*This page provides detailed information regarding the operational guidelines for Edmond Trader Funding Performance Accounts.*
At Edmond Trader Funding, our Evaluation Accounts are designed to assess a trader's core ability to achieve profit targets and manage risk within a simulated trading environment. This phase does not include specific "consistency" rules beyond adhering to the primary objectives like managing the Trailing Drawdown. We encourage traders to use this period to adapt to market dynamics and refine their strategies.
However, for traders who successfully advance to a Performance Account, certain consistency guidelines are introduced. These are designed to foster sustainable trading practices and align with our goal of building long-term relationships with skilled traders. Understanding these guidelines is crucial for success.
1.1. Edmond Trader Funding seeks to partner with traders who demonstrate the ability to grow their accounts through steady, disciplined, and consistent trading. We value strategies that are applied methodically day-to-day, rather than approaches characterized by erratic position sizing, wild swings in equity, or the pursuit of unrealistic single-day profits.
1.2. Our funded trader program is envisioned as a long-term collaboration. We aim to support traders who follow a well-defined plan regarding contract sizing, risk management (stops), and profit objectives. This means avoiding impulsive trades with maximum or unusually large contract sizes that are not characteristic of your typical trading style.
1.3. We are looking for genuine trading talent, not individuals who engage in superficial trading merely to meet activity quotas, frequently and erratically change position sizes, or employ prohibited high-frequency trading tactics. Our commitment is to traders who approach the markets with professionalism and a sound methodology, not those seeking to exploit the system.
To promote disciplined capital management and gradual exposure increase, our Contract Scaling guideline applies during the initial growth phase of a Performance Account.
2.1. Initial Phase Limit: Traders are permitted to use up to 50% of their Performance Account's maximum allowable contracts until the account's trailing threshold has been successfully surpassed.
2.2. Surpassing the Trailing Threshold: The trailing threshold is considered surpassed when the account's End-of-Day (EOD) balance exceeds the sum of its initial starting balance, the full trailing drawdown amount, plus an additional $100 buffer. Once this milestone is achieved, the trader may utilize their full contract limit from the next trading session. After this point, the trailing drawdown mechanism for the account is permanently removed.
2.3. Example: A $50,000 Performance Account has a 10-contract maximum and a $2,500 trailing drawdown. The trader can use up to 5 contracts initially. To use the full 10 contracts, the EOD balance must exceed $52,600 ($50,000 + $2,500 + $100).
2.4. Once the trailing threshold is surpassed, traders can continue using the full contract limit even if the account balance subsequently dips below this specific threshold level.
2.5. Consequences of Non-Compliance (Scaling):
To encourage prudent risk-taking on individual trades within Performance Accounts, Edmond Trader Funding has an MAE guideline. This rule states that the total live, unrealized, open negative Profit and Loss (PnL) across all active trades should not exceed 30% of the account's "available margin" at the start of the trading day.
3.1. Calculating Available Margin:
3.2. This is not a daily loss limit but a control on the maximum unrealized loss exposure from open positions relative to the day's starting profit cushion or initial risk buffer.
3.3. Example: A trader in a $150,000 Performance Account has surpassed their trailing threshold and starts the day with a profit balance of $8,000. Their maximum combined open negative PnL for that day should not exceed $2,400 (30% of $8,000).
3.4. If an account's profit balance (after surpassing the trailing threshold) grows to be double its original initial trailing drawdown amount, the MAE allowance may increase to 50% of the start-of-day profit.
3.5. Handling Accidental MAE Breaches: A minor, temporary breach of the 30% MAE limit does not automatically trigger severe penalties. If a trader's open PnL briefly exceeds this, they must take immediate action to reduce exposure and return to compliance. Prompt correction of such inadvertent breaches will generally not incur penalties.
3.6. Consequences of Non-Compliance (MAE): Consistent adherence is vital. A first significant violation may result in a written warning and account review. Repeated or flagrant disregard can lead to forfeiture of payout eligibility, reversal of profits gained during non-compliance, and potential permanent account closure.
Edmond Trader Funding promotes consistent, sustainable profitability. This guideline addresses the proportion of total profit generated in a single trading day, especially concerning payout eligibility. It aims to discourage over-reliance on isolated, high-risk "windfall" days to reach withdrawal targets.
4.1. If a Performance Account generates more than 30% of its total accumulated profit within a single trading day, this may affect immediate profit withdrawal eligibility.
4.2. Typically, the trader will need to continue trading, demonstrating further consistent profitability, until the profit from that exceptionally high-performing day constitutes less than 30% of the new, higher total profit balance.
4.3. Edmond Trader Funding reserves the right to review adherence to this guideline on a case-by-case basis when processing payouts. We may, at our discretion, approve a payout with a marginal breach or require further trading if profit distribution is deemed insufficiently consistent.
4.4. This guideline is generally no longer applied after a trader has received their sixth successful payout from a Performance Account or transitions to a Live Proprietary Trading Account with our partners.
4.5. Consequences of Non-Compliance (Profit Consistency): A one-time occurrence usually requires further trading to normalize profit distribution. Repeated patterns of relying on such outsized single-day gains may lead to payout forfeiture and possible account suspension.
Traders must strictly observe the maximum contract limits specified for their Performance Account. Any attempts to circumvent this rule are prohibited.
5.1. Prohibited practices include (but are not limited to):
5.2. Consequences of Non-Compliance (Max Contracts): Violation will lead to disqualification of any pending payout request. Profits from trades breaching this rule will be reversed, and the account balance adjusted to its state prior to the violation. Persistent or flagrant abuse will result in Performance Account termination without refund or payout.
Edmond Trader Funding values a consistent approach to position sizing. While not mandating identical contract numbers for every trade, a generally stable approach to risk exposure over time is expected. Significant, unexplained variations in contract sizes can suggest an inconsistent methodology.
6.1. Key Considerations for Position Sizing:
6.2. Traders should maintain a trading style consistent with their strategy from the start of their Performance Account, adjusting reasonably for growth or losses.
Strategies involving adding to an initial position ("averaging in") are permissible if executed responsibly, maintaining appropriate risk-to-reward for the combined position and complying with all other guidelines (MAE, Profit Consistency).
Traders may add to existing profitable positions ("scale in") as part of a defined strategy with clear directional bias and risk management.
Trading during news is allowed, but traders must maintain a single directional bias (long or short, not both simultaneously in the same or highly correlated instruments). Coordinated group trading to exploit news is prohibited.
10.1. Fully automated systems (bots, HFT, "set-and-forget" software) are strictly prohibited.
10.2. Semi-automated tools are permissible if the trader actively monitors and controls all activity, making real-time decisions.
Holding opposing positions (long and short) simultaneously in the same instrument, or spread trading between highly correlated instruments to neutralize directional risk, is prohibited. All trading must be fundamentally directional.
All trading must be executed solely by the named individual account holder. Third-party management, trade copying, or signal following is forbidden.
Traders must operate with a clearly defined, consistently applied trading strategy. Edmond Trader Funding may request explanations, annotated charts, live session reviews, or recordings to verify compliance.
14.1. Mandatory Stop-Loss Practices: Trading without a defined stop-loss strategy is prohibited. Relying on the Trailing Threshold as the sole stop-loss for every trade is not acceptable.
14.2. Prudent Risk Management: Avoid "all-in" trades. Initiating a Performance Account with excessively large positions to quickly surpass the trailing drawdown is viewed as gambling.
14.3. Essential Requirements: Implement risk management (stops, sizing) appropriate for your strategy. Always have a pre-defined exit plan.
Maintain a reasonable balance between potential risk and reward (e.g., avoid risking 50 ticks for a 10-tick target). Adhere to pre-defined stop-loss levels and do not widen them post-entry beyond planned risk.
The following are strictly forbidden and will lead to review and potential penalties, including account forfeiture:
All traders must adhere to high standards of professional conduct and respectful communication in all interactions related to Edmond Trader Funding.
A trader demonstrating a defined strategy, managing risk prudently (including adherence to initial scaling and MAE limits), and achieving consistent results is aligned with Edmond Trader Funding's expectations for funded traders.