Take Profit Trader is a popular proprietary trading firm offering futures traders the chance to earn funded accounts. While it provides attractive opportunities, it’s important to look closely at the fine print and potential drawbacks to ensure it aligns with your trading goals. Here are the key red flags you should pay attention to before committing to this prop trading firm.
1. Strict Risk Management Rules
- What It Is: Take Profit Trader imposes strict limits on both daily losses (3%) and overall drawdowns (4%) during the evaluation and funded account phases.
- Why It’s a Red Flag: These limits leave little room for error. Even a minor misstep during volatile market conditions could lead to immediate disqualification.
- What to Watch For: Ensure your strategy can consistently operate within these constraints. Test it rigorously in a simulated environment before starting the evaluation.
2. Trailing Drawdown Applies to Unrealized Profits
- What It Is: The trailing drawdown adjusts based on your account’s peak unrealized profits.
- Why It’s a Red Flag: This rule can penalize you for temporarily favorable trades that pull back slightly before closing, effectively punishing good trading decisions.
- What to Watch For: Avoid letting trades run without taking partial profits. Understand how this rule impacts your ability to capitalize on large market moves.
3. Limited Trading Instruments
- What It Is: The firm only supports futures contracts from CME Group, such as indices, commodities, and currencies.
- Why It’s a Red Flag: If you’re accustomed to trading forex, stocks, or other asset classes, this limitation can significantly narrow your trading opportunities.
- What to Watch For: Confirm that the available instruments align with your expertise and preferred trading style.
4. No Refunds for Evaluation Fees
- What It Is: The fee to participate in Take Profit Trader’s evaluation process is non-refundable, even if you fail due to a small mistake.
- Why It’s a Red Flag: Traders who are not fully prepared may find themselves repeatedly paying fees to retry the evaluation.
- What to Watch For: Be confident in your readiness before signing up. Practice extensively on the supported platforms to minimize the risk of failure.
5. Payout Delays
- What It Is: Funded traders receive payouts every two weeks, with potential delays due to administrative processing.
- Why It’s a Red Flag: This schedule may be inconvenient for traders who need quicker access to their profits, particularly during high-expense periods.
- What to Watch For: Plan your finances accordingly, as you may not receive earnings as quickly as expected.
6. Weekend Trading Restrictions
- What It Is: Trades cannot be held over weekends, limiting strategies reliant on longer-term positions.
- Why It’s a Red Flag: Swing and position traders may feel restricted by this rule, especially if they rely on holding trades through market gaps for profitability.
- What to Watch For: Adjust your strategy to ensure trades are closed before market closure on Fridays.
7. Technical Platform Issues
- What It Is: Take Profit Trader supports platforms like NinjaTrader and TradingView, but some users have reported occasional technical issues, such as order delays or platform downtime.
- Why It’s a Red Flag: Technical hiccups can lead to missed opportunities or rule violations beyond your control.
- What to Watch For: Test the platform extensively before committing and report any issues immediately to support.
8. Lack of Transparency on Profit Split Changes
- What It Is: While Take Profit Trader advertises profit splits of up to 90%, reaching the higher split percentages requires meeting specific conditions that are not always clear upfront.
- Why It’s a Red Flag: Traders may feel misled if they don’t understand what it takes to unlock better profit splits.
- What to Watch For: Clarify all conditions for profit split increases with support before starting the evaluation or funded account.
9. Limited Account Customization
- What It Is: Traders must select from predefined account sizes with fixed parameters, including drawdown and loss limits.
- Why It’s a Red Flag: Lack of customization may not suit traders with unique strategies or capital needs.
- What to Watch For: Ensure the available account sizes and rules align with your trading preferences before enrolling.
10. Mixed Reviews on Customer Support
- What It Is: While many traders praise Take Profit Trader’s customer support, others report slow response times during critical moments.
- Why It’s a Red Flag: Delayed responses can lead to unresolved issues, especially if you need urgent clarification during the evaluation.
- What to Watch For: Test the responsiveness of customer support before committing to the program by asking questions or reporting hypothetical scenarios.
Key Takeaways for Traders
Take Profit Trader offers a structured pathway to earning funded accounts, but its strict rules and limitations may not suit every trader. Before signing up, carefully evaluate how your strategy aligns with their risk management rules and instrument offerings. Ensure you fully understand the firm’s policies on payouts, drawdowns, and account management to avoid surprises down the line.
Final Thoughts
While Take Profit Trader provides valuable opportunities for futures traders, being aware of these red flags can help you make an informed decision. Understanding the program’s structure, limitations, and potential drawbacks ensures you’re better prepared to succeed and avoid costly mistakes.