Elite Trader Funding (ETF) is a proprietary trading firm offering traders access to substantial capital through various evaluation programs and funded account opportunities. Based in Delaware and founded in 2022, ETF targets both novice and experienced traders. However, while the firm has distinct features, there are notable areas where it may fall short compared to other prop trading firms. This detailed review explores ETF’s rules, challenges, and potential drawbacks.
Rules and Evaluation Programs
ETF offers a variety of evaluation models, each with specific requirements and rules that traders must adhere to. These programs are designed to assess traders’ discipline, risk management, and profitability. However, the complexity of these rules may not appeal to all traders.
1. 1-Step Evaluation
- Profit Target: Traders must achieve a profit target of 6.67% to 12.5%, depending on account size.
- Drawdown Limits: Includes a trailing drawdown of 2.5%-10%.
- Minimum Trading Days: 5 days.
- No Maximum Time: Traders can take as long as needed to meet the target.
2. End-of-Day (EOD) Drawdown Evaluation
- Daily Loss Limit: Losses are assessed at the end of each trading day.
- Trailing Drawdown: Calculated daily, which can significantly impact strategies relying on intra-day fluctuations.
3. Fast Track Evaluation
- Expedited Funding: Allows traders to qualify for funded accounts more quickly but imposes stricter risk limits.
4. Static Evaluation
- Fixed Drawdown: Instead of a trailing drawdown, traders face a fixed limit, offering consistency but less flexibility.
5. Diamond Hands Evaluation
- Long-Term Focus: Designed for traders who aim to demonstrate sustained performance over an extended period.
Rules and Restrictions
ETF has stringent rules that traders must follow, which may deter some individuals due to their restrictive nature:
- Trailing Drawdown: This rule is calculated based on the highest account balance during trading, including unrealized profits. While designed to mitigate risk, it can discourage traders from holding positions or maximizing potential gains.
- Daily Loss Limit: Traders cannot exceed a specific daily loss threshold, including both realized and unrealized losses.
- Consistency Rules: Traders must demonstrate consistent performance, avoiding overly large trades or sudden shifts in strategy.
- News Trading Restrictions: Some programs limit trading during high-impact news events, which can hinder strategies relying on market volatility.
- Hedging Rules: Hedging within the same account is allowed, but cross-account hedging or strategies like latency arbitrage are strictly prohibited.
Account Sizes and Fees
ETF offers accounts ranging from $10,000 to $300,000. While this variety accommodates traders with different capital needs, the fees associated with these accounts can be higher than industry averages.
- Evaluation Fees: Fees vary depending on the account size and evaluation type, and they are non-refundable, even if a trader fails the challenge.
- Scaling Opportunities: While ETF allows for account scaling based on performance, the process is less transparent compared to competitors, leaving traders uncertain about growth potential.
Profit Sharing and Payouts
ETF provides a competitive profit-sharing structure, but it has limitations:
- First $12,500 Profit: Traders retain 100% of their profits up to $12,500, which can be appealing for those who achieve early success.
- Subsequent Profits: An 80/20 split applies after the initial profit threshold, with traders keeping 80% of their earnings.
- Payout Delays: While ETF advertises efficient payouts, traders have reported delays and inconsistent processing times, raising concerns about reliability.
Challenges with ETF
- Complex Drawdown Rules
- Trailing drawdowns are particularly restrictive and can penalize traders for unrealized gains, limiting the potential for long-term profitability.
- Evaluation Costs
- The fees for ETF’s evaluation programs are higher than some competitors, making the firm less attractive to traders seeking cost-effective options.
- Profit Split Threshold
- The 100% profit split on the first $12,500 is a unique feature, but the subsequent 80/20 split is standard and less competitive than firms offering higher starting splits, such as 85% or 90%.
- Scaling Transparency
- The lack of clear criteria for scaling accounts makes it difficult for traders to plan for long-term growth.
- Customer Support Concerns
- While ETF offers responsive support, some traders have reported delayed responses or generic replies, especially during critical trading issues.
Comparison with Other Firms
While ETF provides diverse evaluation options and robust rules, there are firms with more trader-friendly features:
- Simpler Rules: Competitors with straightforward evaluation processes and fixed drawdown limits may appeal to traders seeking less complexity.
- Higher Profit Splits: Some firms start with profit splits of 85% or more, offering greater earning potential from the outset.
- Faster Payouts: Firms with guaranteed payout timelines of under 24 hours provide a more reliable experience.
- Lower Fees: Many firms offer competitive fees for their evaluations, reducing the financial burden on traders.
Conclusion
Elite Trader Funding offers a variety of funding opportunities with well-structured evaluation programs, but the restrictive rules, higher fees, and less competitive profit-sharing may deter some traders. While it caters to traders who value discipline and long-term growth, those seeking flexibility, lower costs, and simpler rules may find better options with other proprietary trading firms.
Prospective traders should carefully weigh these factors against their trading style and objectives before committing to ETF.