Intro: How PropEA Helps You Tackle Prop Challenges

[PropEA]

Honestly, it's too complex for me to explain, that's why we created the EA and the calculator

 

[TrAndy2022]

Honestly, it's too complex for me to explain, that's why we created the EA and the calculator

I understand it. You need to make $500 if you loose Phase 1 on challenge. Second you need to make $1000 on Phase 2 if you loose Phase 2 challenge. But in that example you only need to make 5% profits on a 10% Max. Drawdown. So if you pass also phase 2 it cost you another $500 here, plus spreads and commissions and swaps. So basically 2.05 times is correct. I was too conservative in my first formula. Now I fully understand the calculation.

So basically you would need that $1000 as cost for challenge phases + some extra for spreads etc., so 2.05 times again for funded prop accounts. So in total you would have 4.1 times the challenge fees as cost, correct ? (Because if you loose the funded account then you need to make at least that 2.05 times expense you had on passing the 2 phases).

But there is one open question here. How long does it take to get a "guaranteed" payout on funded prop account then ? Because if you had bad luck you could make several attempts to get through the phases and then there is still the need to make profits on funded prop account too. So in the end it could take many months with bad luck, or how do you narrow down that required time span here ?

Though on trailing Drawdowns it can look different with Futures prop firms. If you can give a hint on how you would do it with trailings DD, it would interest me.

 

[PropEA]

I understand it. You need to make $500 if you loose Phase 1 on challenge. Second you need to make $1000 on Phase 2 if you loose Phase 2 challenge. But in that example you only need to make 5% profits on a 10% Max. Drawdown. So if you pass also phase 2 it cost you another $500 here, plus spreads and commissions and swaps. So basically 2.05 times is correct. I was too conservative in my first formula. Now I fully understand the calculation.

So basically you would need that $1000 as cost for challenge phases + some extra for spreads etc., so 2.05 times again for funded prop accounts. So in total you would have 4.1 times the challenge fees as cost, correct ? (Because if you loose the funded account then you need to make at least that 2.05 times expense you had on passing the 2 phases).

But there is one open question here. How long does it take to get a "guaranteed" payout on funded prop account then ? Because if you had bad luck you could make several attempts to get through the phases and then there is still the need to make profits on funded prop account too. So in the end it could take many months with bad luck, or how do you narrow down that required time span here ?

Though on trailing Drawdowns it can look different with Futures prop firms. If you can give a hint on how you would do it with trailings DD, it would interest me.

In Trailing Drawdown, the drawdown stops trailing when your equity grows by a certain percentage, which is usually below the target. When that happens, your Max DD is locked at the starting balance. That could stop you from recovering your cost in the live account if the equity falls down again.

Alternatively, you could set your target in the EA to be equal or below the lock equity level, and then once it's hit, adjust the target to the original value and the Max DD value to be equal to the previous target.

Although this solution would add extra phases to your challenge, but if it fails, you would recover most of the cost.

That's why we recommend avoiding Trailing Max DD challenges, until we have that type covered.

The time it takes to get funded depends on the following factors:

1- The market volatility.
2- The challenge rules, how tough or easy.
3- How many phases the challenge is.
4- The trade-mode you select in the EA settings, Fast, Normal, or Slow:

The difference between those trade modes is the size of the trade, the faster the larger. So in fast mode it places a relatively larger trade with low distance to target. But bear in mind that it also depends on the margin requirements and the leverage of your accounts.

In general, for a 2-phase challenge it could take up to 2 weeks to reach an outcome, usually less.

You could also trade manually if you have good trading signals or use a different EA to speed up the process.

 

[PropEA]

In Trailing Drawdown, the drawdown stops trailing when your equity grows by a certain percentage, which is usually below the target. When that happens, your Max DD is locked at the starting balance. That could stop you from recovering your cost in the live account if the equity falls down again.

Alternatively, you could set your target in the EA to be equal or below the lock equity level, and then once it's hit, adjust the target to the original value and the Max DD value to be equal to the previous target.

Although this solution would add extra phases to your challenge, but if it fails, you would recover most of the cost.

That's why we recommend avoiding Trailing Max DD challenges, until we have that type covered.

The time it takes to get funded depends on the following factors:

1- The market volatility.
2- The challenge rules, how tough or easy.
3- How many phases the challenge is.
4- The trade-mode you select in the EA settings, Fast, Normal, or Slow:

The difference between those trade modes is the size of the trade, the faster the larger. So in fast mode it places a relatively larger trade with low distance to target. But bear in mind that it also depends on the margin requirements and the leverage of your accounts.

In general, for a 2-phase challenge it could take up to 2 weeks to reach an outcome, usually less.

You could also trade manually if you have good trading signals or use a different EA to speed up the process.

Once you get the funded account, the payout can be taken from either account, not necessarily the funded account. You just need to define your live account investment/target and take it from there.

 

[TrAndy2022]

Once you get the funded account, the payout can be taken from either account, not necessarily the funded account. You just need to define your live account investment/target and take it from there.

What is your pricing on 10 licenses then if someone wants to trade 10 prop challenges simultaneously for 1 year ? Looks bit pricey for 1 license what the software does, as it is only reverse copy tool based on some calculations. There are many cloud copy services around which also do reverse copy according to some parameters for a cheap monthly price. That is why I am asking. Because for 10 accounts reverse copying over cloud services for 1 year, someone would not pay more than $1000 to $1200 here. So how much would you asking here ?

 

[TrAndy2022]

First of all, we're happy to be part of the EliteTrader community, and we're looking forward to friendly and positive interactions with all members!

In this thread, we would like to introduce PropEA and shed the light on how it can help traders manage their Prop challenges without risky speculations. Your feedback is always welcome, we will be happy to answer your questions.

The Problem
You probably know that 95% of traders fail to pass prop challenges, but how many challenges a trader loses or can afford to lose? We asked that question to Prop traders in a survey, and not so shockingly, about 50% of traders reported that they have lost 5+ challenges at the time of the survey

In other words, 50% of traders have paid 5x the challenge fees trying to get funded, driven by hope and ambition, but to no avail.

And that's how PropEA got ignited!

What is PropEA?
PropEA is an Expert Advisor (EA) that is designed to help traders manage their Prop trading risk and cost with the aim to hit the challenge target OR at least recover the challenge fees to stop the traders' pocket from bleeding. Additionally, PropEA can be used to manage the Prop funded accounts with a focus on high potential returns.

PropEA is compatible with MetaTrader4 and MetaTrader5, and with the most common Prop trading rules.


PropEA is compatible with both MT4 & MT5, and it works with almost all Prop firm rules.

How PropEA Works
PropEA employs a well calculated hedging strategy that prioritizes fund protection. It serves as both a risk/cost management tool for challenges and a means to profitably trade Prop-funded accounts, operating as a valuable asset in prop trading endeavours.

For this hedging process to work, a trader needs to install PropEA on two accounts: a prop challenge account and a live account funded with a smaller amount.

The size of the live account depends on 2 actors: the cost of the challenge and the number of phases; you would need up to 2x the challenge fee for a 1-phase challenge, or up to 3x the challenge fee for a 2-phase challenge.

Once installed, all you need is to enter your challenge rules in the PropEA settings, and it will automatically do the following:

1. Calculate the lot size needed to hit the target on the Prop account.
2. Accordingly, it will calculate the lot size needed to recover the challenge cost in your live account, in case it fails to hit the target.
3. It opens the trades on both accounts simultaneously.
4. It calculates the daily drawdown level based on the selected drawdown type and places the SL on the Prop account above the daily DD to avoid breaching the account.
5. It closes the trades simultaneously on both accounts once the target or Max DD is hit (without SL on live account or TP on the prop account).
6. It tracks the number of trading days and places and complies with the minimum trading days rule.

Main Features

1. Visual Info Panel that tracks all metrics on both accounts in real time.
2. Visual representation of the highest equity and balance at rollover time on the chart.
3. The option to choose between 3 different trade modes: Fast, Normal, or Slow. The difference between these modes is the trade size and the distance to target or SL (in pips).
4. The option to place manual trades or trade in conjunction with another EA.
5. Compatibility with most common Daily DD types:
   • EOD Balance
   • EOD Equity
   • EOD Balance/Equity (whichever is higher)
6. Automatic closure of one leg of the hedge if the other was closed.
7. To avoid miscalculation, it doesn't trade if deposit currencies don't match on both account.

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What Happens after Passing?
You can run PropEA on a funded account after passing. Here is an example with calculations:

Funded Account Size: $100,000
Max DD: $10,000
Profit Split: 90%
Live Account Size: $3,000 (this is up to you)

In this example, the actual value of the funded account is not $100k, it is the maximum allowed loss (Max DD), which is 10%, that's the amount over which you have control.

So let's say you've got $10,000 in the funded account, and $3000 in your live account
PropEA will start trading on both accounts, aiming to double the value of either account.
If it doubles the value of the funded account, you would make $10,000 of which you can withdraw about 90% ($9,000) and lose $3000 on the live account.
In that case, your net profit would be: $9000 - $3000 = $6000
If it doubles the value of your live account, you would make $3000 on top of your initial $3000.
In that case, your net profit would be $3000.

More Questions?
Visit our website to learn more, our customer support team is available 24/5 via Live Chat and is happy to answer your questions or assist you with setup via remote desktop.

Wishing you successful trading!
The PropEA Team

In your example there was a daily loss of 4k on a 100k account with 10k MDD. Therefore is the daily gain on real account not too low? Should not it be $200 here as gain, because 10k loss on prop should be $500 gain on real account here or not ? You showed only a daily gain of $90 on real account. That would NOT be sufficient or what get I wrong here ?

 

[PropEA]

In your example there was a daily loss of 4k on a 100k account with 10k MDD. Therefore is the daily gain on real account not too low? Should not it be $200 here as gain, because 10k loss on prop should be $500 gain on real account here or not ? You showed only a daily gain of $90 on real account. That would NOT be sufficient or what get I wrong here ?

Not sure to which example you're referring, but he example provided in the original post is referring to the funded account. And it represents 2 scenarios:

Scenario 1: Hit the target on the Funded account
Outcome: $6k net profit on the Funded account assuming that you lose the live account.

Scenario 2: Hit the target on the Live account
Outcome: $3k net profit on the live account assuming that you hit the max dd on the funded account.

This is just one way to manage the funded account for demonstration purposes.

Here is a real life example from one of our users with a different approach: https://t.me/propea/41?single

 

[TrAndy2022]

4. The EA runs on the client terminal, not the server side, and only you can see what kind of EA you're using.
All the above make it almost impossible to be detected.

You said almost impossible. But for prop firms like FTMO it is not impossible to detect your EA, which will cause in a lifetime banning for anyone using your EA and therefore no payouts are given. What do you say to that ?

I do think that person is a liar, i see no reasons for this. Cause there is no competition ongoing what you are selling. So how it is possible to detect your EA ? You said almost impossible, so it is not totally impossible, what are the reasons here ? What are the risks involved here ?

The name of your EA can be seen from prop firms ? Then it is obvious to get banned.

You said: "4. The EA runs on the client terminal, not the server side, and only you can see what kind of EA you're using."

So you are saying only the person who is using your EA is knowing what this EA does. Correct ? But your name of your advertized EA can be seen for the prop firms. So every prop firm knows that this a reverse trading across accounts EA. So there is no need to proof more, if the name of your WELL KNOWN EA is to be seen from the prop side or what do you say here ???

In one forum one is answering how the prop firms can see if you are using an EA: "It will come up in your journal report when the data is extracted from the terminal or platform you trade from. The journal will show a full status report of everything that has occurred on the account." So if they see the name of your EA then the story is already over.

Why you do not create a UNIQUE name for each license holder / customer, so your official public name of your EA cannot be seen in journal or logs of prop firm Metatrader. Because they get noticed of the name and if the name is well known like yours, then it is already a red flag for them and every customer can get banned easily.

 

[TrAndy2022]

Maybe also the standard comment which comes in with your EA can cause a problem. Why not delete any comments and only provide empty comments for the prop firms to see.

Second, you also said that both accounts, the broker live account and prop firm account needs to be on same VPS installed. So the prop knows that a VPS is used and they know the IP address. If they ask an engineer or administrator on the VPS what is installed on the customers his VPS or give a screenshot of all, they can figure out that the forbidden reverse trading across multiple accounts was done. That is a risk. How to prevent this ? Because the problems come with the payouts. It is a loss from the prop firm side. So a bigger payout will be analyzed to hell. If that is a lot of money like at least 5-digits, they could pay an incentive to get out this required info from a VPS administrator of the customer to find out what happend here. And then the customer get banned and no payouts as result.

 

[PropEA]

Believe it or not, we couldn’t find this person anywhere in our records. We requested further information and none of the info they provided matched any of our customers’. They could be mistaken about name of the EA, as there are other EAs with similar names. Meanwhile, we’re waiting for a proof of purchase.

Our EA doesn’t have any standard comment, and the each user can add their own comment in the settings.

Moreover, the details of the EA you use are only visible to you on the client terminal and cannot be accessed by the broker because EAs are client-side software, not server-side. That’s why you need a VPS to keep any EA running.