Funded Accounts Challenge Even Experienced Traders
Sam, a crypto trader since 2021, shared his experience on Reddit. In the past eight months, his Bybit account made significant gains after four years of refining strategies.
However, when he switched to a funded trading account with $75,000 from a prop firm, it didn't last a week. He was frustrated that his proven strategy couldn't work in this new environment.
The article explains how crypto trading on a funded account works. Traders must pass a challenge and choose a funded account, which uses dummy funds and simulates the market.
When generating profits, the firm pays the agreed share in real money. However, rules apply, such as daily loss limits, maximum drawdowns, leverage caps, and conduct requirements.
Most crypto trading strategies work on prop firm accounts, but traders must rebuild their risk engine to adapt to the new environment. The edge from an exchange account remains intact, but risk handling needs to change.