The5ers prop firm account types and drawdown provides a range of account types catered to varying skill levels and trading preferences. Founded in 2016, The5ers is a well-known proprietary trading firm renowned for its creative approach to trader funding and adaptable account arrangements. The5ers, which has a global presence and is known for its openness and trader support, has a variety of account types that are suited to traders with different levels of experience. The management of drawdown limits, which are put in place to reduce risk and guarantee disciplined trading, is a crucial component of their offering. An extensive summary of The5ers account types and drawdown guidelines is given in this article.
An Overview of The5ers Account Types
Three main account categories are available from The5ers, each of which is intended to accommodate varying degrees of trading skill and risk tolerance:
- Bootcamp Account: Beginners looking for a low-cost admission and a systematic evaluation process will find a bootcamp account ideal.
- Hyper Growth Account: For experienced traders seeking quick scaling and immediate funding, the Hyper Growth Account is ideal.
- High Stakes Account: Intended for experienced traders who are prepared to assume more risk in exchange for possibly larger returns.
Every type of account has unique characteristics, review procedures, profit-sharing arrangements, and drawdown guidelines.
Bootcamp Account
Who is it for?
- Beginners and traders looking for a low-cost, phased evaluation path.
Structure and Evaluation:
- Three-phase assessment: Traders start with a $25,000 demo account and progress through $50,000 and $75,000 phases, culminating in a $100,000 funded account.
- Profit target: 6% per phase.
- Maximum loss: 5% per phase.
- Leverage: 1:10.
- Time limit: 12 months to complete all phases.
- Cost: Low upfront fee (e.g., $95 for a $100,000 account), with the balance payable upon successful completion of the evaluation.
Profit Split and Scaling:
- Begins with the first 5% earned at a 50/50 split.
- Increases in the trader’s favor to 75/25.
- Reaches 100% when the account size is $2.5 million.
- When profit goals are regularly reached, the size of the account might increase to $4 million.
Drawdown Rules:
- Each phase’s maximum loss (drawdown) is 5% of the account balance.
- There must be a stop-loss for every trade.
- Although Bootcamp does not specifically state a daily drawdown cap, the general 5% cap is rigorously adhered to.
Hyper Growth Account
Who is it for?
- Intermediate to advanced traders seeking instant funding and fast scaling.
Structure and Evaluation:
- Instant funding: No challenge required; traders receive live capital immediately.
- Account sizes: $10,000, $20,000, or $40,000, with the possibility to scale up to $4 million.
- Leverage: Up to 1:30.
- Profit target: 10% for scaling up.
- No time limits or minimum trading days.
- Cost: One-time fee, varying by account size (e.g., $260 for $10,000, $450 for $20,000, $850 for $40,000).
Profit Split and Scaling:
- Starts at 50% and increases as the account grows, reaching 100% profit split at $2.5 million.
- Double the funded account on every 10% gain.
- Payouts available every 14 days.
Drawdown Rules:
- Maximum total drawdown: 6% of the account balance.
- No daily drawdown limit is specified for Hyper Growth, but breaching the 6% cap results in account termination.
High Stakes Account
Who is it for?
- Experienced traders comfortable with higher risk and seeking the largest leverage and drawdown limits.
Structure and Evaluation:
- Two-step evaluation: Profit targets of 8% in Step 1 and 5% in Step 2.
- Account sizes: $5,000, $20,000, $60,000, and $100,000, with scaling up to $500,000.
- Leverage: Up to 1:100-the highest offered by The5ers.
- Cost: Starts at $39 for $5,000 and goes up to $495 for $100,000.
Profit Split and Scaling:
- Profit split starts at 80% and scales up to 100%.
- Monthly salary available for funded traders.
- Fastest scaling plan in the industry.
- Payouts every 14 days.
The Drawdown Rules:
- Absolute drawdown: 10% of the initial account balance.
- Daily drawdown: 5% of the previous day’s closing equity or balance (whichever is higher), calculated at 00:00 server time.
- Breaching either the absolute or daily drawdown limit results in account termination.
Drawdown: Definition and Importance
Drawdown, which is usually stated as a percentage, is the decrease in account equity from a peak to a trough. In prop trading, it is an essential risk management technique that makes sure traders don’t put the firm’s capital at undue danger.
Types of Drawdown at The5ers
- Absolute Drawdown: The most amount that can be taken out of the original account balance. A 10% absolute drawdown on a $100,000 account, for instance, limits the trader’s losses to $10,000.
- Daily Drawdown: The most permitted loss in a single day, usually determined using the equity or closing balance from the day before. This is set at 5% for High Stakes.
- Phase Drawdown: Usually 5% or 6% is the maximum loss permitted per phase or per account in Bootcamp and Hyper Growth.
Why Drawdown Limits Matter
- Safeguards the firm’s cash by making sure traders can’t lose more than a set amount.
- Encourages Trading With Discipline: Compels traders to control risk and refrain from risky tactics.
- Describes The Risk Profile: Diverse account types with variable drawdown limitations accommodate traders with varying risk tolerances.
Additional Features and Trader Experience
- Multiple Accounts: Depending on the program, traders are permitted to maintain up to three Bootcamp, four Hyper Growth, and three High Stakes accounts.
- No Time Pressure: With the exception of inactivity limitations (such as the fact that accounts in Bootcamp expire after 14 days of inactivity), the majority of programs do not have time constraints for finishing assessments.
- Platform: MetaTrader 5 (MT5), which supports forex, indices, and precious metals, is used for all trading.
- Education and Support: High trader satisfaction is a result of The5ers’ provision of comprehensive instructional materials, coaching, and prompt customer service.
Conclusion
The5ers’ inventive scaling strategies, open drawdown policies, and variety of account types set it apart in the prop trading market. The5ers offers a customized solution for all levels of traders, including novices seeking a structured path, intermediates seeking immediate capital, and advanced traders seeking high leverage and quick gain. To keep your funded status and succeed with the company in the long run, you must comprehend and abide by the drawdown limits. The5ers is a strong option for traders all over the world because of its transparent risk controls, substantial profit splits, and strong support.
Frequently Asked Questions
How Does The Evaluation Process Work?
- Typically, traders start with a demo or evaluation account, where they have to hit a predetermined profit goal without going over the maximum loss (drawdown) restrictions. After finishing successfully, they are allowed to trade with actual firm funds and are promoted to a funded account.
Is It Possible For Me To Have More Than One The5ers Account?
- Although there can be limitations on the maximum number of active accounts per program, traders are permitted to maintain several accounts. For the most recent limitations, see The5ers’ official support or FAQ page.
In relation to The5ers accounts, what does drawdown mean?
- The maximum loss permitted on an account is referred to as drawdown. It is a critical risk control mechanism that ensures traders do not lose more than a predetermined percentage of the account balance.