For both the demo SurgeTrader Audition account and live trading accounts, the following rules apply:
Hard breach rules, which will disqualify your account:
- Daily Loss Limit:
- Max Trailing Drawdown:
- See the explanation of these 2 rules in the next 2 FAQs
Soft breach rules, which will close positions and you can continue trading:
- Stop-loss required for each trade, at the time the trade is executed
- Flat for the weekend — all positions closed on Friday at 3:55 PM EST
- Maximum open lots with risk
Note that the daily loss limit applies to current daily equity. For example, a trader with a $100,000 funded account would have a $5,000 daily loss limit. If the trader ran up a profit of $10,000, their new daily loss limit would be $5,500 – or 5% of their new Balance of $110,000.
In addition, there is a limit on the maximum number of open lots. If you are in the $100K plan, you will have 10 open lots with risk available. If you buy 5 lots of EUR/USD at 1.20 and your stop loss is at 1.18, you would have 5 lots on with risk, so you would have 5 still available. If the EUR/USD moves up to 1.25, and you update your stop loss to be at 1.20, which would be your open price, you no longer have risk on that trade. So, you would again have 10 lots available, even though you currently have 5 lots open. In the event that you put on too many trades with risk, then our system will liquidate all trades that currently have risk.
This is only considered a soft breach though, which means, even though you violated the rule, you can continue on trading, and should you reach your 10% profit target (without violating daily or maximum loss limits), you would be upgraded to a live funded account.