The journey into the trading markets is often halted before it even begins for many, with insufficient capital being a major roadblock. This challenge has led to a surge in the proprietary (prop) trading sector, offering underfunded traders the leverage they need to bring their trading strategies to life and potentially turn a profit.
As the prop trading industry grows in popularity, firms are broadening their services to stay ahead in the game, presenting traders with a variety of funding options.
These include challenges that offer indefinite time frames, opportunities for free trials, and an expanded range of financial assets to trade with. Among these innovative offerings, scaling plans by prop firms have emerged as particularly attractive.
But what’s the deal with scaling plans, and why is the TopStep Scaling plan drawing so much attention? Let’s dive deeper to understand the benefits and why it might be a standout choice for traders looking to scale their trading careers.
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What is a Scaling Plan?
A scaling plan in the world of prop trading is essentially a growth ladder for traders, allowing them to increase their trading capital based on solid performance and good risk management. It’s a win-win: traders get the chance to prove their mettle and earn more, while the prop firm gets to back their best horses, boosting its own returns. This approach ties the success of the trader directly to the success of the firm, creating a partnership where skillful trading is both encouraged and rewarded.
The beauty of a scaling plan lies in its ability to drive continuous improvement. Traders are motivated by clear milestones and the prospect of tangible rewards, pushing them to refine their strategies and trading skills.
As traders hit specific targets, their trading capital gets bumped up by a certain percentage—this could be anything from 20% to 50% or even more, depending on how they’ve performed and the firm’s policy.
Prop firms often roll out these scaling plans as a way for traders to gradually increase the size of their accounts, and consequently, their potential profits.
By meeting predefined profit targets without overstepping risk boundaries, traders can unlock more capital and climb to higher levels of account sizes. These plans are especially appealing for their potential to significantly boost earnings.
The principle is simple: excel in your evaluations, manage risks wisely, and you’ll see your funding—and your share of the profits—grow.
This system is designed to cultivate a breed of traders who are not only profitable but consistent, with each successful evaluation extending their financial reach within the firm.
TopStep’s Distinctive Scaling Plan Approach
TopStep’s Scaling Plan is renowned for its strategic approach to trader evaluation, focusing on skill and market discipline. It’s designed to cultivate a trader’s ability to thrive under pressure while sticking to a disciplined trading regimen.
Understanding TopStep’s Scaling Plan
Central to TopStep’s strategy is the gradual elevation of trading responsibility. Initial capital is purposefully limited to instill a growth and risk-conscious mindset. As traders demonstrate consistent success and reliability, they’re entrusted with greater capital.
The Scaling Plan, integral to the Express Funded Account, is reviewed daily post-Trade Report update, with a core objective to accustom traders to the live market gently. This plan has proven to bolster trader longevity by encouraging responsible account leverage and mitigating the risks of over-trading.
Live Funded Account Advancement
After reaching a cumulative profit above $10,000 in the Live Funded Account, traders can seek revised risk parameters, marking a significant milestone in their trading journey.
Please note that while the scaling plan is automatically updated during the Trading Combine and Express Funded Account, it is not for the live funded account. For the live funded account, you will need to contact TopStep directly to adjust your scaling plan.
Click Here to find all of the methods you can use to contact the TopStep support team.
Daily Contract Limits and Error Handling
While platforms like Tradovate and NinjaTrader try to enforce lot limits, it’s crucial for traders to actively manage their positions. Swift corrections within 10 seconds for Scaling Plan breaches are overlooked, emphasizing the need for attentiveness to the rules.
Enhancing Trading Rigor with TopStep’s Scaling Plan
Traders are encouraged to customize their trading workspace and enable order confirmations as safeguards against exceeding the Scaling Plan, ensuring that discipline remains at the forefront of their trading practice.
TopStep Scaling Plan Details
Here are the main details about the scaling plan you should be aware of:
Traders are not obligated to trade the maximum number of contracts allowed; for instance, if your account balance permits 3 contracts, you may choose to trade only 2 at any given time.The maximum contract limit under the Scaling Plan remains constant during the trading day. To move to a higher contract limit based on the Scaling Plan, traders must wait until the next trading session, even if their earnings reach the necessary amount for scaling within the same day.It’s advised to review your trade report daily after its update at 5 pm CT. This review will help determine the number of contracts available for trading in your account during the next session, ensuring compliance with the Scaling Plan rules.
TopStep Scaling Plan vs Competitors
When it comes to scaling plans in the proprietary trading space, TopStep certainly stands out with its well-structured approach. Let’s see how it compares to similar programs like Earn2Trade and The5ers.
Earn2Trade’s Progression Ladder
Earn2Trade offers a progression ladder in their funded trader programs, regulating the number of futures contracts a trader can hold based on their profits. In comparison, TopStep provides a more comprehensive and graduated Trading Combine, emphasizing consistent risk management and strategic growth.
Earn2Trade might allow trading more contracts post a certain profit level, but it lacks TopStep’s depth of evaluation and growth potential throughout a trader’s journey.
The5ers Forex Specialization
While TopStep and Earn2Trade focus on futures, The5ers specialize in forex, offering a scaling plan that’s tailored to growing accounts and profits in currency trading. The5ers require traders to navigate through multiple challenges to earn and scale their funded account, a process that could be seen as more cumbersome compared to TopStep’s streamlined progression.
TopStep, on the other hand, maintains a clear and direct path for traders to elevate their trading capacity in the futures market.
The Superiority of TopStep’s Scaling Plan
TopStep takes the lead with its proven track record and well-crafted scaling plan that fosters responsible trading growth. Unlike its competitors, TopStep ensures traders are well-prepared to handle increased capacity by emphasizing discipline and risk awareness.
While others offer a simpler or faster route to scaling, TopStep’s methodical and educational approach ensures longevity and sustainability in a trader’s career, setting them up for long-term success.
In conclusion, while Earn2Trade and The5ers have their merits, TopStep’s holistic program, focused on developing traders’ skills comprehensively, presents a superior scaling plan in the industry. With TopStep, traders gain a dependable pathway to amplifying their trading potential and achieving their financial goals.
Is TopStepTrader A Good Prop Trading Firm?
Is TopStep worth considering as your prop trading firm? Absolutely, if you value a platform that not only challenges your trading abilities but also guides you towards disciplined and profitable trading. TopStep distinguishes itself with its TopStep Scaling Plan, offering a systematic journey towards trading with real funds.
The Scaling Plan is a standout feature, providing traders with a progressive path to increase their trading capital based on performance and adherence to risk management. This approach encourages ongoing improvement, supported by TopStep’s educational resources and mentorship.
Furthermore, TopStep fosters a community where traders can share insights, adding value to the learning process. The firm’s clear guidelines and risk disclosure ensure a transparent trading environment for all involved.
In short, TopStep is an excellent choice for traders aiming to build a sustainable career in the markets, thanks to its structured TopStep Scaling Plan and comprehensive support system. Ready to elevate your trading game with TopStep? Click Here to dive in.
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Frequently Asked Questions
What is a scaling plan with a prop firm?
A scaling plan from a prop firm reflects the firm’s confidence in its traders. As traders successfully navigate and profit from the financial markets, it benefits the prop firm as well. Top-performing traders are rewarded with access to accounts with higher capital, offering them the potential to increase their earnings.
What is the TopStep trading combine?
The Trading Combine is a comprehensive evaluation and training program designed for futures traders. Participants refine their trading techniques in a simulated market environment, with the opportunity to receive funding upon meeting specific objectives. Although acquiring a Funded Account® is a key aim, the program encourages discipline and beneficial trading practices, aiding traders across various skill levels.
What is the 1 rule in TopStep?
The one rule with TopStep is: don’t exceed your maximum loss limit. The Maximum Loss Limit represents the total amount you’re allowed to lose, recalculated at the end of the day, based on realized gains.
What is the payout policy?
Traders get to keep all of their profits up to $10,000. Once traders have withdrawn $10,000, any further payouts follow a 90/10 split, where the trader gets 90% of the profits, and TopStep keeps 10%. To qualify for a payout, traders need just 5 days of earning $200 or more.
