Scaling refers to a system where a trader's capital allocation or trading limit is gradually increased based on their performance and adherence to risk management rules. This feature is crucial for both the trader and the firm as it incentivizes traders to maintain consistent profitability and disciplined trading practices. For the prop firm, scaling represents an effective way to allocate more capital to their most successful, optimizing the firm's profitability. This method ensures that both the traders and the firm have shared goals, creating an environment where skilful trading is recognized and rewarded. Additionally, scaling encourages continuous improvement among traders, as it provides tangible goals and rewards for advancing their skills and strategies. When it comes to increasing a trader's capital, this is often done in percentage terms. For instance, if a trader successfully meets the performance criteria, the firm might increase their trading capital by a certain percentage. This increment could be, say, 20%, 50%, or more, depending on the firm's policies and the trader's performance. Proprietary firms offering scaling options are outlined in the list below:
