Alpha Futures, founded in July 2024 and based in the United Kingdom, is a proprietary trading firm designed to provide futures traders access to capital through structured evaluations. As a sister company to Alpha Capital Group, which focuses on forex trading, Alpha Futures aims to expand its reach to futures traders globally. Below is a detailed look at Alpha Futures, including its rules, trading platform, red flags, and potential challenges for traders.
Who Is Alpha Futures?
Alpha Futures is a prop firm that specializes in funding futures traders. The company was established to cater to a growing demand for futures-specific proprietary trading solutions, leveraging its relationship with Alpha Capital Group. Alpha Futures is led by CEO Ben Chaffee, who has played a significant role in developing Alpha Capital Group into a recognized name in forex trading.
Mission:
Alpha Futures focuses on providing traders with the tools, funding, and infrastructure necessary to succeed in futures trading, aiming to reduce barriers for international traders who face limited access to the U.S.-dominated futures market.
Evaluation Process and Rules
Alpha Futures offers a one-step evaluation program that assesses a trader’s profitability, discipline, and adherence to risk management rules. The evaluation is designed to be straightforward but includes strict parameters that traders must follow.
Evaluation Rules:
- Profit Target:
- Traders must achieve a 6% profit target during the evaluation phase.
- Drawdown Limits:
- Maximum Drawdown: Capped at 4%, calculated from the daily balance rather than equity highs. This method allows traders to retain some flexibility but requires careful monitoring.
- Daily Drawdown: Not applicable during the evaluation phase, offering some relief from daily performance pressures.
- Consistency Rule:
- Traders must maintain a 50% consistency rate, meaning half of their profits must be derived from consistent trading activity. This rule prevents over-reliance on one or two high-risk trades.
- Account Sizes and Fees:
- $50,000 account: $79/month.
- $100,000 account: $159/month.
- $150,000 account: $239/month.
Trading Restrictions:
- Automated Trading: Prohibits the use of high-frequency trading (HFT) systems and artificial intelligence (AI)-powered bots.
- Scalping: Allowed but subject to adherence to consistency rules.
- Platform Use: Traders must exclusively use the firm’s proprietary platform, AlphaTicks.
Evaluation Duration:
- There is no time limit to complete the evaluation, allowing traders to proceed at their own pace.
Trading Platform: AlphaTicks
Alpha Futures requires traders to use AlphaTicks, its proprietary trading platform designed specifically for futures trading.
Platform Features:
- Integrated TradingView: Advanced charting tools with customizable indicators and technical analysis options.
- User-Friendly Interface: Supports up to eight chart windows, with tools for drawing, analysis, and execution.
- Real-Time Data: Offers fast and accurate data feeds for all supported futures instruments.
Drawbacks:
- The proprietary nature of AlphaTicks means traders cannot use more familiar platforms like NinjaTrader or MetaTrader.
- Limited compatibility with third-party tools or external APIs, restricting traders who rely on additional software.
Tradable Instruments
Alpha Futures gives traders access to a broad range of futures instruments, including:
- Equity Futures: Major U.S. indices such as the S&P 500 and Nasdaq.
- Forex Futures: Currency pairs with a focus on major and minor markets.
- Agricultural Futures: Corn, wheat, soybeans, and other commodities.
- Energy Futures: Crude oil, natural gas, and related products.
- Interest Rate Futures: U.S. Treasury bonds and Eurodollars.
- Metal Futures: Gold, silver, and copper.
Profit Sharing and Payouts
After successfully completing the evaluation, traders receive a funded account with the following terms:
- Profit Split:
- Traders earn up to 90% of profits once funded.
- Initial profits may be subject to a slightly lower split during the first month, depending on the account type.
- Payout Frequency:
- Payouts are processed bi-weekly, providing a reasonable frequency for traders to access their earnings.
- Withdrawal Conditions:
- Traders must reach a minimum profit threshold before requesting payouts, ensuring the account remains viable.
Red Flags and Concerns
While Alpha Futures offers several attractive features, there are notable concerns and potential red flags that traders should carefully evaluate:
1. Limited Track Record
- Concern: Alpha Futures is a relatively new player in the proprietary trading industry, with operations starting in 2024. Its lack of an established reputation makes it difficult to assess its reliability and long-term stability.
- Impact: Traders may prefer firms with proven track records and established reputations for payouts and transparency.
2. Consistency Rule
- Concern: The 50% consistency rule may penalize traders who rely on occasional large trades to achieve their targets.
- Impact: This rule requires traders to adopt a steady trading style, which may not align with all strategies.
3. Automated Trading Restrictions
- Concern: The prohibition of high-frequency trading (HFT) systems and AI-powered bots limits traders who specialize in algorithmic strategies.
- Impact: Traders reliant on automation or advanced trading tools may find these restrictions problematic.
4. Proprietary Platform Limitations
- Concern: AlphaTicks, while functional, lacks the widespread adoption and flexibility of platforms like NinjaTrader or MetaTrader.
- Impact: Traders accustomed to third-party tools may find the platform restrictive and less compatible with their workflow.
5. Subscription-Based Fees
- Concern: Alpha Futures charges monthly subscription fees, which continue even if the trader fails the evaluation. This contrasts with firms offering refundable one-time fees.
- Impact: The ongoing costs could deter traders who are not consistently profitable or require longer evaluation periods.
Conclusion
Alpha Futures offers a streamlined pathway for traders to access capital in the futures market, emphasizing consistency and risk management. With access to a broad range of instruments and a unique proprietary platform, it caters specifically to futures traders. However, its strict rules, subscription-based fees, and limited track record may pose challenges for some traders.
Pros:
- Wide range of tradable futures instruments.
- No time limit for evaluation completion.
- Competitive profit split of up to 90%.
- Flexible daily drawdown policy during evaluation.
Cons:
- Limited operational history and reputation.
- Restrictions on automated trading systems.
- Proprietary platform may lack familiarity for some traders.
- Monthly fees add ongoing financial commitments.
Recommendation:
Alpha Futures is ideal for experienced futures traders who prioritize consistent trading and are comfortable with a proprietary platform. However, those seeking flexibility in trading strategies or a longer-established firm may want to explore alternatives like Apex Trader Funding or FTMO. As with any proprietary trading firm, thorough research and careful consideration of the rules and fees are essential before committing.