Prop Trading with FOREXer

Maintaining peace of mind is essential for you to concentrate entirely on your trading performance. We aim to spare our traders from undue stress, and that's why there are no time constraints during the Trading Period. You have the freedom to take as much time as necessary to reach your Profit Target.

To achieve this goal, you should engage in trading for a minimum of four days within the current duration cycle. On each of these days, it's essential to open at least one position. A trading day is defined as any day when at least one trade is carried out. If a trade spans multiple days, we only count the day when the trade was initiated as the trading day.

This rule can also be referred to as the "trader's daily stop-loss." As per our regulations, this stop-loss is set at 5% (or 10% in the case of the Aggressive version) of the initial account balance. In essence, this rule stipulates that at any given moment during the day (CE(S)T = Central European (Summer) Time), the cumulative result of all closed positions, when added to the current open floating profits/losses, must not exceed the predetermined daily loss limit. The calculation formula is as follows:

Current daily loss = results of closed positions on the current day + result of open positions.

For instance, in an Prop trading Challenge with an initial account balance of $200,000, the Max Daily Loss limit stands at $10,000. So, if you incur $8,000 in losses from your closed trades, your account balance should not decrease by more than $2,000 on that day. Additionally, your open floating losses should not exceed -$2,000. This limit includes commissions and swaps.

Conversely, if you make a profit of $5,000 in a day, you can tolerate losses of up to $15,000, but not beyond that threshold. It's important to note that your Maximum Daily Loss takes into account your open trades as well. For instance, if you suffer $6,000 in losses from closed trades in a day and then open a new trade with a floating loss of around -$5,700, which eventually turns positive, it will still be too late. At one point, your daily loss exceeded -$11,700 in equity, surpassing the allowed limit of $10,000.

Keep in mind that the Maximum Daily Loss resets at midnight CE(S)T. For example, if one day you earn a profit of $4,000 and simultaneously hold an open position with a floating loss of $13,000, you won't violate the maximum daily loss on that day. The current daily loss would be $9,000 ($4,000 closed profit - $13,000 open position). However, if you still hold that position with a $13,000 open loss after midnight, you would exceed the daily loss limit. This is because your previous day's profit doesn't carry over to the new day, and the open loss of $13,000 surpasses the maximum daily permitted loss of $10,000.

The Maximum Daily Loss size provides traders with ample room for trading while ensuring a well-defined daily risk for investors. Both traders and investors benefit from this rule as it prevents the account value from dropping below the specified limit. This is why the Maximum Daily Loss limit encompasses potential floating losses as well.

This rule can also be referred to as the "account equity stop-loss." Throughout the account duration, the trading account's equity must never fall below 90% of the initial account balance. In the case of a prop trading challenge with a $100,000 balance, this means the lowest allowable account equity would be $90,000. Once again, this includes both closed and open positions (account equity, not balance). The calculation logic is akin to that of the Maximum Daily Loss; the key difference is that it applies not just to a single day but to the entire testing period. This limit encompasses commissions and swaps.

Having 10% of the initial account balance as a buffer offers traders the opportunity to demonstrate that their account is fit for investment. It acts as a safeguard, ensuring that traders can stay in the game even if they experience some initial losses. For investors, it provides assurance that the trader's account will never dip below 90% (or 80% in the case of the Aggressive version) of its value under any circumstances.

In Challenge and Verification stages, the Profit Target is defined as 10% (or 20% in the Aggressive version) of the initial balance. Meeting the profit target entails a trader achieving a profit equivalent to the sum of closed positions on the designated trading account at any point during the unlimited Trading Period. It's important to note that, in order to progress to the next phase, all positions must be closed. For instance, if you're participating in a prop trading challenge with a $100,000 account balance, your profit target would be $10,000 during the Challenge and the Verification stages.

If the applicant completes the process of opening a prop account within 10 days after the initial request, the input fee paid for activating the challenge stage will be refunded to their trading account as a tradable amount (bonus).

• Transaction and Withdrawal Limits: The bonus is exclusively for trading purposes and cannot be withdrawn. Its sole purpose is to enhance the trader's trading power.
• Validity Period: The bonus is valid for one calendar month.
• Profit Withdrawal: Profits earned using the bonus can be withdrawn only after the bonus has been removed from the account.
• Abuse and Enforcement: If the bonus is abused (e.g., through arbitrage), the Forex Broker may cancel the bonus or suspend the account for review. Post-review actions may include fund recovery or account adjustments.
• Adjustments for Abuse: In cases of abuse, the Forex Broker will adjust the account balance to reflect the removal of the bonus and ensure fair trading practices.