Prop Firm EA is designed for funding firm challenges, but it also supports personal accounts. The devs boldly claim that the system can make desirable profits and keep the drawdown level low. As a result, traders using it can qualify to get a heavily funded trading account. However, we are not convinced. Read this review to know the reasons behind our misgivings about the vendor’s assertion.
Vendor transparency
This EA was authored by My Ea Academy, a part of SinryAdvice Company. Aside from indicating that the firm is based in Malaysia, nothing else important about this vendor is presented. Therefore, questions about the professionals involved, their experiences, skill-sets, and reputation remain unanswered.
How Prop Firm EA works
The system has several features that define its inner workings. They include:
- Spread control to avoid trades in volatile markets.
- A step by step installation guide and video.
- Auto lot management that chooses lot sizes automatically based on the trader’s capital.
- The EA works on FTMO and other funding firms
- Stop loss is not used.
- Client support that is provided via ‘email, live support and social media’.
Timeframe, currency pairs, deposit
The devs have not highlighted the time frames used by this robot, but based on the trading stats, it focuses on long timeframes. The EA works with 25 different currency pairs. However, the recommended deposit is not stated. Instead, we are told that it works on 10k, 50k, 100k, and 200k USD accounts.
Trading approach
Prop Firm EA applies a top-bottom reverse trading strategy alongside grid, internal smart indicator signals and news filter as its trading strategies. The dangers associated with grid approach cannot be emphasized enough. As you will see in the ‘trading results’ section, this approach has lived up to its reputation and ravaged the capital of an account being run by this EA.
Pricing and refund
To get this system, you are required to pay $388 for the 6 months license key or $588 for the 1 year license key. Both options also come with a 14-day money-back guarantee. This policy period is a joke. How on earth can a trader determine the effectiveness of the system in just 2 weeks? The vendor needs to extend this refund period.
Trading results
We could not find any backtest data on the presentation. Our suspicion is that the EA must have recorded poor results during its testing period since the grid approach is incorporated into its algorithm. That’s why the vendor has kept these stats hidden because showcasing them could damage the bot’s reputation.
The above chart is proof that Prop Firm EA has an active account on Myfxbook.com. It has attained a gain of 47.78% from a $1000 deposit since its opening on August 1, 2021. As such, it has been making a monthly profit of 24.11%. The drawdown, which is 57.59% is sky-high, and an indication that the system has eaten away more than half of capital already. This is obviously not good.
The EA does not engage in trades daily as the average trade length is 2 days. So, it has managed to complete 313 trades to date. It is also likely to lose these deals often. The average loss of -63.38 pips against an average win of 57.37 pips is proof of this. The poor win rate results (75% for longs and 76% for shorts) further attest to the poor performance of the system.
The results of open trades above paint a harrowing picture of the EA’s bad choices. Out of the 18 currency pairs traded, only 6 were successful.
People say that Prop Firm EA is…
Good. However, the testimonials of these clients are misleading. The trading results clearly tell us that in addition to being unprofitable, the EA trades carelessly leaving a trail of losses in its wake. At least some of the customers concur with us. One of them says that the system is trash. The other one confesses that the system exceeds drawdown limits and fails to meet profit targets. He thus believes it needs work.
Verdict
Pros
- Fully automated
- Offers customer support
Cons
- High drawdown
- Vendor is not transparent enough
- Backtest results are not presented
- Unsatisfactory performance
Prop Firm EA Conclusion
40%Summary
From our analysis, it is as plain as day that Prop Firm EA can hardly give you an edge in the funding firm challenge. It has low winning rates and a high drawdown which can easily disqualify you from receiving any funding from prop firms. That being the case, you are better off without this system.
FAQs
The most popular prop trading firms and funded programmes
- Axi Select.
- FTMO.
- The Forex Funder.
- E8 Markets.
- True Forex Funds.
- The 5%ers.
- Funded Next.
Trading in a prop firm with EA support offers unique opportunities to manage and scale a funded account. The best prop firms for retail traders offer flexible rules to leverage Expert Advisor (EAs) in forex. Traders can utilize EAs to analyze market data, make informed decisions, and automate trades.
Are prop firms legitimate? ›
While these laws applied to banks, not all independent prop companies in operation today are covered by the Volcker rule. Prop businesses nowadays are utterly unregulated and far apart from the banking industry. As a result, these internet prop companies are legitimate and not a fraud.
What percentage of people pass prop firm challenges? ›
The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.
Do prop firms really pay out? ›
There is nothing inherently scammy about the business model of prop firms. But how do they make money then? For starters, prop firms, of course, do not give money to just anyone who asks. Typically, they have a multi-stage evaluation process to make sure the traders they employ know what they are doing.
Why is FTMO banned in the US? ›
FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.
Is EA allowed in my funded FX? ›
We do allow the usage of EAs on all our accounts and at every phase. However, to ensure fair and compliant trading, there are certain restrictions on the types of EAs that are allowed.
What are the negatives of prop firms? ›
- Traders in prop firms often have limited control over the firm's capital. They may need to deposit their own money as collateral or risk management. - Additionally, payouts are subject to the firm's rules, which may restrict a trader's access to profits.
What are the disadvantages of prop firms? ›
Among many other potential factors, the main disadvantages of prop trading arise from being classified as a market professional, unfavorable profit sharing, and whether your net trading profits are taxed as capital gains or ordinary personal income.
What happens if you lose money in a prop firm? ›
Proprietary trading firms often provide evaluation accounts where you prove your trading skills. Usually, you pay a one-time fee to enter this "challenge." If you lose money during this evaluation, you won't owe anything beyond the initial fee.
A prop trading firm looks to recruit talented traders and fund them with the company's capital. The funds that a trader makes, is then split between the trader and the company. The profit share is between 50 – 95%, with the trader taking the lion's share.
Is FTMo trustworthy? ›
Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.
What is the failure rate of FTMO? ›
According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.
How many prop firm traders are successful? ›
At its core, the prop firm challenge can be a way for prop firms to make money from failed challenges. This is because some sources have the failure rate of prop trading challenges at 90%. So for every 10 traders that buy a challenge, 9 will fail.
Why do people fail prop firm challenges? ›
At Lux Trading Firm, our Elite Traders Club has the highest pass rate in the industry – so we know what we're talking about! The most common reasons traders fail prop firm challenges are simply overleveraging their trades, not understanding the rules, and not having a profitable trading strategy.
Which prop firm is better than FTMO? ›
FTMO Alternatives Frequently Asked Questions (FAQs):
Yes, there are many sites offering similar services to FTMO. These include FunderPro, the5ers and many more. If you are looking for an alternative to FTMO, FunderPro is currently rank as the number one on the list of top Forex Prop Firms.
Is FTMO trustworthy? ›
Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.
Is FTMO the best prop firm? ›
One of the main reasons why FTMO is a good prop firm is their investment options. They offer traders the opportunity to trade with their own capital, as well as access to additional capital from FTMO.
Is FTMO allowed in the US? ›
Please note that FTMO does not provide services to persons in/from (both nationals and residents) Iran, Syria, Myanmar, North Korea and USA, persons listed on sanction lists, persons with criminal records related to financial crime or terrorism, and persons previously banned because of breach of contract.
