Scaling Plan

Context & Mechanics

How it works

A scaling plan defines the conditions under which a prop firm increases the nominal capital of a funded account. Typical criteria: a minimum number of profitable payout cycles (e.g. three in a row), a minimum profit per tier, and no rule breaches. Increases of 25 % per tier are historically common – nominal $100,000 becomes $125,000, then $150,000. Some providers cap the growth (e.g. at $400,000); others attach a better profit split to higher tiers.

What grows with it – and what does not

Absolute loss limits usually scale with the capital: at a 5 % daily loss limit, the daily cap on a $125,000 tier rises to $6,250, and a 10 % overall loss limit to $12,500. The percentage rules stay the same – only the absolute room grows. A rule breach ends the account on any tier; achieved scaling does not protect against it.

Why providers scale

The scaling plan is incentive and risk control at once: traders stay active and disciplined longer, while the provider assigns larger nominal sums only to demonstrably consistent accounts. At the same time the plan is a marketing instrument – historically only few accounts reach the advertised maximum sums, because every tier again demands weeks of consistency.

Why it matters for traders

Three questions matter: how many cycles does a tier realistically take? Does the profit split grow with it? And does progress lapse after a weak cycle? Traders who keep position size constant per tier and do not read the larger absolute limits as an invitation to bigger risk use the plan structurally right. The GlanWick simulator lets traders run growing account sizes with constant percentage limits – GlanWick is a training and simulation tool and not a prop firm itself.

Execution Example

A provider increases the nominal capital of a $100,000 funded account by 25 % after every three profitable payout cycles without a rule breach (daily loss limit 5 %, overall loss limit 10 %, profit split 80/20).

Cycles 1–3: each profitable, no breaches → capital rises from $100,000 to $125,000.
The limits scale along: daily loss limit now $6,250 instead of $5,000, overall loss limit $12,500 instead of $10,000.
Cycles 4–6: profitable again → tier 2, capital $156,250; the provider raises the profit split to 85/15.
In cycle 7 a daily loss of −$6,900 breaches the daily loss limit → the account ends despite scaling progress; a restart begins again at $100,000.

Execution Risk & Errors

Reading larger absolute limits after scaling as an invitation to bigger risk

Not knowing the tier conditions (cycles, minimum profit)

Assuming achieved tiers protect against rule breaches

Confusing advertised maximum sums with realistically reachable tiers

Not checking whether the profit split grows with the tiers

Frequently Asked

How quickly do I reach higher tiers in a scaling plan?

It varies by provider. Several profitable payout cycles per tier are common – with 14-day cycles that often means six or more weeks of consistent trading per increase.

Do the loss limits grow with the capital?

Usually yes: the percentages stay the same and the absolute caps rise with account size. A 5 % daily loss limit means a $6,250 daily cap on $125,000.

Do I lose my tier after a rule breach?

With almost all providers a rule breach ends the funded account regardless of the tier reached. A restart usually begins again at the starting tier.

Can I practise trading on growing account sizes?

Yes. The GlanWick simulator lets you configure account sizes and percentage limits freely, so tier changes can be played through risk-free.