Chapter 6:
How to Scale Up Your Account?
Becoming a prop trader is an exciting process filled with lots of opportunities and challenges.
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In this post, we will look at how you can increase your trading capital in the funded phase with the help of the scaling plan (also known as scale up).
What Is the Scaling Plan (Scale-Up)?
The scale up opportunity is for disciplined traders who consistently follow the trading rules, are successful, and therefore want to increase their trading capital. The Scaling plan gives traders the opportunity to increase their account size up to a capital allocation of 2.5 million.
How the Scale-Up works?
If the trader has met the following conditions, he/she can request to increase the balance of his/her trading account.
In case of a positive evaluation, we will add 30% of the initial balance to the account balance. For example, for an account of 100,000 USD, the Hexa Prop Funded account balance can be increased by 30,000 USD. After four months, if the trader once again meets the account growth criteria, he/she will again be eligible for further increase of the demo fund by 30% of his initial account balance.
Continuing with the example above, if the trader reaches 130,000 USD plus 15% of the required conditions, i.e. a minimum balance of 149,500 USD, he/she can request the next increase. After the scale-up, the new balance increases by 30,000 USD to 173,000 USD. The upper limit for scaling up is 2.5 million USD.
What Conditions Must Be Met?
Four-month cycles
On the Hexa Prop Funded account, capital is raised in four-month cycles.
At least 15% profit
To raise capital, the trader must have generated a net profit of at least 15% of the initial amount by the end of the fourth month.
Last month should be profitable
Out of the four consecutive months, a maximum of two months can be loss-making; however, the last month must be profitable.
Withdrawals
The trader must make at least 3 withdrawals within 4 months. (Profits can be withdrawn at any time without affecting the scaling plan.)
Balance
At the time of scaling request, the account balance cannot be less than the initial balance.
Request
Scaling is not automatic and must be requested by the trader.
Example to Be Eligible for Scale-Up
| Month | Initial Balance | Profit/Loss | Withdrawal | Evaluation |
|---|---|---|---|---|
| 1. month | $100,000 | $8,000 | $5,000 | |
| 2. month | $103,000 | $1,000 | $3,000 | |
| 3. month | $101,000 | $-1,000 | $0 | |
| 4. month | $100,000 | $9,000 | $9,000 | |
| 5. month | $130,000 | - | - | Scaling-Up OK |
Taking the new account balance into account, the next Scale-Up is possible 4 months after reaching a net profit of 15%.
The table below shows the evolution of the Hexa Prop account balance if the trader successfully passes the Evaluation process four times with an initial account balance of 100,000 USD.
| Time Elapsed | Initial Balance | Scaling-Up 30% |
|---|---|---|
| 0 month | $100,000 | - |
| 4 month | $130,000 | $30,000 |
| 8 month | $160,000 | $30,000 |
| 12 month | $190,000 | $30,000 |
| 16 month | $220,000 | - |
Scaling After a Loss-Making 4th Month
What if a trader has managed to achieve a net profit of 15%, but failed to make a profit in the last trading cycle?
For example, let’s take a trader who started trading on the 1st of January. After four months, by the end of April, he had achieved a 15% gain, but in the last thirty-day cycle (April) he incurred a loss. Since the trader could not finish the last trading cycle profitably, they will start the new cycle on the 1st of May and will be eligible for the increase four months later – provided that the other necessary conditions are met.
Profit Scrolling After Scale-Up
When scaling is implemented, it is possible to roll over the profit, but the amount scaled will not be included in the 15% required for the mandatory scaling.
Let’s look at an example:
$109,000
The trader made a 9% profit, so the new balance is $109,000.
$103,000
The trader made a profit withdrawal of $6,000.
$109,000
The trader made an additional 6% profit.
$104,000
The trader made three withdrawals, totaling
$5,000 dollars
$134,000
The trader received the first capital increase after achieving a 15% net profit. In this state, the trader can start a profit withdrawal up to
$4,000.
You can scroll horizontally.
Drawdown After Scale Up
The basis for the calculation of the loss limits will also be adjusted proportionally to the new balance and the percentage calculation of the loss limits will not change. There is difference in case of the trailing and absolute drawdown.
Let’s look at it with examples.
Simplex Account
(trailing drawdown 6%)
$108,000
The trader reached the required 15% growth and withdrew a total of $7,000 in profit during this period. After that, the balance stands at $108,000. The Trailing Drawdown after achieving a 6% profit will be based on the initial account balance, i.e., $100,000. At this point, the maximum allowable loss under the Trailing Drawdown rules is 8%, or $8,000.
Duplex Account
(absolute drawdown 10%)
$108,000
The trader reached the required 15% growth and withdrew a total of $7,000 in profit during this period. As a result, the balance is $108,000. The amount rolled over is $8,000.
So, after three successful scale ups, the maximum Absolute Drawdown can be up to 10% of 190,000 USD, i.e. the biggest absolute drawdown can be 19,000 USD.
Triplex Account
(absolute drawdown 8%)
$108,000
The trader reached the required 15% growth and withdrew a total of $7,000 in profit during this period. As a result, the balance stands at $108,000. The amount rolled over is $8,000.
Scaling Rules in the Case of Quick Goal Bonus
For example, if you purchased a $100,000 base account and fulfilled the Quick Goal Bonus conditions, we will increase your balance by 10%, allowing you to trade with $110,000. In this case, you will be eligible for the first scaling once your profit reaches 15% of the $110,000 (in addition to meeting the other requirements). However, the 30% capital increase will be based on the originally purchased $100,000 base account.
Example with Duplex account
(absolute drawdown 10%)
$120,000
The trader reached the required 15% growth and withdrew a total of $6,500 in profit during this period.. After achieving a 15% net profit, the account is eligible for Scaling.
What Is the Next Step?
In this post, we have reviewed how to further develop and increase the virtual trading capital available in your account. The next and final post will not focus on prop trading, but rather on the real world and what you can achieve through your trading successes.
