8% Drawdown

Why do we offer this program?

As an online virtual proprietary funding company created by traders, our passion lies with providing opportunities to new traders looking to scale up their trading career by becoming a funded trader.

In the past, obtaining trading capital has been a roadblock for many traders but with our innovative funding program, any trader can scale up their capital significantly.

The 8% Drawdown Challenge  is designed for traders who:

  • Are consistently profitable and can maintain steady results.
  • Adhere to stringent risk management criteria.
  • Value their time and wish to access trading with a larger pool of capital in a shorter period compared to the classic challenge.

The Prop Vault ensures trader-friendly rules and innovative features for challenge accounts, including:

  • Automatic trade closures when the profit target is reached.
  • Balance-based daily drawdown.
  • No time limits for completing the challenge.
  • Instant credentials provided for both phases.

As a funding company, we implement rules to ensure traders manage risk appropriately and avoid exploiting the funded trading system. Malicious trading practices are not allowed, including but not limited to:

  • Exploiting errors or latency in the pricing and/or platform(s).
  • Using non-public or insider information.
  • Front-running trades placed elsewhere.
  • Trading in ways that jeopardize the Broker’s relationship with Prop Account or cause regulatory issues.
  • Utilizing third-party, off-the-shelf strategies, or strategies marketed specifically to pass assessments.
  • Using an EA (Expert Advisor) to pass the assessment and then manually trading the funded account.

Note: Companies marketing off-the-shelf EAs aimed at passing Evaluations/Funded Challenges do not represent profitable traders and are classified under Malicious Practices.

If found using such practices, your account will be breached, you will be blacklisted from TPV, and no refund will be provided.

The inactivity rule ensures accounts remain active. Traders must place at least one trade within a 30-day period. Failure to do so will result in the account becoming inactive and a breach will occur.

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.

 

This rule applies to live accounts not challenge phases.

  • Challenge phases: Trading during news events is allowed without penalties.
  • Live funded accounts: Trades must not be placed or closed within 2 minutes before or after high-impact news events (red folder events).

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

The leverage for this account type is as follows:

  • Indices: 1:10
  • Metals: 1:18
  • Forex: 1:100
  • Crypto: 1:2

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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