In the world of trading, having access to capital is often the key to success. Instant Funding offers traders a unique opportunity through its Three-Phase Challenge, a structured approach that helps traders prove their skills and manage risk effectively. Understanding this challenge is crucial for any trader looking to secure funding and maximize their profit potential. 

The Three-Phase Challenge is divided into three distinct phases, each with its own set of profit targets and rules. These phases are designed to progressively test a trader’s ability to generate profits while managing risk. Successfully navigating all three phases not only earns traders the right to manage a funded account but also proves their consistency and discipline.

Profit Target and Drawdowns:-

Phase 1 :-

In the first phase of the challenge, traders are required to achieve a profit target of 8%. This phase is critical as it sets the foundation for the subsequent stages. The daily drawdown limit is set at 5%, meaning traders must be cautious not to lose more than 5% of their account balance in a single day. Additionally, there is a maximum drawdown of 10%, which remains static throughout this phase. This means that once the 10% drawdown is reached, the trader’s account is closed, and they fail the challenge.

Phase 2 :-

Phase 2 is slightly less demanding in terms of profit targets, with traders needing to reach 5% profit to move on to the next phase. However, the daily drawdown limit and maximum drawdown rules remain the same as in Phase 1. This phase tests a trader’s ability to maintain consistency and discipline under slightly less pressure.

Phase 3 :-

The third and final phase also requires traders to achieve a 5% profit target. The daily drawdown and maximum drawdown rules continue to apply. Successfully completing this phase means the trader has demonstrated their ability to consistently generate profits while managing risk effectively.

Daily Drawdown :-

Daily drawdown is a critical concept in the Three-Phase Challenge. The daily drawdown limit of 5% forces traders to be strategic and avoid reckless trading decisions. It’s calculated based on the higher of either the account balance or equity at midnight. This rule ensures that traders cannot afford to make significant mistakes that could lead to large losses in a single day.

Maximum Drawdown :-

The maximum drawdown of 10% is a static figure that remains constant throughout the challenge. This means that if a trader’s account balance falls by 10% from its starting value, the account is automatically closed. This rule is in place to protect the capital provided by Instant Funding and to ensure that traders are consistently mindful of risk management.

Trading Days Requirements :-

One of the unique aspects of the Three-Phase Challenge is that there are no minimum or maximum trading days required. Traders have the flexibility to trade at their own pace, whether they prefer to take their time or complete the challenge quickly. This freedom allows traders to focus on quality over quantity when it comes to their trades.

Profit Share :-

Instant Funding offers a generous profit share structure, starting at 80% and scalable up to 90%. This means that once a trader is funded, they keep 80-90% of the profits they generate. This structure is highly appealing as it incentivizes traders to perform at their best while also providing them with a significant share of the rewards.

Payout Frequency :-

Funded traders with Instant Funding receive their profit share every 14 days. After the initial payout, traders can opt to withdraw their profits every 7 days. This regular payout schedule ensures that traders can enjoy the fruits of their labor without long waits, adding to the appeal of the program.

Leverage Offered by Instant Funding :-

Leverage is a powerful tool that can amplify both gains and losses. Instant Funding offers different levels of leverage depending on the asset class:

Regular Accounts:

• Currencies: Up to 1:100
• Commodities: Up to 1:20
• Indices: Up to 1:20
• Crypto: Up to 1:2

Swing Accounts:

• Currencies: Up to 1:30
• Commodities: Up to 1:8
• Indices: Up to 1:10
• Crypto: Up to 1:1

Understanding how to use leverage effectively is essential for traders in the challenge.

News Trading :-

News trading can be highly volatile, and Instant Funding has specific rules for this. By default, news trading is only allowed on Swing accounts. Traders can buy an add-on to trade during high-impact news events, but they are restricted to executing trades only four minutes before and after the news release. This policy helps protect traders from the unpredictability of news-driven market movements.

Holding Trades Overnight and Over Weekends :-

Traders are allowed to hold trades overnight and over the weekend, which provides them with greater flexibility in their trading strategies. This is especially beneficial for traders who prefer long-term strategies or who trade markets that are open around the clock.

Add-Ons Offered by Instant Funding :-

Instant Funding offers several add-ons that can enhance a trader’s experience:

• Allow major news trading
• Enable 5-day payouts
• Add 10% to profit split
• Add 2% to max drawdown

These add-ons must be purchased separately and can provide traders with additional advantages depending on their trading style and preferences.

Account Sizes in the Three-Phase Challenge

Instant Funding offers several account sizes for traders in the Three-Phase Challenge, including:

• $10,000
• $25,000
• $50,000
• $100,000

Choosing the right account size is crucial as it affects the potential profits and risks involved in the challenge.

Conclusion

The Three-Phase Challenge by Instant Funding is an excellent opportunity for traders to prove their skills and gain access to significant capital. By understanding the structure, rules, and requirements of each phase, traders can approach the challenge with confidence and increase their chances of success. Whether you’re a seasoned trader or just starting, this challenge offers a structured pathway to potentially profitable trading.