Trading Restrictions

What It Means

Beyond the core drawdown and profit target rules, several additional restrictions apply to protect both traders and the firm's capital. Some restrictions apply only during the evaluation phases, while others apply only to funded accounts. Understanding these restrictions before you encounter them is essential to avoid accidental violations that could cost you your challenge or funded account.

News Trading Restriction

Trading news events is restricted to 5 minutes before and 5 minutes after major economic releases. This applies to both evaluation and funded accounts. Major releases include but are not limited to: Non-Farm Payrolls (NFP), Consumer Price Index (CPI), Federal Reserve interest rate decisions, Gross Domestic Product (GDP) reports, and other high-impact economic indicators. If you open a position or have an existing position open during the 10-minute window around a major news event, it is considered a violation.

This restriction exists because news events create extreme volatility with unpredictable price spikes and slippage. A trader who happens to be on the right side of a news move could generate disproportionate profits in seconds, which undermines the evaluation's purpose of measuring consistent trading skill. Conversely, a trader on the wrong side could lose a large portion of the account in an instant, bypassing the risk management rules.

Copy Trading Restriction

Copy trading is not permitted on funded accounts. Every trade executed on a funded account must be the result of your own analysis and decision-making. This restriction applies to both copying other traders' positions and having your positions copied by others. During the evaluation phases, copy trading is also discouraged but may be permitted on a case-by-case basis. The firm's position is clear: funded accounts are for individual traders demonstrating their own skill, not for mirroring external signals or strategies.

The restriction exists because copy trading shifts the risk assessment from the account holder to an unknown third party. If you are copying a signal provider who takes excessive risks, the funded account could be wiped out quickly. The firm evaluates you as an individual, and they need to see your personal trading decisions.

Weekend Holding Restriction

Holding positions over the weekend is strictly prohibited on funded accounts. All positions must be closed before the market close on Friday. This restriction does not apply during evaluation phases, where you can hold positions over the weekend if your strategy requires it. However, on funded accounts, the weekend gap risk is considered too high — markets can open significantly different on Monday due to weekend news events, and the firm cannot allow funded accounts to be exposed to that level of uncertainty.

Consistency Rule (Funded Accounts Only)

The 15% consistency rule applies exclusively to funded accounts. In each payout period (typically 14 calendar days), no single trading day's profit can exceed 15% of your total net profit for that period. If your best day exceeds 15%, your profit split for that period is recalculated or deferred until the rule is satisfied. For example, if you generate $1,000 in total profit over a payout period, your best day cannot exceed $150. If your best day was $300, you would need additional profitable days to bring the ratio into compliance before a payout can be processed.

This rule is designed to prevent one-luck-trade payouts. The firm wants to reward traders who generate steady, repeatable profits rather than those who hit a single large trade and request an immediate payout. It encourages proper risk management and position sizing.

Funding Agreement

Before you can begin trading on your funded account, you must sign a funding agreement. This is a legally binding document that outlines the terms of the capital provision, profit sharing arrangement, risk parameters, and your responsibilities as a funded trader. The agreement covers account closure conditions, payout terms, confidentiality clauses, and dispute resolution procedures. You should read it carefully before signing. The funding agreement is provided after you pass Phase 2 and your funded account is being set up.

Allowed Examples

Violation Examples

FAQ