1. Introduction
As a stock trader, finding a funded program that offers both the flexibility and resources to scale your trading can be a challenge. Many programs have strict limitations or focus on specific strategies, leaving little room for traders who want to explore different types of stocks or trading styles. That’s where Trade The Pool comes in.
Trade The Pool offers access to over 12,000 stocks and ETFs, with the added flexibility to trade both premarket and afterhours. One of the most surprising and valuable features of the program is that it allows traders to trade penny stocks — a feature that is often unavailable with many other funded programs. Whether you’re looking to go long or short, you have the freedom to execute your preferred strategy on these stocks. There are a few limitations, such as minimum volume requirements, but for more detailed information, you can easily refer to their comprehensive FAQ section.
2. The Funded Program & Challenge
The trading objectives with Trade The Pool are in line with industry standards for proprietary trading firms. Traders are required to meet a profit target while adhering to both a daily stop-loss and a maximum drawdown limit. These rules are designed to promote responsible risk management and consistent profitability.
One standout feature that I particularly appreciate is how the program handles violations of the maximum daily loss. Unlike many other firms that would immediately disqualify you upon exceeding the daily loss limit, Trade The Pool offers a more flexible approach. If you violate the maximum daily loss, you will receive a pop-up message notifying you of the breach and suggesting that you take a break for the day. This thoughtful feature allows you to pause and reassess, encouraging responsible trading without penalizing you too harshly.
Interestingly, you also have the option to bypass this restriction for a fee. While this option provides additional flexibility, it’s a unique and somewhat unconventional feature compared to other prop firms. It allows traders the chance to continue trading if they feel confident in their strategy, despite having exceeded the daily loss limit.
3. Trading Experience with Trade The Pool
Trading Penny stocks
From my experience trading penny stocks with Trade The Pool, the platform has proven to be effective for executing my strategies. One of the features that stood out to me is the ability to short stocks without the need for locating shares, which is somewhat unusual/ unrealistic but if you are just starting out it is a great place to practice your risk management and test your strategy while building your account.
Some traders have mentioned challenges when trying to short specific stocks, but in my experience, I’ve been able to short all the stocks I wanted to without issue. That said, there are a couple of rules to be mindful of when shorting, particularly the 10-cent rule and the 60-second rule.
The 10-cent rule requires that your trade must have at least a 10-cent profit to be considered valid. This can be challenging when trading stocks priced under $1, as achieving a 10-cent move on low-priced stocks is not always feasible.
The 60-second rule stipulates that you must hold your position for at least 60 seconds before closing the trade. While this rule ensures that trades are not executed impulsively, it can be restrictive, especially when trying to capitalize on short-term price movements that typically occur in less than a minute.
On the Limited Edition, this is reduced to 30 seconds, which is a welcome change.
Another important consideration when trading is their policy on trading halts, which can present challenges, particularly when trading low-float stocks. In these stocks, halts can often occur unexpectedly, which may disrupt your trading strategy.
Trading During a Halt: Trading is not permitted during a halt. If a stock is halted, you will need to wait until trading resumes before making any trades. Once trading is back on, there is an additional requirement to wait for one minute before opening a new position or trade
Trading is not allowed on a symbol that has made an 8% move within 4 trading minutes. (An automatic halt will take place after the asset moved 10% within 5 minutes)
4. Payouts from Trade The Pool
The payouts are handled using RISE, and everything has been super smooth. From start to finish, the process was quick and hassle-free. I’ve completed two payouts so far, and I honestly don’t have anything to complain about.
5. My Experience
If you’re new to trading, particularly small caps, I’d recommend TradeThePool as a solid platform to build your capital. My overall experience has been positive, and I think it’s a great option for anyone looking to lower the barrier of entry into trading.
I started with the 20k Mini buying power, and everything worked as expected. While the profit split was a bit harsh at 50/50, I’m glad to see their newer editions now offer a 70/30 split, which is much more favorable.
One minor downside was that the trading platform had a few glitches here and there, but nothing significant that disrupted my overall experience. The payouts were quick and smooth, handled via RISE, which made the financial side of things hassle-free.
In summary, TradeThePool offers a great starting point, especially for those just stepping into trading. With its improved profit splits and accessible entry, it’s definitely worth considering.
I’m excited to see what they bring next.
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