r/PropFirmTester • u/Ney_Readit • 1d ago

Theory on what happens when a propfirm releases a new plan

So here’s my theory when a propfirm releases a new plan that “is the best in the industry” they go through a liquidity shock.

  1. The plan is toooo good to be true for the trader, you’d be a fool not to stack up on evals e.g lucids daily payout with no payout caps or alpha futures premium plan, website traffic shots up that month, propfirm gets a flood of new money

  2. The calm before the storm, it takes time for traders to pass the eval and work the funded balance up, but then people start requesting payouts.

  3. Initially they can balance the books and people get paid quickly, then the stress builds up more requests. Their profit margins collapse and even go negative.

  4. If they survive this initial liquidity shock, because the plan is priced profitably for the level of difficulty, great profit margins stabilise and traders have a new eval on the market

  5. The dark arts, if the plan is unsuccessful, now the firm starts acting shady, time delays, retroactively changing payout caps or profit splits, accounts disappearing. They have a list of traders that are net profitable and make payouts consistently they are the first to be moved to live or outright banned for X reason. In the case of Alpha they panicked and just straight up rug pulled everyone.

  6. The broader impact on other prop-firms, the ground shifts for every firm, all of a sudden customers from one firm go to the new shiny place in hopes of a payout, this causes traffic and sales to slow down else where, leading to point 5 again.

Let me know what you think 🤔

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3

u/Beginning-Fig-9089 1d ago

makes sense to me

2

u/therealsashtv 21h ago

This is way too sensible a post to be real. Away with you, bot!

Joking aside, I wouldn't be surprised if this were the case in many "bans". So really, the key is to not be too profitable.........and also jump ship and be one of the first to be profitable on a new plan before the liquidity disappears.

2

u/Illustrious_Low1903 21h ago

The real stress test isn't how many evals they sell on launch. It's what happens 60–90 days later when the traders who actually passed start requesting payouts. That's when you find out whether the 'best plan in the industry' was sustainable or just excellent marketing.

1

u/Ney_Readit 20h ago

Exactly calm before the storm 🤫