Dislikedso what I get we need to leave at least 5% profit in our acc to continue trading. means we will trade for our own money like direct funding plans ...Ignored
That being said, some firms allow you to 'scale up' and require you to keep profits in your account in order to do so. Although it is a bit misleading, it does actually serve a benefit to the trader, because it allows the trader to increase their draw-down allowance, thereby further-insulating themselves from losing their account(s).
In truth, they are not really offering you anything except a little bit more freedom...but only after you have proven yourself. But actually doubling your account? I really doubt it. When a firm is offering you a 200K account with a 20K max/10K daily draw-down, they could easily achieve that with a 40K account, in reality, depending on broker margin-stop levels. So when you 'scale up' and your profits are serving as the new draw-down, then there is really no need to increase the account balance. In other words, I do not think that traders are actually getting a 400K account when they 'scale up' from a 200K account, because there is no need to tie up capital like that.
In the case of MFF's direct funding account, they still use your profits to serve as draw-down, but they use their portion of the profits for this, which is better. Their direct funding program is still not better than most other options, but at least they allow you to withdraw your profits.
Other firms, like Ment Funding, will trail your max draw-down up to 5%, where it is then locked-in at your initial account balance and no longer trails. Although this allows the trader to increase their overall draw-down allowance by padding the account with profits, the trader is also subject to violation if he/she withdraws all profits from the account. What this means is that the trader is obligated to leave funds in the account at all times in order to serve as draw-down protection. They do this to protect investor capital. An important point to note, though, is that your daily draw-down allowance does not change like it does with other firms/programs. It is up to traders to decide if this quid pro quo is reasonable or not.
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