In the world of trading, challenges like the My Funded FX One Phase Challenge have become increasingly popular, offering traders the opportunity to prove their skills and potentially manage significant funds. But with great opportunity comes the necessity of understanding the rules and details that govern these challenges. This article delves into the specifics of the My Funded FX One Phase Challenge, breaking down everything you need to know to succeed.

What is the My Funded FX One Phase Challenge?

The My Funded FX One Phase Challenge, commonly known as the 1-Step Challenge, is designed to test a trader's ability to manage risk and generate consistent profits within a controlled environment. Unlike traditional trading, where traders may have to go through multiple phases of evaluation, the 1-Step Challenge streamlines the process, requiring traders to meet specific profit targets and adhere to strict rules in just one phase.

This challenge is highly regarded in the trading community for its simplicity and the direct path it offers towards managing larger trading accounts. Success in this challenge not only demonstrates a trader's proficiency but also opens doors to potentially managing substantial funds.

Pricing and Account Sizes

Understanding the cost structure and available account sizes is crucial before embarking on the My Funded FX One Phase Challenge. Here's a breakdown of the pricing and account sizes:

• $5,000 Account: $50
• $10,000 Account: $100
• $25,000 Account: $200
• $50,000 Account: $300
• $100,000 Account: $500
• $200,000 Account: $950
• $300,000 Account: $1,399

Each account size offers different challenges and opportunities, and traders should choose based on their experience level and risk tolerance. The larger the account, the higher the potential rewards, but also the stricter the rules.

Drawdown Types and Rules

One of the most critical aspects of the My Funded FX One Phase Challenge is understanding the drawdown rules. The challenge employs a Balance-Based Drawdown system, which is designed to protect the capital by limiting the amount of loss a trader can incur.

• Daily Simulated Drawdown: This is capped at 4% of the starting balance. Exceeding this limit results in automatic closure of positions.
• Max Simulated Drawdown: Set at 6% of the highest simulated balance achieved. If your demo account reaches 6% of the starting balance, the drawdown is locked at the starting balance, providing a safety net.

These drawdown rules ensure that traders maintain discipline and manage their risk effectively throughout the challenge.

Copy Trading and EA Rules

Copy Trading involves mimicking the trades of another trader, often through automated systems known as Expert Advisors (EAs). In the My Funded FX One Phase Challenge, Copy Trading is allowed, but with specific conditions:

• EAs (Expert Advisors): While EAs are allowed, they must not be used to exploit platform vulnerabilities. Traders are advised to use different settings to avoid rule violations.
• Copy Traders: Must not be EAs, and violating these rules can result in failing the challenge.

Traders must be cautious and ensure that their strategies comply with these regulations to avoid disqualification.

Profit Targets and Payout Periods

Achieving the profit target is a key objective in the My Funded FX One Phase Challenge. Here's a quick overview:

• Profit Target: Set at 10% of the starting balance.
• Payout Period: Traders can expect payouts every 14 days.

Meeting the profit target within the specified timeframe is essential for progressing in the challenge. The 14-day payout period ensures that successful traders can quickly access their earnings.

Scaling Rules

The My Funded FX One Phase Challenge offers a Simulated Scaling Plan that allows traders to increase their account size over time. The plan works as follows:

• Initial Simulated Balance Increase: Every 3 months, the simulated balance increases by 25%, provided certain conditions are met.
• Criteria for Scaling: Traders must achieve a total simulated profit of 12% or more within the 90-day period before requesting a scale-up.

For example:

• Month 1: +6%
• Month 2: -3%
• Month 3: +9%
• Total: 12%

This scaling mechanism rewards consistent performance, offering traders the opportunity to manage larger sums as they prove their trading skills.

Challenge Types: 1-Step vs 1-Step Max

My Funded FX offers two main challenge types: 1-Step and 1-Step Max. Here’s how they differ:

• 1-Step Challenge:
  • Drawdown: 6%
  • Profit Target: 10%

  • Payout Period: 14 days

     

• 1-Step Max Challenge:
  • Drawdown: 8%
  • Profit Target: 8%
  • Payout Period: 7 days

The 1-Step Max plan introduces a soft breach concept. If you exceed the daily loss limit of 2%, you’ll receive a notification, but your account won’t be breached unless your equity drops below the maximum drawdown. This feature provides an additional safety net, allowing traders to recover from minor setbacks.

Maximum Simulated Value in Demo Accounts

Traders participating in the My Funded FX One Phase Challenge are subject to rules regarding the maximum simulated value they can hold in demo accounts:

• Maximum Simulated Value: $400,000 across all demo accounts.
• 1-Step/1-Step Max Limit: Can only add up to a maximum of $200,000 in simulated value.

These limits ensure that traders do not overextend themselves and maintain focus on managing risk effectively.

Simulated Profit Target for 1-Step Demo Accounts

In Phase 1 of the My Funded FX One Phase Challenge, the profit target is a clear 10% of the starting balance. Achieving this target is a milestone that transitions traders into the Simulated Prop Trading phase.

For example:

• Starting Balance: $100,000
• Profit Target: $10,000

After achieving this target, the focus shifts from profit generation to risk management, where traders must maintain consistent performance to continue their journey.

Daily Loss Level for 1-Step Simulated Trading Demo Account

The daily simulated drawdown limit in both the 1-Step Challenge and the Simulated Prop Trading phases is set at 4%. This rule is strictly enforced to prevent excessive losses within a single day. The daily loss level is calculated based on the day’s starting balance, and it applies to all trading activities conducted during the Eastern European Summer Time (EEST).

Max Simulated Loss/Max Simulated Drawdown Level

The Maximum Simulated Loss or Max Simulated Drawdown is a critical rule in the My Funded FX One Phase Challenge. This rule serves as a stop-loss mechanism, ensuring that traders do not incur excessive losses.

• Max Simulated Drawdown: Set at 6% of the highest recorded balance, it functions as a trailing drawdown that tracks the highest demo balance until it locks in at the starting balance.

For instance:

• Starting Balance: $10,000
• Max Simulated Drawdown: $600

If the trader’s demo balance reaches $10,600, the drawdown is locked at $10,000, ensuring that losses do not exceed a manageable level.

Prohibited Simulated Trading Practices

To maintain a fair trading environment, My Funded FX enforces strict rules against certain trading practices. These include:

• Copy Trading: Prohibited if using market-purchased EAs that facilitate copy trading.
• Reverse Trading/Group Hedging: Executing opposing trades within a single or multiple accounts to reduce risk is forbidden.
• Account Management Services: Using or offering services to manage live or demo accounts is strictly banned.
• HFT (High-Frequency Trading): Engaging in high-speed trading methods is not allowed.

Violating these rules can lead to immediate disqualification and account termination.

Conditions for Using My Funded FX

To participate in the My Funded FX One Phase Challenge, traders must adhere to several conditions:

• VPN Usage: Allowed for secure connections.
• VPS Usage: Permitted but must not bypass rules on copy trading or group trading.
• Coupon Code: A 10% discount is available using the coupon code "TRUSTEDPROP."

These conditions are in place to ensure fair play and to protect the integrity of the challenge.

Conclusion

The My Funded FX One Phase Challenge offers a unique and exciting opportunity for traders to showcase their skills and potentially manage substantial funds. However, success in this challenge requires a deep understanding of the rules and a disciplined approach to trading. By adhering to the drawdown limits, profit targets, and other guidelines, traders can navigate the challenge effectively and achieve their trading goals.