In case you did not know:
MyForexFunds has been around the market for a while and they have made quite a name for themselves over the years. Since 2020 till now their journey has been a very successful one.
We don’t have a way to know exactly how many clients MyForexFunds serves at a time but we do know that MyForexFund’s front page receives a visitor count of a whopping 3.5 Million on average. Even if we take the lowest web traffic conversion rate into consideration, MyForexFunds serve an astonishing 64,400 individual traders each month and the number is ever-growing. MyForexFunds have over 9000+ reviews in their Trustpilot profile and still maintains a strong 4.9/5 rating as of writing this article.
What MyForexFunds offer:
Currently, MyForexFunds offer three funding models. Rapid, Evaluation, and Accelerated. Only Accelerated Funding Programs have no daily drawdown but have two types Conventional and Emphatic. In the Conventional type, you get an overall 5% draw-down and in the Emphatic account type, you get a 10% overall drawdown. Accelerated funding models are basically instant funding models where you can request a payout on a weekly basis.
Common Drawdown Rule:
To function properly, all mainstream Prop Firms like MyForexFunds have some rules in motion. Most of these Prop Firms have 2 major rules in common. Daily Drawdown, and Overall Drawdown. And, MyForexFunds stand on top of the game with a 5% daily Draw-Down and 12% Overall-Drawdown. However, the varying factor in these common rules is how they are calculated.
When you trade on a MyForexFunds account, you can’t lose more than 5% within a day. Some prop firms like FTMO take your balance into account for the daily drawdown. That means, if you buy a 100K account, you can lose 5% which is $5,000 within a day, and when the day resets, if your balance is unchanged you still get to lose 5K. It’s mostly known as balance-based drawdown or absolute drawdown. But on the other hand, MyForexFunds adapted to an unorthodox method to count their Daily Drawdown.
MyForexFunds Drawdown Rule:
When you trade on an account of MyForexFunds, they take your balance or equity, whichever is higher into account. In short, equity is the floating balance of your active trades added to your current balance. If the trades are running in profit you have positive equity, if the trades are running in loss then you have negative equity. If you have an active trade or multiple trades running in profit when the day resets MyForexFunds is going to apply that 5% limiter to the equity of your account. This method of drawdown calculation is known as equity-based drawdown or relative drawdown.
Imagine you are trading a 100K account of MyForexFunds. You have 3 trades running with a combined profit of 5K. So, your equity is now 105K. The day resets and since your equity was at 105K after the day has reset, now your equity can’t go below $99,750. Your account balance is still at $100000, so in a sense, you are getting only $250 (0.25%) to lose. Now, this is very specific and could be considered a worst-case scenario.
In the best-case scenario, you can also take advantage of MyForexFunds’ way of drawdown calculation. As MyForexFunds calculate their drawdown with equity or balance, whichever is higher, that means as your account grows, the limit of your daily drawdown will also grow parallelly.
In the prop trading communities, there are various opinions on which method of drawdown calculation is fair. We in at Prop Trader, chose to stand in the middle ground and let you all decide. – Which method of drawdown calculation do you prefer more?
Let us know in the comments below.
Enjoyed this article? be sure to check out next!