Passing the Challenge of Prop Trading with XauBot  - XAUBOT

Passing the Challenge of Prop Trading with XauBot 

Some things just sound too good to be true in life. Wouldn’t you guess, prop trading is one of them! 

Imagine an extremely rich individual or even a whole company comes along and gives you basically unlimited resources of money and pats you on the back and sends you off to your financial market of choosing to trade. Sounds dreamy, doesn’t it? 

Well, this is basically what prop trading is; a particularly reliable and highly profitable method of investment for companies and also individuals. 

But companies do not just provide their money to traders, sight unseen. There are various stages that must be passed first in order to obtain the trust of the firm first. Then you will become an official prop trader. 

In this article we will focus on the challenges provided by prop firms, with the example of the well-known prop firm FTMO. And we will also show you how you can pass prop firm challenges with the help of automated trading tool XauBot. 

How can you become a prop trader? 
  • First pick a prop firm 
  • Participate in their challenge 
  • If you pass the challenge successfully you can become a prop trader 
  • But these challenges are usually very difficult 

We will show you how XauBot can help you pass any prop firm challenge 

 

You should read: Best Prop Trading Firms 2024 

 

Why Engage in Prop Trading? 

If it is so difficult, then why would traders want to engage in prop trading at all? Why would companies even want to give their previous money to traders they do not even know? 

The answer to these questions can be seen in the benefits of prop trading

For the firm of the investor(s) that provide the money, prop trading can be an amazing way to diversify their portfolio and also obtain quick returns. 

  • Diversification of portfolio: when companies or investors give their money to prop traders, they keep their money flowing and circulating. This is an important notion in capital preservation. If the money doesn’t move, then it loses its value as time goes on. So prop trading can provide them with another method of a diversified portfolio. 
  • Quick returns on investment: additionally, unlike other methods of investment where returns are only seen when investment comes to fruition, for instance in the form of a fully developed startup company, with prop trading companies and investors can almost instantly receive the return on their investment. 

And of course for individual traders, it is well worth the effort to become a prop trader, since you do not have to have a high amount of capital for trading and you can use the capital provided to you by another party. 

So as a prop trader, it doesn’t matter if you do not have any money to begin with. As long as you have the skill and expertise of a trader, you are good to go! 

Why engage in prop trading? 

For companies: 

  • Diversifying their portfolio 
  • Instant return on their investment 

For individuals: 

  • They only need trading expertise 
  • It is okay if they don’t have any money 
  • They can use great amount of capital given to them to trade 

 

Prop Trading Firm Challenges: Example of FTMO 

Of course different prop trading firms have different tests and challenges. But the example we want to use in this article is the prop challenge by the well-known prop firm FTMO. 

There are many different aspects you need to consider when you are choosing your prop firm. One of the most important factors to keep in mind is the proportion of profit division between the prop firm and the prop trader. For instance, the usual number that is seen a lot with prop firms is about 75%. This means when prop traders work for these firms, they keep around 75% of the profits that they make and the remaining 25% goes to the firm. But with FTMO prop traders can receive up to 90% of their profits. 

So how can you become a prop trader for FTMO? 

According to their challenge, you need to pass three stages. 

  1. First you need to pass the challenge, which can be done with a balance of between $10,000 to $200,000 and with a minimum trading period of 4 days. The maximum loss allowed is $1,000 and the goal is to lock in $1,000 in profits. You also have to pay around 170 dollars in fees which is given back to you if you successfully become an FTMO prop trader. 
  2. The next step of the challenge is called verification. Exactly the same as the first stage challenge, but with the difference that the minimum profit target is halved from $1,000 to $500. 
  3. Lastly, if you are successful you become an official prop trader with this firm and your initial fee will be refunded with the first profits that you obtain. 

Prop Trading Challenge 

Prop Firm Example: FTMO 

  • Paying the initial fee of about $170 
  • Minimum trading period is 4 days 
  • Your maximum loss threshold is $1,000 
  • Your profit goal is to secure $1,000 
  • Then you can become an official prop trader 

 

You should read: How Much Can Prop Trading Make 2024? 

 

How Can You Pass Prop Challenges? 

There are two main ways of passing the challenge set by prop firms. 

  1. The hard way 

Perhaps you can guess that the hard way is to do it yourself. Either rely on your talents as a trader or hone your skills to the point where you can pass the challenge yourself. Either way, it is quite difficult as it requires you to be a truly seasoned trader. 

  1. The easy way 

The easy way, as we have said on multiple occasions, is just to use XauBot! 

Yes, you can use the amazing features of this automated forex trading tool to pass any challenge set by prop firms. Let’s see how this can be done. 

 

Using XauBot to Pass Any Challenge of Prop Trading Firms? 

Prop firms need to see sustainable and reliable results on your part in order to verify and trust you as a trader and give you their previous resources. 

The best way to achieve such reliable profitability results is with the help of XauBot. Our AI-based and intelligent trading bot is developed to be able to trade all foreign currencies in the forex market. So it doesn’t even matter what test the prop firm sets for you. They can choose any trading pair they want, XauBot will take care of it for you. 

As it is clearly apparent from its tracked performance throughout many months, XauBot is able to yield reliable results. So you can relieve yourself of any stress, and just purchase a plan with XauBot. Then you have XauBot pass the prop challenge for you. 

Furthermore, when you become a prop trader, you can also continue using the bot in your prop trading career, or you can take things in your own hands from then on. It is up to you. 

 

Conclusion 

Prop firms, such as FTMO, will provide you as the trader with great sums of capital to trade in financial markets. You will then divide the profits with the prop firm, which is, for example, 90% for you and 10% for the prop firm in the case of FTMO. But they do not just provide you with the money no questions asked. There are prop challenges that you must pass first. You can use the automated trading tool XauBot to pass any prop challenge. No matter which trading pair, XauBot will be able to trade for you and pass the test to pave the way for you to become a prop trader. 

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