How to become a Millionaire using prop firm funding

This is not an easy task, However it is possible with the amount of prop firms out there with easy access to money, We believe with the interest rates coming down we will see a drop in prop firm challenge prices.

In order for you to become a millionaire with prop firms money you need to find genuine prop firms that’s not going to steal your money.

Here are the list of well trusted prop firm in the FOREX space

1. FTMO
2. Funded Trading Plus
3. The 5% ers
4. Lux Trading Firm

These the list of Prop firms that we believe to be legit within the industry. Once you have a proven strategy in place with set of currencies, commodities or index you are set to take the challenge to get the funding you are craving for, just think it as the getting the job that you always dreamt of.

All the companies are vetted thoroughly using company records in UK company registry and Trustpilot to confirm if people have actually withdrawn money from these prop firms.

However, Lux Trading firm does have very complicated trading rules which are very hard to follow, but they are there to protect the company so they can provide actual funds rather than simulated funds that most of the firms are providing at the moment.

This is the calculation that will take you to the magical one million in trading

This is how you start

Step 01

FTMO $100,000 account at a cost of EUR 540

Funded Trading Plus $100,000 account at a cost of US $499

The 5%ers $40,000 account at a cost of $US 850

**I know, the 5%ers has a higher cost, but you need to be diversified, you should not keep all the funding at a one prop firm that why we suggest that you only go for the $100,000 not for the $200,000 which is available at FTMO and Funded Trading plus.

Step 02

Now that you have demo funding of $240,000 with a 6% drawdown, $14,400 just imagine that you just have $14,400 in funding not $240,000 because if you hit the 6% overall drawdown you will lose all the account, keep in ,mind that there is a 3% daily drawdown which is to protect you and the company. If you don’t really understand that i don’t think you are ready to trade financial products.

Step 03

Now that you have $240,000 in demo funding, start trading using a strategy that you have tested before simultaneously, using a swing trading strategy with a minimum Risk to Reward ratio of 2, meaning you have to win at least two times the amount you lose on every trade you take. Be consistent even when trades are going against you.

This is how you determine the lot size, just imagine that you are going to lose 20 consecutive trades and it should be 3% of the total funded amount.

In this case 3% of the $240,000 is $7,200. then divide this by 20, So on each trade you can lose a maximum of $360 and you have to win $720 on your winning trades.

just imaging that you use a coin flip trading strategy that you will buy at the same time every day when the coin flip give a Head and if the coin flip resulted in a Tail, you have to sell, make sure that you place the trade at the same time. In a Large enough sample size your probability of going to be 50/50.

Now that we are out of the strategy, if you place 50 trades with a R:R of 1:2, you are going to have 25 trades with a loss of $360*25 = -$9,000 and 25 winning trades with profit of +$18,000. The Net profit is going to be $9000. Not really a bad strategy. So that a percentage gain of 3.75% per month and continue that for 3 months you will have a live funded trading account!!.

So based on this strategy you will earn $9000 every single month, but we all know that’s not realistic nor achievable but 50% of it is very much achievable if you are very disciplined enough not to change strategy midway through.

Step 04

Now that you have a strategy and live funded account with a $240,000 in funding this is how you become a millionaire with prop firm fundings

So based on the approximated profit that you are going to earn per month the $4,500 if you can earn that for next 10 months not for 12 months so margin of safety, you will earn $45,000 per year per tax.

So that about 18.75% return on the capital you have to trade on, remember that when you hit 10% you have the chance to request to double the account size, with that in mind within a year you will have a fund size of $480,000 and if you able to generate 15% return on that capital you you generate a $72,000 per year per tax. When you do hit that amount you are at $960,000 just shy of one million US dollars in prop firm fundings.

Step 05

If you saved much of the cash by this time, you should have about $US117,000 if you saved every penny,, but remember you have to share your profit with the prop firm, deduct 20% for the prop firm. NEVER EVER keep more than $2000 capital in any of the prop firm account just so that if they go bust your loss is very minimal, every time you made a profit ask for a withdrawal. Now that you have close to $US 93,600 put this aside in a saving account. SO YOU HAVE $960,000 in Prop funding by third year. Remember this is a long game not a game that you are going to get to be a millionaire within a year, but it is achievable within 5 years. If you still able to make 10% from $960,000 that’s about $96,000 per annum before profit share, after the profit share it will be $76,800, and at the fourth year you will have a Total funded Trading account worth of $1,920,000.

Crazy thing is that when you make 10% of it it will be $192,000 and after profit share its still $153,600.

Now lets have a closer look what you have made so far

Year 01 $36,000 (45,000)

Year 02 $57,600 (72,000)

Year 03 $76,800 ($96,000)

Year 04 $153,600 ($192,000)

Year 05 $307,200 ($384,000)

Let’s calculate the total profit generated within 5 years

By Now you have about $631,200 in total profit generated after profit share without paying any taxes, just imaging you are living in Dubai.

I know, you are still not millionaire, How about you double the initial starting capital from $240,000 to $480,000. You are a Millionaire within 5 years. You’re Welcome.