What is a scaling plan?
Quick answer
A scaling plan increases a funded trader's account size after consistent results, such as several profitable payout cycles without a breach. It rewards and retains skilled traders, and for the firm it concentrates payout risk in its most successful traders. Clear criteria and a maximum size are essential.
Detailed answer
Scaling gives traders a reason to stay with one firm.
Typical criteria
- A number of consecutive profitable cycles.
- No rule breaches.
- A minimum total profit percentage.
- Sometimes, a maximum drawdown achieved.
Typical increases
- A percentage increase, such as 25% of the account size.
- Up to a maximum, such as a set total allocation per trader.
Effect on the firm
The same percentage return on a larger account means a larger payout. Scaling is a bet that the trader's results will continue.
Example
A trader on a $100,000 account is profitable for four cycles. The firm scales the account by 25% to $125,000. A 3% month now produces $3,750 profit instead of $3,000.
On PropExecutor
A scaled account is a new account on a larger account type, assigned to the same trader record. It can use the same rule set or a stricter one, since several account types can share a rule set.
PropExecutor team · Updated
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