GM Lark Traders! This is Lark Digest, and we’re the trading newsletter that brings you breaking news, even on Saturdays.

Take that, boring competitors.

Mr.Lark

On today’s menu:

• Two firms just released a brand new model 🤯

🤯 A New Model

Earlier this week, we broke down the news that E8 Markets and MyFundedFX were teasing a new challenge model.

Well, the teasing is over, and the bear's out of the market!

But unlike most “new” releases, this one is actually new.

However, before we get to the nitty gritty, not everybody is happy about it.

In fact, 60% of traders don’t like it.

So, what’s the program?

1/ THE NEW 1-STEP PROGRAM

Here’s a sneak peek at the new program from MyFundedFX:

Now, this is a wild change from the industry standard 1-step program.

It includes:

1. 10% target.

2. 5-6% max & daily drawdown.

3. No profit limits.

So with that in mind, this new model has some major changes.

A few wild things to note:

1. There’s a daily profit limit of 2% (sorry, gamblers).

2. There’s a daily drawdown limit of 2% (sorry, gamblers).

3. News trading isn’t allowed on the funded stage (sorry, gamblers).

Can you guess who’s not going to like this type of challenge? *cough cough*

Let’s do the Official Lark Breakdown.

2/ Profit Limit?

This is the most wild of all the rules and is something the industry isn’t used to.

Now, at face value, traders might laugh at this.

But at Lark, we think there’s a chance that this could become the industry standard for a few reasons.

1/ Less Payout Denials. Almost every day, a new firm collapses. By capping profits, this will allow firms to reduce outsized payouts and better utilize a trader’s data.

2/ Less Gambling. With this model, the days of going full-margin and passing in a single trade are over. The days of earning 50% in a week on a funded account are over. Gambling is out, and sustainability is in.

3/ Still Tons Of Opportunity. The harsh truth is that anybody who isn’t happy with making 2% in a single day is a gambler (sorry). Even with a 2% daily profit cap, traders could theoretically make up to 40% a month. That would still be gambling territory, though (sorry, again).

3/ 2% DAILY DRAWDOWN LIMIT

This is the tightest daily drawdown limit in the industry.

But there’s a catch.

Hitting the daily loss limit is only a soft breach and will not lead to the account being breached.

It just means you won’t be able to trade until the next day.

And yes, your trades will be automatically closed whether you hit the 2% loss or gain limit.

What’s that about the “other launch?” 👀 

4/ VERY WEIRD TIMING

If the new program model isn’t wild enough, imagine two firms releasing it on the exact same day without it being coordinated?

Wild.

We’ve focused on breaking down MyFundedFX’s model, but E8 Markets released the exact same program.

The. Exact. Same. Day.

But Dylan, the CEO of E8, said he had no idea that was going to happen…

Yup, just when you thought the industry couldn’t get any crazier.

But in the big picture, it doesn’t matter.

What matters is grabbing those pips and securing those payouts. And does this model help with that?

❓️ What Does This Mean For The Industry?

This new model is a turning point in the industry.

If the trend in the prop industry was bearish, this could be a change of trend.

This model reflects one thing and one thing only: Sustainability.

And that means, boys, we’re now lookin’ bullish.

Yes, many traders gamblers will laugh at daily profits being capped, but even for swing traders, we don’t see how it’s a big deal.

Even with a 0.5% risk, a swing trader can lock in a 4:1 risk-to-reward trade without issue.

And let’s be honest: Making 2% a day on a $200,000 account is $4,000.

If that’s not enough for you, you’ve got a spending problem!

Taking gains and walking away is half the battle, and this model helps with that.

But I’d like to hear from you.

What do you think?

Should we introduce this model at Lark?

In our Discord yesterday, we asked traders, and so far, there’s a lot of demand.

So please let us know!

Happy Saturday, and for all fellow Canadians out there, let’s go, Leafs.
Mr.Lark

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