Scaling from 25k to 400k - a plan, not a lottery

Everyone wants 400k funded. Nobody wants to walk the path from 25k through 50k, 100k and 200k with 12 months of stable payouts. Scaling is not buying the biggest account at the start. It is a process that firms design to reward longevity.

Without a scaling plan you end up with 5 accounts of 100k, 3 daily DD breaches and burnout.

Lesson goal and what you will measure

After this lesson:

• You will build a 25k -> 400k path with milestones.
• You will calculate effective capital with several accounts.
• You will understand the rules for combining accounts and the firms’ scaling plans.
• You will measure the cost of scaling against the risk.

Metrics: total capital, total daily DD in USD, % of the loss limit used, monthly cash flow from payouts.

How firms scale

FTMO Scaling Plan: After 4 profitable months and 2 payouts with +10% profit in total, the balance grows by +25% of capital. From 100k to 125k, and so on up to 2M.

The5ers Bootcamp: Doubling after every 6% target, up to 4M. 25k -> 50k -> 100k -> 200k -> 400k and so on. A new buffer after every doubling.

FundedNext Scaling: +40% of capital every 4 months if +10% profit and 2 payouts. Up to 4M.

The common denominator: scaling takes time (90-120 days) and a buffer (min 10% profit), not one single shot.

The math of scaling - do not buy 400k up front

Assume a 400k target. You have two paths.

Path A: buy 4 accounts of 100k at once. Cost: 4540 = 2160 EUR. Total daily DD: 45000 = 20,000 USD. But if you lose -2.5% on one of them, psychological tilt on the other 3.

Path B: buy 25k, pass, take 2 payouts, then buy 50k out of the profits.

Step 1: 25k challenge (225 EUR), you pass -> funded
Step 2: +3% on 25k = 750 USD, payout 80% = 600 USD
Step 3: for 600 USD you buy a 50k challenge (350 EUR)
Step 4: you have 25k + 50k funded = 75k, and so on

Start cost: 225 EUR against 2160 EUR. Risk: you lose 225, not 2160. Time: 3-4 months longer, but 3x the survival rate.

Effective capital and correlation

Holding 400k across 4 accounts is not the same as 400k in one.

effective_capital = nominal_capital * (1 - correlation_between_accounts)

If you trade all 4 accounts identically, correlation = 0.95, effective capital = 400k*0.05 = 20k in risk terms

It means this: if you take the same trade on 4 accounts of 100k, the risk is 4x0.5% = 2% on one setup. The daily 5% is gone in 2.5 setups.

The solution is separation:

• Account A: EURUSD only
• Account B: US30 only
• Account C: swing trading, D1/H4
• Account D: intraday, London

Or trade the same thing, but with the risk divided: 0.5% / 4 = 0.125% per account -> 0.5% in total per idea.

A 12-month plan: from 25k to 400k (realistic)

Total profit paid out in a year: around 12-15k USD at 3-4% monthly on the current capital. This is not “400k in a month”. It is a business that grows for 12 months.

When the plan says do not trade - the scaling edition

• When you have 2 funded accounts and want to buy a third, but you do not have 2 payouts from each of the previous ones - do not scale.
• When the total daily DD in USD exceeds your monthly living budget times 2 - that is too much capital mentally.
• When the correlation between accounts is above 0.8 for the last month - do not add another account with the same approach.
• When you do not have a 10% buffer on the oldest funded account - do not add a new one.
• When you want to scale because “a friend has 400k” - do not scale out of FOMO.

The mistakes that cost the most when scaling

1. Scaling losses. You have 2 losses of -2% on 100k, so you buy 2 more 100k accounts to “make it back”. That is doubling your losses. Scale only out of profits.
2. No central risk dashboard. You trade 4 accounts on 4 platforms and you do not know that you have -3.5% open in total. You need a spreadsheet: capital, equity, daily left, max left, all live.
3. Ignoring the 400k per person cap. Most firms have a 400k cap per single identity. Buying 6 accounts of 100k means a block at 400k and the rest is wasted. Read the account-combining rules.
4. Scaling without payouts. Holding +12% on the account to “scale faster”. One bad streak of -8% and you lose 5 months of work. Take payouts on a regular cycle.
5. Copying 1:1 across firms. MetaTrader copies tick for tick. Firms run anti-copy systems across firms. 2 accounts at different firms with an identical magic number means a ban.

A measurable exercise

The scaling dashboard

Build a spreadsheet:

Update it every day after the session. Set the alerts:

If Daily left <2% -> risk = 0 for today
If Max left <3% -> a week off
If Correlation >0.8 -> cut the risk on that account by 50%

Task: simulate 6 months with a 50k account, +3% monthly, a 70% payout and the cost of a new 50k challenge at 350 USD. Calculate the cash flow and the month in which you move up to 100k.

Test yourself

1. Why does the 25k->50k->100k path carry 3x less bankruptcy risk than 4x100k at once?
2. What is effective capital and how does the correlation between accounts reduce it?
3. What scaling conditions do FTMO and The5ers Bootcamp set?
4. Why does paying out 100% of the profit block scaling?
5. Calculate: you have 2 accounts of 100k and each one risks 0.5% on the same setup. What is the total risk per idea, and how many such losses does the daily 5% on the portfolio allow?

Frequently asked questions

Can I have 400k at one firm, or is it better across 2-3? Diversifying across firms reduces the risk that one firm changes its terms. But 2 firms mean 2 sets of rules and 2 support desks. Start with one up to 200k, then add a second.

How fast does FTMO scale from 100k to 200k? At least 4 months plus 10% profit plus 2 payouts. In practice 6-8 months at 3% monthly.

Is it worth buying a 200k account straight away if I have experience? Trading experience is not the same as prop experience. The rules differ from a broker’s. Even experienced traders start at 50k to learn the daily accounting.

What if the firm collapses with my funded account? You have no Bank Guarantee Fund (BFG) or Polish Financial Supervision Authority (KNF) protection. A funded account is not a deposit. That is why you take payouts often and do not hold more than 5% of unrealised profit without a need.

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Scaling is a marathon. The goal is not 400k in a screenshot, but 12 months of payouts that pay for your life. Track the dashboard, not your ego.

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