The world of trading can be complex, especially for beginners. But what if you could harness the power of automation and combine it with the resources of a prop firm? Expert Advisors (EAs), also known as trading robots, can automate your trading strategies, potentially freeing up your time and emotions. However, using an EA effectively often requires pairing it with a supportive trading environment. That’s where prop firms come in. These firms can provide funded accounts, allowing you to trade with real money while you learn and grow as a trader. The good news is, several prop firms cater specifically to those who want to utilize EAs. Here’s a breakdown of the top 4 prop firms that allow Expert Advisors for beginners in 2024.
Top 4 Prop Firms That Allow Expert Advisors
1. FTMO
FTMO offers traders the freedom to use their preferred strategies, whether manual or automated trading using Expert Advisors (EAs). They support a wide range of instruments, from forex to stocks and crypto, as long as the strategy adheres to sound risk management principles and doesn’t exploit the market.
However, for traders who want to use EAs, especially third-party EAs, keep in mind that there’s a chance other traders might be using the same EA as you, meaning you’d all be executing the same trading strategy.
Using a popular third-party EA could potentially violate FTMO’s maximum capital allocation rule. This could lead to your FTMO account application being denied. On top of that, there are also some platform limitations to be aware of. The platform can only handle 200 open orders at a time. You can’t make more than 2000 trades per day. If your EA generates excessive activity and strains the platform servers by sending too many orders or updates, FTMO might reach out and ask you to adjust your EA’s logic or parameters.
FTMO encourages traders to explore their trading strategies and showcase their edge in the markets. They emphasize genuine intentions and consistency as key factors in their evaluation process. So be mindful of platform limitations and avoid practices that overload the servers or violate the terms of service.
2. The 5%ers
The5%ers offers a program for talented traders to use their own strategies and potentially manage millions of dollars. They welcome all trading styles, but with stricter rules than some other prop firms.
They offer lower leverage (1:6) compared to others. This means you can’t borrow as much money to trade, and your risk is limited. It is also important to know that The5%ers wants to see your unique skills, so they have some banned practices to keep. This includes exploiting glitches or pricing errors, using complex algorithms for super-fast trading, and placing bets right before news events hoping for volatile swings.
Additionally, coordinating trades with other accounts or copying others’ strategies (including through “copy trading”) is strictly prohibited. They also frown upon one-sided bets where you always buy or sell without considering market conditions. Furthermore, misusing Expert Advisors like scalping during rollovers, exploiting price feeds, or copying others’ EA strategies is not allowed.Â
Engaging in rapid-fire trades based on tiny price changes (tick scalping) and exploiting temporary price differences between accounts (hedge/reverse arbitrage trading) are also on the no-go list. Finally, sharing your account with others or using services that guarantee passing challenges for you will get you disqualified.Â
By adhering to these guidelines, The5%ers ensures a fair and competitive environment for all traders. Despite the stricter rules, you can still get funded instantly and scale your account up to a whopping $4 million!
3. TopTier Trader
This New York-based firm has made it its mission to empower traders with the tools and resources they need to thrive in the market landscape. They recognize the power of algorithms and support the use of Expert Advisors on their Challenge Plus and Add-on accounts, making them a great choice for traders who rely on automation. They also offer a wide variety of tradable assets, including forex, indices, and commodities, and allow various trading strategies, such as news trading and weekend holding.
TopTier Trader’s unique two-tier evaluation process provides traders with a simulated trading environment to showcase their skills. Upon successful completion of the Challenge, traders can gain access to funded accounts with scaling plans that can reach up to $2 million.
While TopTier Trader embraces innovation and flexibility, they ensure a fair and competitive environment for all participants by prohibiting certain practices. This includes strategies that exploit rapid-fire execution (high-frequency trading) or manipulate data feeds to gain an unfair advantage. Additionally, various arbitrage techniques are restricted, such as tick scalping (profiting from tiny price fluctuations), latency arbitrage (exploiting differences in data arrival times), reverse arbitrage (taking advantage of temporary price discrepancies across markets), and hedge arbitrage (combining positions to profit from minor pricing inefficiencies).
Furthermore, to maintain the integrity of the evaluation process, TopTier Trader discourages copying or relying on external influences. This means signal trading through copy traders and account management services offered by third parties are not allowed.
4. FundedNext
FundedNext has established itself as a leading prop firm for forex traders, offering funded accounts, profit splits that increase over time, and opportunities to scale account sizes. However, before diving in, it’s crucial to understand their specific rules and regulations.
This UAE-based prop firm welcomes the use of Expert Advisors and indicators to enhance trading strategies. However, the key is to ensure your parameters are unique and tailored to your individual style and account. They prioritizes fairness by strictly prohibiting exploitative practices for everyone. This includes practices that use High-Frequency Trading to exploit tiny price changes or trick the system with rapid-fire trades (Quick Strike Method). They also don’t allow taking advantage of delayed information (Latency Trading) to get an unfair edge.Â
Additionally, account sharing, device sharing, and hyperactivity are not permitted. These rules keep things fair for everyone and prevent sneaky strategies. On the flip side, FundedNext has a stricter drawdown limit (5%) compared to some competitors, but they make up for it with high leverage (up to 1:100) which might be tempting for some traders. So, FundedNext offers a lot, but understanding their rules is key to a smooth trading experience.
Choosing The Right Prop Firm for You
Choosing the right prop firm for your EA trading journey is crucial. Here are some key factors to consider:
EA FlexibilityÂ
This refers to how much freedom the prop firm offers in customizing and using your EA.
Customizable Parameters
Look for firms that allow you to tailor your EA’s settings to your unique trading style and account size. This might not be an option with prop firms that restrict EAs or require specific pre-built versions like FundedNext.
Combining Strategies
Some prop firms allow you to combine your EA with other manual trading strategies for a more well-rounded approach.
Platform Compatibility
Ensure the prop firm’s platform supports the type of EA you plan to use. Some platforms may have limitations on the programming languages or functionalities of EAs.
Testing Environment
Does the prop firm offer a demo account where you can backtest and fine-tune your EA before risking real capital?
Risk Management
Choose a firm with clear rules on drawdown (maximum account decline) and margin requirements. This helps manage risk while your EA is live-trading.
Remember, even with a well-designed EA, prop firm trading involves inherent risk. Choose a firm that fosters a fair environment where your EA’s performance reflects your trading skills, not platform limitations or unfair practices.
