Drawdown Management
How you manage your account's risk limits day to day
Respect daily drawdown limits
Never exceed your prop firm's daily loss limit. If your firm allows 5% daily drawdown, ensure no single day exceeds this — even if the overall account is healthy.
No single-trade wipeout
Avoid placing trades that risk more than 2–3% of account equity in a single position. Consistently oversized trades indicate reckless risk management.
Consistent lot sizing
Erratic lot sizes — for example, trading 0.1 lots for weeks then suddenly 5 lots — suggest deliberate account manipulation and will flag your claim for review.
Trading Activity
Minimum participation requirements during the covered period
Minimum trading days
You must have traded on a minimum of 5 days during the covered evaluation period. Days with zero trades do not count. This demonstrates genuine trading activity rather than a single gamble.
Consistent session participation
Trading across multiple sessions (London, New York, Asia) or across multiple weeks shows genuine engagement. Sporadic bursts of activity followed by inactivity can reduce your claim eligibility tier.
No news-spike exploitation
Placing trades solely to exploit major economic news events (NFP, CPI, rate decisions) within 2 minutes of the release is a prohibited strategy and will result in claim denial.
Performance Metrics
The numbers we look at when assessing trading quality
Positive or near-neutral profit factor
A profit factor of 1.0 or above is our target and improves your claim tier. A profit factor of 0.8–1.0 is reviewed on a case-by-case basis. Below 0.8 will generally result in a declined claim or reduced payout tier.
Risk-to-reward ratio
An average RRR of at least 1:1 shows that your strategy is built for sustainability. Consistently chasing large wins with oversized stops is a red flag during review.
Positive Sharpe ratio
A Sharpe ratio above 0.5 indicates risk-adjusted returns. While not a hard requirement, a strong Sharpe ratio improves your payout tier on Premium and Elite plans.
Average hold time
Scalp trading (average hold time under 30 seconds) is not prohibited but will be reviewed carefully. Extremely short hold times across the majority of trades may indicate latency arbitrage or prohibited HFT strategies.
Strategy Compliance
Trading approaches that are prohibited and will result in a denied claim
No martingale or grid strategies
Doubling down on losing trades (martingale) or placing grids of orders designed to average down is explicitly prohibited. These strategies are identifiable in trade history and will result in automatic claim denial.
No account sharing or copy trading violations
Your covered account must be traded solely by you. Copy trading is only permitted if your prop firm explicitly allows it. Account sharing of any kind voids your coverage.
No intentional breach
Evidence of deliberately breaching your account — such as a sudden shift to maximum lot sizes after a prolonged period of normal trading — will void your claim entirely and may result in account termination.
Ready to Trade Protected?
Now that you know the KPIs, apply for coverage and trade with the confidence that you're backed if things don't go to plan.
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