Pro Account Trading Rules
Consistent guidelines that help protect your progress and set you up for long-term success.
Our trading rules are simple to follow and easy to understand. There’s no long list to memorize, just a few expectations that help you manage risk and keep your account in good standing.
1. Contract Scaling Rule
To promote disciplined growth, the Contract Scaling rule outlines how traders manage contract sizes during the growth phase of the account.
- Initial Limit: Traders are restricted to trading half of their maximum allowed contracts until they reach the trailing threshold stop.
- Threshold Reached: Once the account's End-of-Day (EOD) balance exceeds the trailing threshold (the initial balance + trailing drawdown + $100), traders can then use their full contract limit starting with the next full trading session.
Example:
For example, on a $50,000 Performance Account with a maximum of 10 contracts, traders can initially trade up to 5 contracts. When the account EOD balance reaches $52,600 ($50,000 initial balance + $2,500 trailing drawdown + $100 buffer), the trailing stop no longer applies, and traders can trade the full 10 contracts.
Once the trailing threshold is reached, traders can continue using the full contract limit even if the account balance drops below the threshold.
Single Violation Penalty:
If more than half of the maximum allowed contracts are accidentally traded, traders are expected to close out the excessive contracts immediately. Failure to do so may result in the payout request being denied and the account being reset to the EOD balance from the previous trading day, which is the day before the first scaling rule violation occurred.
The trader would then need to complete 8 additional compliant trading days before becoming eligible to request another payout.
Consistent Violation Penalty:
Will result in account closure and forfeiture of all balances.
2. 30% Negative P&L Rule (MAE)
The 30% Negative Profit and Loss (P&L) Rule limits the loss a trader can incur on any single trade, providing a structured approach to risk management. Under this rule, the live, unrealized, open negative P&L cannot exceed 30% of the account's profit balance at the start of the day on a per-trade basis.
This is not a daily loss limit, but a control to prevent excessive loss on any individual trade. At any point, your open negative P&L should not surpass 30% of your start-of-day profit. Regularly monitor your trades and exposure to stay compliant with the rules.
- Adjustment Based on Growth: If the end of day (EOD) profit balance doubles the safety net, traders may use a 50% drawdown limit instead of 30% starting with the next full trading session.
Example:
For a $50,000 account, if you accumulate $2,600 in profit and pass the safety net, your risk is calculated based on 30% of that $2,600. If your profits rise to $5,200, your drawdown allowance can increase to $2,600 (50% of $5,200).
3. 5:1 Risk Ratio Rule
The 5:1 Risk-Reward Ratio Rule: Proper risk management is not just encouraged but is mandatory for all accounts, ensuring that trading is conducted responsibly and without speculative or reckless behavior.
The 5:1 Risk-Reward Ratio Rule is a risk management guideline that ensures your trades are balanced with a responsible amount of risk relative to the potential profit. For every trade you make, your stop loss should not exceed five times the amount of your profit target.
For example:
- If your profit target is 10 ticks, your maximum stop loss should be 50 ticks (5 times your profit target).
- If you set a stop loss beyond 50 ticks, such as 100 ticks, this would violate the rule.
Following the 5:1 rule helps you manage risk by ensuring that you are not taking excessive losses relative to your target profits. This helps protect your account balance and encourages more disciplined trading over time. By following the 5:1 Risk-Reward Ratio, maintain a disciplined trading approach that supports long-term success and helps you manage risk effectively.
4. Hedging Rule
No Hedging: Holding both long and short positions simultaneously on the same or correlated instrument is strictly prohibited.
5. One Direction Rule (Directionally Biased Trading)
Traders are only allowed to hold a position in one direction at any time—either long (buy) or short (sell). Traders are also prohibited from using a non-directionally biased strategy where they have open orders for both sides of the market
- Planned Exits for Both Losses and Profits: Before initiating any trade, traders must have a clear plan for managing both risk and profit targets. Stop losses, profit targets, and trailing stops should align with the strategy's historical performance and back-tested data.
- Trailing Stops for Profit Protection: As the market moves in your favor, trailing stops should be used to secure gains while allowing profits to run during trends. However, stops should not be moved backward to increase risk and potentially violate the drawdown rules. Adjusting stops forward to protect profits is a key aspect of effective risk management..
- Strategies for Automation: (Advanced Trade Management) strategies, which automate stop-loss and profit-target levels. These can be adjusted during trades to protect profits while adapting to market conditions.
- Every trade must include a defined risk level, a clear exit strategy for both profit and loss, and adherence to the 5:1 maximum risk-to-reward ratio. Reckless trading practices—such as speculative “all-in” trades, adjusting stops to increase risk, or relying solely on the Trailing Threshold to manage risk—are prohibited.
Violating these rules can result in denied payouts and even account closure, so it's essential to understand and follow them carefully.
Good Luck Happy trading!
More details page - to follow.
These rules are designed to create a fair and professional trading environment while keeping the path to payouts straightforward. Review the rules above so you can trade with confidence and stay focused on your growth.