Fast payout is the headline selling point of Lucid Trading, with an average payout time of 15 minutes. Does the trading experience also support the perk of immediately realizing your gains, or are there drawbacks to trading futures contracts at this firm? This Lucid Trading review goes through the three account options and the rules associated with them, giving you a better grasp of what the futures prop firm can offer you.
Lucid Trading at a Glance
Lucid Trading offers three account options. Their rules allow for an easier evaluation or funded stage.
- LucidPro: The standard account for the prop firm with a higher payout cap.
- LucidFlex: As the name suggests, it is Lucid Trading’s most flexible account, with a higher consistency rating and no DLL.
- LucidDirect: The Direct plan is the firm’s instant funding option that lets you skip the evaluation phase.
Lucid Trading Evaluation
LucidPro
| 25K | 50K | 100K | 150K | |
| Profit Target | $1,250 | $3,000 | $6,000 | $9,000 |
| Max Drawdown | $1,000 | $2,000 | $3,000 | $4,500 |
| Daily Drawdown Limit | None | $1,200 | $1,800 | $2,700 |
| Consistency Rating | None | None | None | None |
LucidFlex
| 25K | 50K | 100K | 150K | |
| Profit Target | $1,250 | $3,000 | $6,000 | $9,000 |
| Max Drawdown | $1,000 | $2,000 | $3,000 | $4,500 |
| Daily Drawdown Limit | None | None | None | None |
| Consistency Rating | 50% | 50% | 50% | 50% |
The first hurdle for both LucidPro and LucidFlex is to pass the evaluation phase. There are several aspects of the evaluation phase to note:
Drawdown Rule
One advantage of Lucid Trading is that all accounts follow the end-of-day (EOD) drawdown rule. The rule only counts your losses at the end of the day. Even if your positions were to have unrealized losses that would hit the max drawdown, you are still safe until the end of the day when it counts. You still have time for the market to favor your positions or for you to make profitable moves before you breach your LucidPro or LucidFlex account.
If you are on the 50K, 100K, or 150K LucidPro account, another rule to be wary of is the daily loss limit (DLL), which is the limit you can lose for a single day. Hitting the DLL will lock your account. This status prevents you from making additional trades until the next trading session. For some traders, the soft-breach DLL policy gives them a warning that their strategies or technical indicators are inching them closer to breaching their account. It gives them time to evaluate their moves for the day.
No Minimum Trading Day
There are no trading day requirements for LucidPro and LucidFlex evaluations. Many futures prop firms require you to complete an average of 5 trading days, before you can pass their evaluation. Some are stricter, requiring you to reach a minimum profit in a single day.
Due to the minimum trading-day requirements, it takes time for traders to pass the evaluation. This is not the case for Lucid Trading. You can reach the funding phase in less than two days with the LucidFlex account or even within a day with the LucidPro account.
Consistency Rule
One major difference between the two evaluations is the 50% consistency rule for the LucidFlex account. Your profit for any one day should not exceed half of your total gains over the evaluation period. Should you exceed the consistency rate, you will need to make a profit across other days until you satisfy the rule. By properly gauging your trades to reach the 50% consistency rate, you can complete LucidFlex’s evaluation within two days.
To make the evaluation phase more flexible, Lucid Trading also includes a “consistency cushion” policy. If your profit target is $1,250, for example, the consistency cushion would be set to limit your gains at $650 instead of $625. Note that there are no fixed ratings on the cushion policy, where your profit limit is under the discretion of the Lucid Trading staff. It is better to aim for the 50% consistent profit rate and expect the cushion rate to be around 51%.
On the other hand. The LucidPro evaluation phase lacks a consistency rule. You can reach the profit target and get automatically transitioned to the funded account in less than an hour upon purchasing this account.
No Activation Fee
Some futures prop firms require an activation fee when you transition to a funded account upon passing the evaluation phase. This is not the case with Lucid Trading, as there are no fees to pay. There is only a one-time fee to take either the LucidPro or LucidFlex evaluation.
Lucid Trading Funding
This phase is where your gains translate into actual earnings. Upon passing either the LucidPro or LucidFlex evaluation, as well as purchasing the LucidDirect account, below are rules to note of during the funding phase.
Scaling DLL
Both the 50K, 100K, and 150K LucidPro and LucidDirect have a unique scaling DLL that scales with your gains. It is equal to 60% of the profit you made at the end of the day. If you were to earn $2,500 for one day, your DLL would be set to $1,500 ($2,500 x 0.60) for the following trading sessions. It changes when you see larger gains than $1,000. Should you gain $3,200 in the future, your new DLL becomes $1,920 ($3,200 x 0.60).
Note that the DLL is fixed at the same rate until your gains exceed the initial amount. In addition, the increased DLL does not revert to the initial rate upon hitting it.
The Scaling DLL remains a valuable risk-management tool for many traders, even more so as you make gains. Hitting the DLL tells you that you need to review your trades.
Contract Scaling Plan
LucidFlex account holders follow a scaling plan for the available contracts to trade with. The number of futures contracts available increases as you make gains. However, excess losses will also move you back down to the available contracts.
| Simulated Profits | $25,000 Contract Limits |
$50,000 Contract Limits |
$100,000 Contract Limits |
$150,000 Contract Limits |
| $0 – $999 | 1 mini or 10 micros |
2 minis or 20 micros |
3 minis or 30 micros |
4 minis or 40 micros |
| $1,000 – $1,999 | 2 minis or 20 micros |
3 minis or 30 micros |
4 minis or 40 micros |
5 minis or 50 micros |
| $2,000 – $2,999 | – | 4 minis or 40 micros |
5 minis or 50 micros |
6 minis or 60 micros |
| $3,000 – $4,499 | – | – | 6 minis or 60 micros |
8 minis or 80 micros |
| $4,500+ | – | – | – | 10 minis or 100 micros |
The aim of the scaling plan is to prevent premature account breaching. It frees up available contracts to those who are consistent with their gains. For traders, this is a drawback with your leverage tied to your performance. It pressures you to manage the risks in your positions, preventing losses that limit your available contracts.
Consistency Rating
The compromise in an easy evaluation phase for the LucidPro account is the 40% consistency rating they must meet when funded. There is much less room to make high-risk trades with high payouts. For LucidDirect account holders, the rates are much stricter, with a 20% consistency rule to follow. This stricter condition is the compromise of skipping the evaluation.
News Trading
This is one of the futures prop firms that lets you open positions during major news reports. It is important to note that this advantage is more appreciated by LucidFlex and LucidPro accounts. Without a consistency rule to follow, LucidFlex owners can quickly achieve the highest payout cap on their accounts with news trading.
Microscalping
One of the riskiest and commonly prohibited trading strategies is microscalping. Based on Lucid Trading’s definition, microscalped trades are held for 5 seconds or less. Traders are still allowed to conduct this trading style as long as more than half of their trades are held for more than 5 seconds.
Note that the 50% microscalping allowance for all trades is intended only to prevent penalizing traders who mistakenly open trades. Microscalpers tend to make several trades lasting just a few seconds. To comply with the rules, you need to complete the same number of normal or allowed trades.
Algo Trading
Lucid Trading is one of the few futures prop firms that accommodate algorithm or bot trading. This practice lets you execute your trading strategy without the emotional bias that can drive entries or exits. The futures prop firm warns traders to be responsible for incorrect trades due to software issues.
Overnight Positions Restricted
There is a permitted trading window that starts from 6:00 AM to 4:45 PM EST. Positions are automatically closed at the end of that trading window, which does not breach your account.
Payout Rules
This section covers the payout requirements and terms for each Lucid Trading account. There are shared rules across two or all account versions, and others that are set only for one account type.
Maximum Payout Cap
The total amount you can withdraw from each of the Lucid Trading accounts have their maximum payout cap terms:
LucidFlex
One of the drawbacks of the LucidFlex is its payout policy, where you can only withdraw 50% of your profit balance. When you earn $1600, for example, you can only withdraw $640. The $160 is retained by Lucid Trading as part of their profit cut, while the rest remains in your account balance. Keep in mind that you still need to follow the payout maximum. For example, the maximum profit balance you can request a payout for the 25K account is $2,200, since it accounts for the 90/10 profit cut and the 50% profit rule.
| Account Size |
Payout Maximum
|
| $25,000 | 50% of Profit up to $1,000 |
| $50,000 | 50% of Profit up to $2,000 |
| $100,000 | 50% of Profit up to $2,500 |
| $150,000 | 50% of Profit up to $3,000 |
LucidPro/LucidDirect
The account follows a payout cycle where the maximum cap increases on the second payout. The maximum cap cycle repeats after the LucidPro’s second payout or the LucidDirect’s sixth payout.
LucidPro
| Account Size | Payouts 1 | Payouts 2+ |
| $25,000 | $1,000 | $1,500 |
| $50,000 | $2,000 | $2,500 |
| $100,000 | $2,500 | $3,000 |
| $150,000 | $3,000 | $3,500 |
LucidDirect
| Account Size | Payouts 1-3 | Payouts 4-6 |
| $25,000 | $1,000 | $1,000 |
| $50,000 | $2,000 | $2,500 |
| $100,000 | $2,500 | $3,000 |
| $150,000 | $3,000 | $3,500 |
The maximum payout cap between LucidPro and LucidDirect is nearly similar, with the exception of the 25K account. This account will always have a max cap of $1,000.
Buffer Amount
LucidPro account holders must have a buffer balance on top of their initial balance before they can request a payout. The amount is the maximum drawdown limit plus $100. Any amount above the buffer and initial balance is eligible for withdrawal. The buffer acts as a safety net to help you avoid the maximum drawdown after requesting a payout.
| Account Size | Buffer Balance |
| $25,000 | $26,100 |
| $50,000 | $52,100 |
| $100,000 | $103,100 |
| $150,000 | $154,600 |
The buffer amount is a common payout requirement for most futures prop firms that acts as the permanent second challenge phase. While Lucid Trading states that this is a risk management policy, it is inconvenient for most traders. It is especially true for traders with actual risk mitigation methods.
Winning Days
Another unique rule for LucidFlex is the required 5 winning days for each payout cycle. A winning day is defined as achieving a minimum profit amount for a single trading session. This amount differs among account sizes:
| Account Size |
Minimum Daily Profit
|
| $25,000 | $100 |
| $50,000 | $150 |
| $100,000 | $200 |
| $150,000 | $250 |
The additional payout requirement is a compromise between the low price of the LucidFlex account and the LucidPro plan, and the higher 50% consistency rate. While it increases the risk of price spikes by requiring traders to achieve a minimum profit rate, it does require them to limit their gains for a day. This requirement also means your payout request can be made only once every 5 days if you consistently meet the minimum profit for the winning days.
Who are The Accounts For?
Knowing the features and limitations of each account in our Lucid Trading review, who are the best types of traders to utilize either of the three accounts? Below is a detailed discussion on the suitable trading style for LucidFlex, LucidPro, and LucidDirect.
LucidFlex
The LucidFlex is the cheapest plan available for Lucid Trading, with some trader-friendly terms during the funded phase. These terms include the absence of a DLL on all accounts or the minimum trading days requirement. You also do not follow a consistency rule during the funded phase. While there is a 50% consistency rule during the evaluation phase, it is the highest rate among the three accounts. Traders with a good setup can clear the challenge within two days if they can satisfy the consistency rule.
Note that there are major drawbacks to the LucidFlex plan, stemming from its payout terms. This includes adding the 5-winning-day requirement, which changes the payout frequency to weekly instead of daily.
The most common trading styles for futures prop firms are highly welcome for this account, including high-risk strategies for large gains, such as scalping and news trading. An advantage of the zero consistency rule is that it allows unconstrained profits and losses. You do not need to make significant gains in succeeding trading sessions after a large winning or losing day. The flexibility on the trades is crucial since the 50% profit cut requires you to make more gains should you want to get the most out of your account’s max payout cap.
LucidPro
This is the most accessible evaluation available compared to what other futures prop firms offer. There is no consistency rate to follow. Reaching the funded phase only requires you to hit the profit target while avoiding the max drawdown.
The payout economics of the LucidPro make it the stand-out option among the three accounts due to its slightly higher payout cap and buffer amount requirements. LucidPro has a slightly higher payout max cap than the other two accounts. In addition, its 40% consistency requirement for each payout and a buffer requirement that does allow a faster payout than LucidFlex for smart traders who can work around the limitations on their winning days.
There is some flexibility when it comes to trading strategies with different risk/reward ratios. The 40% consistency rating is less punishing to large losses than what you would experience with LucidDirect should one of your trading sessions have gains that exceed the requirement. There is also the scaling DLL to consider, which acts as a safeguard for some traders. Its flexible terms make LucidPro recommended for high-risk/high-payout news trading.
LucidDirect
The instant access perk of the LucidDirect account is to skip the evaluation. Because you are not evaluated, the funding phase is much stricter.
A part of your payout requirement is to reach the profit goal for your specific account size. This is a means for Lucid Trading to test your trading capabilities. It is a large drawback since you are perpetually taking the evaluation phase throughout the LucidDirect funding part.
On top of the buffer amount, there is a strict 20% consistency rating that forces you to limit your gains for one day. Exceeding the consistency rate while incurring a large loss will make meeting the payout conditions difficult for any trader. The low-consistency rule calls for low-risk trades for a good chance of a payout.
Lucid Trading Live
All three Lucid Trading accounts are eligible for the live account. You qualify for the transition when you have completed the fifth payout of your account or have completed several lifetime payouts across several accounts under your name. Your trading performance can also qualify you if it captures the attention of the Lucid Trading team.
If you have been picked for the live transition, your total profit balance goes back to zero or the initial balance of your original account. The simulated account you transitioned from is closed. It should also be noted that there is a cooldown period when you breach your live account. The standard time is usually 4 weeks, but it can be longer if the Lucid Trading team detects reckless trading practices that lead to a drawdown.
There is a perk for those who transition to a live account: a one-time live bonus. You receive a bonus when you reach a profit target. This bonus is available for each account as long as you are able to achieve the live target.
| Funded Account Size | Live Target | Live Bonus |
| $25,000 | $1,000 | $1,000 |
| $50,000 | $2,000 | $2,000 |
| $100,000 | $3,000 | $3,000 |
| $150,000 | $4,500 | $4,500 |
Final Word: Lucid Trading Review
Lucid Trading is still among the top futures prop firms by staying true to its tagline of offering a “fast payout.” The trading-friendly terms of the evaluation and funded phase make it possible for LucidFlex traders to earn real money within a week. For LucidPro and LucidDirect accounts, you can see a payout much more quickly.
Going through the rules in our Lucid Trading review reveals drawbacks for traders regarding LucidFlex and LucidDirect payout requirements. The stricter rules, such as a 50% profit withdrawal for LucidFlex and profit-target requirements for LucidDirect, reflect the trade-off for lower fees and instant-funding perks.
FAQ
What is the biggest thing traders should check before choosing a Lucid account?
You should always check the payout conditions for each Lucid Trader account. It tells you if the LucidFlex’s winning day requirements or the buffer amount policy for both LucidPro and LucidDirect still provide value to the accounts for you.
Does my account automatically transition to a live account?
Meeting the requirement for the live account transition, including 5 completed payouts, will not automatically move you to the live market. The Lucid Trading management determines when your account should go through the transition from the sim-funded account.
How is LucidDirect’s instant access a beneficial perk for traders?
The option to skip the challenge phase is not just about how quickly you can gain access to the funds, but also about avoiding failing the evaluation. There is always a chance of hitting the drawdown limit on the LucidFlex or LucidPro account, despite its accessible evaluation-phase rules.
Is high-frequency trading allowed in Lucid Trading?
Those who are using this strategy are at risk of having their accounts breached and being permanently banned from Lucid Trading. The firm uses a smart detector that can identify traders engaged in HFT. Fortunately, first-time offenders get a written warning without additional penalties.