Our Trading Combine rules are put in place to set you up for long term success, and to instill positive trading behavior. Below are the rules, what they mean, and why they're important to your trading:
Rule: Trade a minimum of 5 days (in Step 1) and 10 days (in Step 2)
What it Means:
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You need to trade at least this many days in each step (they don't have to be consecutive) |
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A trading day is defined as any day that you execute an order in the market |
Why it is Important:
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Proves to yourself and the firm that your performance is consistent |
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Provides you and the firm enough information to evaluate and understand your trading |
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Gives you the opportunity to test your strategy in multiple market conditions |
Rule: Only trade during permitted times
What it Means:
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We require you to exit position(s) by market close, or prior to 3:10 PM CT, whichever comes first |
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Traders may re-enter the market as early as 5:00 PM CT |
Why it is Important:
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You should only be exposed to risk when you are able to get in and out of the market |
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You need to know your product intimately, including knowing when the market opens and closes |
Rule: Do not hit or exceed the Daily Loss Limit
What it Means:
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On any given trading day your Net P&L can not hit or exceed the allowable Daily Loss Limit |
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If this Daily Loss Limit is exceeded your current Trading Combine will not be eligible for funding |
Why it is Important:
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Adhering to a loss limit instills discipline and proper risk management |
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At a certain point you need to call a bad day, a bad day (we all have them) |
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It allows you to live to trade another day, the markets will be there tomorrow |
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Losses can be emotional, emotions affect decision making |
Rule: Do not allow your Account Balance to hit or exceed the Trailing Max Drawdown
What it Means:
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This is the maximum amount you are able to lose in your account |
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The lowest your account balance can go |
Why it is Important:
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Allows you to recognize and reevaluate when your strategy is not working in current market conditions |
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Encourages smart account management |
Example:
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