Swing trading is a strategy that allows traders to profit from short-term to medium-term market price fluctuations. This method gives traders flexibility in a variety of market conditions and helps them profit from both uptrends and downtrends. In today’s article, PF Insight will introduce Best Prop Firms for swing traders with outstanding benefits such as flexible order holding policies and attractive profit sharing.
What is a swing trader?
Swing traders are those who seek to profit from short- to medium-term price movements. In contrast to day traders, they usually hold positions open for several days to several weeks to observe opportunities when the market has significant price movements. This style is considered to be between scalping or day trading and long-term investing, providing a balance between trading frequency and profit potential. The core of swing trading is to closely follow the main trend to optimize profit opportunities.
Trend traders focus on spotting opportunities when the market is ready to change direction or continue its current trajectory. This method allows traders to stay active while still participating in price movements without having to spend all day glued to the screen.
Swing trading is commonly applied at prop companies
Many trading firms develop and implement their own swing trading strategies, based on their risk tolerance and profit goals. Here are three popular swing trading techniques that successful traders favor:
Trend tracking strategy
The main objective of a trend trading strategy is to identify and follow the prevailing market trend. To assess the strength of a trend, traders often use technical tools such as trend lines and moving averages. Once the trend is confirmed, they will initiate positions in the same direction, taking advantage of the market momentum to maximize profits.
Mean reversion strategy
The Mean Reversion strategy focuses on markets that tend to correct when an asset deviates too much from its equilibrium value. To identify entry points and profit from the recovery, traders often monitor overbought or oversold signals from technical indicators.
Breakout trading strategy
The goal of breakout strategies is to identify assets that are about to break out of a specific technical pattern or consolidation zone. In the hope that a new trend will emerge and sustain, traders will open orders in the same direction as the price breaks the support or resistance zone. This is a good strategy for those who prefer fast movements.
Criteria for choosing a proprietary trading company for swing traders
To choose one of the Best Prop Firms for swing traders, a trader must consider many factors that suit his trading style. A thorough evaluation will help maximize profits. Here are some important criteria to consider:
- Flexibility in holding orders: For any trend trader, holding orders overnight and over the weekend is essential. To ensure your plan is fully executed, choose a broker that allows this.
- Attractive profit sharing ratio: Prefer proprietary trading companies that share a large portion of their revenue, ideally 80% or more, to maximize profits. This is how you ensure your income is always at its highest.
- High leverage: Preferably Best Prop Firms for swing traders allow high leverage such as 1:100 or higher. This maximizes profit opportunities by helping traders take advantage of significant market movements over days or weeks.
- Reality-based review: A Best Prop Firms for swing traders should adopt an open review process that balances realistic risk reduction and profit goals. This helps alleviate unnecessary pressure, promotes sustainable development, and helps traders demonstrate their trading skills in a fair environment.
- In-depth support: A vibrant trading community, guidance from experienced advisors, and access to educational resources are all features that a reputable proprietary trading firm should have. In addition to enhancing analytical capabilities, these factors also help improve the overall trading performance of the participants.
- Diversified trading product portfolio: A Best Prop Firms for swing traders should offer a wide range of assets, including stocks, commodities, forex, and indices. This diversity allows traders to better take advantage of new opportunities, manage risks effectively, and tailor their trading strategies to their personal goals.
- No minimum trading days required: Proprietary firms do not set a fixed number of trading days, which gives traders a lot of flexibility. Instead of feeling forced to trade constantly, traders are free to control the trading pace and patiently wait for the best time to enter a trade.
- Reasonable withdrawal policy: Choose brokerage firms that apply reasonable daily withdrawal limits and total withdrawal amounts. In addition to ensuring capital safety and minimizing the risk of market fluctuations, this regulation also helps traders have more stable trading.
5 Best Prop Firms for swing traders
Hola Prime
One of the Best Prop Firms for swing traders is Hola Prime – the company offers a wide range of account types, fast execution speeds and the best profit sharing plan. These benefits give traders great flexibility and create many prospects for sustainable growth in the long term.
- Flexible order holding time: With the Prime Challenge account, traders can trade on news and hold positions overnight. The Pro Challenge account allows overnight positions on all accounts but restricts news trading and holding positions overnight. Furthermore, Hola Prime X is specially designed for crypto traders and offers 24/7 market access, ideal for those who are always looking for opportunities.
- Profit sharing ratio: Traders using Standard accounts enjoy a profit share of up to 95%. In contrast, Direct accounts offer a profit share of 90% with no minimum trading days or profit targets. A fixed commission of $3 per lot is also applied to gold and forex trading for both account types.
- Capital expansion plan: For traders with a solid track record, Hola Prime’s capital expansion program offers growth prospects. Scaling up to $4 million in demo capital is possible, but traders must meet certain requirements to ensure trading performance and sustainability.
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- Trading activity for at least 4 months
- Achieve simulated net profit target of 10%
- Profitable in at least two months
- Maintain a positive account balance
- Receive at least two payments
After 8 months of trading, the trader will be promoted to Alpha Prime. Starting from the third capital increase, the initial balance will be increased by 50% for each qualifying period until reaching the maximum threshold of $4 million.
GOAT Funded Trader
GOAT Funded Trader’s flexible trading environment, unlimited holdings, and clear capital expansion mechanism make it the Best Prop Firms for swing traders. Over 98,000 investors have received over $9.1 million in payouts, affirming the firm’s reputation for catering to a wide range of trading styles.
- Flexible order holding time: Flexibility in trading hours is one of the main advantages of GOAT Funded Trader. Traders are not penalized for holding positions overnight or over the weekend. The platform allows news trading, allowing you to capitalize on important economic developments.
- Profit sharing ratio: All accounts with GOAT Funded Trader have an 80% profit sharing ratio, allowing traders to retain a significant portion of their profits. For an additional fee, users can upgrade to 100%. The GOAT Demand Bonus Options model has an initial payout of 40%, followed by a standard profit sharing arrangement.
- Capital expansion plan: With simulated accounts that can support up to $800,000, GOAT Funded Trader provides significant capital for scalpers. Steady performance is achieved through a 4-stage capital expansion program that gradually increases the capital size. For example, to complete Stage 1, a trader needs to make 4 profitable payments and achieve a 10% profit in 2 months. It takes 15 payments to achieve a 10% profit in 6 months to reach Stage 4 (GOAT Trader).
SabioTrade
To meet the needs of traders, SabioTrade operates a $300 million capital fund and offers 5 separate account levels with initial balances ranging from $20,000 to $650,000.
- Flexible order holding time: SabioTrade offers scalpers a lot of flexibility by allowing overnight positions at all account levels. However, on Fridays, positions must be closed by 3:45 PM EST unless the trader’s account allows weekend trading. Weekend holding is allowed on Essential, Plus, Advanced, Ultimate, and Prime plans, allowing you to take full advantage of market opportunities.
- Profit sharing ratio: With payouts made within 24 hours, SabioTrade offers an attractive profit sharing program. Profit optimization can be done depending on the account type, with Essential and Plus accounts receiving 80% of payouts, while Advanced, Ultimate and Prime accounts have profit sharing rates of up to 90%.
- Capital expansion plan: SabioTrade offers five different account levels with capital ranging from $20,000 to $650,000. Depending on the capital size of each level, traders must achieve a 10% profit target to pass the evaluation period. This target can range from $2,000 for the Essential account to $65,000 for the Prime account.
Earn2Trade
For scalpers, Earn2Trade’s position holding policy poses a particular challenge as it tries to balance thorough analysis with trading flexibility. While their programs are suitable for a variety of trading styles, scalpers need to carefully consider their options to choose the best strategy and optimize trading results.
- Flexible order holding time: Most of Earn2Trade’s programs, such as Gauntlet Mini and Trader Career Path, require traders to close positions by 15:50 CT, which can be difficult for scalpers who want to hold positions overnight or over the weekend. Therefore, the Diamond Hands program is specifically for traders who want to profit from constant market volatility and hold positions for long periods of time.
- Profit sharing ratio: With Earn2Trade’s attractive 80:20 profit sharing policy, traders get to keep the majority of their profits. Based on over 2,100 user reviews, the company’s 4.7-star rating on Trustpilot confirms Earn2Trade as the Best Prop Firms for swing traders.
- Capital expansion plan: Earn2Trade offers scalable funding options: The maximum funding under the TCP25 program is $200,000. The TCP50 and TCP100 programs cater to the larger trading needs of traders by allowing capital expansion up to $400,000. Through a proprietary trading company, Earn2Trade offers traders custom funding opportunities when they reach profit targets with maximum account size. This allows traders to increase capital and create more profitable trading strategies.
Willis Capital
With the vision of veteran trader Dapowillis, Willis Capital was founded to support traders in the proprietary trading industry. The founder’s extensive experience has laid a solid foundation for the company’s reputation. He shared: “After 13 years of trading forex and over $95 million in profits, I saw some problems in the industry. That’s why Willis Capital was founded: to provide the best solution for the trading community.”
- Flexible order holding time: Traders are free to hold positions at Willis Capital over the weekend, overnight, and even during news events. However, traders must adhere to one rule to manage risk: they must place stop-loss orders 15 minutes before major news releases. This requirement applies to all funded accounts.
- Profit sharing ratio: Thanks to the company’s 70/30 profit split policy, traders get to keep most of their profits. For active traders, withdrawals are made every two weeks after the initial payment, and are processed once a month.
- Capital expansion plan: SkillCheck program, funded up to $50,000. The account will grow 20% every quarter after achieving 20% profit. You can receive up to $10,000,000 in funding if successful, which will create opportunities for breakthrough expansion.
Conclude
Choosing the Best Prop Firms for swing traders is a decision that requires careful consideration. A good brokerage firm should have policies that suit your trading style. To maximize profits, look for firms that allow overnight holding, support risk management rules that you understand, and offer a transparent, fair fee structure.