Best prop firms with EA in 2024
According to Traders Union’s experts, some the best prop firms with EA are:
FundedNext
Audacity Capital
Lux Trading Firm
City Traders Imperium
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5.7
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5.28
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6.68
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In the ever-evolving landscape of financial markets, prop firms play a crucial role by providing aspiring traders with the necessary resources, capital, and technology to engage in active trading. With the emergence of electronic trading algorithms, these firms have further revolutionized the industry by harnessing the power of automation and algorithmic strategies. In this guide, the experts at TU will delve into the top prop firms that incorporate EAs into their trading operations and examine their unique features.
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Can I trade manually while using an EA?
Yes, most prop firms that allow EAs do not require you to trade solely using automated strategies. You have the flexibility to trade manually as well as use EAs simultaneously or separately.
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How do I develop a successful EA?
Successful EA development involves thorough backtesting on historical market data, optimization of trading parameters, money management rules, and adjusting the EA based on ongoing performance reviews in real trading conditions.
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What programming languages are used to code EAs?
The most common programming languages used for coding Expert Advisors include MQL4 (for MetaTrader 4), MQL5 (for MetaTrader 5), Python via third-party API libraries, C++ for direct platform integration.
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What are the best EA platforms for prop trading?
Some popular platforms used by prop firms that support automated EA trading include MetaTrader 4, MetaTrader 5, cTrader, TradingView. Firms also provide APIs and platform plugins to help integrate traders' EAs.
What are prop firms?
Proprietary trading firms, commonly known as prop firms, have become significant players in the financial markets by offering traders access to trading capital and resources. These firms provide traders with the opportunity to trade financial instruments using funds provided by the firm itself. In essence, prop traders use the firm's capital to execute trades in various markets, aiming to generate profits not only for themselves but also for the prop firm. This mutually beneficial arrangement allows both the trader and the firm to share in the profits generated from successful trades.
Is Trading for a Prop Firm Worth It? How Much Can I Earn?What are EAs (Expert Advisors)?
Forex prop trading firms often incorporate Expert Advisors (EAs) into their trading operations to enhance efficiency and capitalize on algorithmic trading strategies. EAs are specialized programs designed to run on trading platforms like MetaTrader 4 (MT4) and execute trades in financial markets based on predefined algorithms and parameters.
With the help of EAs, prop traders can monitor the markets continuously, analyze price movements, and identify trading opportunities based on specific criteria and indicators. These criteria can be set by the trader, considering factors such as technical indicators, chart patterns, or fundamental data. By programming these rules into the EA, traders can automate the process of identifying potential trades, reducing manual effort and increasing the speed of execution.
Once an EA identifies a trading opportunity that meets the specified criteria, it can perform various actions. Some EAs may simply notify the trader, providing alerts or signals to take action manually. This allows the trader to review the information and make a decision based on their own judgment. Other EAs, however, have the capability to execute trades automatically. When the predefined conditions are met, the EA can open positions, set stop-loss and take-profit levels, and manage the trade according to the programmed rules.
How To Choose Which Expert Advisor Fits Your Trading Needs?Best Forex prop firms with EA
Does a Funded Trader Firm Allow EA?Experts suggest the following to be the best Forex prop firms with EA:
FundedNext
FundedNext is a relatively new prop trading platform that stands out by offering a 15% profit split at the evaluation stage itself. Traders can earn a 40% account balance increase every 4 months based on consistent profitability. The platform provides a dedicated account manager for assistance and offers Android and iOS mobile apps for convenient trading. They have a profit split of up to 90% and offer trader-friendly leverage.
Audacity Capital
Audacity Capital funds professional Forex traders and provides additional trading tools. They offer a 50-50 profit split, doubling the account size (funding limit) with each 10% profit target achieved. Traders have the opportunity to learn and interact with other prop traders and receive better trading support. They have a wide range of supported platforms and no evaluation process for traders to get funding.
Lux Trading Firm
Lux Trading Firm funds experienced traders up to $2.5 million and upgrades their accounts based on hitting 10% profit targets. They offer a profit split of up to 65% and provide MetaTrader 4, Trader Evolution, and TradingView trading platforms. The platform offers personalized mentoring, live trading rooms, automated investment analytics, and risk management advice. KPMG audits results for all professional live accounts.
City Traders Imperium
City Traders allows traders to get funded with up to $4 million and offers a profit share of up to 70%. They provide various funding plans, including Evaluation, Portfolio Manager, and Direct Funding Plans. Traders are upgraded to higher funding limits with each 10% profit target achieved. City Traders offers mentorship, training programs, and tools to support traders' success. They follow trading strategies such as the Symmetry Triangle Theory and Corrective Strategy.
What is the World's Biggest Prop Firm?Pros and cons of using EAs
👍 Pros of using EAs
• Emotion-Free trading: EAs remove the influence of emotions from trading decisions. They execute trades based on predefined parameters, eliminating the potential for impulsive or emotionally-driven trading actions. This can lead to more disciplined and objective decision-making
• Increased trading speed: EAs can analyze and process information much faster than humans. They can compare multiple variables and make decisions in a fraction of a second. This speed allows for timely trade execution, taking advantage of market opportunities that may be missed by manual traders
• Reduced stress: For traders who rely on Forex trading as their primary source of income, using EAs can reduce stress levels. EAs can handle the day-to-day trading tasks, allowing traders to focus on other aspects of their lives or pursue additional opportunities. This can alleviate the mental strain associated with constantly monitoring the markets
•Backtesting and optimization: EAs can be backtested using historical data to assess their performance under different market conditions. This allows traders to evaluate and optimize their strategies before deploying them in live trading. Backtesting helps in identifying strengths and weaknesses, refining the parameters, and improving overall trading performance
👎 Cons of using EAs
•Inability to respond to real-time news: EAs operate based on predefined rules and parameters and do not have the ability to respond to real-time news events. They may miss crucial market-moving news or fail to adjust trading strategies accordingly. Traders who actively monitor the news and make informed decisions based on current events may have an advantage over EAs in these situations
•Lack of flexibility: EAs are programmed to operate within specific parameters, and they strictly adhere to the predefined rules. They may not be able to adapt to unexpected market conditions or sudden changes in trends. Traders, on the other hand, can use their judgment and intuition to respond flexibly to market dynamics, potentially capitalizing on unique opportunities or avoiding significant trading errors
•Technical complexity: Developing, programming, and optimizing EAs require a certain level of technical knowledge and expertise. Traders who are not familiar with coding or algorithmic trading principles may face challenges in creating and customizing their EAs. Additionally, ongoing monitoring and maintenance are necessary to ensure the EA's performance aligns with the trader's goals
•Over-optimization and curve fitting: There is a risk of over-optimizing EAs based on historical data, resulting in curve fitting. Curve fitting occurs when the EA's parameters are excessively tailored to historical data, leading to poor performance in live trading. Traders must strike a balance between optimizing the EA's performance and ensuring it remains robust and adaptable to changing market conditions
How much do prop trading firms make?
The revenue generated by prop trading firms can vary depending on the specific profit-sharing arrangement and additional fees they implement. Typically, prop trading firms earn a percentage of the profits generated by their traders, which can range from 20% to 50%. This means that for every profitable trade made by a trader, the firm takes a portion of the profits as compensation for providing the trading capital and resources.
In some cases, prop trading firms offer more favorable profit splits, such as a 90:10 ratio, where the firm only takes 10% of the profits and the trader keeps the majority share. This model incentivizes traders to perform well and encourages profitability. However, it's important to note that these higher profit splits may come with certain conditions or requirements, such as achieving specific profit targets or meeting certain performance metrics.
In addition to profit splits, prop trading firms may charge traders certain fees or expenses. For instance, some firms may require traders to pay for training programs or expert coaching to enhance their trading skills. These fees can vary and are often separate from the profit-sharing arrangement.
It's worth mentioning that the specific revenue and profitability of prop trading firms can be influenced by various factors, including the number and success rate of their traders, the overall market conditions, and the firm's operational costs. Successful prop trading firms with a diverse group of profitable traders have the potential to generate significant revenue from the profits earned by their traders. However, it's important to consider that not all traders are consistently profitable, and the firm's revenue may fluctuate accordingly.
Can I make money in prop trading?How to become a Forex prop trader?
Becoming a Forex prop trader involves several key steps that require dedication, knowledge, and experience in the foreign exchange market. To embark on this journey, you should follow these steps:
Step 1: Learn the basics
Begin by acquiring a solid understanding of the fundamental concepts of Forex trading. Familiarize yourself with price charts, technical indicators, and fundamental analysis techniques used to assess economic and geopolitical events that influence currency values. It is crucial to comprehend risk management strategies, such as setting stop-loss orders and determining position sizing, to safeguard your trading capital.
Step 2: Develop your trading strategy
Once you have a grasp of the basics, devise a trading strategy that aligns with your trading style and goals. Your strategy should encompass entry and exit points, risk management protocols, and guidelines for managing emotions during trading. Backtesting your strategy using historical data can provide valuable insights into its performance in different market conditions.
Step 3: Practice trading
Before risking real money, utilize demo trading accounts offered by Forex brokers to practice and refine your strategy in a risk-free environment. Take advantage of these accounts to test your trading approach, make necessary adjustments, and gain confidence in executing trades effectively.
Step 4: Gain experience
To become a prop Forex trader, it is crucial to accumulate practical experience in trading Forex. Start by trading with a small account and gradually increase your capital as you gain confidence and refine your skills. As you progress, consider expanding your trading strategy to include multiple currency pairs and exploring different trading techniques.
Step 5: Seek out prop trading firms
Research and identify prop trading firms that specialize in Forex trading. Look for firms with a solid reputation, a track record of success, and attractive compensation packages. Reach out to these firms to inquire about their selection process and requirements for becoming a prop trader.
Step 6: Pass the evaluation process
Most prop trading firms have an evaluation process to assess the trading skills and profitability of potential traders. This process may involve trading a demo account or utilizing a small amount of capital to demonstrate your ability to generate profits. Be well-prepared and confident in your trading strategy to navigate the evaluation process successfully.
Step 7: Join a firm
Once you have successfully passed the evaluation process, you can join the prop trading firm as a Forex prop trader. The firm will provide you with a trading account and a designated amount of capital to trade on their behalf. As you generate profits, you will receive a share of the profits as compensation in accordance with the terms and conditions set by the firm.
How to Become a Day Trader in a Prop CompanyMethodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).