Proprietary trading firms like AquaFunded have grown in popularity, offering traders access to significant capital without requiring large personal investments. However, to participate, traders must comply with the firm’s regulations. These rules not only protect the firm’s assets but also help traders develop disciplined habits that improve their chances of success.
Understanding AquaFunded Prop Firm
AquaFunded ranks among the leading proprietary trading firms, providing traders with substantial capital to trade in various financial markets. The firm funds skilled traders, enabling them to trade without using personal capital. Traders share the profits they generate, while AquaFunded retains a percentage as part of the agreement. This model fosters a mutually beneficial relationship where both the trader and the firm thrive.
With numerous firms available, AquaFunded stands out due to its clear structure, supportive environment, and strong risk management policies. The firm relies on traders who consistently demonstrate discipline and trading skills. In return, it grants them access to capital under specific risk management conditions. AquaFunded’s process is straightforward: provide funding to skilled traders, ensure they follow risk management rules, and share in the profits.
Traders start by passing an evaluation phase that tests their ability to meet the firm’s expectations. During this phase, they must achieve a profit target while adhering to drawdown limits and risk management standards. After successfully completing this stage, traders receive a funded account and can trade with AquaFunded’s capital while following the firm’s rules.
AquaFunded Prop Firm Trading Rules
AquaFunded enforces specific trading rules to help traders maintain access to the firm’s capital and ensure a secure trading environment. These rules promote consistency, minimize risk, and ensure effective capital utilization.
Risk Management Rules
Maximum Drawdown Limits
AquaFunded enforces strict drawdown limits to prevent traders from losing more than a predefined percentage of their account balance. Depending on the program, this limit typically ranges from 10% to 12%. If a trader reaches this threshold, AquaFunded pauses their account, and they may face disqualification if they fail to recover within a given period.
Daily Loss Limits
AquaFunded Trading Rules sets a daily loss limit to prevent traders from making impulsive decisions due to short-term market fluctuations. This limit, generally around 5% of the account balance, triggers an account stop if exceeded.
Profit Targets
To qualify for funding and demonstrate consistent profitability, traders must meet a profit target within a specific timeframe. This target typically ranges from 8% to 10% of the initial account balance. Traders must achieve this while adhering to risk management rules.
Trading Strategy Rules
Allowed Trading Instruments
AquaFunded may restrict traders to specific instruments, such as Forex currency pairs, stock indices, or commodities. This limitation ensures traders operate within markets they understand and can manage risk effectively.
Scalping Restrictions
Like many proprietary firms, AquaFunded restricts scalping—a strategy involving frequent, quick trades to capture small price movements. Due to the high risk, AquaFunded encourages traders to adopt medium- to long-term strategies.
Order Types and Execution
AquaFunded specifies the types of orders traders can use, such as market, limit, and stop-loss orders. The firm expects traders to use these tools responsibly to maintain risk management and execute trades effectively.
Behavioral Expectations
Trading Discipline
AquaFunded values disciplined traders who consistently follow their trading plans. The firm encourages traders to avoid emotional decisions and maintain composure under market pressure. Traders who perform consistently hold greater long-term value than those who seek quick profits.
Psychological Factors
Trading psychology significantly influences success. AquaFunded expects traders to control their emotions, avoid impulsive trades, and refrain from revenge trading after a loss. Maintaining discipline and adhering to a strategy leads to long-term success.
AquaFunded Account Types and Levels
AquaFunded offers different account levels based on a trader’s experience and performance. These accounts allow traders to scale their careers while following the firm’s risk management rules.
1. Evaluation Account
Traders begin their journey with an evaluation account, where they must prove their ability to meet profit targets and risk management standards. This phase helps AquaFunded assess a trader’s skill before granting access to funded accounts.
2. Funded Account
After passing the evaluation, traders receive a funded account with AquaFunded’s capital. They can now trade with a larger balance and keep a percentage of their profits. To maintain access, they must sustain consistent performance and adhere to trading rules.
3. Account Scaling
AquaFunded rewards consistently profitable traders with account scaling opportunities. As traders meet performance benchmarks, the firm increases their capital allocation, allowing them to trade larger positions and earn higher profits.
The Evaluation Process
The evaluation process determines whether a trader qualifies for a funded account. The following steps outline this process:
1. Application
Traders start by submitting an application, detailing their experience, trading strategy, and goals.
2. Evaluation Phase
Once accepted, traders enter the evaluation phase, where they must meet a profit target while following AquaFunded’s rules. This phase typically lasts 30 days, with profit targets ranging from 8% to 10% of the account balance.
3. Funded Status
Traders who pass the evaluation gain access to AquaFunded’s capital. As funded traders, they trade with the firm’s money while following established rules.
Compliance and Reporting
AquaFunded requires traders to comply with its rules to remain in the program. The firm provides performance reports to help traders track progress and improve strategies.
1. Compliance
Traders must always follow AquaFunded’s trading rules to avoid penalties or disqualification. Violations, such as exceeding drawdown limits or engaging in unauthorized strategies, may result in account termination.
2. Withdrawals
Traders can withdraw profits after meeting AquaFunded’s criteria. Withdrawals typically occur monthly, and the amount depends on the profit-sharing agreement.
Conclusion
AquaFunded’s trading rules create a structured environment where traders and the firm benefit mutually. By following these rules, traders protect the firm’s capital and enhance their own chances of success. AquaFunded’s disciplined approach—incorporating risk management, behavioral expectations, and performance tracking—helps traders stay focused and achieve long-term growth. With consistency and a strong mindset, traders can scale their accounts and build a rewarding partnership with AquaFunded.
Frequently Asked Questions (FAQs)
What is the minimum deposit to start with AquaFunded?
AquaFunded does not require traders to deposit their own funds. However, traders must pay a fee to participate in the evaluation phase.
What happens if I exceed the drawdown limit?
If a trader exceeds the drawdown limit, AquaFunded pauses their account. The trader may face disqualification if they fail to recover within the allowed timeframe.
Can I trade any asset I want?
AquaFunded limits trading to specific instruments, such as Forex pairs, stocks, and commodities.
How long does it take to get funded?
The funding timeline depends on the trader’s performance during the evaluation phase. Most traders receive funding within one to two months.
Can I use trading bots?
AquaFunded generally prohibits trading bots, requiring traders to rely on personal analysis and strategy.
How are profits shared?
AquaFunded takes a percentage of traders’ profits, typically ranging from 20% to 50%, depending on the agreement and performance.
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