Rules
1 - Step Trading Rules
| Rule Area |
Assessment |
Live |
Notes |
| Equity Growth Target |
10% |
- |
Live account has no limit |
| Dayli Loss Limit |
5% |
5% |
Equity-based, limit set by priorday balance (Hard Breach) |
| Max Drawdown |
6% |
6% |
Equity-based, trailing account balance high water mark, locks in at starting account balance (Hard Breach) |
| Inactivity Period |
30 days |
30 days |
Must place trade (Hard Breach) |
| Leverage |
1:10 |
1:10 |
Can go up to 1:20 with add-on |
| Stoploss Required |
Yes |
Yes |
Required for each trade (Soft Breach) |
| Flat for Weekend |
Yes |
Yes |
All positions closed on Friday 3:45pm (Soft Breach) |
| Max Time |
- |
- |
No Max Time requirements |
2 - Step Trading Rules
| Rule Area |
Step 1 |
Step 2 |
Live |
Notes |
| Equity Growth Target |
10% |
5% |
- |
Live account has no limit |
| Dayli Loss Limit |
4% |
4% |
4% |
Equity-based, limit set by priorday balance (Hard Breach) |
| Max Drawdown |
8% |
8% |
8% |
Equity-based, does not trail (Hard Breach) |
| Inactivity Period |
30 days |
30 days |
30 days |
Must place trade (Hard Breach) |
| Leverage |
1:30 |
1:30 |
1:30 |
|
| Stoploss Required |
Yes |
Yes |
Yes |
Required for each trade (Soft Breach) |
| Flat for Weekend |
Yes |
Yes |
Yes |
All positions closed on Friday 3:45pm (Soft Breach) |
| Max Time |
- |
- |
- |
No Max Time requirements |
Trading Rules - Frequently Asked Questions (FAQ)
What is the difference between a Hard Breach and Soft Breach rule?
Soft breach means that we will close all trades that have violated the rule. However, you can continue trading in your Assessment or Live Account.
Hard breach means that you violated either the Daily Loss Limit or Max Drawdown rule. Both rules constitute a hard breach. In the event you have a hard breach, you will fail the Assessment or have your Live Account taken away.
How do you calculate the 4% Daily Loss Limit?
The Daily Loss Limit is the maximum your account can lose in any given day. Daily Loss Limit is calculated using the previous day balance which resets at 5 PM EST. Unlike other firms, we do NOT base our calculations on previous day equity since the balance only model allows you to scale gains without fear of losing your account. The Daily Stop compounds with the increase in your account.
Example: if your prior day's end of day balance (5pm EST) was $100,000, your account would violate the daily stop loss limit if your equity reached $96,000 during the day. If your floating equity is +$6,000 on a $100,000 account, your new-day (5pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be $96,000.
How do you calculate the 8% Max Drawdown?
Maximum drawdown is the maximum your account can drawdown before you would hard breach your account. When you open the account, your Maximum Drawdown is set at 8% of your starting balance. This 8% is static and does not trail.
Why do I have to place a stop loss on trades?
We believe sound risk management using stop losses. To that end, we require a stop loss on every trade. If you fail to place a stop loss at the time of placing the trade/order, we will close the trade. This is only a soft breach rule, so you can continue trading in your account.
Can I hold positions over the weekend?
We require all trades to be closed by 3:45pm EST on Friday. Any trades left open after this time will automatically be closed. Note, this is only a soft breach and you will be able to continue trading once the markets reopen.
Is there a breach for inactivity?
Yes. If you do not place a trade at least once every 30 days on your account, we will consider you inactive and your account will be breached.
Live Account - Frequently Asked Questions (FAQ)
How Long does it take to receive my Live Account?
Upon passing your Assessment, you will receive an email with instructions on how to access and complete your Trader Agreement and submit your AML/KYC documents. Once the agreement is completed and supporting documentation is provided, your Live Account will be created, funded and issued to you typically within 24-48 business hours.
Once I pass the Assessment am I provided with a demo or live account?
Once you pass the Assessment, we provide you with a live account, backed by our capital. The capital in your Live Account is notional and may not match the amount of capital on deposit with the Broker. A Live Account is notionally funded when actual funds in the account (i.e., the equity in a Live Account represented by the amount of capital) differs from the nominal account size (i.e., the size of the Live Account that establishes the initial account value and level of trading). Notional funds are the difference between nominal account size and actual capital in a Live Account.
Use of notional funding does not change the trading level or that the account may trade in any manner differently than if notional funds were not used. In particular, the same conditions and rules applicable to a soft breach, hard breach, Daily Loss Limit, Max Trailing Drawdown, stop loss and position limits apply.
Do we manipulate the pricing or executions you receive in your Live Account?
No. We operate at an arm's length with the Broker. All market pricing and trade executions are provided by the Broker and are not changed or modified by us. Additionally, we do not mark up transaction costs established by the Broker through adjusting bid-offer spreads, markups/markdowns, commission charges or swaps.
Who is the counterparty to my trades?
For purposes of managing risk and minimizing transaction costs, we may offset or negate market risk and act as the direct counterparty to certain trades initiated in the Account. Such trades are executed at prices provided by the Broker. This framework is intended to ensure you receive real market execution on your trades, while simultaneously allowing us to manage risk dynamically by routing existing positions or future orders to third parties for execution as we deem appropriate. We believe that such real market execution and dynamic risk management would not be possible or as cost-effective if trades were executed in simulated accounts. Regardless of whether we act as counterparty to your trades, the gain or loss on your Live Account is not calculated differently. However, when we act as the counterparty to your trades, there is an inherent potential conflict of interest because your trades do not result in net gain or loss to us, as your trades would if we were not the direct counterparty.
Am I subject to any position limits?
We reserve the right to limit the number of open positions you may enter or maintain in the Live Account at any time, and to revise in response to market conditions the drawdown levels at which trading in the Live Account will be halted. We or the Broker reserve the right to refuse to accept any order.
What are the rules for the Live Account?
The rules for the Live Account are exactly the same as your Assessment account. However, with a Live Account, there is no equity growth target.
If I have a hard breach in my Live Account and there are gains in the account, do I forfeit those gains?
If you have gains in your Live Account at the time of a hard breach, you will still receive your portion of those gains. For example, if you have a $100,000 account and you grow that account to $110,000. Should you then have a hard breach we would close the account. Of the $10,000 in gains in your Live Account, you would be paid your portion thereof.
How do I withdraw the gains in my Live Account?
Traders can request a withdrawal of the gains in their Live Account at any time in their trader dashboard, but no more frequently than once per thirty (30) days. So, if you make gain in your Live Account, you can request a withdrawal. When you are ready to withdraw the gains from your Live Account, click the Withdrawal button in your trader dashboard and enter the amount to withdraw. Once your withdrawal request is approved, we will pay the monies owed to you via your selected method.
When can I withdraw the gains in my Live Account and how does that affect my Maximum Drawdown?
Your first withdrawal can be requested at any time. Thereafter, you can request a withdrawal of the gains in your account every 30 days. When a withdrawal is approved, we will also withdraw our share of the gains, and your max drawdown will lock in at your starting balance. The Maximum Drawdown does not reset when you request a withdrawal. Example: You have taken an account from $100,000 to $120,000. You then request a withdrawal of $16,000. In this scenario, you will receive $12,000 and we would retain $4,000. This would also take the balance of the account down to $104,000, and your Maximum Drawdown is locked in at $100,000. So, you would have $4,000 maximum you could lose on the account before it would violate the Maximum Drawdown rule. If you take a full withdrawal of the gains in your Live Account, the Maximum Drawdown will still lock in at the starting balance and will therefore result in the forfeiting of your Live Account, as your balance will trigger the Maximum Drawdown breach rule.
