What Is a Trading Combine and How Does It Work?
A trading combine is a simulation designed to evaluate your trading ability under controlled conditions. It’s a common step in many prop firm funding programs.
Purpose of a Trading Combine
Combines serve as a real-world test to assess discipline, risk management, and strategy effectiveness before granting access to live capital.
How Combines Work
- You trade on a simulated account with specific profit targets and risk limits.
- Rules mirror those of live funded accounts, including max drawdowns and trade limits.
- Completion of the combine with required metrics earns you a funded account.
Typical Combine Rules
- Profit target percentages (e.g., 8-10%).
- Daily and overall drawdown limits.
- Minimum trading days.
- Restrictions on instruments or strategies.
Tips for Success
- Treat the combine as if trading real money.
- Follow the firm’s rules meticulously.
- Use risk management to avoid drawdown breaches.
- Maintain a trading journal to review performance.
Benefits of Combines
- Builds confidence without risking personal capital.
- Ensures readiness for funded trading.
- Prepares you for firm-specific rules.
Understanding combines is crucial for any trader aiming to secure prop firm funding.