Prop Firm Rules
While there are some well-known common rules, such as restrictions on the use of Expert Advisors (EAs), High-Frequency Trading (HFT), latency arbitrage, and any trading activity that exploits platform inefficiencies, there are also firm-specific rules that traders need to consider.
Through extensive research into the terms and conditions of all listed prop trading firms, we have identified some major key rules that you should be aware of before joining any of these funded programs.
The5%ers has established specific rules and guidelines, including certain prohibited practices. Below is an overview of the most pertinent information:
1. High Stakes Program Requirements
- Minimum Profitable Days: Traders participating in the High Stakes program must achieve a minimum of 3 profitable days to pass the evaluation. A profitable day is defined as one where the closed positions yield a positive profit of at least 0.5% of the initial balance.
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2. Prohibited Trading Practices
To ensure market integrity and responsible trading, The5%ers prohibits the following practices:
- One-Sided Bets: Consistently taking positions in a single direction without considering market conditions or conducting proper analysis is not allowed.
- Arbitrage: Exploiting price discrepancies or glitches within different markets of similar or identical assets is forbidden.
- Trading Bracketing: Placing pending orders around high-impact news events, such as opening buy and sell stops close to the price before the news, is prohibited.
- System Exploitation: Intentionally or unintentionally employing trading strategies that take advantage of system errors, such as inaccuracies in price display or delays in updating, is not permitted.
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3. Risk Management Guidelines
The5%ers emphasizes the importance of effective risk management:
- Risk Assessment: Traders are encouraged to conduct a self-assessment to understand their risk appetite, tolerance, and personality traits that may affect trading decisions. This includes aligning trading strategies with individual risk profiles and timeframes.
- Advanced Risk Techniques: The5%ers provides resources on advanced risk and money management techniques to help traders minimize risk and maximize profits. These include building a solid trading plan and developing the right mindset and psychology when trading.
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4. Can I Trade During News?
- Instant Funding (Hyper-Growth) & Bootcamp:
News trading is allowed, but bracket strategies (placing both BUY STOP & SELL STOP orders simultaneously around news) are prohibited. - High Stakes Program:
Holding trades through news is allowed, but executing orders 2 minutes before and after high-impact news is prohibited.- Example: For US CPI at 15:30 GMT+2, no new orders between 15:28 - 15:32.
- Profits made during this time won't count toward targets, and losses are absorbed by you.
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Adhering to these rules and guidelines is essential for maintaining your account's standing with The5%ers. Engaging in prohibited practices can lead to actions ranging from the removal of conflicting positions to the termination of the account and cessation of cooperation. For the most detailed and up-to-date information, please refer to The5%ers' official FAQs.
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FTMO has established specific rules and guidelines, including certain prohibited practices. Below is an overview of the most pertinent information:
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1. Trading Instruments and Strategies
Traders are permitted to use various trading strategies, provided they align with legitimate trading practices and do not exploit system errors or delays. It's essential to avoid strategies that could harm FTMO's services or misuse the Evaluation Process and/or FTMO Account. For detailed information on acceptable instruments and strategies, please refer to FTMO's guidelines.
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2. Forbidden Trading Practices
FTMO explicitly prohibits certain trading behaviors to ensure market integrity:
- Exploiting System Vulnerabilities: Utilizing strategies that take advantage of errors in price displays, delayed updates, or slow data feeds is forbidden.
- Manipulative Trading: Engaging in trades, alone or in coordination with others, that manipulate the market—such as simultaneously entering opposite positions across multiple accounts—is not allowed.
- Automated Exploitation: Using software, artificial intelligence, or high-speed data entry methods to manipulate or gain an unfair advantage on the trading platform is prohibited.
- Non-Replicable Strategies: Implementing strategies that are not reasonably replicable in actual market conditions, such as opening substantially larger positions compared to usual trades, is not permitted.
- Gap Trading: Engaging in gap trading, especially around major global news or macroeconomic events, is considered a high-risk practice and is forbidden.
For a comprehensive list of prohibited practices, please review FTMO's Terms & Conditions, specifically clause 5.4.
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3. Trading According to a Real Market
FTMO requires that all trading activities reflect genuine market conditions. Traders must not use practices that contradict the functioning of a real market. This ensures that trading strategies are legitimate and do not interfere with standard market operations.
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4. Consistency in Trading
Consistency is crucial for long-term success. FTMO evaluates traders based on their ability to maintain consistent trading behaviors and results. While the Consistency Score is currently informative and does not affect the outcome of the Evaluation Process, it highlights the importance of disciplined and steady trading practices.
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5. News Trading and Holding Positions
FTMO has specific guidelines regarding trading during news events and holding positions overnight or over weekends:
- FTMO Account: Traders are restricted from trading during certain news releases and from holding trades over weekends. For example, during significant USD news announcements, trading USD-related forex pairs and indices is restricted from 2 minutes before to 2 minutes after the event.
- FTMO Account Swing: This account type does not have restrictions for news trading or holding trades over the weekend, making it suitable for swing traders who need to hold positions for extended periods.
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6. Maximum allocation
FTMO have a maximum capital allocation limit when you are an FTMO Trader, which is $400,000 (prior to scaling) per trader or strategy, at any given time.
Equivalent limits are in place for other currencies – €320,000; £280,000; CAD 480,000; AUD 520,000; CHF 320,000 or CZK 8,000,000.
These limits are in place due to risk mitigation & diversification measures.
Please be careful not to get multiple accounts through various registrations as this is not permitted. If from FTMOÂ discover identically traded strategies through various accounts, and exceeding the total of fictitious $400,000 in active FTMO Accounts, they reserve the right to suspend those accounts as per the contract.
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Adhering to these rules and guidelines is essential for maintaining your account's standing with FTMO. Engaging in prohibited practices can lead to actions ranging from the removal of conflicting positions to the termination of the account and cessation of cooperation. For the most detailed and up-to-date information, please refer to FTMO's official FAQ and Terms & Conditions.
New payment option:
Added Paypal as a new payment option.
- Gambling Behaviorrule updated:
- Removed the 3% loss limit rule on all evaluations, your biggest loss in one trade should not exceed3% of the account size on the Master accounts only.
- High-Frequency Trading (HFT) & Tick Scalping:
- Profit from trades that are closed within 1 minute after opening will not be counted on Master accounts only.
Inactivity rule:
30 calendar days without making any transactions will result in your account being suspended.
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News Trading rule improvement:
No more termination- Execution orders 2 minutes before until 2 minutes after a high impact news will only lead to a profit deduction, TP and SL can get triggered.
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High stakes reward:
After completing Step 1, you'll receive a credit hub credit reward and a full refund upon passing all evaluation stages.
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Max accounts:
- Hyper growth:
- Maximum 4 accounts: 1:20k, 1:10k, 2:5k
- High stakes:
- Maximum 3 accounts: 1:5k, 1:20k, 1: 60k/100k.
Removal of Gambling Rule:
Any trading strategies that are deemed "All or nothing" has been removed for all challenge accounts and simulated funded accounts.
The 5%ers announce account Migration to New Hub, implemented upgraded tech infrastructure.
New trading instruments:
- Added 140 new crypto instruments
- Toxic Trading Flow:
- Reckless risk-taking, impulsive behavior, overtrading.
- Gambling Behavior:
- Your biggest loss should not exceed 3% of the account size.Splitting up a trade into multiple positions will be counted as one single trade.
- Minimum trading days:
- Minimum trading day of 3 trading days in all models, there are no minimum trading days on the master account.
- Payout Cycle 2- Step Model:
- Tuesday Payday 60%,Bi-Weekly 80%, or Monthly, with a profit split up to 100%.
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Restricted countries list change:
Traders from Pakistan and Vietnam are now able to purchase a challenge and trade with Blue Guardian.
Blue Guardian announce the implementation of Platform 5 and Trade Locker.
FTMO now supports payments in the Nigerian Naira.
Blue Guardian announce upgrade of the technology and offered trading platforms.
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