Beginner's Guide to Crypto Prop Firms
Master the jargon before you trade.
1 What is a Profit Split?
The profit split is how much of the trading profits you get to keep. Most elite crypto prop firms offer an 80% to 90% profit split. If you make $10,000 on a funded account with an 80% split, you keep $8,000 and the firm keeps $2,000.
2 Understanding Drawdown Types
Drawdown rules dictate how much money you are allowed to lose before the account is closed.
- Static Drawdown: The loss limit is fixed at a specific dollar amount below your starting balance. (e.g. You can't drop below $90,000 on a $100k account).
- Trailing Drawdown: The loss limit trails behind your highest account balance as you make profit. It is generally stricter.
3 The Consistency Rule
A rule designed to prevent gamblers from passing an evaluation with one lucky trade. Usually, it means no single trading day can account for more than 30% to 50% of your total profit.