Trading on behalf of our funding program requires good knowledge of the rules
What are the rules of my Assessment account
If the rule is not listed below, it does not exist! Unlike many prop firms that have hidden rules designed to make you fail, we keep it realistic and simple with the aim to make you a funded, career prop trader. The rules are split into two categories, HARD and SOFT breach. 5% Daily Loss Limit (hard breach) 6% Max Trailing Drawdown (hard breach) Failure to trade at least once every 30 days (hard breach) Stop-loss required at the time of opening a trade, on both pending and instant orders. (soft breach) You have the option to by-pass this rule with an add-on that can be purchased at the check-out. Flat for the weekend. All positions must be closed by 3.45 EST (soft breach). You have the option to by-pass this rule with an add-on that can be purchased at the check-out. Maximum open positions in lots, must not exceed 1/10000th on the size of the assessment account (soft breach) For example, a $50,000 account can have up to 5 lots open with risk.
What is the difference between a hard and soft breach rule?
SOFT breach means that we will close all the trades that have violated the rule. However, you can continue trading in your Assessment of Funded account. HARD breach means that you have violated either the Daily Loss limit, the Max Trailing Drawdown rule or the 30 day inactivity rule. A violation of any of these three rules would constitute a hard breach. In the event of a hard breach, you would be deemed to have failed the Assessment phase and would need to re-purchase a new assessment. A Funded account would also be stopped and removed. You will be invited to repurchase a brand new Assessment to start over.
How do you calculate the 5% Daily Loss Limit?
The daily loss limit is calculated based on the previous day’s end of day (5 pm EST) Unlike many other prop firms, we do not base the calculation on the previous day’s equity. Using the balance model allows you to scale profits without the fear of a hard breach. Let’s looks at an example: If you have a closing balance at 5 pm EST on Monday of $50,000, you will violate a daily stop loss limit (hard breach) on Tuesday if the account equity reached $48,000. However, if you were able to take the account to $53,000 on Tuesday, your daily loss limit would still be calculated from $50,000 so would remain at $48,000.
How do you calculate the 6% Max Trailing Drawdown?
Maximum Trailing drawdown is the maximum your account can drawdown before you would violate a hard breach on your account. When you initiate your account for the first time, your Max trailing drawdown is set at 6% of your account. This trails you balance, until you reach 6% in profits in your account. Once that has been achieved, you maximum trailing drawdown is locked in at your starting balance and no longer trails your account. Let’s look at an example: If your starting balance is $100,000, you can drawdown to $94,000 before you would violate the maximum trailing drawdown rule (as long as not in a single day, which would violate the 5% daily drawdown rule). Let’s assume you take the account balance to $103,000. This is your new high-water mark which would mean your new Maximum trailing drawdown would be $97,000. Now let’s assume you were able to take your account balance to $106,000. This would be your new high watermark. At this point the maximum trailing drawdown would be locked in at your starting balance of $100,000 as your account is now 6% in profit. So regardless of how high you grow your account, you would not have a hard breach and violate the max trailing drawdown rule, until fall back to $100,000. In theory, this could mean, that with your mentoring and coaching from The City Traders, you could take your account to $250,000 and would only violate the maximum trailing draw down, if you fell back to $100,000. As long as you don’t violate the Daily drawdown limit of 5%.
Why do I have to place a stop loss on the trade?
If you fail to place a stop loss at the time of placing the trade or pending order, this would be a soft breach and the trade or pending order would be closed/cancelled. As this is a soft breach, you would be able to continue to trade. Multiple soft breaches could result in a call from our risk management team. This is after all real money! You are able to purchase an add- on at the checkout, to by-pass this rule. The additional cost is to compensate for the additional risk that we are exposed to.
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. You are able to purchase an add- on at the checkout, to by-pass this rule. The additional cost is to compensate for the additional risk that we are exposed to.
What is 1 lot equal to on the EightCap Trading Platform?
• Forex - 1 lot = $100k notional • Index - 1 lot = 10 Contracts • Cryptos - 1 lot = 1 coin • Stocks - 1 lot = 100 shares • 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)
Below are the maximum open lots across all pairs that a trader can have at any given time. • $12.5k - 1.25 lots 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 For example, if you are in the $100k plan you will 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 trades 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.
How long does it take to get my Funded account?
We work with a company called Deel to issue trader agreements and process withdrawals of profits. Upon passing your Assessment, you will receive an email from Alicia from Deel email@example.com with instructions on how to access and complete your Trader Agreement. Once the agreement is completed and supporting Know Your Customer documents provided, your Funded account will be created, funded and issued to you typically within 24-48 business hours.
Once I pass will I be provided with real or a demo account?
Once you pass the Assessment, we provide you with a live account, funded with real capital.
What are the rules for the Funded account?
The rules for the Funded account are exactly the same as your Assessment account. However, with a Funded account, there is no cap on the profits you can generate.
If I have a hard breach in my live account and there are profits, do I forfeit those profits?
If you have profits in your Funded account at the time of a hard breach, you will still receive your portion of those profits. For example, if you have a $100,000 account and you grow that account to $110,000. Should you then have a hard breach we would close the account. Of the $10,000 in profits, you would be paid your 75% portion ($7,500).
How do I withdraw my profits?
When you are ready to withdraw your profits, please send an email to our support email address firstname.lastname@example.org with the amount you would like to withdraw. We will then post your profit share into your Deel account, which you can withdraw via any of the available methods they offer. (wire transfer, PayPal, Payoneer, Coinbase, Revolut, ACH and other popular methods)
When can withdraw profits from my funded account?
You can withdrawal your profits at any time, once per calendar month. At the time of any withdrawal request, we will also withdraw our share of the profits made, as well. Note that you can make your first withdrawal at any time from day one. Important Note: Once you request a withdrawal, your maximum trailing drawdown will remain at your starting balance and does NOT reset. This means that if you take a full withdrawal of your share of the profits made in your account, it will also serve as a hard breach of your account. So, for example, If you have a starting account of $100,000 and take this to $120,000 your maximum trailing drawdown would be locked at $100,000. If you withdraw the $20,000 profit, your account would be in hard breach as it would hit the maximum trailing drawdown of $100,000. If you were to withdraw $18,000 of the profit, your account would now be at $102,000, just $2,000 away from the max trailing drawdown. If however, you grow the account to $250, 000 and withdraw $100,000, thus leaving $150,000, it would still leave you a $50,000 buffer for your drawdown. This encourages equity growth and long-term success.
General Q and A
What products can I trade?
You can trade any products offered by EightCap. This includes FX pairs and CFD Indices, Metals, Equity Shares, and Cryptocurrencies.
What platform can I trade on?
Our risk management technology is currently integrated platforms offered by EightCap. These platforms, along with pricing and execution are provided by our broker, EightCap.
What are the trading hours?
Trading hours are set by EightCap. We do not have any control over the trading hours. Please note that holidays can have an impact on available trading hours.
Do the accounts charge commissions?
We use the RAW accounts from EightCap. These accounts have commission charges for Forex and Equity Share CFDs. The other products do not carry a commission.
Can I trade during the news events?
What is the permitted leverage?
In line with sound risk management practices, we allow up to 10:1 leverage. Forex, Metals, and Indices are 10:1. Equity Shares are 5:1. Cryptos are 2:1. You can purchase an extra add-on to your trading account that doubles the leverage on FX and Metals trades.
Can I use EXPERT ADVISORS?
EA's, Copy Traders, Scripts, and Indicators are all allowed.
What countries are accepted?
All countries, excluding OFAC listed countries, can take part in our program.
How many accounts/challenges am I allowed?
You are permitted to take 1 EVALUATION at a time. $2 million max per person (can be made up of multiple assessments, provided none are same size at the same time)