Should Funded Traders Trade Multiple Prop Accounts?

What are the prerequisites for trading multiple funded accounts?

Traders should have a strategy with positive expectancy, just like before trading a single account.

Trading multiple accounts will require extra time to manage all accounts, and if starting, it's best to spend that time developing an edge. Multiple accounts will stack fast once the edge is developed.

Get Paid and Keep trading during some bad stretches

This is my favorite benefit as a much-improved trader who still goes through rough patches and occasional lapses in discipline. Putting in the time to get funded at multiple prop firms allows me to make some withdrawals during rough months and use that money toward bills and funding further prop firm opportunities.

Best explained using the following example:

Losing $10K between 3 prop firm accounts vs. Own Brokerage Account

This is not always the case, some times a trader on tilt can blow up all accounts chasing even one bad trade. But most traders with positive expectancy will likely have a distribution of profitable trades resulting in some accounts losing and some winning money during rough stretches.

The example compares the following trading accounts:

• 3 x 100K funded Forex accounts with $12,000 drawdown
• $20,000 brokerage accounts

Performance across three funded forex accounts:

• Blew up an entire account due to breaching the full $12,000 drawdown
• $3,000 in drawdown below initial balance but good standing
• Gained $5,000
• For a total loss of $10,000

Brokerage accounts using the same trades went from $20,000 to $10,000 losing 50% and requiring 100% gain to get back to even.

A trader using a multiple-funded account approach could make a case that while results were not desirable, it was a good stretch since $5,000 can be withdrawn. Liquidity to fund more evaluation and personal expenses. And most importantly, two accounts are alive. One where just $3,000 must be recovered till withdrawable profits, and one where any profits can be withdrawn.

Two remaining accounts would have $21,000 in available drawdown with more leverage than any responsible trader could need.

Meanwhile, a trader with their brokerage account needs to gain 100% to return to a level before the -$10,000 stretch. While up to $10,000 can be withdrawn, withdrawing would make it even more difficult to recover the account balance necessary for growth, withdrawals, and proper leverage to be permitted to trade the desired size. 

Risk Control

Each program and prop account comes with its risk parameters. It would take a significantly higher magnitude tilt and lapse in discipline to blow up multiple funded accounts compared to a single trading account.

Maximize Funded Trading Days

Traders with multiple prop firm approaches can go through multiple trading days vs. prop traders with a one-at-a-time evaluation / live account style. Let's dig into the funded trading day maximization.

Defining Funded Trading Day

Day during which a trader has to place a trade in the evaluation of a funded account toward a funding or payout requirement

Most traders want to trade most days or at least when their favorite setups present themselves.

Prop firm process events that can cause you not to be able to trade your account:

• Account set up. Most companies have automated account creation systems. But some require time to set up on the prop tight end and for a trader to figure out the new programs or trading software.
• Advancing. Advancing between program steps or the funded accounts from a completed evaluation can take as much as two weeks.
• Payout. Many programs require you to remain flat from payout requests thru verification and payout. Potential downtime can be a week in some cases.

Traders in a slower program could miss two weeks' worth of trading days between signing up for evaluation and the first payout hitting the wallet.

Minimize Downtime

Traders with multiple evaluations and live accounts should have no downtime. Traders using the multiple account approach can save hundreds or even thousands of funded trading days a year vs. a single account approach.

Payment Window Diversification

Many deep discount programs are less expensive due to the drawn-out payout structure. In addition, trading with multiple prop firms allows you to have different payout windows and a larger maximum potential payout than you would in a single program.

Peace of Mind

Losing days, weeks, or months of progress by blowing up an evaluation or live account is extremely stressful. Occasionally that happens due to slippage, a small mistake or misunderstanding, or forgetting an uncommon rule. 

Losing accounts and progress can lead to a spiral of trying to do too much too fast. For example, buying new evaluations, being too aggressive, blowing them up, resetting, or buying again. 

Traders with multiple accounts could benefit from the peace of mind of having additional live accounts or evaluations with solid progress ready to become a priority and save many funded days vs. starting from square one. 

Specialization

There is no perfect prop firm for everyone. While we do our best to parse through the world of funded trader programs, your trading style will dictate which is best for you.

Some examples:

• You are primarily a futures trader, but CME Bitcoin futures are not yet ready for your trading style and are not available seven days a week. With the futures program, you would pick up a forex or crypto-funded trader program instead of forcing traders into adverse conditions.
• Getting paid quicker. Some programs might take five months to make a five-figure withdrawal, while others could have you making one within minutes of signing up for the prop account. 
• Software-funded trader programs deal with software providers, where it is often cheaper to get software with a funding chance at a prop firm than buying the software outright. Multiple programs could have you using a nice array of trading software at a fraction of the cost.

More Attempts at a Lower Price

Traders with multiple funded accounts have the luxury of being patient without missing trading days.

Chances of success increase with more attempts. Stocking up on funded accounts during big sales will result in more chances for the same budget than buying full-price programs. 

Downsides of Multiple Account Approach

Multiple account approaches can accelerate the funded account stacking and save many funded trading days. 

When bad stretches come, it could become pretty expensive to cover evaluations, resets, and live accounts fees without withdrawing.

Some traders might find it difficult to allocate enough time to manage multiple accounts. Near full-time commitment is necessary to evaluate, trade live accounts, and study programs to stay within the rules. 

Summary Of Multiple Funded Account Trading

Serious traders could improve their chances of success and accelerate the timeline significantly using a multiple-account approach.

Be sure to have a proper trading plan and a strategy with positive expectancy before starting the journey of accelerated funding.

Best of luck!