before selecting a challenge that aligns with your goals.
Additional Points to Consider:
- Explore the specific details of the “Scaling Plans” mentioned in the Ascension Challenge.
- Ensure you understand the platform’s features and functionalities before attempting a challenge.
Phoenix Trader Funding emphasizes thorough evaluation before granting funded accounts. Here’s a breakdown of key rules designed to assess your trading skills and potential:
Minimum Trading Activity:
- Classic: To qualify, you need to achieve at least 3 winning trading days within the challenge period. Each winning day requires a profit of $200 or more.
- Ascension: This account type requires a minimum of 10 trading days of activity, regardless of individual day profits.
Why the Difference?
When Phoenix funds your trading account, they take on financial risk. To manage this risk responsibly, they need to assess your trading skills and risk management practices.
- Classic: Focusing on winning days ensures your strategy has the potential for profitability.
- Ascension: Requiring 10 days of activity allows Phoenix to observe your strategy execution over a longer period.
Completing the Ascension Challenge Early
Some traders might attempt to “game” the system by scalping micro-contracts to meet the 10-day minimum. This practice,known as “Funding Zone,” is strictly prohibited.
What Happens if You Use “Funding Zone”?
While it won’t disqualify you entirely, any days achieved through this technique won’t count towards your minimum.You’ll still need to trade for at least 10 days using your regular strategy, even if you’ve already reached the profit goal.
In short: Both Classic and Ascension accounts require minimum trading activity. Classic focuses on winning days, while Ascension prioritizes overall strategy execution observed over a longer period.
The 30% Rule:
- This rule applies only to Ascension challenges and Funded accounts, whatever the challenge.
- Rule Breakdown: No single trading day’s profit should exceed 30% of your total cumulative profits during the challenge.
- Example: Consider a $100,000 challenge with the following hypothetical performance:
- Day 2: Profit of $3,540 (exceeds the 30% limit of your total gains at that point) While your overall profit by Day 10 might seem sufficient, exceeding the 30% rule on Day 2 delays validation.
- Resolving the 30% Rule Violation: This doesn’t signify failure. You simply need to continue trading so that Day 2’s profit falls below 30% of your total cumulative gains.
- Applicability Beyond the Challenge: The 30% rule also applies to funded accounts. Maintaining consistent profitability is key for successful withdrawals.
Key Takeaways:
- Profitability is Encouraged: The goal is to achieve consistent profitability, not limit your earning potential.
- Challenge Earnings Aren’t Transferred: Profits generated during the challenge do not transfer to your funded account.
- Funded Account Selection: Meeting challenge requirements grants eligibility to apply for a funded account using Phoenix Trader Funding’s This is a competitive process, and repeated rejections can be used as opportunities to refine your skills before reapplying after 30 days.
By understanding and adhering to these rules, you can effectively demonstrate your trading capabilities and potentially secure a funded account with Phoenix Trader Funding. Remember, consistent performance is crucial for long-term success in the futures market.
Scalping:
Phoenix Trader Funding allows scalping strategies, but with limitations:
- Trade Frequency: No more than 200 trades per day.
- Trade Duration: Each trade must be held open for at least 5 seconds.
Violating these rules will result in a warning. If your strategy doesn’t adapt after the warning, your challenge will be disqualified.
Trading Accounts:
- Challenge Attempts: You can attempt an unlimited number of Phoenix Trader Funding challenges to qualify for funded accounts.
- Funded Account Limit: A maximum of X “Pre-Funded” or “Funded-Tier” accounts can be held simultaneously. This ensures focus and consistency within their “Scaling Programs.”
Trading Hours:
- Holiday and News Periods: Trading is available from 6:00 PM Eastern Time (ET) to 4:59 PM ET, even during holidays and news announcements.
News Trading:
- Tier 1 News Restriction: “Tier 1” news events have specific trading restrictions for funded accounts and challenges. You cannot hold a position within 2 minutes before or after the news release.
- Rationale: Phoenix Trader Funding considers “Tier 1” news trading akin to gambling and discourages this approach for their funded traders.
- Disqualification for Violations: Any violation of the Tier 1 news trading rule will result in account disqualification, regardless of being a funded account or a challenge.
Tier 1 News Examples:
- FOMC Minutes (Federal Open Market Committee) – All Products (Release time: 1:00 PM ET)
- FOMC Interest Rate Decision – All Products (Release time: 1:00 PM ET)
- Consumer Price Index (CPI) – All Products (Release time: 7:30 AM ET)
- Employment Report (Non-Farm Payrolls) – All Products (Release time: 7:30 AM ET)
- Crude Oil Inventories (EIA) – Oil Contracts Only (Release time: 9:30 AM CT / 10:00 AM CT*)
- Natural Gas Inventories (EIA) – Gas Contracts Only (Release time: 9:30 AM CT)
- Crop Production Reports – Ag Contracts Only (Release time: 11:00 AM CT)
Practice Account Allowance:
While Tier 1 news trading is restricted on funded accounts and challenges, you can practice such strategies on the provided Practice Accounts without penalty.
Successfully completing a challenge with Phoenix Trader Funding grants you access to a “Pre-Funded” account. This is a stepping stone towards a coveted “Funded-Tier” account with real capital. Here’s what to expect:
Thorough Trade Analysis:
Before granting a Funded-Tier account, Phoenix Trader Funding meticulously analyzes your past trades from the Pre-Funded account. This goes beyond simply achieving the profit target. Their goal is to assess:
- Risk Management Strategy: Did you apply a consistent and effective risk management approach?
- Sustainable Performance: Was your success driven by skill or simply fortunate trades?
Common Reasons for Disqualification:
Phoenix Trader Funding highlights that many Pre-Funded account holders don’t progress due to:
- Uncontrolled Losses: Trades with excessive risk that deviate from your risk management plan.
Successful Analysis Leads to Meeting:
If the analysis of your Pre-Funded account trading is positive, Phoenix Trader Funding will schedule a meeting. This meeting is designed to:
- Understand Your Trading Philosophy: Discuss your approach to the market and trading strategies.
- Align Goals and Vision: Ensure your goals and long-term vision are compatible with a partnership as a funded trader with Phoenix Trader Funding.
Remember: This meeting isn’t a traditional job interview. It’s a collaborative discussion to determine if both parties are a good fit for a successful funded trading relationship.
What is Trailing Drawdown?
Imagine you’re making a profitable trade. A trailing drawdown acts like a safety net to protect your hard-earned gains. Here’s how it works:
- You set a rule: If your account value (equity) drops below a certain point from its highest level (peak equity), your position will automatically sell to lock in some of your profits.
- This “safety net” level (trailing drawdown limit) adjusts as your equity increases, always maintaining a buffer between your peak equity and the point where you exit the trade.
- This strategy helps you secure some profits even if the market turns against you.
Trailing Drawdown Applied to Your Account:
This principle isn’t limited to single trades; it applies to your entire account. Imagine a graph with two lines:
- Blue line: Represents your account balance over time.
- Orange line: Represents your trailing drawdown limit.
Failing a Challenge:
If the blue line (account balance) ever falls below the orange line (trailing drawdown limit), your challenge is disqualified.
Two Trailing Drawdown Calculation Methods:
- Unrealized PnL Method: This method constantly adjusts the trailing drawdown limit based on your highest unrealized profit or loss (PnL). As your unrealized PnL fluctuates, the trailing drawdown limit moves accordingly.
- End-of-Day (EOD) Trailing Drawdown: Unlike the continuous adjustments of the unrealized PnL method, this method sets the trailing drawdown limit only once a day, at the market close. It’s based on your account’s highest value at the end of the trading day and remains fixed throughout the next day, adjusting only after the market closes again.
Benefits of EOD Trailing Drawdown:
- Stability: The EOD method offers a more stable approach for traders, as the drawdown limit doesn’t constantly fluctuate with unrealized PnL changes.
- Greater Freedom: This method allows for more trading flexibility compared to the unrealized PnL method.
Phoenix Trader Funding and Trailing Drawdown:
At Phoenix Trader Funding, all challenges with a trailing drawdown use the EOD method (represented by the orange line in the graph).
Unrealized PnL Drawdown (For Illustration):
The graph can be further expanded to show:
- Dark Blue Line: Represents your unrealized account balance (including open positions).
- Red Line: Represents the trailing drawdown limit calculated based on unrealized PnL (similar to the orange line, but for unrealized values).
Failing a Challenge with Unrealized PnL Drawdown:
If the light blue line (account balance) falls below the red line (trailing drawdown limit based on unrealized PnL) in this expanded graph, the challenge is also disqualified. Essentially, succeeding under these conditions is more challenging and offers less trading flexibility.
Learning Trailing Drawdown:
While it may seem complex initially, the EOD trailing drawdown method is generally considered more advantageous for traders, especially beginners. With practice, you’ll gain a clear understanding of this concept.
Trailing Drawdown in Funded Accounts:
Yes, trailing drawdown applies to funded accounts as well, but with a twist:
- It’s only active for a specific period.
- Once your trailing drawdown exceeds your initial account balance + $100, it stops being a factor.
Funded Account Trailing Drawdown Example (not provided in original text):
Imagine a $10,000 funded account. The trailing drawdown might be set to $2,000. This means your account equity can’t fall below $8,000 (initial balance + $100 buffer). Once your equity dips below $8,000, the trailing drawdown is no longer enforced.
By understanding trailing drawdown, you can utilize it as a valuable risk management tool to protect your capital while trading.
What is Intra-Challenge Scaling?
This exclusive feature for Ascension accounts allows you to automatically increase your trading power within a challenge based on your performance. It adjusts two key factors:
- Maximum Position Size: The number of contracts you can trade simultaneously increases as you reach certain profit targets.
- Daily Drawdown Limit: The maximum acceptable loss allowed in a single trading day increases as your account grows.
Important Note: Intra-challenge scaling is only available for Ascension accounts and is not offered on other Phoenix Trader Funding account types.
Example: 50K Ascension Account Scaling
- Starting Position Size: You begin with a maximum position size of 2 mini contracts (20 micros).
- Profit Target 1: $2,500: Once your net profit surpasses $2,500, your position size automatically increases to 3 mini contracts (30 micros) and remains at this level for the rest of the challenge.
Example: 150K Ascension Account Scaling (Building on 50K Account)
- Starting Position Size: You begin with a maximum position size of 3 mini contracts (30 micros).
- Profit Target 1: $2,000: Exceeding $2,000 in net profit increases your position size to 4 mini contracts (40 micros).
- Profit Target 2: $6,000: Surpassing $6,000 in net profit further increases your position size to 5 mini contracts (the maximum allowed).
Daily Drawdown Adjustments
Similar to position size, the daily drawdown amount (maximum acceptable loss per day) also adjusts based on your performance:
- 50K Account:
- Starts with a daily drawdown limit of $625.
- Increases to $1125 once your net profit exceeds $2,500.
- 150K Account:
- Starts with a daily drawdown limit of $1250.
- Increases to $1750 upon reaching $2,000 in net profit.
- Further increases to $2250 after exceeding $6,000 in net profit.
Funded Account Scaling Approach
Phoenix Trader Funding emphasizes static drawdown accounts for funded traders. This means the daily drawdown limit remains fixed throughout the funded account period, providing a clearer picture of a trader’s long-term risk management skills.
Profit Sharing:
Phoenix Trader Funding offers a transparent profit-sharing structure:
- Standard Split: You keep 80% of all your profits generated while trading with a funded account, and Phoenix Trader Funding receives 20%.
- Performance Incentive: This split can improve to a 90/10 share in your favor if you demonstrate exceptional consistency for at least 6 months. A manual review of your account is required to qualify for this increased share.
Why This Structure?
Phoenix Trader Funding believes this profit-sharing model benefits both parties. Their focus is on collaborating with successful traders, not competing against them.
Important Note: Payout rules are subject to change as Phoenix Trader Funding continues to develop. They’ll keep you informed through social media channels or their Discord server.
Current Payout Rules:
- Minimum Trading Activity: You must have actively traded for at least 10 days before requesting a payout.
- Payout Frequency: One payout is allowed per month by default. You can request to increase this to two payouts per month at no additional cost, subject to a manual review of your account performance (both funded account and the challenge used to qualify for it). This review process typically takes 72 hours, with subsequent reviews possible every 30 days if the initial request is denied.
- First Payout Timing: The first payout becomes available after 10 trading days on your funded account.
- Consistency Rule: The 30% consistency rule applies to funded accounts as well. This means no single trading day’s profit can exceed 30% of your total cumulative profits since the last payout (based on the active balance at that time).
- Minimum Payout: The minimum withdrawal amount is $500.
- Maximum Payout: The maximum payout per request is capped at $2,000. Additionally, the total payout cannot exceed 3 times your account’s total drawdown OR $6,000 (whichever is lower). If your requested payout exceeds these limits, a manual account review will be conducted, potentially leading to a transition to a real trading account on the Broker platform.
- Payout Buffer: To ensure you maintain a safety net after a withdrawal, your account balance must have at least $100 remaining profit after fulfilling your payout request. For example, withdrawing $2,000 from a $100,000 account would require a minimum balance of $102,100.
- Payment Processor: Phoenix Trader Funding uses Payoneer for bank transfers and handles cryptocurrency payouts internally.
Phoenix Trader Funding provides a wide range of trading platforms you can use for challenges and funded accounts. Here’s a list of over 20 platforms supported:
- QScalp
- Tslab
- Collective2
- Investor/RT
- Multicharts
- Overcharts
- Medved Trader
- Photon Trader
- OptimusFlow
- Quantower
- Agena Trader
- SierraChart
- Net
- MotiveWave
- ScalpTool
- Trade Navigator
- Atas
- NinjaTrader (with your own license)
- InsideEDGE Trader
- R | Trader / R | Trader Pro
- Bookmap
- Trade
- Instrument
The platforms support a variety of financial instruments, including:
- Equity Futures: These contracts track the performance of stock market indexes like the S&P 500 and NASDAQ.
- FX Futures: These contracts represent agreements to buy or sell foreign currencies at a predetermined price on a future date. Common currency pairs include EUR/USD, GBP/USD, and JPY/USD.
- Metals Futures: Futures contracts based on precious metals like Gold, Silver, and Platinum.
- Agricultural Futures: Contracts for commodities like Corn, Wheat, Soybeans, and Lean Hogs.
- Bond Futures: Futures contracts based on US Treasury bonds with varying maturities.
- Energy Futures: Contracts for energy products like Crude Oil, Natural Gas, and Gasoline.
Commissions:
Commissions are charged for each trade you execute. Here’s a breakdown of the commissions applied to your account (challenges and funded accounts) using Rithmic as the data feed:
- Equity Futures: Commissions range from $0.51 to $1.99 per side (round turn).
- FX Futures: Commissions range from $0.42 to $2.36 per side (round turn).
- Metals Futures: Commissions range from $0.76 to $2.31 per side (round turn).
- Agricultural Futures: Commissions are $2.79 per side (round turn) for all contracts.
- Bond Futures: Commissions range from $1.36 to $1.72 per side (round turn).
- Energy Futures: Commissions range from $0.51 to $1.99 per side (round turn).
Note: This information is not an exhaustive list of all tradable products and commission rates. It’s recommended to refer to the Phoenix Trader Funding website for the latest details.
Considering Phoenix Trader Funding? Here’s a breakdown of the pros and cons to help you decide.
- Flexible Account Sizes: Phoenix Trader Funding caters to traders with varying capital levels by offering a range of account sizes.
- Scaling Plans (Ascension Accounts Only): These plans automatically increase your position size and daily drawdown limit as your profits grow, rewarding successful performance.
- Free Trial: Test the waters before committing with a free trial (details likely on their website).
- Clear Risk Management: 1). Fixed Drawdown Challenges: Provides a predictable risk management structure for challenges. 2). Fair EOD Drawdown: Offers daily transparency into your account's health with the end-of-day drawdown calculation.
- Growth Potential: Scaling plans allow you to gradually increase your trading volume as your skills improve.
- Low Minimum Withdrawals: Easily access your profits with a low minimum withdrawal threshold.
- Flexible Trading Hours: Trade whenever it suits your schedule with their extended trading hours.
- Affordable Evaluations: Gain access to a funded account without breaking the bank.
- Limited Track Record: As a relatively new company in the prop trading space, Phoenix Trader Funding may have fewer online reviews and resources compared to established competitors.
- Minimum Trading Activity: You must actively trade for at least 10 days before requesting a payout.
- Profit Sharing Structure: 1). Standard Split: Starts at an 80/20 profit split in Phoenix Trader Funding's favor. 2). Performance Incentive: A 90/10 split in your favor is possible after 3-6 months of consistent performance, but requires a manual review.
- Limited Instruments: NexGen currently focuses solely on futures contracts, excluding other asset classes.
- Payout Restrictions: 1). Limited Frequency: Only one payout per month is allowed initially, with the option to request a second (subject to manual review). 2).Maximum Payout Limits: Payout amounts are capped and may require a manual review for larger withdrawals.
Phoenix Trader Funding presents attractive features for aspiring futures traders, including flexible account options, competitive pricing, growth potential, and a free trial. Their transparent risk management approach with fixed drawdowns and daily settlements fosters confidence. On the other hand, their relatively new presence in the industry may lead to limited information and stricter payout rules compared to some competitors. These payout limitations can be seen as a cautious approach to risk management.
Ultimately, Phoenix Trader Funding can be a viable stepping stone for traders seeking a funded futures account, especially those who value clear risk management and a growth-oriented environment. However, careful consideration of the limitations, particularly the payout structure, is essential before committing.
FAQs
- Your challenge will be analyzed by our team to check that you haven’t broken any of our rules. This process can take up to 72 hours after the day you qualified (usually much less).
- You will then receive a contract that you must sign within 48 hours. If the contract is not signed within 48 hours,the evaluation is declared null and void.
- Once the email has been signed, your dashboard will be updated and a GET FUNDEDbutton will appear, redirecting you to a payment page.
The fee for a funded account is $149 ONE-TIME, regardless the size of the original account. There is no monthly subscription
Yes, we allow resets for all challenges.
The reset fee is $85, accessible from your dashboard.
An account can be reset as many times as you like.
If you miss your evaluation, if you exceed your maximum drawdown, you have 2 choices:
- Wait for your account to be renewed the following month. If your account fails at renewal, we’ll reset it at no extra charge.
- Pay a $85 reset fee (available on your dashboard), and your account will be reset instantly. There is no limit to the number of times an account can be reset.
- The reset amount depends on the initial account size. If you started a $50K Classic challenge then the fee is only $43, for all other accounts (including the $50K Ascension), the fee is $85.
Practice accounts are simulation accounts, designed to train you without the pressure of the current challenge. Each challenge purchased comes with a Practice account, which has the same properties (maximum position, drawdown, profit goal, etc).
If you fail a Practice account, you can reset it for free, without limit.
Practice accounts CANNOT BE FUNDED, they are only training accounts. Moreover, the challenge and practice accounts are completely disconnected, so winning or losing on one account has no influence on the other.
Note: Practice accounts are still under development, so they are not yet visible in your user dashboard and may take up to 24 hours to be set up and visible on your Rithmic dashboard.
