Allowed Trades

Taking a 1% risk trade on a $50,000 account

You have a $50,000 challenge account. You identify a high-probability setup on EUR/USD and decide to risk 1% of your account — $500. You set your stop loss at 20 pips and your take profit at 40 pips, giving you a 1:2 risk-to-reward ratio. This is perfectly allowed because you are staying within the recommended risk per trade and using proper position sizing.

Holding a position within drawdown limits across multiple days

You enter a long position on Gold (XAU/USD) on Monday. The trade moves against you slightly on Tuesday but stays well within both the 3% daily drawdown and 7% static drawdown limits. You hold the position and it becomes profitable on Wednesday. This is allowed — there is no rule against holding positions overnight during the challenge, as long as you stay within drawdown limits.

Hitting the profit target gradually over 10 days

Over 10 trading days, you make small consistent gains of 0.3% to 0.8% per day. You never have a losing day larger than 0.5%. After 10 days, you hit the 8% profit target for Phase 1. This is allowed and is actually the ideal way to pass — slow and steady trading with proper risk management is exactly what evaluators want to see.

Using a stop loss on every trade

You place a stop loss on every single trade you take. Even on trades where you feel very confident, you always set a stop loss at a level where the trade idea would be invalidated. Your stop losses typically range from 10 to 30 pips depending on the pair and market conditions. This is allowed and strongly encouraged — using stop losses is a requirement of responsible trading.

Closing a trade early when news is expected

You are holding a profitable position on USD/JPY. You know that a major news announcement is coming in 2 hours. To avoid the risk of volatile price swings during the news window, you close the trade early and take your profit. This is allowed — you can close trades at any time, and planning around news events is smart risk management.

Trading only one lot size consistently

You trade the same position size on every trade — one mini lot (0.1) on a $10,000 account. You never increase your size, even when you are on a winning streak. Your risk per trade is consistent at 0.5%. This is allowed and demonstrates the consistency that evaluators look for.

Taking a day off when market conditions are unclear

You check the markets in the morning and see that price action is choppy with no clear direction. There are no high-probability setups. Instead of forcing a trade, you decide to skip trading for the day. This is allowed — you are not required to trade every day. You must trade at least 4 days total during the challenge, but you can take days off whenever you want.

Scaling out of a winning position

You enter a long position on GBP/USD with three partial take-profit levels. The first target hits and you close one-third of your position. The second target hits and you close another third. You let the final third run with a trailing stop. This is allowed — scaling out of positions is a valid risk management technique and does not violate any rules.