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A scaling plan in prop trading firms outlines how traders can progressively increase their access to funds or trading contracts as they meet specific profit targets. This strategy is vital for traders who aim to expand their trading capacity over time. For example, Bulenox implements a scaling plan that adjusts the number of contracts available to a trader based on the profit levels in their account, offering greater trading flexibility as profits grow. Trading Funder’s analysis delves into how these plans function and their importance in funded trading programs.
What does a Scaling Plan mean?
In the world of prop firms, there are two separate definitions of a scaling plan. The first definition revolves around gaining access to more funds as the trader progresses. The second definition focuses on gaining access to more contracts once the trader achieves a specific profit target. Let us now examine the definitions more closely.
Gaining access to more funds
For instance, a funded trader may start with a $25K account, and when he/she achieves certain objectives, the trader may move on to probably a $50K account. If the trader keeps progressing and meets even bigger targets, he/she could get a $75K account. This could continue until the trader gains access to the highest account size offered by that particular prop firm.
Also, it could mean getting a higher percentage of the profit split. If it was a 70:30 ratio before, it could be upgraded to 80:20, with the trader getting the larger percentage.
Gaining access to more contracts
This is exclusive to futures-funded trading programs, which the prop firm we are focusing on operates. For instance, a trader might only be eligible to trade 2 contracts initially, but once he/she makes a certain amount of profit, the available contracts could be upgraded to 3 contracts. If the trader continues to make consistent profits, the contracts could be bumped up to 6 contracts. This is the form of the scaling plan that is available at Bulenox because the firm focuses on futures trading.
Based on the prop firm we are focusing on, Bulenox, a scaling plan refers to a parameter enforced by funded trading programs specializing in futures trading to regulate the number of futures contracts that traders can use on their trading accounts.
How does the Scaling Plan work at Bulenox?
Two options are involved in how the scaling plan works at Bulenox funded trading program.
Scaling Plan on Option 1
For the first option, there is no scaling plan.
Scaling Plan on Option 2: EOD Dynamic Scaling Plan
The scaling plan for the second option is known as the EOD Dynamic Scaling Plan. This scaling plan is based on a trader’s EOD Scaling buying power. This is subsequently determined by the value of the Cash On Hand. What this translates into is that the profit in a trader’s account affects the number of contracts that will be available for trading.
If a trader continues to make increasing profits, there will be more contracts to trade. On the other hand, if the profits in the account start to reduce, the contracts available for trading become fewer. Another factor to be aware of with this scaling plan is the withdrawal amount. This can also directly impact the total number of contracts that will be available for trading.
Bulenox EOD Dynamic Scaling Plan Example
Generally, Bulenox offers five different account sizes featuring the EOD Dynamic Scaling Plan. Each of these account sizes has different profit levels that determine the number of contracts available for trading. We will use the $100K account as an example with a maximum of 12 contracts.
Once a trader begins to trade on the $100K account, the number of contracts that will first be available is 3 instead of the whole 12 contracts. As the trader begins to make a profit, more and more contracts will become available.
Once the trader makes a profit of more than $2,000 and up to $3,000, the number of available contracts gets bumped up to 5.
If the trader continues to trade consistently and profitably leading to the trader earning a profit of more than $3,000 and up to $5,000, the number of available contracts is then increased from 5 to 8. As the trader keeps on trading, leading to a profit of over $5,000, the trader becomes eligible to trade the maximum number of contracts allocated to the account, which is 12.
Below is the profit range and the corresponding number of contracts for the scaling plan of the other account sizes:
| Account Size | Total number of allowed Contracts |
|---|---|
| $10K EOD Account Scaling | |
| No scaling | 5 Micro-Contracts Max |
| $25K EOD Account Scaling | |
| $0 – $1,500 | 2 Contracts Max |
| $1,501 + | 3 Contracts Max |
| $50K EOD Account Scaling | |
| $0 – $1,500 | 2 Contracts Max |
| $1,501 – $4,000 | 4 Contracts Max |
| $4,001 + | 7 Contracts Max |
| $100K EOD Account Scaling | |
| $0 – $2,000 | 3 Contracts Max |
| $2,001 – $3,000 | 5 Contracts Max |
| $3,001 – $5,000 | 8 Contracts Max |
| $5,001 + | 12 Contracts Max |
| $150K EOD Account Scaling | |
| $0 – $4,000 | 5 Contracts Max |
| $4,001 – $8,000 | 8 Contracts Max |
| $8,001 – $12,000 | 10 Contracts Max |
| $12,001 + | 15 Contracts Max |
| $250K EOD Account Scaling | |
| $0 – $5,000 | 6 Contracts Max |
| $5,001 – $12,000 | 12 Contracts Max |
| $12,001 – $20,000 | 18 Contracts Max |
| $20,001 + | 25 Contracts Max |
Is there a difference between the Qualification Account and the Master Account?
There is not much difference between the Qualification Account and the Master Account, as the rules are the same. The only difference is that the Qualification Account features the reset option, while the Master Account does not.
Why is the Scaling Plan at Bulenox better than that of its Competitors?
The scaling plan at Bulenox is better because it is calculated at the end of the day. This means that when the trading day ends, the scaling plan will be activated once certain profit levels have been met. For other programs, it is different because it is calculated in real-time, which means if a trader is not careful, he/she can lose the account while trading.
For example, let’s say a trader made $2000 in profits, which enables such a trader to trade 3 contracts, but during trading, the trader’s profits suddenly drop below $1500 profits. But unfortunately for the trader, he/she is currently trading 3 contracts, and that will lead to the immediate termination of the account. This is because only 2 contracts are allowed for trading once a trader has less than $1500 in profits.
Bulenox is less strict with its scaling plan, giving traders more room to maneuver and reducing pressure on them to succeed. The scaling plan at Bulenox has been covered in full, allowing traders to show they are disciplined and can adhere to a solid risk management strategy.
Conclusion on Bulenox Scaling Plan
A scaling plan in prop trading allows traders to increase their access to funds or trading contracts as they achieve specific profit targets. At Bulenox, the scaling plan applies to futures trading accounts and works dynamically based on the End-of-Day (EOD) balance. As traders make profits, they gain access to more contracts. For example, in a $100K account, a trader starts with 3 contracts and can scale up to 12 as profits increase. Trading Funder’s review highlights that Bulenox’s EOD-based scaling plan is more flexible compared to competitors, offering traders greater leeway without real-time contract adjustments, reducing pressure and enhancing trading opportunities.
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