Hey UProfiter! 🚀 On our platform, we strive to foster a responsible and scalable trading environment that allows traders to develop sustainable strategies while preparing to manage Funded Live accounts. While not all practices we evaluate are strict rules, there are key risk parameters that we consider fundamental when assessing each trader's performance. These are continuously reviewed by our Risk & Compliance team, which actively monitors and audits all accounts 🔎.
Scalping - More Than Just Trade Duration: Scalping is a strategy involving multiple quick trades with small profits per transaction. To determine whether an account aligns with our best practices, we evaluate the total set of trades conducted, focusing on 👇🏻
1. Percentage of Profits from Quick Trades: We analyze the proportion of total profit generated from trades with minimal duration, such as those lasting under 60 seconds.
2. Automation in Stop-Loss Usage: We also evaluate whether traders consistently interact with their stop-loss or use automated adjusters that could skew results.
These practices help ensure strategies are sustainable and aligned with real market conditions.
3. Trade Size: Maintaining Healthy Leverage: While there’s no strict limit on the number of contracts you can trade daily, maintaining healthy leverage is essential to demonstrate consistency in risk management. Our recommendations include:
- E-mini Contracts: A maximum of 50 contracts per day.
- Micro E-mini Contracts: Up to 350 contracts per day.
These are not absolute rules but rather indicators of responsible practices that help assess a trader’s scalability before assigning a Funded Live account.
4. 1.5% Risk Limit Per Trade: Another key practice we review is the risk level per trade. We consider it acceptable for a losing trade not to exceed 1.5% of the account’s total balance.
- Example: For a $50,000 account, the maximum allowed risk per trade would be $750 (1.5% of $50,000).
This parameter measures a trader's ability to manage risk and operate within controlled margins.
5. Evaluation Parameters, Not Absolute Rules: It’s important to clarify that these risk parameters are not strict rules, but rather guidelines designed to assess each trader’s performance in a comprehensive manner. Adhering to these practices allows traders to demonstrate consistency, responsibility, and sustainability in their trading strategy. Failing to meet any of these parameters may result in the closure and liquidation of the account. This includes, but is not limited to, using strategies that are not aligned with best practices, failing to manage risk properly, or identifying patterns that violate the established policies. These measures aim to protect the integrity of the program and ensure a fair and equitable environment for all participants.
Our goal is to ensure that those who receive a funded live account can trade successfully in a real-world environment.
6. Ongoing Monitoring and Auditing: Our risk team continuously monitors all active accounts, reviewing both operational behavior and adherence to best trading practices. This process allows us to assess each trader’s progress and performance.
🧠 Adopting these trading best practices not only ensures a more efficient experience for the trader but also contributes to the transparency and sustainability of our platform.
🛟If you have any questions or need more information, our support team is here to assist you!