1-Step Evaluation Rules
Craig Searer
Last Update setahun yang lalu
Trading rules at a glance
| Rule Area | Evaluation | Funded | Notes |
|---|---|---|---|
| Equity Growth Target | 10% | - | Funded accounts have no limits |
| Daily Loss Limit | 5% | 5% | Equity-based, limit set by prior day balance (Hard Breach) |
| Trailing 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 | 1:20 | 1:20 | Can go up to 1:20 with add-on |
| Stoploss required | No | No | Required for each trade (Soft Breach) |
| Flat for the weekend | Yes | Yes | All positions closed on Friday 3:45pm EST (Soft Breach) |
| Max Time | - | - | No max time requirements |
Add-ons (available at time of purchase)
- Hold Over Weekend (10% Cost) – Point-of-Sale add-on that disables “Flat for Weekend” requirement; this allows traders to keep positions open over the weekend.
- Share of Gains Increased to 90% (20% Cost) – Point-of-Sale add-on that increases a trader’s potential share of the gains for funded accounts to 90% (up from the standard 75%) of the gains.
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 Funded Account.
- Hard breach means that you violated either the Daily Loss Limit or Max Trailing Drawdown rule. Both rules constitute a hard breach. In the event you have a hard breach, you will fail the Assessment or have your Funded Account taken away.
How do you calculate the 5% 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 the 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 $95,000 during the day. If your floating equity is +$5,000 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 $95,000.
How do you calculate the Maximum Trailing Drawdown?
The Maximum Trailing Drawdown is initially set at 6% and trails (using CLOSED BALANCE - NOT equity) your account until you have achieved a 6% return in your account. Once you have achieved a 6% return the Maximum Trailing Drawdown no longer trails and is permanently locked in at your starting balance. This allows for more trading flexibility.
Example: If your starting balance is $100,000, you can drawdown to $94,000 before you would violate the Maximum Trailing Drawdown rule. Then for example let's say you take your account to $102,000 in CLOSED BALANCE. This is your new high-water mark, which would mean your new Maximum Trailing Drawdown would be $96,000. Next, let's say you take your account to $106,000 in CLOSED BALANCE, which would be your new high-water mark. At this point your Maximum Trailing Drawdown would be locked in at your starting balance of $100,000. So, regardless of how high your account goes, you would only breach this rule if your account drew back down to $100,000 (note, you can still violate the daily drawdown). For example, if you take your account to $170,000, as long as you do not drawdown more than 5% in any given day, you would only breach if your account equity reaches $100,000.
Do I have to place a stop loss on trades?
No, however we believe sound risk management means using stop losses. To that end, we recommend but do not require a stop loss on every trade.
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.
What is 1 lot equal to on the Trading Platform?
- Forex - 1 lot = $100k notional
- Index - 1 lot = 10 Contracts
- Cryptos - 1 lot = 1 coin
- Silver - 1 lot = 5000 ounces
- Gold - 1 lot = 100 ounces
- Oil - 1 lot = 1000 barrels
How many lots can I trade? (Max Lots with Risk)
For ThinkMarket accounts, there is no max lot rule. The only restriction on lot size is based on your account equity. If you have the equity in your account to cover the trade, you can place the trade.
For EightCap accounts, below are the maximum open lots across all pairs that a trader can have at any given time.
- $5k - 0.5 lots with risk
- $10K - 1 lot with risk
- $25K - 2.5 lots with risk
- $50K - 5 lots with risk
- $100K - 10 lots with risk
- $250K - 25 lots with risk
- $500K - 50 lots with risk
- $1 million - 100 lots with risk
For example, if you are in the $100k plan, you will be able to have 10 open lots with risk available.
If you buy 5 lots of EURUSD at 1.20 and your stop loss is at 1.18, you will have 5 lots on with risk, so you would have 5 still available. If the EURUSD moves up to 1.25, and you update your stop loss to be at 1.20, which would be your open price, you no longer have risk on that trade. So, you would again have 10 lots available, even though you currently have 5 lots open.
If you put on too many lots with risk, then our system will liquidate all trades that currently have risk.
Please note, margin and leverage requirements still apply. So, even though these are the maximum lots that can be traded, it is possible based on the leverage of the account that you may not be able to trade up the maximum.
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.