Alpha Futures Review 2024

Overview

Alpha Futures is the newest addition to the well-established Alpha Capital brand, specializing in futures trading. As a sister company to Alpha Capital’s renowned forex prop firm, Alpha Futures offers simulated accounts to qualified traders. Prove your trading skills during their evaluation process, and you’ll gain access to a fully funded simulated account. You keep the profits while Alpha Futures shoulders the risk of any losses.

Alpha Futures helps build your trading profile by providing daily performance updates on your qualified account. They connect consistent traders from around the globe with industry leaders to unlock exciting opportunities. With a 4% drawdown limit on all accounts calculated from your daily balance, not equity highs, you can scale your trading without needing to adjust your strategy.

Understanding that every trader hits obstacles, Alpha Futures offers unlimited evaluation resets. You can reset your account and dashboard whenever you need, allowing you to trade your way, without daily drawdown limits during evaluations. Earn up to a 90% profit split with Biweekly payouts. Alpha Futures is committed to helping traders succeed!

How it works

Alpha Futures Evaluation & Qualified Trader

The Alpha Futures Trading Evaluation is designed to help traders sharpen their skills and develop consistent habits while working toward potential funding. 

Traders who successfully complete the evaluation become Alpha Futures Qualified Traders, unlocking access to greater trading opportunities. To participate, traders must subscribe to a monthly plan, which includes unlimited evaluation resets. 

The goal? Hit and maintain a 6% profit target across any account size.

There’s only one rule for Evaluation Accounts: avoid reaching or exceeding the Maximum Loss Limit of 4%. Unlike other platforms, Alpha Futures imposes no daily loss limits or time restrictions during evaluations, allowing traders to develop at their own pace. However, there is a minimum of 3 trading days required to qualify.

Additionally, all trades, whether on Evaluation or Qualified Accounts, must be closed by 4:59 PM ET daily. If you forget, Alpha Futures will automatically close positions, but it's recommended that traders manage this themselves to stay fully aware of their profit and loss.

Alpha Futures is committed to fostering consistency in trading, giving you the freedom to trade with no time pressure while focusing on sustainable success.

See the differences below between Evaluation and Qualified Trader Accounts below

The main differences between Evaluation Accounts and Qualified Accounts will be Daily Loss Guard, Scaling Plan, Consistency Rule, and of course the ability to be paid out. 

Alpha Futures are looking to fund consistent, disciplined traders, not gamblers. 

Your Monthly Evaluation Fee will rebill monthly from the sign-up date until you pass. The Evaluation subscription automatically ends once you pass.

Monthly Evaluation Fee by account sizes

Monthly Evaluation Fee by account sizes:

• 50k Evaluation $79/month

• 100k Evaluation $159/month

• 150k Evaluation $239/month

Qualified Traders do not pay a monthly subscription, only a one time Activation Fee for their account.

Your subscription will automatically renew on the same day each month until you either pass your Evaluation or choose to cancel. 

To cancel, simply head to the Billing section of your dashboard. Upon renewal, if your Evaluation Account has failed, it will reset to its original starting balance, giving you a fresh opportunity. 

However, if your account is in profit on the rebill date, your balance will remain intact, preserving your progress. If you’re ready to restart before the rebill date, you can purchase a Reset or a new Evaluation without altering your current billing cycle.

A Reset restores your trading account to its default settings, including the starting balance, Maximum Loss Limit, and Trading Days. You can purchase Resets at any time during your subscription, with no limit on how many you can use. 

The cost of a Reset matches your Monthly Evaluation Fee and varies by account size. You can easily purchase Resets from your dashboard, and they do not affect your monthly subscription renewal date.

When you become an Alpha Futures Qualified Trader, there is a one-time activation fee of $149 per Qualified Account. This fee must be paid within 30 days of passing the Evaluation to unlock your Qualified Account. 

Once the fee is paid, access to your account will be granted within 1-2 business days.

Qualified traders can hold up to three accounts at a time, with a maximum allocation of $450,000 in funding (since the largest account size is $150k). While there is no limit to the number of Evaluation Accounts you can hold simultaneously, you are restricted to three active Qualified Accounts.

Rules

Maximum Loss Limit (MLL)

The Maximum Loss Limit (MLL) is a trailing drawdown set at 4% of all account sizes here at Alpha Futures. 

This allows traders to pick whichever account size they please without having to change their style. Most of the industry operates with a 3% MLL on accounts larger than $50k.

How is it calculated?

The Maximum Loss Limit is calculated from your account balance high at the end of each trading day, not intraday equity high like many others out there. See the example below to understand.

You start with a $50k account, your starting MLL will be $48,000 ($2,000 or 4%).

If you make $500 on the first trading day in the $50K account, your account balance will be $50,500, which will make your Maximum Loss Limit $48,500 ($2,000 from the account balance high).

If you lose $500 the next day, your account balance would go back to $50,000, but your MLL will remain $48,500. This MLL will not go below $48,500 for the remainder of that account lifespan.

Once the Maximum Loss Limit reaches the initial starting balance, it won’t continue to trail. Meaning, if your EOD balance reaches $52,000 (+4%) your MLL will now be $50,000 and remain there for the account lifespan.

You can monitor your MLL on your dashboard.

What happens if I hit the Maximum Loss Limit?

If you break MLL, your account will be liquidated. This means any attempted orders after the breach will not execute.

Hitting the MLL on an Evaluation Account means that account will no longer be eligible for funding opportunities. You may try again by purchasing a Resit, or wait for your monthly rebill to return the account to the original starting balance to try again.

Hitting MLL on an Alpha Futures Qualified Account means the account has been breached and will be closed at the end of that trading day.

Daily Loss Guard

The Daily Loss Limit also referred to as the Daily Loss Guard is a soft breach rule on Qualified Accounts only. If you hit the Daily Loss Guard, you do not lose your Qualified Account, but your account will be locked until the next trading day (6PM ET).

The Daily Loss Guard is 2% of account balance on all of our account sizes. If your open or closed (unrealized or realized) P&L at any point reaches -2% during the trading day, all open positions will be flattened, any pending orders will be canceled, and your account will be prevented from placing any new trades until the start of the next trading day.

This is in place because we don’t want to see our Qualified Traders losing their accounts in one day. We want to help them build consistency and discipline.

The Daily Loss Guard is based on each trading day’s P&L, which includes simulated commissions, fees, and both unrealized and realized trade P&L.

You can monitor your Daily Loss Guard in your dashboard. Traders can also make their Daily Loss Guard a smaller value, to really minimize risk, if they’d like on our platform, AlphaTicks.

Daily Loss Guard by Account Size:

50K Qualified Account = -$1,000

100K Qualified Account = -$2,000

150K Qualified Account = -$3,000

Consistency Rule

Alpha Futures emphasizes a smart approach to trading with their "earn your large positions" philosophy. Instead of rushing into larger trades, they encourage traders to gradually size up only after accumulating profits. 

Their Scaling Plan is a great feature that promotes disciplined trading, helping traders avoid over leveraging. It ensures that as your account grows, so does your buying power, making it a sustainable way to increase position sizes over time. 

This thoughtful approach shows Alpha Futures' commitment to responsible growth and long term success for traders.

Scaling Plan

Alpha Futures stands out with its disciplined approach to trading, particularly through their "earn your large positions" mindset. 

They emphasize that while increasing trade size is essential for growth, it should only be done after building a profitable cushion. Their Scaling Plan is a thoughtful feature that safeguards against over leveraging, allowing traders to increase their buying power in alignment with account growth. 

This method ensures traders scale responsibly, making Alpha Futures a great choice for those seeking long term, sustainable trading strategies. Their focus on discipline and controlled growth sets them apart in the industry.

Trading Hours

Futures trading hours run from 6 PM EST to 5 PM EST the following day. For instance, E-Mini S&P 500 Futures (ES) open on Sunday at 6 PM EST, with the daily candle closing at 5 PM EST on Monday. The market remains closed from 5 PM EST on Friday until 6 PM EST on Sunday.

You can begin trading at 6 PM EST to start a new trading day, but all positions must be closed by 4:59 PM EST each day. While Alpha Futures will automatically close any remaining open trades, it's recommended that traders close them manually to stay aware of their real-time P&L.

Certain trading techniques may exploit the simulated environment but fail in live markets. Alpha Futures aims to preserve the integrity of its simulated markets. Some traders, knowingly or unknowingly, engage in these prohibited practices, which Alpha Futures strictly monitors to maintain a fair and transparent trading space.

Alpha Futures is dedicated to fostering a sustainable and equitable environment where traders can develop their skills and work toward consistent profitability.

Automate Trading

Alpha Futures enforces the following rules on automation to ensure a fair and transparent trading environment:

• The use of automated systems, especially those designed for high-frequency trading (HFT) exceeding 100 trades per day, is restricted.

• AI, bots, and other fully automated trading mechanisms are strictly prohibited for all account types.

• Semi-automated trading is allowed, provided that traders actively oversee and manually manage the system, with a clear understanding of its functionality and purpose.

• Any form of hands-off, continuous day and night trading, or any other type of full automation is strictly forbidden.

Alpha Futures’ Prohibited Conduct Policies

Alpha Futures maintains a strong commitment to ethical trading practices and effective order management, ensuring a stable and reliable trading environment for all participants. Their comprehensive guidelines on prohibited conduct are essential for fostering a fair marketplace.

Key highlights of these guidelines include:

1. Manipulative Practices: The firm strictly prohibits the simultaneous placement of multiple limit orders at the same price to manipulate order fills. This is crucial for maintaining market integrity.

2. Reverse Trading: Engaging in "reverse trading" where a trader takes opposing positions on different accounts is not allowed during either the Evaluation or Qualified phases. This rule helps prevent market manipulation and ensures a level playing field.

3. Market Exploitation: Alpha Futures does not permit initiating trades solely to profit from isolated fills in illiquid or gapped markets. Such practices undermine the integrity of trading operations.

4. Slippage and Bracket Usage: Traders are prohibited from exploiting the absence of slippage or using tight brackets to achieve favorable fills, which can distort the natural flow of the market.

5. Compliance with Regulations: All trading activities must adhere to the rules set by the CME Group, reinforcing the importance of regulatory compliance.

6. Group Trading Restrictions: Collaborating with others to execute identical or opposite strategies across unrelated accounts, known as "Group Trading," is strictly prohibited, preventing coordinated manipulation.

Enforcement and Consequences

Alpha Futures is prepared to take strong action against any violations of these policies:

• Immediate Termination: The firm reserves the right to terminate agreements with traders who breach these guidelines, safeguarding the trading environment.

• Voiding Profits: Any profits made through prohibited practices will be voided, ensuring that ethical trading is prioritized.

• Evaluation Reviews: All passed evaluations are subject to review. Traders who are found to have violated policies will not be allowed to progress to the Qualified phase, reinforcing accountability.

Trading Guidelines

For those trading on a 50k account, Alpha Futures allows for effective risk management by permitting up to 50 micro contracts or 5 full-size contracts. This flexibility helps traders maintain their individual trading styles while adhering to sound risk management practices.

In conclusion, Alpha Futures’ emphasis on ethical trading and clear conduct guidelines helps cultivate a professional and trustworthy trading atmosphere, benefiting all traders who wish to develop their skills and achieve success in the market.

Alpha Futures' Payout Policy

Alpha Futures has established a payout policy that is refreshingly straightforward, ensuring that traders understand exactly how to access their earnings without facing unnecessary hurdles or unexpected denials. Here are the key aspects of the policy:

Clarity and Simplicity

The payout process is designed to be clear and accessible. Traders are encouraged to familiarize themselves with the News Trading Policy, as understanding these guidelines is crucial for a seamless payout experience. Notably, Know Your Customer (KYC) procedures must be completed at least 48 hours before the first payout request, emphasizing the importance of compliance in the withdrawal process.

No Withdrawal Limits

One of the standout features of Alpha Futures' policy is the absence of withdrawal limits or thresholds, allowing traders to request payouts without worrying about meeting specific criteria. This flexibility supports traders' needs and promotes a consistent payout experience.

Profit Split Incentives

Alpha Futures rewards consistent trading with an attractive tiered profit split system:

• Payouts 1 and 2: 70% profit split

• Payouts 3 and 4: 80% profit split

• Payouts 5+: 90% profit split

This structure not only incentivizes traders to maintain consistency but also allows them to benefit from increased profit sharing as they progress.

Payout Requests

Traders can request payouts from their dashboard every 14 days from their first trade on a Qualified Account, provided they meet the 40% Consistency Rule. The prompt processing of payouts, typically within 48 hours, adds to the user-friendly experience.

Important Considerations

Traders should be aware that their withdrawals contribute towards their Maximum Loss Limit (MLL). For example, if a trader grows their $50,000 account to $55,000, they can withdraw the $5,000 profit and receive $4,500 (90%). However, this would leave their account at $50,000, which could breach the MLL and potentially close the account. This highlights the importance of strategic withdrawals and maintaining a focus on long-term growth rather than chasing short-term gains.

Overall, Alpha Futures' payout policy stands out for its transparency and fairness, promoting a sustainable trading environment. The emphasis on consistency and clear profit-sharing tiers provides traders with the motivation to engage in disciplined trading practices. By encouraging traders to focus on longevity and strategic withdrawals, Alpha Futures positions itself as a supportive partner in their trading journey.

Instrument to trade with Alpha Futures

The CME Group Products are available to trade here at Alpha Futures. 

CME Group is made up of 4 major exchanges Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), and Commodity Exchange Inc (COMEX).

• Alpha Futures offer commission free trading on AlphaTicks, but there are regulatory fees.

• There are no news trading restrictions for Evaluation Accounts. There are however for Qualified Accounts.

• You may hold through news releases following your trading plan, but no orders may be executed within 2 minutes before or after high impact news events.

• Alpha Futures refer to the Economic Calendar in your Trader Hub on our platform, AlphaTicks. Anything with a red icon is considered high impact and this rule applies.

• If you are on another platform, this Calendar is pulled from Financial Juice.

Advantage

Straightforward Payout Policy:

• Alpha Futures offers a transparent payout system with no hidden fees or complicated requirements. Traders can easily understand how to access their earnings.

Flexible Withdrawal Options:

• There are no withdrawal limits or thresholds, allowing traders to request payouts as needed. This flexibility supports consistent trading habits.

Tiered Profit Split Structure:

• Traders can earn up to a 90% profit split based on their trading performance. This tiered system incentivizes consistency and rewards traders for their efforts.

Unlimited Evaluation Resets:

• Traders can reset their evaluation accounts at any time, which allows for learning from mistakes without incurring additional costs.

No Daily Drawdown Limit:

• Alpha Futures does not impose daily loss limits during evaluations, providing traders with the freedom to execute their strategies without the pressure of daily constraints.

Comprehensive Support:

• The firm is dedicated to creating a supportive trading environment, providing traders with tools and resources to help them succeed.

Strong Ethical Standards:

• Alpha Futures emphasizes ethical trading practices, ensuring a fair and transparent trading environment through strict adherence to guidelines and regulations.

User-Friendly Dashboard:

• The dashboard interface is intuitive, making it easy for traders to manage their accounts, monitor performance, and request payouts.

Disadvantage

KYC Requirements:

• The requirement to complete KYC procedures 48 hours before the first payout request can be seen as a drawback for traders looking for immediate access to funds.

Maximum Loss Limit (MLL):

• The MLL can restrict traders’ strategies, especially after withdrawals, as exceeding this limit can result in account closure.

Initial Activation Fee:

• New traders must pay a one-time activation fee of $149 after passing their evaluation, which may be a deterrent for some.

Limited Account Sizes:

• While traders can hold multiple accounts, the maximum allocation is capped at $450,000 across three Qualified Accounts, which may limit higher-tier traders.

No Live Trading Environment:

• While Alpha Futures provides a simulated trading environment, some traders may prefer direct access to live markets.

Risk of Account Closure:

• Strict adherence to trading rules is required; violations can lead to immediate account termination, which may add pressure for some traders.

Conclusion

In 2024, Alpha Futures presents a compelling option for traders seeking a straightforward and supportive trading environment. 

The pros, including a transparent payout policy and ethical trading practices, outweigh the cons for many. However, potential traders should carefully consider the requirements and limitations before getting started. 

Overall, Alpha Futures stands out as a viable choice for those looking to build their trading skills and pursue consistent profitability.

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