Daily Drawdown: Relative Drawdown based on the Balance/Equity at the start of the day (platform time).
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Currently we have no rules regarding trading the news
No we do not.
Trades open and closed in under 60 seconds is considered HFT and trades open and closed in under 2 minutes will not count towards your profit.
Yes, our program allows for weekend and overnight holding of trades.
At 8FigureTrader we accept almost all trading practices however we are looking for professional traders who understand how to manage large capital and manage risk. We are not looking for gamblers, or traders looking to manipulate the system. Below are the practices / strategies we do not allow. As a result of being an HFT friendly firm, we do understand we have stricter rules than most, but this is due to our elevated risk of not being able to assess a traders behavior prior to entering the funding stage.
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Copy Trading and Third-Party EAs
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You cannot use third-party EAs, signals, copy trading, group trading or any other activity that would result in the same trades from other traders.
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Reverse Trading / Group Hedging
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Hedging or executing reverse trades within a single account is permissible however doing it across different accounts and account owners is not accepted. You cannot open a sell trade on one account and a buy trade on the other of the same pair.
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Group hedging involves individuals opening opposing positions across one or multiple prop firms ensuring one position always wins. All accounts found to be partaking in this practice will be banned.
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Account management services:
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Purchasing account management services or letting someone else trade for you will not be tolerated in any way.
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Sharing accounts and letting someone trade your account is strictly prohibited.
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Grid Trading
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identifying Grid Trading Is subjective to our fraud department but more often than not we use the following points
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Determining the starting price for the grid.
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Choosing an interval, such as 5 pips, 25 pips, or 50 pips.
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Determining whether the grid will be with-the-trend or against the trend.
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Adding on trades as it goes into draw down
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Trade Stacking
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Having 2 trades open at a time is not considered as stacking or layering , however, once there are 3 or more positions open for the same instrument, in the same direction. You will lose your funded account. An example being you open 3 XAU BUY trades without closing any of the prior ones.
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IP Management
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The IP address from which you log in to your master account should remain consistent. If we detect multiple IP addresses logging into your account, our system will consider this a fraud violation for potential account management. Please note that if two individuals are operating from the same location for any reason, it is mandatory for them to use a VPN. Please contact support if you have any questions.
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Martingale Trading / EA’s
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Latency Arbitrage
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Guaranteed Limit Order Fills On News Events ( Buy and Sell Stop Orders On News Events)
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Please note trades that are opened for less than 2 minutes, will not be counted towards your profit. This is to avoid any HFT like trading activities.
Please note any traders found partaking in the above strategies will be subject to losing there challenges / funded accounts.
We do not require the use of a SL on any of our programs. Of course we recommend you use them as it can allow you to manage risk on virtual funds, but there is no rule requiring it.
This can be assessed on a case-by-case basis. If you account has been suspended, you will receive a member discount for future Evaluations.
If you breach the consistency rules, you will not lose your Funded Account – we would only remove the specific trades from the profit/restart the account.
Yes, all types of EAs are allowed at 8FigureTrader.
Please ensure you are using your own EAs instead of copying other’s trades. EAs purchased from third-party vendors are not permitted.
Yes, hedging is allowed, however, using multiple accounts to hedge entries between them will be considered as a violation of rules. This includes hedging between clients.
Hedging your own account to protect a position for example, is completely allowed. Hedging two different accounts/individuals, taking opposite positions in each to bypass the rules, is not allowed.
Yes, we work with consistency-based rules. These rules ensure that we are working with legitimate traders who apply a consistent risk management and strategy to their accounts. As an institution, we must apply this rule to filter the most consistent traders and avoid people who are purely gambling.
Our consistency rule is only enforced in the funded stage and it is assessed at the time of withdrawal:
1. 33% consistency rule: a single trade should not represent more than 33% of the profit being requested. This is to avoid traders going “all in” before news or gambling, rather than applying sound risk management. This also assists us in managing risk as a company and building a more sustainable risk modelling long term.
2. This is also only being enforced in the funded stage. We basically work with volume bands (also for risk management purposes and consistency). Say, if a trader trades with lot sizes of 2 and 4 lots on gold for the month, let’s assume a 3 lot average size per trade and then one day before the payroll (or another situation) he places a single trade with 10 lots, this would be voided from the results as it represents more than 200% of the average volume for the period. The same applies if it is more than 75% below the average lot size.
Example (values for illustration purposes only):
Average lot size: 3 lots per trade
Upper limit: 6 lots per trade
Lower limit: 0.75 lots per trade
Average= total lots traded divided by total number of trades
Upper range= average x2
Lower range= average x0.25
Any trades within that range are perfectly fine. Note trades are aggregated when placed within 60-second window into one position for both profit and volume consistency.
We’ve designed the rules to create a balance between offering a very competitive challenge but also making sure the Prop is sustainable and will remain in the market long term. If you have trades outside of the consistency range, you would not lose your account – only those specific trades would be removed and the remaining amount processed to you.
Some people don’t quite agree with it and others actually said they became better traders by having these rules as it forces them to stick to their trading plan rather than making impulsive decisions.
Yes, each trader is responsible for his/her own account credentials – sharing the details with third parties is outside of out control and is not permitted. Sharing your funded account credentials may lead to having the account suspended.
For the full list of rules, please refer to the Schedule of Assessment.
Yes, only between your personal accounts. We use cutting edge technology for risk management and if you have a large proportion of trades deemed as copy, this is an infringement of our rules.
Third party account management is not allowed – each trades must trade his/her own accounts.
Duplicated IPs between different users in the funded account is a breach of our rules.
Using the same mobile phone/computer to access accounts from different people is seen as a major red flag, given each person should be trading his/her own account. Please ensure you are not sharing your funded credentials with anyone.
- There are only 4 ways to lose your account.
- Violation Of A Drawdown Metric (5% Equity Based Daily, or 10% Total Drawdown, Trailing Of Balance Or Highest Equity)
- Implementing trading styles that are not permitted. See above Q&A
- Having 2 or more violations on the account when requesting a payout
- Inactivity For 30 Days On Your Challenge Or Evaluation Account.
The reason an account can be terminated after 30 days of inactivity is to prevent any vacant accounts from being in our system. If it is required for you to go through a prolonged period of inactivity, you can let the team know ahead of time and we will make sure your account is secure. You can also update our team anytime before the 30 days with the reason for inactivity, and this will violation will not apply. An account can also be terminated if continuous copy trading or account management warnings have been issued.