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Prop trading, short for proprietary trading, has become a popular pathway for ambitious traders to leverage significant capital and showcase their skills. Unlike traditional trading, where individuals use their own funds, prop trading firms provide traders with access to a funded account. In return, traders share a portion of their profits with the firm. This setup not only mitigates personal risk but also amplifies the potential for larger gains.
For those looking to break into this exciting arena, the Vantage Elite Trading Challenge offers a unique opportunity.
What is the Vantage Elite Trading Challenge?
The Vantage Elite Challenge is a funded trading program designed for traders to showcase and refine their skills. This challenge provides access to up to $200,000 in simulated funds, with a low one-time fee. Successfully completing the challenge not only allows you to keep 80% of your profits but also refunds your initial fees upon your first payout – truly a win-win for serious traders.
To cater to different trading styles, Vantage Elite offers two distinct account types:
| Basic Account | Plus+ Account |
| Perfect for traders seeking a balanced approach, with attainable profit targets and lower loss limits | Designed for those with a higher risk appetite, featuring higher profit targets and more substantial loss limits |
The challenge consists of two key stages: the Challenge Phase and the Evaluation Phase. These phases are meticulously structured to enhance your trading abilities while fostering crucial attributes like discipline and risk management.
Vantage Elite stands out for its commitment to transparency, with no hidden fees and swift, fortnightly payouts. This creates a dependable and supportive environment where traders can focus on honing their skills and achieving success.
Key Considerations Before Taking on the Challenge
1. Understand the rules of the challenge
Before diving into the challenge, it’s crucial to have a thorough understanding of the rules and guidelines. This includes the profit targets, daily and overall loss limits, and the specific conditions that must be met to pass the Challenge and Evaluation Phase. Familiarise yourself with these parameters to avoid any surprises during your trading journey.
2. Assess difficulty levels for each phase
The Vantage Elite Trading Challenge is designed to be rigorous, testing both your trading acumen and ability to withstand pressure. The Evaluation Phase is not just about hitting profit targets but doing so while managing risk effectively. Consider your current skill level and trading experience when choosing your simulated fund amount and fee tier. It’s important to select a level that matches your comfort zone while still providing a meaningful challenge.
3. Use proven strategies
In a high-stakes environment like the Vantage Elite Trading Challenge, there’s no room for experimentation with untested strategies. Stick to trading methods that you’ve honed over time and are confident in executing. Whether it’s trend following, mean reversion, or breakout strategies, ensure that your approach is grounded in experience and backed by historical data.
Here are 4 prop trading strategies to help you effectively manoeuvre through the Vantage Elite Challenge.
4. Avoid using excessive leverage
One of the most critical aspects of the challenge is risk management. Make full use of tools like stop-loss orders and position sizing techniques to protect your capital. Avoid the temptation to use excessive leverage in every trade, as this can quickly lead to breaches of loss limits. Instead, focus on managing your risk per trade and across your portfolio.
5. Be ready to adapt to different market conditions
The financial markets are dynamic, with conditions that can change rapidly. To succeed in the Challenge, you need to be adaptable. This means being prepared to adjust your strategies based on market trends, news events, and economic data. Flexibility in your approach will help you navigate both volatile and calm market environments effectively.
6. Be mentally prepared
Trading is as much a mental game as it is a technical one. Your trading psychology will be put to the test as you navigate the challenge, requiring you to remain calm under pressure, stick to your trading plan, and avoid emotional decision-making. Cultivate a mindset geared towards discipline and resilience. Understand that setbacks are part of the process and focus on long-term success rather than short-term gains.
Read our articles on trading psychology below to gain deeper insights into the mindset needed for this challenge and learn what to avoid for long-term success.
The Basics of Trading Psychology
The Psychology of Market Reaction: Understanding Investor Behaviour
FUD article
Herd Mentality article
8 Tips to Help Pass the Vantage Elite Challenge
1. Select a funded amount you are comfortable with
Don’t just go for $200,000 if you usually trade smaller sizes of $10,000.
While it might be tempting to start with the largest simulated fund available, it’s crucial to stay within your comfort zone. The trading conditions change significantly when dealing with larger amounts, and if you’re used to trading with smaller sizes, the psychological pressure can be overwhelming. Start with an amount that mirrors your usual trading account size, so the strategies and risk management techniques you’re familiar with can be applied more effectively.
The entry fees for smaller amounts are lower, and this approach allows you to test the waters without significant financial commitment. Even if the trial run isn’t successful, the experience will be invaluable, helping you refine your strategies and approach for the next attempt. This low-risk entry provides a practical learning experience and a clearer understanding of what it takes to pass.
2. Keep safely within loss limits with risk management
One of the keys to passing the Vantage Elite Challenge is adhering to the set loss limits. Remember, these limits aren’t just for the total duration of the challenge but are also calculated on a daily basis. This means that even a single day of reckless trading can lead to disqualification. It’s critical to integrate strict risk management rules, such as placing stop-loss orders on every trade. Consider using tools like the Average True Range (ATR) to determine optimal stop-loss levels, ensuring they reflect the market’s current volatility. By keeping your losses controlled, you maintain your ability to trade another day, increasing your chances of passing the challenge.
3. Trade what you are familiar with
Your expertise in specific markets or instruments can give you an edge. For example, if you’re well-versed in trading Forex pairs like EUR/USD or commodities like gold, stick to these during the challenge. Familiarity breeds confidence, and your ability to make informed decisions is much higher when you know the intricacies of the asset you’re trading. Avoid the temptation to explore unfamiliar markets during the challenge phase; instead, rely on your strengths.
4. Consistency is key
One of the most overlooked aspects of successful trading is consistency. The Vantage Elite Challenge doesn’t impose time restrictions, so there’s no need to rush into making large profits. Focus on small, consistent gains rather than swinging for the fences with each trade. By sticking to a disciplined approach and accumulating small profits steadily, you can meet the challenge’s profit targets without exposing yourself to excessive risk.
Remember, slow and steady wins the race.
5. Stay updated with the news
Understanding the broader market context is crucial for informed trading decisions. Keep an eye on economic calendars, major news events, and market sentiment indicators. Tools like VWAP, MACD, and RSI can be useful in conjunction with news to identify entry and exit points.
For example, a bullish divergence on the RSI near a significant support level, combined with positive economic news, could be a strong signal to enter a long position. Staying updated with the news ensures you’re not blindsided by unexpected market movements.
6. Have a trading plan ready (and stick to it)
A well-structured trading plan is your roadmap to success in the challenge. This plan should outline your strategies, risk management techniques, and specific goals for each trade. For instance, you might plan to use a combination of the MACD and RSI to confirm trade entries and exits, while setting a stop-loss based on the ATR indicator. By having a clear plan, you minimise emotional decision-making, stay disciplined, and enhance your chances of passing the challenge.
No matter how tempting it might be to deviate from your strategy due to market noise or emotional impulses, it’s vital to stay committed to your plan. Emotional trading often leads to poor decisions and significant losses. Keep your focus on executing your strategy with precision and consistency, and you’ll be more likely to meet the challenge’s profit targets.
Read our article here for exclusive strategies from successful prop traders.
7. Optimise your trading hours
Certain times of the day can bring heightened volatility, such as market openings, closings, or major economic announcements. While volatility can present opportunities, it can also lead to unexpected swings that might breach your loss limits. To minimise risk, consider trading during less volatile periods, where you can better control your trades and reduce the impact of sudden market moves.
8. Review, adjust, and improve
Even seasoned traders know that there’s always room for improvement. Regularly review your trades, identify patterns, and adjust your strategy as needed. The market is dynamic, and what worked yesterday might not work today. By continuously learning and adapting, you increase your chances of successfully navigating the challenge and achieving Elite status.
To maximise your chances of success in the Vantage Elite Trading Challenge, leverage the educational resources available at Vantage Academy. Explore our articles and courses to refine your trading skills and enhance your performance.
Conclusion
Passing the Vantage Elite Trading Challenge goes beyond hitting profit targets; it’s about demonstrating discipline, consistency, and strategic insight. This challenge tests your technical skills, mental resilience, risk management, and adaptability. By applying these eight tips, you’ll be better prepared to meet the demands of the challenge and achieve success.
Prop trading offers significant potential, but with it comes responsibility. Whether it’s selecting the right funded amount, staying within loss limits, or adhering to your trading plan, every decision impacts your performance.
The Vantage Elite Challenge is your path to becoming a more skilled and profitable trader. Embrace the journey, focus on long-term success, and rise to the ranks of Vantage Elite Traders.
Ready to take on the challenge? Start your journey with Vantage Elite today.
Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.
