Our goal at Take Profit, before we fund traders, is to make sure they’re consistent. We have two rules in place for consistency, and although they are somewhat arbitrary, we take them very seriously.
1. Number of Days
In order to prove that you can make money and manage risk, we ask that you show us trades over a MINIMUM 5 trading days. A trading day is defined as any trading day in which you have executed at least one trade.
Please note, your test can take as long as you would like, but must meet the minimum number of days to be approved. If you reach the profit target in 2 days, you need to still trade 3 more days to show you can manage risk.
We know this rule can be frustrating, but simply trading and getting lucky for a few days is not enough to prove that you're capable of managing funds.
2. Percentage of Profits
Anybody can get lucky. In order to combat our trading test to be treated like a lottery ticket, we ask that one trading day doesn't exceed more than 50% of your total profits. This one is pretty simple to follow. See formula below:
Your highest profit day / Total profit = Consistency percentage
Example:
50K account with a 3K profit target.
One trading day you make $2,000. The rest of the days you make a combined $1,100.
If we use our formula we see that $2,000/$3,100 = 65%
This number needs to be less than 50% to be eligible for a pro account. If you are in this situation, you would need to make another $901 to get below the threshold.
$2,000/$4,001 = under 50%