Prop trading firms
have long operated on a framework of rules. Traders face daily loss limits,
trailing drawdown thresholds, profit targets, time constraints, and
restrictions on trading styles. These rules define how most prop firms evaluate
and manage traders. RaiseMyFunds is removing all of them but one.
Prop traders on
RaiseMyFunds can now trade as they wish. The single parameter that remains is a
maximum loss, fixed once on the starting balance.
The decision goes
beyond adjusting risk parameters or loosening constraints. RaiseMyFunds is
eliminating the rules-based framework that other prop firms use to govern
trader behaviour. No daily loss limits. No trailing drawdown. No profit
targets. No time constraints. No restrictions on trading methods or styles.
RaiseMyFunds is also
offering instant funding of up to $400,000 with no challenge phase. Access is
by application: traders submit a form, RaiseMyFunds reviews each one, and a
member of the team makes contact only if the candidate is selected. The account
also offers a profit split of up to 85 per cent for the traders.
These moves represent
a fundamental break from how prop trading operates today.
How Prop Firms
Normally Keep Traders in Check
A typical funded
trader operates under multiple constraints: daily loss limits that cap losses
in a single session, drawdown thresholds recalculated on account balance or
equity as the account grows, profit targets that must be hit within specific
timeframes, and often restrictions on holding positions overnight or trading
during news events.
Prop firms justify
these rules as risk management tools, arguing that limits protect capital and
filter out reckless trading. The rules create boundaries within which traders
must operate, theoretically ensuring disciplined behaviour.
RaiseMyFunds has
observed how these rules function in practice over several years. The company
concluded that they do something different than advertised: they create
artificial conditions that distort trading behaviour rather than improve it.
The Only Rule That
Stays: A Fixed Maximum Loss
The parameter
RaiseMyFunds keeps is a maximum loss. What distinguishes it is not its size but
the way it is calculated.
Why a Static
Maximum Loss Beats a Trailing One
Most prop firms
operate a trailing drawdown, recalculated on account balance or equity as the
account grows. The effect is familiar to every funded trader: the floor rises
with each gain. A trader up 6 per cent carries a threshold that has moved up
with them, and an ordinary retracement can close an account that is still
profitable on its starting capital. The trader is penalised not for losing
money, but for having made some first.
RaiseMyFunds’ maximum
loss is static. It is calculated once, on the initial balance. It does not
trail. It is not recalculated on equity. A trader up 6 per cent has exactly the
same floor as on day one, and knows from the first session where the wall stands.
This is the difference
between a rule a trader can plan around and a rule that moves while they trade.
Why Every Other
Rule Was Removed
The decision to
eliminate the other rules stems from RaiseMyFunds’ assessment of what those
constraints actually accomplish. Rather than promoting good trading, they often
force traders into patterns that contradict sound strategy.
Daily loss limits
Daily loss limits
create artificial pressure points. A trader who takes a legitimate loss early
in the day faces restricted room for additional losses. This constraint doesn’t
reflect real market conditions but an arbitrary boundary imposed by the prop firm.
Trailing drawdown
Trailing drawdown
rules have a similar effect. Traders approaching a threshold that keeps moving
face mounting pressure to avoid any loss at all, often closing positions
prematurely or skipping trades they would otherwise take. The rule becomes the
focus rather than the market itself.
Profit targets and
time limits
Profit targets with
time constraints push traders toward rushed decisions. Someone with a
profitable strategy that works over weeks or months must compress that approach
into shorter timeframes to meet prop firm deadlines. This pressure contradicts
the patient approach that often leads to consistent results.
RaiseMyFunds
identified these patterns as structural problems, not implementation issues.
Adjusting the specific numbers (allowing slightly larger limits or longer
timeframes) doesn’t address the core issue that the rules themselves distort
behaviour.
What Actually
Changes for the Trader
There are no daily
loss limits to navigate. Traders can take legitimate losses without worrying
about hitting artificial caps. There is no trailing threshold that closes an
account because it grew.
The model eliminates
profit targets entirely. RaiseMyFunds doesn’t require traders to hit specific
profit levels within set timeframes. There’s no pressure to generate returns
quickly or compress strategies into evaluation periods.
Time constraints
disappear as well. Traders aren’t working against deadlines to prove themselves
or maintain accounts. Style restrictions are gone too: RaiseMyFunds doesn’t
limit what types of trades are permitted, when traders can enter positions, or
how they must manage them.
Where the Oversight
Goes: Selection at the Door
This doesn’t mean
RaiseMyFunds provides capital with no oversight. The oversight moves to the
entrance. Because there is no challenge phase to filter candidates, the firm
filters them before the capital is released: applications are reviewed
individually, and only selected traders are contacted. There is no challenge
fee, no retry and no way to buy a way in. The programme is deliberately smaller
than its mass-market equivalents.
The Reasoning
Behind the Model
RaiseMyFunds believes
that artificial constraints imposed by prop firms often create the problems
they claim to prevent.
Rules force traders to
optimise for compliance rather than good trading. When someone’s primary
concern is avoiding rule violations, such as staying under daily loss limits,
meeting profit targets, and adhering to time constraints, they’re not focused
on reading markets and executing sound strategies. They’re focused on
navigating the prop firm’s framework.
RaiseMyFunds concluded
that removing these artificial priorities allows traders to focus on actual
trading. It also recognised that rules-based systems create adversarial
relationships, in which traders view rules as obstacles to overcome rather than
helpful boundaries. One fixed, transparent limit changes that dynamic.
The company isn’t
claiming that removing rules makes trading easier or more profitable. It is
stating that artificial constraints distort trading behaviour in ways that work
against traders’ interests, and that a single static threshold does the risk
management work the rulebook claimed to do.
How to Apply for
Instant Funding
Applications for
instant funding accounts are open and reviewed individually. Places are
limited, and only selected candidates are contacted.
Apply for instant
funding at RaiseMyFunds: https://raisemyfunds.co/instant-funding
What This Could
Mean for the Industry
By removing every
trading rule but one, RaiseMyFunds is testing whether selection, trust and
aligned incentives can replace rigid control systems. The model suggests that
risk can be managed through partnership and performance rather than artificial
constraints. This shift could encourage a broader rethink of how prop firms
balance capital protection with trader autonomy.
This article was written by IL Contributors at investinglive.com.