Trading Rules
Effective Date: March 9th, 2025 — these rules summarize key operating policies. Review the complete Terms and Conditions for full details.
General Account Rules
- 5% Daily Loss Limit (hard breach)
- 6% Max Trailing Drawdown (hard breach)
- Must open or close a trade once every 30 calendar days (hard breach)
- Stop‑loss required for each trade (soft breach)
- Flat for the weekend — all positions closed Friday 3:45pm EST (soft breach) unless weekend holding is selected
- Maximum open positions must not exceed 1/10,000th of the account size (soft breach)
FAQ
Hard Breach vs Soft Breach
Soft breach: violating a soft rule leads to all violating trades being closed; you may continue trading in Assessment or Funded accounts.
Hard breach: violating the Daily Loss Limit or Max Trailing Drawdown results in failing the Assessment or loss of the Funded account.
Daily Loss Limit — 5% calculation
Calculated based on the previous day’s end‑of‑day (5pm EST) balance.
Example: Prior day balance $1,000,000 → breach occurs if next‑day equity falls to $950,000.
Max Trailing Drawdown — 6% calculation
Initially set at 6% of starting balance and trails closed balance until reaching 5% profit. Once 6% profit is achieved, the max trailing locks at starting balance and no longer trails.
Example: Starting balance $100,000 → breach at $94,000. If closed balance reaches $102,000, new high‑water mark → max trailing at $95,880. After reaching $110,000, the max trailing locks at $100,000.
Stop Loss — why required?
A stop loss is required on every trade to enforce sound risk management. If absent at order placement, the trade is closed (soft breach).
Weekend Holding
Available if selected when purchasing the assessment. Holding over the weekend may be purchased for an additional 10%.
If not selected, all trades must be closed by 3:45pm EST on Friday. Violations are closed automatically (soft breach), and you may continue trading when markets reopen.
Lot Sizes
- Forex: 1 lot = $100k notional
- Index: 1 lot = 10 contracts
- Crypto: 1 lot = 1 coin
- Stocks: 1 lot = 100 shares
- Silver: 1 lot = 5000 ounces
- Gold: 1 lot = 100 ounces
- Oil: 1 lot = 1000 barrels
Max Lots with Risk
- $25K account: 2.5 lots with risk
- $50K account: 5 lots with risk
- $100K account: 10 lots with risk
- $250K account: 25 lots with risk
- $500K account: 50 lots with risk
Example: In a $100K plan, you have 10 open lots with risk available.