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Prop trading (proprietary trading) has become a focal point for traders aiming to access significant capital without risking their own money. Many prop trading firms offer challenges to prove a trader’s skill before granting access to substantial funds. In this article, I will document my journey of testing one such firm: Traders with Edge. Unlike more prominent prop companies, this one is relatively lesser-known, and I aim to determine whether they live up to expectations, particularly regarding payouts.
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I don’t know if they pay out successfully after passing the 2-phase challenge, but I will document my journey and experience in future videos on my YouTube channel, FxIgor. Stay tuned to see how it goes!
After 3 days, I made another video. I showed my trades and current stage:
Getting Started with Traders with Edge
Traders with Edge is a prop trading company that provides standard evaluation challenges. Their evaluation process is unique because it’s tied to another company, Swift Trader, which provides the trading platform. I conducted a thorough investigation of both companies, examining how they operate and checking whether they have a record of paying traders. My research included analyzing over 100 reviews on Trustpilot, of which 74% were excellent, but some concerns caught my attention.
Trustpilot Reviews: What Do They Say?
While most feedback was positive, some negative reviews highlighted recurring issues. Many complaints involved sudden account closures and accusations of lot manipulation (using improper trading volumes) or inconsistency in trading. However, I noticed a positive aspect: Traders with Edge responded to every criticism, often explaining the reasons behind their decisions. This willingness to engage and clarify is a strong indicator of professionalism.
The Challenges: Structure and Rules
Traders with Edge provides several challenge options, allowing traders to choose based on their preferences. I chose the standard $100,000 challenge, which includes a maximum daily loss of 3% and an overall loss limit of 6%, with a minimum of 10 trading days. I also considered their two-phase challenge, which follows the industry standard but with slightly different parameters.
Standard Challenge vs. Two-Phase Challenge
- One-Phase Challenge: Maximum daily loss is 3%, and overall loss is 6%.
- Two-Phase Challenge: The maximum daily loss is increased to 5%, and the loss limit is 10%.
- The first phase requires achieving a 10% profit target, while the second phase target is set at 5%.
These parameters align closely with industry standards, except for a slightly higher profit target in phase one (10% vs. the typical 8%). Payouts can be requested after two weeks, which is convenient compared to companies requiring a whole month.
Flexibility in Trading
One of the benefits of trading with Traders with Edge is their flexibility. They allow:
- Use of Expert Advisors (EAs).
- Trading during news events.
- Weekend holding.
This is a significant advantage, as many prop firms impose restrictions in these areas, limiting traders’ strategies.
Challenges
In a 2-phase challenge for a funded trading account, the trader progresses through two stages before becoming a funded trader. Here’s a detailed breakdown of Phase 2 based on the provided information:
Phase 2 Overview
- Objective: This phase acts as the second evaluation step after Phase 1. Traders need to demonstrate consistent trading skills while managing risk. Unlike Phase 1, the target is lower, focusing on stability rather than aggressive profit targets. Critical Parameters for Phase 2:
- Profit Target:
- A 5% increase in the account balance is required to pass this phase.
- This is half of Phase 1’s target, making it more achievable and emphasizing consistency.
- Max Daily Loss:
- You must not lose more than 5% ($1,250) of the account balance in a single day. This limit includes both realized and unrealized losses.
- It ensures that risk is controlled daily to prevent significant drawdowns.
- Max Loss:
- The total drawdown must not exceed 10% ($2,500) of the initial account balance.
- This maximum loss rule covers the entire challenge duration, ensuring the trader remains cautious over the longer term.
- Minimum and Maximum Time:
- Minimum Trading Days: You must trade for at least 5 days to complete the phase.
- Maximum Trading Days: There is no time limit, providing flexibility to achieve the 5% target at your own pace.
- Leverage:
- The account operates with leverage of 1:100, giving traders substantial buying power without excessive risk.
- Trading Flexibility:
- EAs (Expert Advisors) are allowed so that automated strategies can be used.
- News Trading is permitted, enabling trading around market-moving news events.
- Weekend Holding is also allowed, giving the freedom to hold positions over the weekend.
Transition to Funded Status:
- Once the 5% target is achieved without violating the risk parameters, the trader moves from Phase 2 to the Funded stage.
Costs and Benefits:
- $550 fee before Phase 1
- Once funded, traders receive an 80% profit split on profits generated.
- If you pass Phase 2, the initial fee (paid in Phase 1) is usually refunded.
Account Scaling:
- In the funded stage, the account could scale up to $3 millione if performance conditions are met over time.
This phase filters out traders who may have passed Phase 1 by chance. It demonstrates risk management and consistency with a lower target but the same risk constraints.
Potential Challenges and Controversies
The most common issues among traders revolve around lot manipulation and the requirement for consistency. These rules often lead to frustration, especially when traders hit profit targets quickly but fail to demonstrate consistent trading over the minimum trading days.
Minimum Trading Days Rule
The requirement for completing each phase involves a minimum of five trading days, where at least one trade must be opened on five separate days. However, many traders hit their profit target in 3-4 days and then attempt to meet the minimum days by opening and closing a trade quickly. This is seen as manipulation by Traders with Edge, leading to account denials. This could be improved by setting a rule where trades count towards the minimum trading days only if they generate a small profit (e.g., at least 0.5%). This change would encourage genuine trading behavior.
My Trading Experience with Traders with EdgeWhen I began the challenge in October, I had a 100K phases account on MetaTrader 5, a well-known and reliable platform.
Key Observations
- Platform Support: Traders with Edge supports MetaTrader 5, MetaTrader 4, and DX Trader platforms, giving flexibility in platform choice.
- Challenge Structure: the two-phase challenge is ideal because it offers a higher margin for error with increased maximum daily and overall loss limits.
- Static Drawdown: They use a static drawdown calculation, which doesn’t reset daily. This is a positive feature, as it keeps traders more relaxed, reducing pressure to recover losses within the same day.
Suggestions for Improvement
One of the main areas that could use refinement is the requirement for minimum trading days. As highlighted earlier, the current rule encourages traders to game the system, leading to complaints and accusations of manipulation. A more transparent and performance-based requirement would make the evaluation process fairer.
Conclusion: Is Traders with Edge Legit?
As of now, I am in phase 1. My goal remains to see if Traders with Edge provides a funded account and honors the payout. The experience so far has been positive, and their openness to responding to criticisms on Trustpilot speaks well of their commitment to professionalism.
I will continue documenting my progress to provide a complete and honest review of Traders with Edge, particularly regarding their payouts. If they fulfill their promises, Traders with Edge could become a valuable option for traders seeking flexibility and a fair challenge structure. Stay tuned as I share the final verdict based on my whole experience.
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He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
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