Fast Track Trading (FTT) has emerged as a unique player in the proprietary trading firm landscape, offering traders an instant funding model that bypasses traditional evaluation phases. While this approach presents exciting opportunities, it also comes with significant risks that make it suitable primarily for experienced traders. This article will delve into the intricacies of FTT, exploring its benefits, drawbacks, and why caution is necessary when considering this platform.
What is Fast Track Trading?
Fast Track Trading is a proprietary trading firm that provides traders with funded accounts without requiring them to go through lengthy evaluation processes. The company’s flagship offering is the GT account, which comes with a one-time fee of $599 (though discounts are often available). Read more here about the challenges and customers reviews: https://www.reddit.com/r/PropFirmTester/comments/1fk4mu5/fast_track_trading_mustread_before_signing_up/:
Understanding the Fast Track Trading GT Account
The cornerstone of FTT’s offering is the GT account, which comes with a one-time fee of $599. While this might seem steep initially, it’s important to note that there are no recurring costs or hidden activation fees. To make this option more accessible, FTT often provides discount codes that can significantly reduce the initial investment. For instance, using specific coupon codes can bring the price down to around $330 per GT account. You can find a detailed explanation here on Youtube: Fast Track Trading – Instant Funding – Perfection Realized? – YouTube
Fast Track Trading Instruments and Platforms
FTT offers a wide array of trading instruments, similar to other futures prop firms. Traders can engage with popular indices like the Nasdaq, various commodities, and even Forex pairs through futures contracts. Each currency pair has its unique symbol (e.g., 6E for Euro/Dollar), allowing traders to diversify their portfolios.
The GT account allows trading up to 15 Mini Contracts and 150 micros, providing more flexibility compared to some competitors. For trading platforms, FTT supports Rithmic-compatible platforms and has introduced Nitro, a free version of Quanttower with built-in copy trading features across multiple FTT accounts.
Key Concepts: The 5% Buffer Zone and 20% Consistency Rule
Two crucial concepts that traders need to grasp are the 5% buffer zone and the 20% consistency rule. These form the core of FTT’s trading objectives and payout eligibility criteria. The 5% buffer zone is straightforward – for a 150K GT account, your goal is to reach a profit of $7,500. What’s unique about FTT is that once you hit this buffer, you’re still eligible for a payout even if you dip below it later. The 20% consistency rule is more complex. Your most profitable day can’t exceed 20% of your total earnings over a 5 or 10-day trading period, depending on which payout policy you’re following.
Payout Policies and Potential Earnings
FTT offers two payout policies:
- 5-Day Payout Policy: Traders can receive a payout in as little as 5 days by achieving a daily profit of 20% of their profit buffer.
- 10-Day Payout Policy: This allows for a payout in 10 days, provided the trader’s best day doesn’t surpass the 20% consistency rule.
For most traders, the 10-day policy is more realistic and less stressful. It provides more breathing room to achieve consistent results without the pressure of performing exceptionally well every single day.
FTT implements payout limits to manage liquidity. For the GT account, traders can request up to $3,000 per account for the first eight payouts. After that, the limit increases to $6,000. While these limits might seem restrictive, they’re in place to ensure the sustainability of the firm’s model.
Account Resets and Risk Management
FTT offers account resets, a feature common among futures prop firms. Resets are available for GT and Le Mans accounts, provided you’ve met the 5% account buffer. When you reset, you’ll receive 50% of the previous day’s ending balance. However, resets come at a cost – 10% of your account’s balance at the end of the previous day.
Tips for Success with Fast Track Trading
- Start with Micros: Begin trading with micro contracts rather than mini contracts for better risk management and finer control over position sizing.
- Understand the Drawdown Rule: FTT implements an End of Day Drawdown rule. The maximum drawdown is always set at 5% of your current balance, including profits.
- Focus on Consistency: Given the 20% consistency rule, aim for steady, consistent profits rather than trying to hit home runs on individual trading days.
- Utilize Copy Trading: If managing multiple accounts, take advantage of FTT’s copy trading feature to streamline your operations.
- Be Mindful of Payout Limits: Plan your trading and payout requests with the payout limits in mind.
- Use Account Resets Wisely: While resets can provide a fresh start, use them judiciously as they come at a cost.
- Maintain Realistic Expectations: Approach trading with FTT with realistic expectations, focusing on consistent application of your trading strategy rather than fixating on potential payouts.
By understanding these key aspects and implementing these tips, traders can navigate the Fast Track Trading platform more effectively, maximizing their chances of success in this unique proprietary trading environment.
The Hidden Risks of New Prop Trading Firms: What Traders Should Know
Proprietary (prop) trading firms offer traders the chance to use company capital for potentially big profits. Recently, many new prop firms have popped up, promising great opportunities. But traders should be careful before jumping in with these newcomers. Here’s why:
Lack of Track Record
New prop firms haven’t been around long enough to prove themselves. This means:
- It’s hard to know if they’ll pay out profits reliably
- They might not handle market ups and downs well
- They may struggle to manage many traders at once
Without a solid history, it’s tough to trust that the firm will stick around long-term.
Rules Can Change Quickly
To attract traders fast, new firms might start with very generous terms. But they could tighten these rules once they have enough users.
This might mean:
- Tougher profit targets to hit
- Stricter limits on losses
- Changes to how much of the profits you get to keep
These shifts can catch traders off guard and mess up their strategies.
Money Troubles
New prop firms might not have as much money as the big, established players. This can lead to problems like:
- Slow payouts of your profits
- Trouble handling it when many traders are successful at once
- Risk of the firm going under if too many traders make money
Why Experienced Traders Need to Be Careful Too
Even traders who’ve been around the block should think twice before joining a new prop firm:
- Upfront Costs: Many firms charge fees to join their trading challenges. These can add up fast if you’re not consistently making money.
- Time Investment: Learning a new firm’s rules and systems takes time away from actual trading.
- Mental Pressure: Using someone else’s money and following new rules can be stressful.
- Potential Losses: If the firm turns out to be unreliable, you could lose both your joining fees and any profits you’ve earned.
What to Do Before Joining a New Prop Firm
- Do your homework: Look for reviews, ask in trading forums, and try to talk to current traders at the firm.
- Start small: Don’t put all your eggs in one basket with an unproven platform.
- Know the rules inside and out: Make sure you understand all trading restrictions and how payouts work.
- Have a backup plan: Don’t rely only on one prop firm for your trading income.
Remember, if something seems too good to be true in trading, it often is. While new prop firms can offer exciting chances, it’s smart to approach them carefully and think things through before jumping in.
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