What Is Swing Trading and How Does It Work in Futures?

Swing trading refers to holding positions for more than a single trading session—typically a few days to a week or more. While many associate futures trading with fast-paced intraday scalping, swing trading offers a more patient approach, focusing on capturing larger price movements over time. The strategy relies heavily on technical analysis, trend identification, and timing trades around broader market cycles.

For traders using prop firms like Earn2Trade, the key question becomes: can you hold positions overnight or over the weekend to implement a swing trading strategy effectively?

Does Earn2Trade Allow Swing Trading?

The answer is: yes, with important conditions. Earn2Trade permits swing trading on certain account types, but traders must follow specific rules—particularly around trade holding times, risk limits, and economic news events. The platform’s funding partners do allow positions to be held beyond the day session, but only on approved accounts and under strict risk management protocols.

Here’s what you need to know before attempting to swing trade with Earn2Trade:

• Not all accounts allow overnight holds: The Gauntlet Mini has restrictions, while the original Gauntlet offers more flexibility.
• Weekend holding is typically prohibited: Positions must be closed by Friday’s session close.
• Proper margin must be maintained: Swing traders must ensure their positions meet maintenance margin levels at all times.
• Volatility risk is higher overnight: Traders must be prepared for gaps due to after-hours news, global market events, or low liquidity slippage.

Earn2Trade Account Types and Swing Eligibility

Earn2Trade offers a few different account types, and your ability to swing trade depends on which one you choose:

• Gauntlet Mini: Typically geared toward intraday strategies. Positions must be closed before the end of each trading day. Overnight holding is not permitted during the evaluation phase.
• The Gauntlet: A 60-day program that allows swing trading. This is the better option for traders who want to hold trades for multiple days or capture longer trends.
• Trader Career Path (TCP): Some stages of this program offer limited swing potential depending on firm rules, but the majority is focused on day trading.

Before choosing a plan, always check the official rulebook or contact Earn2Trade support to verify swing trading permissions for the specific program you’re enrolling in.

Why Swing Trading Is Appealing in Futures

Swing trading offers several advantages for disciplined traders:

• Less screen time: Traders can plan setups in advance, place limit orders, and allow trades to develop over multiple days.
• Lower commission costs: Fewer trades mean fewer fees compared to high-frequency day trading.
• Ability to ride broader trends: Swing trading lets you stay in trades that move with weekly momentum or macroeconomic shifts.
• Strategic trade management: Traders can scale into and out of positions over time rather than rushing entries and exits.

These benefits make swing trading ideal for traders with strong patience, technical analysis skills, and a focus on big-picture setups.

How to Swing Trade Within Earn2Trade Rules

If your account allows swing trading, you’ll need to build a strategy that respects Earn2Trade’s evaluation metrics and funding partner guidelines. Here are some tips:

• Choose high-liquidity contracts: ES, NQ, and CL are popular for overnight positions due to tighter spreads and consistent movement.
• Set wide stop-losses: Use volatility-adjusted risk based on ATR to avoid being stopped out on normal overnight fluctuations.
• Track economic news: Avoid holding positions through high-impact events like FOMC, CPI, or NFP unless explicitly allowed.
• Journal every trade: Use tools like the Prop Firm Journal Sheets to document entry logic, holding period, and exit outcome.
• Use smaller position sizes: Overnight trades come with higher uncertainty, so risk should be reduced compared to intraday trades.

Risk Management for Overnight and Multi-Day Trades

Swing trading requires a different risk framework than scalping or intraday trading. Since your exposure extends beyond regular market hours, you must factor in gaps, margin calls, and platform shutdowns.

Follow these guidelines:

• Only risk 0.5% to 1% of your account per trade.
• Set stop-loss and take-profit orders before leaving your screen.
• Use alerts or mobile apps to monitor after-hours movements.
• Never leave unprotected trades open into low-volume sessions.

Remember, a drawdown that violates your max loss or trailing threshold—even after-hours—can end your evaluation or funded account instantly. Swing trading requires extra vigilance.

Sample Swing Trade Setup Using Futures

Let’s break down an example of a swing trade that fits within Earn2Trade’s Gauntlet parameters:

• Instrument: Crude Oil Futures (CL)
• Setup: Bullish breakout from a weekly triangle pattern
• Entry: 83.25 after confirmation close above resistance
• Stop: 80.75 based on 2x ATR below breakout
• Target: 89.00 (2.3:1 reward-to-risk)
• Timeframe: 3–5 days
• Trade management: Trail stop on 4-hour candles as new swing lows are formed

This type of setup requires minimal screen time but maximizes reward potential, assuming proper risk controls and platform rules are followed.

Do Swing Traders Pass Earn2Trade Evaluations?

Yes, many traders have successfully passed Earn2Trade evaluations using swing strategies, particularly in the Gauntlet program. The key is choosing the right account type, maintaining daily risk awareness, and ensuring consistency over the required number of days.

Keep in mind that if you choose an account that restricts overnight holding, you’ll need to modify your swing approach into structured multi-day entry attempts with daily exits—often called “swing intraday.”

Alternatively, you can apply for an evaluation that explicitly allows for swing holds if that fits your natural trading style better.

Choosing the Right Earn2Trade Plan for Swing Strategies

Here’s a quick breakdown of which Earn2Trade plans fit swing traders:

• Best for Swing: The Gauntlet (60-day full evaluation)
• Possible with Limits: Trader Career Path (depends on stage)
• Not Suitable: Gauntlet Mini (intraday only)

Before enrolling, ask customer support about the most up-to-date swing policies, especially since prop firm guidelines can evolve over time. You’ll want to make sure your strategy aligns with your evaluation conditions to avoid surprise violations.

Final Thoughts on Swing Trading at Earn2Trade

Swing trading is absolutely possible with Earn2Trade—but only if you choose the right program, respect risk rules, and adapt your strategy for the futures environment. With strong discipline, a strategic plan, and consistent journaling, swing traders can thrive in this structure just as well as day traders.

For many, the slower pace and higher reward-to-risk profile of swing trading is more sustainable and less stressful. It’s especially appealing for traders balancing other commitments or seeking a more lifestyle-friendly trading style. Just make sure to stay informed about account restrictions and document your trades thoroughly along the way.