how to trade at a prop firm

📊 Introduction

As we step into 2025, hedge funds continue to dominate headlines — not just for their record-breaking profits but for the opportunity they represent. From Citadel’s billions in returns to D.E. Shaw’s double-digit gains, many traders dream of managing their own fund. Yet, the alternative — trading at a prop firm — has become a booming gateway for ambitious traders thanks to low overhead and access to firm capital.

In this comprehensive guide, we dive deep into:

The top-performing hedge funds The pros and cons of starting your own fund vs prop firm trading And a powerful edge: the software tools both professionals and independent traders are using in 2025 — including the standout AF Software Suite.

🚀 Top Hedge Funds by AUM (Assets Under Management) in 2025

Rank Firm AUM (USD billions)

1 Bridgewater Associates $89.6

2 Man Group $77.5

3 Elliott Investment Management $69.7

4 Millennium Management $67.9

5 Citadel LLC $63.4

These firms manage billions, attract elite talent, and utilize cutting-edge strategies — powered by advanced analytics, automation, and proprietary tools.

💰 2024 Hedge Fund Returns & Profits

D.E. Shaw Oculus Fund: +36% return Citadel Wellington Fund: +15.1% Millennium Management: +15% Schonfeld Advisors: +19.7% Industry-Wide Return: +15.7% average

With over $93.7 billion in total net profits, the hedge fund industry cemented its dominance — but is it right for you?

💼 Hedge Fund vs Prop Firm: Strategic Comparison

🛠️ Software Used by Hedge Funds

Hedge funds typically utilize high-end platforms that combine execution, analytics, and risk management, including:

Bloomberg Terminal Eze EMS / OMS FactSet Charles River IMS Palantir Foundry (for big data hedge funds) Python/R/Matlab for algorithmic modeling

These platforms offer deep data access, but come with steep learning curves and subscription costs in the thousands per month.

⚙️ Software Tools for Prop Traders & Retail Hedge Fund Founders

While traditional hedge funds lean on institutional software, independent traders are turning to modern, intuitive tools like the AF Software Suite — a powerhouse for short-term, swing, and algorithmic traders alike.

🔹 AF Blitz Scalper Trade Copier and Mentorship

Type: Real-time scalping interface Best For: Fast-paced prop traders and scalpers Features: Instant execution signals Entry/exit timing optimization Benefits: Eliminates hesitation Boosts accuracy in high-volatility conditions Works with any prop firm that supports any platform including the popular C Trader, MetaTrader, NinjaTrader, or TradingView platforms.

🔹 AF Supply and Demand 3.0 Software

Type: Market structure analysis tool Best For: Swing traders, hedge fund quants Features: Visual mapping of supply and demand zones Customizable alerts Works across Forex, indices, crypto, and equities Benefits: Enhances trade confidence Detects institutional-level order flow Used in strategy development for both manual and automated systems

🔹 MSP ( Signal Software Pro)

Type: Advanced pattern price action recognition and market context tool Best For: Professional strategists, data-backed hedge funds Features: Detects distinct price action signals Layered market structure forecasting Supports backtesting & live strategy adjustment Benefits: Aligns entries with institutional strategies Reduces false signals Ideal for hybrid discretionary-quant trading setups

🔚 Conclusion: Choose Your Weapon

Whether you’re building a billion-dollar fund or mastering a prop trading account, your edge in 2025 is in strategy + software.

Start a hedge fund if you’re ready to raise capital, manage clients, and scale big. Trade at a prop firm if you’re focused on skill, low overhead, and short-term performance. Use the right tools — and the AF Software Suite is one of the best in the game for independent traders aiming to compete with the pros.