The Funding Process, Part 2 - Funded Accounts

After passing the evaluation, traders are first placed into the Simulated Funded Account (SFA). The SFA uses live market data but places simulated orders, and has a Trailing Max Drawdown that behaves exactly the same as in the evaluation. After trading for ten (10) days in the SFA and reaching the profit target, traders will be moved to the Live Funded account (LFA), along with the profits earned in the SFA (capped at the amount of the profit target).

Sim Funded Account Profit Target:

$100k Account - $3,000

$50k Account - $2000

$25k Account - $1,000

$10k Account - $750

Our funded accounts have an activation fee of $130 which will be paid after passing the evaluation. After that, there are no more ongoing/monthly fees associated with our funded accounts.

The Live Funded Account is the final step in the funding journey. Traders are given access to a live account placing real orders, and can finally start paying themselves on a regular basis. The LFA has a special set of rules and requirements that traders are expected to understand and follow at all times. We work closely with all of our traders, and with our funded traders even more so. We communicate on a regular basis with our funded traders to review performance, adjust risk parameters, and offer assistance. It is also our goal to work long term with our funded traders, and our rules reflect that goal.

Starting Balance & Max Drawdown

The LFA begins with the profits earned during the SFA (capped at the amount of the profit target). Because your LFA starts out already profitable, your max drawdown begins at breakeven +$100 and remains there for the life of the LFA. The max drawdown does not trail in the Live Funded Account.

For example, let’s say you were in a Simulated Funded Account and reached the $3,000 profit target. Your Live Funded Account would start with a balance of $3,000, and your minimum balance threshold would be $100, and would remain static for the life of the account.

Because we fund our Live Funded Accounts with real money, we are limited by the very real margin requirements of our broker. As a result, the max position size will start out smaller in the Live Funded Account, around 50% of the max position size of the evaluation. Generally, a 100k LFA will start out with a max position size of 5 contracts (50 micros), and a 50k LFA will start out with a max position size of 3 contracts (30 micros). As traders grow their account, they can scale up their trading as described here. Our broker limits traders to one live account each.

Risk Manager

All Purdia traders in funded accounts are assigned a risk manager. The job of the risk manager is to monitor and review the trader's performance, offer feedback on performance and plan, and assist the trader in making strategic decisions for the account, including adjusting risk parameters.

All traders in Live Funded Accounts are required to communicate regularly with their assigned risk manager. Most commonly, this communication takes the form of weekly one-on-one calls between the trader and risk manager. Risk managers are available to traders during the week as well, and traders are expected and required to be responsive when contacted by their risk manager.

Traders who are unresponsive when contacted by their risk manager, or avoid communicating with their risk manager will have their accounts suspended until communications have resumed.

Daily Loss Limit

Every LFA with Purdia Capital has a Daily Loss Limit (DLL) in place, which is set in coordination between the trader and their assigned risk manager. The initial DLL for each account is set during the initial onboarding call with the risk manager, and the maximum permitted DLL is 33% of the max drawdown. For example, the maximum possible DLL in a 100k LFA with a $3k drawdown is $1,000. The limit can be adjusted from time to time based on the trader's performance and trading style. Any adjustments to the DLL will be left to the discretion of the assigned risk manager, with input from the trader.

Hitting the Daily Loss Limit in one of our accounts does not result in an account loss. Our DLL is a purely protective stop that is put in place to prevent bad days from getting out of control and to prevent traders from blowing up their account in one day. When the DLL is hit, trading is halted in that account for the rest of the day. Traders can come back the next day and resume trading, provided that their account balance is still above the max drawdown. For more details on the DLL and how it works, click here.

Profits & Payouts

Profits can be withdrawn from the LFA, subject to the following requirements:

Traders must have traded for a total of ten (10) days in their Funded Account. The ten days traded in the SFA count towards this, so traders can take a payout on day one of the LFA.
Traders can withdraw any percentage of their profits at any time, however we encourage withdrawing no more than 40% of your total lifetime profits at any time in order to properly grow your account.
Your profits are your available drawdown in the LFA, so if you withdraw and/or lose 100% of your profits, the account will be closed. Traders should exercise caution when taking payouts and leave themselves with an adequate buffer to trade.
Withdrawals must be at least $100. There is no maximum cap on withdrawals.
Traders can request payouts as frequently as they want, regardless of trading days or profits made. All payout requests are processed within 24 hours, so you would need to wait until the existing request is processed before requesting another. In other words, daily payouts are possible (as long as there are profits in the account)!
All withdrawals are subject to our profit split. For most accounts, the profit split starts out at 70/30, while traders who pass the Pro Evaluation start out with a 90/10 profit split. We understand that the 70/30 split is lower than much of the competition, however we are trying to chart a new course in the industry, one that does not rely upon traders failing in order to thrive. We do better when our traders do better, plain and simple.
We currently offer two options for receiving payouts: 1) ACH transfer directly to your bank, or 2) PayPal.

You can read more details on the payout rules here.

Scaling & Risk Parameters

Traders who display a consistent track record of proper risk management and sustainable growth will be rewarded with increased risk parameters, included larger position sizes (scaling). The details of the funded account scaling plan can be found here. Any changes to a funded trader’s risk parameters is at the sole discretion of Purdia Capital. We accept and invite trader input into this decision, and traders can discuss their ideas with their assigned risk manager. Because we place our traders into genuine live brokerage accounts, we limit traders to one funded account each.