MyfundedFX account types and drawdown provides a wide range of account types suited to various trading philosophies and skill levels. With a variety of challenge-based accounts, MyFundedFx has quickly established a niche for itself in the proprietary trading market by giving traders the chance to manage large virtual funds. Anyone thinking of joining this prop firm must comprehend the subtleties of MyfundedFX account types and drawdown restrictions. This article presents a full analysis of MyFundedFx account types and drawdown including their structure.
An Outline Of MyFundedFx
MyFundedFx is a prop trading firm that gives traders access to simulated (demo) accounts that have a sizable amount of virtual money. In contrast to typical brokers, traders trade in a simulated environment and receive profit splits based on their performance, rather than accessing live markets with actual funds. Although there are benefits to this strategy, like increased money security and the absence of actual financial loss for the trader, traders must also be aware of the firm’s policies and the simulated trading environment.
MyFundedFx Account Types
A variety of account types are available from MyFundedFx, each of which is made to suit varying trading preferences, levels of experience, and risk tolerance. These are the main account structures:
1-Step Account
- Maximum Funding: Up to $300,000
- Profit Target: 10%
- Drawdown: 6% trailing drawdown
- Ideal For: Advanced traders seeking a straightforward challenge with tight risk controls
Traders that desire a one-phase assessment are the target market for the 1-Step Account. The 6% trailing drawdown, which necessitates rigorous risk management and discipline, is its biggest obstacle. When the 10% profit goal is met, a simulated funded account becomes available.
1-Step Max Account
- Maximum Funding: Up to $200,000
- Profit Target: 8%
- Drawdown: No trailing drawdown (static)
- Ideal For: Beginners or those seeking a more forgiving risk structure
Due to the elimination of the trailing drawdown, this account type is more accessible to novice traders or those who choose a steady, less constrictive risk environment. The lack of a trailing drawdown promotes a more consistent trading strategy, and the profit target is marginally smaller.
2-Step Account
- Maximum Funding: Up to $300,000
- Profit Target: 8%
- Drawdown: Standard drawdown rules, unlimited time to complete
- Ideal For: Traders seeking a traditional evaluation process
The most widely used choice is the 2-Step Account, which provides a well-rounded strategy with two assessment stages. With an 8% profit target and an infinite amount of time to achieve it, traders are relieved of pressure and encouraged to trade thoughtfully.
2-Step Max Account
- Maximum Funding: Up to $300,000
- Profit Target: 8%
- Drawdown: Lower leverage, standard drawdown rules
- Ideal For: Those focusing on risk management and consistency
This account mirrors the 2-Step Account but with lower leverage, encouraging traders to prioritize safe trading practices and long-term consistency.
3-Step Account
- Maximum Funding: Up to $300,000
- Profit Target: 6% (across multiple phases)
- Drawdown: Standard drawdown rules
- Ideal For: Traders preferring gradual progression and deeper market engagement
With a reduced profit target divided into three parts, the 3-Step Account is intended for those who want to showcase their skills over a longer evaluation period. Patience and a systematic approach to trading are rewarded by this structure.
Characteristics Across All Accounts
- Asset Coverage: A variety of instruments, such as forex, indices, metals, cryptocurrencies, and oil, are accessible through all account types.
- Simulated Trading: Since all trading is done on demo accounts, the trader’s real money is never at danger.
- Profit Split: Depending on the account and program, profitable traders may receive a profit share of up to 92.75%.
- No Time Limits: The majority of accounts provide an infinite amount of time to meet profit goals, which lessens the mental strain that prop trading difficulties frequently cause.
Understanding Drawdown at MyFundedFx
At MyFundedFx, drawdown rules are essential to risk management. To safeguard the firm’s capital and promote disciplined trading, they establish the highest permitted loss and are rigorously enforced.
Types of Drawdown
Trailing Drawdown
- Definition: The trailing drawdown, expressed as a percentage of the maximum account balance attained, comes after that peak. For instance, the account will be terminated if the amount drops below $94,000 at any time if the maximum drawdown is 6% and the maximum balance is $100,000.
- Lock-In System: The drawdown “locks” at the initial amount, offering a safety net, once the trader makes a profit equal to the drawdown percentage (for example, 6% on a $100,000 account). This implies that regardless of any further wins, the trader can never lose more than the initial investment.
Static Drawdown (No Trailing Drawdown)
- Definition: As the account balance rises, the drawdown is fixed at the initial level. Accounts such as the 1-Step Max Account have this, which is less restrictive.
- Benefit: This is appropriate for traders with less expertise or those who desire a more forgiving risk structure because they are not penalized for transient equity peaks.
Daily DrawdownÂ
- Definition: There is a mandated daily loss cap, usually set at 4% of the initial amount. All positions are closed and trading is stopped for the day if a trader’s losses in a single day above this limit.
- The goal of this regulation is to avoid disastrous losses brought on by excessive leverage or market turbulence within a single trading session.
Drawdown Rules by Account Type
Account Type: 1-Step Account
- Max Drawdown: 6%
- Daily Drawdown: 4%
- Drawdown Type: Trailing
- Profit Target: 10%
- Max Funding: $300,000
Account Type: 1-Step Max Account
- Max Drawdown: 8%
- Daily Drawdown: 2%
- Drawdown Type: Static
- Profit Target: 8%
- Max Funding: $200,000
The Account Type: 2-Step Account
- Max Drawdown: 8%
- Daily Drawdown: 4%
- Drawdown Type: Trailing/Static
- Profit Target: 8%
- Max Funding: $300,000
Account Type: 2-Step Max Account
- Max Drawdown: 8%
- Daily Drawdown: 2%
- Drawdown Type: Lower Leverage
- Profit Target: 8%
- Max Funding: $300,000
Account Type: 3-Step Account
- Max Drawdown: 6%
- Daily Drawdown: 4%
- Drawdown Type: Trailing/Static
- Profit Target: 6%
- Max Funding: $300,000
Note: Depending on the most recent promotions and program upgrades, the exact regulations may change slightly. Before joining, be sure to check the official MyFundedFx paperwork.
Drawdown’s Practical Consequences
Drawdown restrictions have a fundamental impact on trading behavior and are not merely technicalities:
- Risk Management: Tight drawdown limitations compel traders to avoid rash trades and employ careful position size. Long-term performance in both simulated and actual trading situations depends on this discipline.
- Psychological Impact: Traders are encouraged to regulate their emotions and refrain from revenge trading as they know that one bad day or a string of losses might finish the challenge.
- Adaptation of Strategy: Swing traders profit from the limitless time and static drawdown choices, but scalpers and high-frequency traders may find the rigorous daily drawdown limitations prohibitive.
Additional Rules and Restrictions
To ensure a fair and competitive environment, MyFundedFx enforces several trading restrictions:
- No Copy Trading: Market-purchased EAs cannot be used for copy trading by traders.
- No Group Hedging or Reverse Trading: It is forbidden to oppose trades across or within accounts in order to reduce risk.
- No Account Management Services: It is prohibited to use managed account services or to administer accounts for third parties.
- No High-Frequency Trading (HFT): Using extremely quick trading techniques is prohibited.
Violating these rules can result in immediate disqualification and account termination.
Conclusion
From multi-phase assessments for those looking for steady advancement to single-phase challenges for experienced traders, MyFundedFx account types and drawdown provides a wide range of account types catered to various trading styles and skill levels. Only disciplined, reliable traders advance to simulated funded status thanks to the firm’s stringent drawdown criteria, which include trailing, static, and daily limits. These rules are at the heart of its risk management philosophy.
Although traders do not actually lose money because MyFundedFx’s accounts are simulated, the difficulties are meant to replicate the demands and pressures of professional trading. Passing the assessment and forming trading habits that will benefit traders in any setting require an understanding of and adherence to the drawdown processes.
By carefully selecting the account type that matches their skills and risk tolerance, and by rigorously adhering to the drawdown rules, traders can make the most of the opportunities offered by MyFundedFx and potentially launch a successful career in proprietary trading.
Frequently Asked Questions
Is there a deadline for finishing the assessment tasks?
- No, MyFundedFx gives traders unlimited time to finish the majority of evaluation tasks, letting them work at their own speed without feeling rushed.
What occurs if I violate the daily loss or drawdown guidelines?
- Your demo account will be immediately terminated and you will fail the evaluation challenge if you violate the maximum drawdown or daily loss regulations.
Is it possible to hold trades over the weekend or overnight?
- Indeed, traders are able to execute simulated trades all night long. Swap costs do apply, though, and they are three times greater on Wednesdays than they are on other days.