This is one of the most frequently asked questions: What account size should I choose?
Most prop-firm traders, are attracted to the $50K accounts because they offer a Profit Target vs. Drawdown ratio of 1.15, or the $25K accounts with a ratio of 1. While this may seem like a good deal at first glance, what really matters is the drawdown, especially with Apex's dynamic intraday drawdown.
Comparison of Prop Trading Firms
To help you better understand what each prop firm offers, here’s a quick comparison of three popular firms: Apex Trader Funding, Topstep, and Bulenox. This table includes details like price, profit targets, drawdown, and other key features, focusing on accounts with drawdowns between $4,000 and $7,000 and their lowest offerings.
Firm | Account Size | Profit Target | Max Loss/Drawdown | Daily Loss Limit | Profit Split | Key Features |
---|---|---|---|---|---|---|
Apex | $50,000 | $3,000 | $2,500 (Trailing Intraday) | None | 100% first $25K, 90% after | No daily drawdown, trade full-size contracts, pay as you go. Dynamic drawdown based on intraday equity, which updates as profits are realized. |
Apex | $150,000 | $9,000 | $5,000 (Trailing Intraday) | None | 100% first $25K, 90% after | Large account, good for scaling. Allows more contracts and better cushion for drawdown. |
Topstep | $50,000 | $3,000 | $2,000 (End-of-Day) | $1,000 | 90% first $5K, 80% after | Focuses on end-of-day drawdown, offering more flexibility during the trading day. Great for longer-term strategies. |
Topstep | $150,000 | $9,000 | $4,500 (End-of-Day) | $3,000 | 90% first $5K, 80% after | Higher account balance, more flexibility on contracts with a moderate drawdown. |
Bulenox | $50,000 | $3,000 | $2,500 (Trailing Intraday) | None | 80% profit split | Intraday drawdown like Apex, but with simpler rules. Fast withdrawals, ideal for scalping and frequent traders. |
Bulenox | $100,000 | $6,000 | $4,000 (Trailing Intraday) | None | 80% profit split | High value for the price, straightforward rules, better suited for frequent traders. |
A Quick Overview of Intraday Dynamic Drawdown vs. End-of-Day Drawdown
In trading funded accounts, firms like Apex and Topstep use different types of drawdown models to manage risk. Here’s a quick breakdown:
1. Dynamic Intraday Drawdown (Apex Example):
The dynamic intraday drawdown adjusts based on the highest unrealized profit you reach during the day. This means that as you make profits, the drawdown threshold moves up. It takes into account your current equity, including open trades.
Expand info here: Apex's dynamic drawdown policy can be challenging for traders, as it is designed to encourage tighter risk management. The drawdown threshold moves up with each unrealized profit peak you hit during the day. However, if you have open trades and the market reverses, you may be stopped out based on this newly calculated drawdown level, even if your earlier gains were not locked in. This dynamic model forces traders to be more cautious with managing their positions, especially during volatile market conditions.
2. End-of-Day Drawdown (Topstep Example):
The end-of-day drawdown is simpler and less restrictive. It recalculates the drawdown based on your account balance at the end of the trading day, ignoring unrealized profits during the day.
Topstep uses a more forgiving end-of-day drawdown model, which gives traders more flexibility throughout the day. Unlike Apex, Topstep’s drawdown doesn’t adjust with intraday peaks, meaning traders can ride out intraday volatility without worrying about hitting their maximum drawdown based on unrealized gains. This can be beneficial, especially for swing traders or those who tend to hold trades longer.
Back to the Main Question: What account size should I use?
Let’s break down three options and the recommended sizing. These are based on historical max drawdown data using a basket of five strategies:
1. $5K Drawdown Account:
- Sizing: 1 Mini for ES, 1 Mini for NQ, 1 Mini for YM, 5 Micros for MCL, 2 Micros for MBT. This is sizing you will see on the performance dashboard
- Historical Performance: In 4 months, we experienced two drawdowns of $2.5K on the worst weeks with an end-of-day model.
2. $2.5K Drawdown Account:
- Recommended Sizing Micros: 5 Micros for ES, 5 Micros for NQ, 5 Micros for YM, 3 Micros for MCL, 2 Micros for MBT.
- Recommended Sizing with Minis: 1 ES, 1 NQ, 1 YM
- Historical Drawdown: 1.25K
3. $1.5K Drawdown Account:
- Recommended Sizing Micros: 3 Micros for ES, 3 Micros for NQ, 3 Micros for YM, 2 Micros for MCL, 1 Micro for MBT.
- Historical Drawdown: $850
Analyze Your Drawdown
We invite you to explore our Results Dashboard and do your own math. Pay close attention to the peaks and drops to observe the drawdown history of various strategies.
Also, we recommend reading our article on account rotation strategy, and how you can apply it to maximize your potential and secure those payouts.