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AN INSIGHT
TO DAY TRADING

Live Account Providers: Elite Trader Funding Review


Elite Trader Funding Review

Mission


Elite Trader Funding aims becoming the one-stop shop for a trader looking to be funded. They endeavour to partner with successful traders and believe finding an elite trader takes time and effort. The ultimate goal is seeing traders prosper to creating successful long-term partnerships.



About Elite Trader Funding


Elite Trader Funding is a comparably new company and represents a one-stop firm for funded futures trader programs. The company is best known for their attractive account options, which allow traders to select among various evaluation choices that fits their trading style.


The company was established in February 2022 by three professionals with the objective to support retail traders and reward their discipline. Although the firm is new in the market, these professionals are not new to trading, and each trio member joins the company with experience in the financial markets. The founding members Clint, Kanwal, and Eric maintain a combined experience of 15+ years in banking and 40+ years in trading covering the areas of energy and commodities as well as 20+ years experience in web development and network engineering.



Account Types


There are several accounts available at Elite Trader Funding; see an extract below:



1 Step Evaluations


Fast-Track Evaluations


End-of-Day Evaluations


Static Drawdown Evaluations



Qualification Process


Elite Trader offers a variety of accounts traders can start with. In order the receive a funded account, traders first have to pass an evaluation phase proving their skills. Elite Trader provides different types of evaluation – the 1 Step Evaluation, Fast Track Evaluation, Static Drawdown Evaluation and an End-of-Day Drawdown Evaluation.


All evaluation types require a minimum of 5 trading days – that may be consecutive or non-consecutive days. The Fast Track Evaluation also contains a maximum of 14 trading days whereas all other evaluation types do not have an expiry date. Also, trading during news is permitted, however, holding trades over night is not and all positions must be closed 1 minute before market closure at latest.


Elite Trader allows instruments from the major exchanges CME, NYMEX, COMEX and CBOT covering all major markets. A level 1 data feed is included in the account price, however, level 2 data need to be booked separately for an additional $15 per exchange or $40 including all above mentioned exchanges to have order flow data available as well.


Ranging from $10k to $300k account size, the maximum position size, profit target and trailing drawdown depends on the respective account.


The 1 Step Evaluation as well as Fast Track Evaluation follow a drawdown calculation that is based on unrealised profits and in real-time also known as trailing drawdown. There are no daily or weekly loss limits, it always refers to the overall allowed maximum drawdown with those account types. Similarly, the End-of-Day Drawdown evaluation type calculates their drawdown at the end of a trading day following a slightly different approach. In contrast, the Static Drawdown Evaluation maintains a static drawdown where the initially allowed minimum trading balance remains static and never moves from its original level making it almost an own equity account from a trading perspective.


Also, ETF has a protection mechanism in place where orders that exceed the total allowed lot size are simply rejected instead of closing the account immediately. In order to ensure a successful evaluation process, a trade must have developed profitable trading strategy. The UCT day trading course provides all relevant elements as well as individual assistance to pass the ETF evaluation phase and received a funded trading account.


Elite Trader allows resetting the evaluation for all evaluation types except the Fast Track Evaluation charging $75. Further, all evaluation types include a free Ninja Trader licence.



Live Account


Once the qualification requirements have been reached, Elite Trader provides a contract to sign electronically. The trader receives an account with the same balance and tradeable lots that has been chosen during the evaluation process.


The account rules remain unchanged with regards to allowed position size and drawdown. For the 1 Step and Fast Track account options, the drawdown continues to be calculated with regards to unrealised profits, however, that drawdown stops and will not move further up as soon as the trader reaches a threshold of the initial account balance +$100. With the End-of-Day account options, the drawdown limit does not calculate unrealised profits, however, it remains throughout the entire account existence and does not stop. In contrast, the static drawdown accounts follows a slightly different approach and do not have a trailing stop implemented - it allows a maximum of 2 respectively 4 lot trading size.


Trading during news is permitted, however, holding trades over night is not and all positions must be closed 1 minute before market closure at latest.


There are withdrawal limitations to the first four withdrawals depending on the chosen account size. The fifth and following withdrawal do not have static but flexible limitations following a 30% rule. This policy says at the time of any withdrawal request, the account’s total balance must not consist of greater than 30% of the total balance being derived from a single trading day; see sample calculation below:


Should a trader violated any of the given rules, the account will be terminated immediately and the a new evaluation needs to be passed. Like in the qualification process, ETF also maintains their protection mechanism where orders that exceed the total allowed lot size are simply rejected instead of closing the account immediately.


Elite Trader Funding pays 100% of the first 12,500 to the trader and continues with a 80/20 profit split afterwards – 80% for the trader, 20% for the company.


The company requests a $80 monthly fee for active accounts. That includes account maintenance as well as the level 1 data feed covering all major exchanges (CME, NYMEX, COMEX, CBOT). Level 2 data must be subscribed separately.



Opinion: Elite Trader Funding Review


Elite Trader Funding provides a large selection of trading accounts including special options like their fast-track accounts and static drawdown account. That in combination with their minimised restrictions make it an interesting alternative to the already established account providers.


As seen in previous funded account reviews, each provider has its pros and cons when it comes to account drawdown calculation – ETF combines all of them in their offering. The most often applied drawdown calculation is the trailing drawdown which, however, stops at the initial account balance +$100 – it may illustrate a hurdle for some traders depending on the applied approach. Alternatively, ETF also offers End-Of-Day drawdown accounts where traders get an opportunity to not get caught by a trailing stop, however, with this account the drawdown never stops. Comparing those two account options, the trader needs to weigh which option fits the individual trading style better. Moreover, the static drawdown account option provides the most freedom where the drawdown does not move and remains at its initial balance level +$100, however, is limited to 2 respectively 4 lots.


Personally, I consider the static drawdown option an innovation that comes very close to an own equity account. Nevertheless, it always depends on the applied trading approach and Elite Trader Funded has definitely a broad selection available for every approach.

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