The 2-Step Swing Model at CoveFunded is specifically designed for traders who prefer holding positions overnight or over the weekend, offering them a more flexible evaluation process. Here’s a detailed overview:
Step 1: Evaluation Phase
- Application and Setup:
- Submit an Application: Traders apply for the 2-Step Swing Model, agreeing to the specific terms and conditions.
- Demo Account Setup: Once approved, traders receive access to a demo account tailored for the swing trading strategy, which allows holding positions overnight and over the weekend.
- Trading Performance:
- Profit Targets: Traders must achieve a specified Profit Target within a set evaluation period. The targets are designed to reflect the longer-term nature of swing trading.
- Risk Management: Traders need to adhere to risk management rules, including daily and overall loss limits. However, these rules are adjusted to accommodate the extended trade durations typical of swing trading.
- Performance Monitoring:
- Rule Adherence: Compliance with trading rules, such as stop-loss requirements and position sizing, is closely monitored. Holding trades overnight and over the weekend is allowed, in line with the swing trading approach
- Rule Adherence: Compliance with trading rules, such as stop-loss requirements and position sizing, is closely monitored. Holding trades overnight and over the weekend is allowed, in line with the swing trading approach
- Initial Assessment:
- Evaluation: CoveFunded reviews the trader’s performance, focusing on their ability to generate consistent profits while managing risk effectively over longer periods.
Step 2: Verification Phase
Transition to Live Account:
- Successful Completion of Step 1: Traders who meet the requirements in Step 1 move to the Verification Phase with a live trading account.
Verification Process:
- Extended Trading Period: In the live account, traders must achieve further profit targets while continuing to demonstrate disciplined risk management. The verification phase typically mirrors the conditions of the evaluation phase but with heightened scrutiny.
- Flexible Trading: The swing trading strategy continues to be supported, allowing traders to hold positions overnight and over the weekend.
Final Review:
- Comprehensive Evaluation: CoveFunded conducts a thorough review of the trader’s live account performance, assessing their consistency, risk management, and adherence to swing trading strategies.
- Decision: Based on the performance in both steps, CoveFunded decides whether to offer a fully funded trading account or suggest further evaluation or modifications.
