How you can get biweekly PropFunds Payout from reliable Prop Brokers without the risk of losing the Challenge Fee by simply hedging your trades?
The Answer is very simple!
Smart Scalp HFT and hedging strategies
What is HFT and how does Hedging work?
While HFT (High Frequency Trading) is not allowed on most brokers and platforms, it is on some leverage challenge providers! With our proprietary HFT algorithms, we will pass the challenge within a week without breaking any rules! After that, we will gladly continue to manage the challenge on a profit-sharing basis.
However, HFT has been blocked on most platforms for some time and is therefore only available from small providers. So our traders have found a second way to pass the challenge on absolutely all third-party providers without putting their capital at significant risk. By hedging on a normal trading account, the challenge fee can be earned on the private account through countertrades if the challenge account is lost, so that a new challenge can simply be purchased! In the event of a loss on the private trading account, the challenge is passed and this results in significantly higher profits of €10,000 – €20,000 per month.
HFT
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Accepted by some providers
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Pass an almost risk-free challenge
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Passed within a few days
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Costs depending on account size
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Payouts after Challenge not guaranteed
Hedging
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Possible with all providers
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Capital of at least 4000-5000 required
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Capital is subject to virtually no risk
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10-45 days
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Secure payouts after challenge
Our hedging strategy (recommended variant)
Our strategy:
We have developed an innovative strategy in which we exploit divergences between different companies. Through opposite trades, we manage to pass this challenge WITHOUT risk and unlock the account.
In our strategy we use the so-called “hedging.” “Hedging” is English for ‘protection’. You buy a challenge from the PropFund provider FTMO and have the chance to unlock an account with, for example, $200,000 capital, which you can use for your trading, if you pass the challenge. However, this is subject to various conditions. A total of 3 phases must be passed. 2 normal phases and a so-called “payout phase” with real capital.
After you have purchased the challenge, you deposit a certain amount of money, which is in a ratio of 1:6 to the cost of the challenge, with a broker.
Now the first challenge phase starts: a maximum of 10% of the capital may be lost. If this happens, the challenge is lost. In order to pass the first phase of the challenge, a 10% return must be generated.
So if we lose the challenge, we still don’t make a loss because at the same time, profit has been made on the broker account, which can be used to buy a new challenge. So we either pass the challenge or make a profit from which we can buy a new challenge.
In the second challenge phase, we again have a maximum loss of 10%, but this time a profit target of only 5%. However, not all challenge phases have been passed yet and by passing the first challenge, the broker account is in the red. This means that we now have to place the trades in a 1:0.5 ratio so that if we lose the second phase, we are still in the black with the broker account and can buy a new challenge. However, if we win this phase, the account will be twice as much in the red.
We now move on to phase 3. We now set a profit target of 10% with a maximum loss of 10%. If we lose the trade, your broker account will be in the black again so that we can buy a new challenge. However, if we win the trade, you will receive the first payout from the PropFund provider. This payout amounts to 10% of the account size.
What is a Prop Fund Challenge?
You can buy a PropFund Challenge from so-called “PropFund providers”. You have to meet certain criteria and achieve a minimum return without exceeding a certain maximum drawdown in order to receive the first payout. Once you have passed all the challenge phases, you can trade this account normally and in return give the PropFund provider a portion of your profits. For example, you do not pay €1000 for an account of $200,000.
Prop Fund Provider:
We recommend the following providers with the following accounts:
Alpha Capital:
- Swing Account
- No news restrictions
- 80% payout & every 2 weeks
- Weekend hold permitted
Important:
When purchasing the swing account, you can choose between a raw spread account and a no commission account. We would definitely take the raw spread account
Fxify:
- 2-Step
- No news restrictions
- Up to 90% profit split
- Weekend hold permitted
Important:
When purchasing the 2-step account, you can choose between a raw spread account and an all-in account (commission fee). We would clearly choose the raw spread account again here
Fundednext:
- Evaluation Account
- No news restrictions
- Up to 95% profit split
- Weekend hold permitted
Important:
When purchasing the evaluation account, you can choose between a swap account and a swap free account. We would definitely choose the swap free account again.
Which debt propfirm providers do we work with?
We mainly work with FTMO, E8 and True Forex Funds, as the rules are clearer and have been agreed with the support team in advance.
Advantages of these providers:
- Regulated debt capital providers
- Resident in the EU
- 100% payout guarantee
- Low spreads and commissions
- Clear regulations that are not changed every 24 hours
- Reputable partner program and contacts
Would you like to start a leverage challenge with Smart Scalp FX?
Give your passive income an UPGRADE!
Start the challenge in 3 steps
Register with the debt capital provider given in the chat
Create your account via our link and follow the instructions exactly
Outsource the challenge to Smart Scalp FX and pass it
Now provide us with your login details and watch as we help you pass the 2 phases of the challenge with ease
PayOuts of up to €10,000 per month
Once the challenge has been passed, we manage the whole thing for you and ensure continuous payouts of up to €10,000 per month
Case study:
Phase I
- Maximum loss/drawdown: 10%
- Profit target: 10%
- Costs: 1.000€
In the challenge, we place a long Nasdaq trade and a short Nasdaq trade on your broker account. This has a win-loss ratio of 1.
- Scenario 1: Loss of the trade on challenge → €1,000 in your broker account. Purchase of a new challenge and start at phase 1
- Scenario 2: Profit of the trade at Challenge → -1,000€ in the broker account. We now have costs of €2,000, with which we go into phase 2.
Phase 2
- Maximum loss/drawdown: 10%
- Profit target: 5%
- Costs: 1.000€
In the challenge, we place a long Nasdaq trade and a short Nasdaq trade on your broker account. This has a win-loss ratio of 0.5.
- Scenario 1: Loss of the trade on challenge → €2,000 in your broker account. Purchase of a new challenge and start at phase 1
- Scenario 2: Profit from the trade at Challenge → minus €1,000 in the broker account. We now have costs of €3,000 with which we enter phase 3
Phase 3
- Maximum loss/drawdown: 10%
- Profit target: 10%
- Costs: 3.000€
In the challenge, we place a long Nasdaq trade and a short Nasdaq trade on your broker account. This has a win-loss ratio of 1.
- Scenario 1: Loss of the trade on challenge → €3,000 in your broker account. Purchase of a new challenge and start at phase 1
- Scenario 2: Profit from the trade at Challenge → minus €3,000 in the broker account. We now have costs of €6,000.
Now you get a payout of: 200.000 * 10% = 20.000$ – 20%(fee) = 16.000$ = 14.700€ + 1.000€ (challenge fee back) = 15.700€. 15.700€ – 6.000€ = 9.700€ profit.
Phase 4
- Maximum loss/drawdown: 10%
- Profit target: 10%
- Costs: 0€
We place a trade long Nasdaq on the Challenge and short Nasdaq on your broker account. This has a profit/loss ratio of 1, which we hedge so that we make half the profit in any case.
- Scenario 1: Loss of the trade on challenge → €7,350 in your broker account. Purchase of a new challenge and start at phase 1
- Scenario 2: Profit of the trade at Challenge → minus €7,350 in the broker account.
Now you will receive a payout of: 200,000 * 10% = 20,000$ – 20%(fee) = 16,000$ = 14,700€ – 7,350€ = 7,350€ profit.
Total profit: €9,700 + €7,350 = €17,050 total profit.
Now you have another €7,350 profit with every payout you receive until the challenge is lost. Of these sums that you realize as profit, you keep 50% and we receive 50%. So in the worst case with 1x payout €17,050 * 50% = €8,525 for YOU
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In a leverage challenge, a certain profit must be unlocked within a framework of rules, such as maximum drawdown, total drawdown or number of days, in order to gain access to an account with a capitalization of up to €400,000. Here you can keep up to 90% of the profits made as long as you adhere to the specified limits. If you do the whole thing through us, we will of course take over the monitoring and ensure compliance with the rules
No! The worst thing that can happen is that your account will be taken away if you break the rules.
High frequency trading is a trading method that is prohibited on most platforms, as profits are generated risk-free and at the broker’s expense through spread arbitrage. However, some third-party providers accept it!
Hedging involves placing opposing trades on two different accounts so that one of the trades will definitely make a profit while the other will make a loss. This makes it possible to offset the loss of a challenge with a profit on the private account of almost +-0. If the private account slips into the red, enormous profits can be made with the challenge account (much higher than the loss incurred on the private account – up to 10 times higher)