Top 6 Prop Firms: 90%+ Splits with BrightFunded & DNA

Prop trading requires not only skill but also the right partner to fully leverage your strategies. In this post, we analyze the top prop trading firms with profit splits above 90%, including BrightFunded and DNA Funded tiered models, to help you optimize your trading setup and maximize returns.

Understanding Prop Trading and Lucrative Profit Splits

Prop trading firms provide traders with capital, advanced technology, and competitive profit split models. Firms offering profit splits above 90% have become increasingly popular due to the potential for higher net returns. In today’s market, selecting the right firm is critical for both junior traders and senior quants. This article explores the key benefits of high profit splits and the tools prop firms use to support robust backtesting capabilities.

Advanced Backtesting Strategies for Prop Trading Success

The backbone of any successful prop trading strategy is robust backtesting. Advanced strategies include:

• Common Pitfalls: Identifying and mitigating overfitting, survivorship bias, and look-ahead bias.
• Walk-Forward Optimization: This method tests strategy performance in segments, offering a realistic view of future performance.
• Out-of-Sample and Forward Testing: Ensuring that a strategy performs in real markets before live deployment.

For example, integrating backtesting with forward testing might involve using Python scripts with Backtrader. Below is a code snippet illustrating an automated backtesting setup:

import backtrader as bt

class TestStrategy(bt.Strategy):
    def __init__(self):
        self.sma = bt.indicators.SimpleMovingAverage(self.data, period=15)

    def next(self):
        if self.data.close[0] > self.sma[0]:
            self.buy()
        elif self.data.close[0] < self.sma[0]:
            self.sell()

if __name__ == '__main__':
    cerebro = bt.Cerebro()
    data = bt.feeds.YahooFinanceData(dataname='AAPL', fromdate=datetime(2020, 1, 1), todate=datetime(2021, 1, 1))
    cerebro.adddata(data)
    cerebro.addstrategy(TestStrategy)
    cerebro.run()
    cerebro.plot()

Comparing Automated Backtesting Tools and Platforms

Prop firms often use a range of sophisticated backtesting tools. Here, we compare key platforms:

Tool	Backtesting Features	Data Quality & Coverage	Integration	Pricing & Use Cases
TradingView	Vectorized, handles slippage/commissions, robust charting	Deep historical data; covers multiple asset classes	API access, broker integration, community scripts	Free & premium tiers; ideal for both prop and retail traders
MetaTrader 5	Event-driven backtesting, optimization, forward testing support	Extensive forex and CFD data, real-time feeds	Expert Advisors, API integrations	Free demo version; used by institutional and individual traders
NinjaTrader	Backtesting with historical and simulated real-time data	High-quality futures, forex, equities data	Broker integration, third-party analytics add-ons	Subscription-based; suited for team trading environments

Case Studies: Real-World Prop Trading Success

Consider a case study from a well-known prop firm:

• Strategy Type: Momentum-based algorithm integrated with out-of-sample testing.
• Challenges: Overfitting in historical data and inconsistent data quality.
• Solution: Adoption of MetaTrader 5 and NinjaTrader for robust testing along with walk-forward optimization helped reduce drawdowns by 15% and improved the Sharpe ratio by 0.5 points.
• Result: Faster iteration speeds and more reliable strategy performance under live market conditions.

Integrating Expert Backtesting Methods into Your Prop Trading Workflow

Risk management is paramount. Ensure that you:

• Use a combination of historical data sources (tick vs. bar data) for benchmarking.
• Implement automated parameter optimization to accelerate testing cycles.
• Adopt scenario analysis and stress testing within your backtesting framework.

For additional guidance, check out our Risk Management Checklist and Comprehensive Backtesting Guide for detailed methodologies.

Expert Guidance: Pro Tips for Optimal Prop Trading

Conclusion and Next Steps

Choosing the right prop trading firm and backtesting tools can significantly enhance your trading performance. Whether you are a junior trader or a senior quant, the insights and comparisons provided here form a strategic blueprint for success. For a complete checklist on integrating these strategies, download our Risk Management Checklist available as part of our resource library.

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As of October 2023, these strategies and tool recommendations reflect current industry standards and regulatory frameworks including MiFID II and NFA rules.