The 1 Phase Challenge is designed with specific rules to ensure disciplined and strategic trading. These rules help traders develop sustainable trading habits while meeting the challenge objectives.
Key Rules
1. Daily Loss Limit
The Daily Loss Limit is set at 3% of the starting day’s balance or equity, whichever is higher. This ensures traders cannot exceed a manageable loss within a single day.
How it’s calculated:
At the start of each trading day, the platform determines the higher value between the account's balance or equity. The 3% limit is then applied to this value.
Example:
If your balance is $10,000 and your equity is $10,500, the daily loss limit will be: $10,500 × 0.03 = $315
2. Maximum Loss Limit (Trailing)
The Maximum Loss Limit is set at 6% of the account size and functions as a trailing drawdown, locking at the initial account balance. This rule ensures that traders manage risk effectively while still allowing room for growth.
How it works:
The Maximum Loss Limit initially allows a drawdown of 6% from the starting account balance.
As profits grow, the trailing drawdown increases but locks at the initial account balance once your equity surpasses the starting balance.
If your account goes into drawdown, the locked value ensures that you won’t lose more than the allowed 6% from the starting point.
Example 1 (Without Growth):
On a $10,000 account:
Initial Maximum Loss = $600.
Maximum allowable loss is $10,000 - $600 = $9,400.
Example 2 (With Growth):
If the account grows to $12,000:
The maximum loss increases and locks at $10,000, so your maximum allowable drawdown becomes $12,000 - $10,000 = $2,000.
If the account then falls to $9,800, the maximum drawdown would still hold at $10,000 meaning your account is failed.
3. Profit Target
To successfully complete the challenge, you must achieve a 10% profit on your account.
Account Size | Profit Target |
$5,000 | $500 |
$10,000 | $1,000 |
$25,000 | $2,500 |
$50,000 | $5,000 |
$100,000 | $10,000 |
4. Minimum Trading Days
To ensure that traders demonstrate consistent performance, a minimum of 3 trading days is required to complete the challenge. Trades can be spread out or consecutive.
Consistency Rule
The Consistency Rule applies only to the funded stage. It ensures traders maintain a balanced profit distribution without relying on large, high-risk trades.
Summary Table
Rule | Details |
Daily Loss Limit | 3% of starting day’s balance or equity, whichever is higher. |
Maximum Loss (Trailing) | 6% of the account size, trails upwards as profits increase. |
Profit Target | 10% of the account size. |
Minimum Trading Days | 3 days required to complete the challenge. |
Consistency Rule | Applies only in the funded stage to ensure balanced profit distribution. |