12% challenge

Why do we offer this program?

As an online virtual proprietary funding company created by traders, our passion lies in providing opportunities for new traders looking to scale up their trading careers by becoming funded traders.

In the past, obtaining trading capital has been a major roadblock for many traders. With our innovative funding program, any trader can significantly scale their capital and access a larger pool of funding, eliminating the challenge of being unable to trade due to low capital.

The 12%  Drawdown Challenge is designed for traders who are consistently profitable and can maintain steady results while adhering to stringent risk management criteria.

The Prop Vault ensures that we provide traders with the most trader-friendly rules and innovative features for their challenge accounts.

Our key benefits include:

  • Trades auto-close when the profit target is reached
  • Balance-based daily drawdown
  • No time limit
  • Instant credentials for both phases

The inactivity rule ensures that your account remains active. To comply, traders must place at least one trade within a 30-day period.

Failure to do so will result in your account becoming inactive, leading to a breach of the account.

As a proprietary trading company, we must implement certain rules to ensure that traders manage risk appropriately and trade ethically without exploiting the funded trading industry.

We do not allow trading styles deemed malicious, including but not limited to:

  • Exploiting errors or latency in the pricing and/or platform(s) provided by the broker
  • Utilizing non-public and/or insider information
  • Front-running trades placed elsewhere
  • Trading in ways that jeopardize the broker relationship or risk trade cancellations
  • Engaging in activities that create regulatory issues for the broker
  • Utilizing third-party strategies, off-the-shelf strategies, or those marketed to pass assessment accounts
  • Using an EA (Expert Advisor) to pass the assessment and then switching to manual trading in the funded account

Several companies market and sell off-the-shelf EAs aimed at passing evaluations or funded challenges. This does NOT represent a genuinely profitable trader and is classified as a malicious practice.

If found engaging in any malicious practices, your account will be breached, and you will be blacklisted from using TPV. No refunds will be issued.

We allow traders to place and close trades during news events across all challenge phases without penalties.

However, for live funded accounts, trades must not be placed or closed within 3 minutes before or after high-impact news events (red-folder events).

Violating this rule will result in profits being deducted, and the account may be terminated. We advise all traders to carefully monitor news events.

Holding trades through news events is permitted.

Withdrawals from your account can be requested after a 30-day period, starting from the date the first trade was placed on your funded account.

 

Maximum Trade Profit Rule:
To maintain balanced profitability and mitigate risk, no singular trading setup can contribute more than 20% of your cumulative profits.

Example:

Cumulative Profits: $10,000.
Maximum Allowable Profit per Trading setup: $2,000.
If a trade’s potential profit exceeds $2,000, adjust the position size accordingly to comply with the rule.
Steps to Ensure Compliance:

Risk-Adjusted Position Sizing:
Before entering a trade, calculate its potential profit to ensure it does not exceed 20% of cumulative profits.
Adjust position size, stop-loss, and take-profit levels to remain compliant with this rule.

These measures are designed to promote disciplined trading and ensure account stability

On our funded accounts, traders must adhere to a maximum 2% risk per trading setup rule. This ensures that all trading aligns with proper risk management and promotes consistent, disciplined trading practices.

How is the 2% calculated?
The 2% risk is based on the initial balance of the account.

Example:

For a $100,000 account, the maximum risk per trading setup is $2,000.
This rule is in place to protect both the trader’s and the firm’s capital to ensure a sustainable trading environment.

Any trading setup over this level will be forfeited.

To maintain consistency and manage risk effectively, we follow a structured approach to calculating and regulating lot sizes:

Step 1: Calculate the Average Lot Size

We analyze trades over a specific period to determine the average lot size for each asset class.

Step 2: Set the Maximum Allowed Lot Size

The maximum allowable trade size is capped at twice the calculated average lot size.

Example:

  • A trader typically trades  lots.
  • Average Lot Size: 1  lots
  • Maximum Allowed Lot Size: 2.0 lots (double the average).

This method ensures that traders maintain consistent position sizing while adhering to proper risk management rules.

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