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Forex T4TCapital™ Trading Programme

Rules of Engagement

Practical Assessment
New Updated Account Management Rules and Trading Limits

The purpose of the practical assessment is to demonstrate a good understanding of the market, trade execution and T4T’s capital management rules, whilst meeting the profit target, to ensure you are comfortable and competent with the ‘Live T4TCapital Trading Account’.

All traders need to adhere to our Drawdown Limits & Trading Rules.

 

Risk Management
 Rules and Limits

Our risk management rules are in place to protect our capital and to protect the profits you make.
These rules are not negotiable, so please don’t ask.
The rules and limits apply to both the Practical Assessment and the Live account.

Account Management

T4TCapital will manage your assessment automatically to ensure the risk is minimal, with industry standard metrics. If you breach any of the account management rules your trade will be closed. Please note: A breach of the account management rules does not mean a reset is required. Your trades that breach these rules will result in your trade being automatically closed, trades include open or pending trades.

Stop Loss attached to every trade.

Every time you open a position or place a pending order in the market it must have a valid stop loss attached to it!

What does this mean?
You cannot enter at market and then add a stop loss after you have placed the order. Every position you have must have a stop loss.

Why pending orders?
The entry order could be triggered and with no stop loss attached that could potentially result in the entire account being lost.

If you do have a market order or a pending order without a stop loss then the order will be automatically closed.

All trades will be closed by 1900GMT on Friday

You are not permitted to hold positions over the weekend. All positions will be closed automatically by T4TCapital on Friday 7.00pm GMT/UTC.

You are permitted to trade at all other times except if T4TCapital Management halts all trading due to ‘unforeseen highly volatility international events’. In this case, T4TCapital management will notify you directly about the trading halt.

This will not result in a reset.

Maximum Position Size

Your Maximum Position Size is controlled by the leveraging settings of our accounts. If MT allows you to place the trade you can do it. No more maximum lot size positions.

The account balance is leveraged at a ratio of 10:1. This simply means that for every $10,000 USD in your trading account, you can trade $100,000 USD or 1 standard lot.

The Risk Management Limits

If you breach any of the limits below your assessment will be closed. To continue with the assessment you can pay the reset fee for your account size and your account will be reset to the start balance and you may continue with the assessment.

Weekly Loss Limit

The Weekly Loss Limit is in place to protect your profits from the previous week. It is set at the beginning of each week and remains static for the rest of the week. It is calculated as 2% of the account stating balance subtracted from the weeks starting account balance.

Here’s an example:

Start Account Balance: $100,000
2%: $2,000

Week 1

Week Starting Balance: $100,000
Weekly Loss Limit: $98,000
You cannot go below $98,000 during Week 1

Week 2

Week Starting Balance: $103,000
Weekly Loss Limit: $101,000
You cannot go below $101,000

The 2% calculation remains during the duration of the Practical Assessment. Once you start the Live Trading Account this 2% is increased to 5% after achieving 10% profit giving the trader much more latitude in the Live Account.

Maximum Drawdown

The Maximum Drawdown is a trailing Drawdown until reaching the Account Start balance, where it becomes static at that point. It is calculated by subtracting 4% from the High Water Mark (Your highest account balance).

What does this mean?

Again the Maximum Drawdown is designed to protect your profits and also our maximum exposure.

Let’s take a look at an example:

Week 1

Account Start Balance:$100,000
Maximum Drawdown: $96,000

During Week 1 you make $3,000 profit taking your Account Balance to $103,000, this now your High Water Mark and your Maximum Drawdown has increased to $99,000. You cannot go below this figure with your Equity Balance.

Week 2

Account Balance: $104,000
Maximum Drawdown: $100,000
You know have a great week and make $5,000 taking your Account Balance to $109,000. Your Maximum Drawdown has already reached the account starting balance of $100,000. It remains there from now on.

Reset Fee
The Reset Fee is only applicable to the Practical Assessment, there is no reset fee on the Live Accounts. If you break the Rules and/or the Limits on the Live account then your account is closed.

For the Practical Assessment
You may reset your account under the following conditions:

  • Upon breach of any of the rules and/or limits.

  • At anytime you wish.

The price of the reset fee is dependent upon the starting account size of your practical assessment. If you are an experienced FX trader it is very unlikely you will need to reset your account.

Important FAQ’s

If you Breach any Rules or Drawdown Limits you need to pay a Reset fee to continue

If you breach any of the limits, you will need to reset your trading account to continue the practical assessment and be eligible for funding. The reset costs is dependent on your practical assessment account size. Upon completion of the payment you will now receive a new trading account and be sent the new trading account number and password.

You will be notified by email of a breach of the limits.

 

Reset Link

Which Currency Pairs & Instruments can I trade?

With our new trading server and liquidity provider we now have many more tradeable instruments. You can view these here on our new dedicated funded trading website.

Is there a time limit to complete the Practical Assessment?

Practical Assessment – There is no time limit to complete the practical assessment. If your trading account is inactive for more than 2 months we will assume you have given up and lost interest and your funded account will be suspended.

What happens to my Weekly Loss Limit if I make money early in the week?

Nothing. It remains static from the level set on Monday.

What happens if I breach a rule and don't reset within 30 days?

If you Breach the Trading Rules or Drawdown Limits and do not reset your trading account within 30 days of the breach, you will have to pay the full starting fee again.

Can I use EAs and my own trading style?

There are no restrictions on the way you trade or the EA’s you can use. All we focus on is the rules and limits so you’re free to trade however you like and with whatever tools you like. Please note you are responsible for your account mistakes made by your EAs is your responsibility.

When can I withdraw my profits on the live account and when do I get paid?

Flexible profit payments paid out on the 1st business day of each month

Traders may withdraw profits on the live account by notifying us of the profit withdrawal on the last day of the month. This amount will be applied to the Profit Share Schedule and you will be paid on the first business day of the next month. The payouts will be sent back to you via wire transfer, PayPal or Crypto currencies, depending on how you signed up for the programme.

The trader can decide how much of their profits they’d like withdrawn each month, or if they’d like to roll them over to the next month.

Profit Share on your Live Forex T4TCapital™ Trading Account

 

Profit Withdrawals

When you withdraw money from the account, the amount withdrawn will be split between T4T and the trader according to the profit share table above.

Example: A trader with a $100,000 account makes $70,000 profit, taking their account balance to $170,000.

They request a withdrawal of $65,000.

The $65,000 is withdrawn from their trading account and distributed according to the $100K account profit share.

The trader gets:

60% of the $10,000 above the Starting Balance ($100,000) = $6,000

70% of the $10,000 above Draw Up 1 ($110,000) = $7,000

80% of the $50,000 above Draw Up 2 ($120,000) = $40,000

Total      = $53,000

Their trading account is reduced to $105,000 and they can continue trading with their Maximum Loss limit still at $100,000, their starting balance.

Their maximum trade size will be reduced to 10.5 lots in line with the 10:1 Leverage for the account.

Early Withdrawals Reduce Your Maximum Loss Limit

You can make withdrawals whenever you like BUT if you withdrawal profits before your maximum loss limit are equal to or above your starting balance, then the amount you withdrawal will be deducted from your maximum loss limit. 

Example: A trader starts with a $100,000 account and makes $2,000, taking their maximum loss limit from $96,000 up to $98,000. They withdraw the $2,000 taking their account balance back to $100,000. The maximum loss limit stays at $98,000. 

The next few trades they make $3,000, taking their account balance to $103,000 and their maximum loss limit to $100,000 

If they withdraw the $3,000 they will have no maximum loss limit left and their account will be closed.  

At this point, if the trader wants to continue to trade the funded account they must leave some cash in the account.

If you Withdraw 100% of your profits from your live funded account, the account will be closed

In order for your account to remain open, you must keep some money in the account to cover your maximum loss limit for the remaining balance you have. 

You can decide how much to leave in the account but beware if you hit the maximum loss limit your account will be closed.  

Example: A trader starts with a $100,000 account and makes $60,000, taking their account balance up to $160,000. Their maximum loss limit is now $35,000 (2.5 times the Weekly Loss Limit). 

If they want to continue trading they must leave some of the $60,000 profit in the account. If they withdraw $50,000 their account balance will be reduced to $110,000, leaving them with a maximum loss limit of $10,000.  

The traders, can, of course, choose to withdrawal more of their profits and leave a smaller maximum loss limit. But if they hit their maximum loss limit their account will be closed. 

If they withdraw $55,000 their account balance will be reduced to $105,000, leaving them with a maximum loss limit of $5,000 only. 

The new account balance also impacts their trade size.

Withdrawals reset your account balance & potentially your trade size

If you withdrawal profits at the end of the month your trading account will naturally be adjusted to the new balance. 

If during this withdrawal process your account goes back below a draw up level then you also need to adjust your trade size so it fits in with the scaling plan that is associated with your ‘new’ account balance.  

Example 1: A trader starts with $100,000 account & they make $70,000 in their first month taking their account balance to $170,000.  

At the end of the month, the trader has the option to withdrawal 100% of profits (which will close their account) or any amount/percentage they would like or roll their profits forward. 

  • If they withdrawal $70,000 of profits (100%) they will get: 
    1. 60% of the first $10,000 profit 
    2. 70% of the $10,000 profit above Draw Up 1
    3. 80% of the $50,000 profit above Draw Up 2 and their trading account will be closed. 
  • If they only withdraw $50,000 they will get:
    1. 80% of the $50,000 profit above Draw Up 2 and their account balance will be back to $120,000 allowing them to still trade a maximum of 12 lots. 
  • If they roll their profits forward, they have the chance to increase their trade szie, weekly & maximum loss limits.

Example 2: A trader starts with a $100,000 account & they make $55,000 in their first month taking their account balance to $155,000. They decide to leave the cash in their account and let it accrue.  

During this month they went through Draw Up 2 at $120,000 and their trade size increased to a maximum of 13 lots & more importantly their Profit Share Split was increased to 80% for all cash made above $120,000. 

During the second month, they make $60,000 profit taking their account balance to $215,000.  

At the end of the month, the trader has the option to withdrawal 100% of profits (& close their account) or any amount/percentage they would like or roll their profits forward. 

  • If they withdrawal $115,000 profits (100%) they will get:
    1. 60% of the first $10,000 profit
    2. 70% of the $10,000 profit above Draw Up 1
    3. 80% of the $95,000 profit above Draw Up 2 and their trading account will be closed.
  • If they only withdraw $85,000, they will get :
    1. 80% of the $85,000 profit above Draw Up 2 and their account balance will be back to $130,000 allowing them to trade a maximum of 13 lots & keep them on an 80% profit share of all new profits from that point.
  • If they roll their profits forward, they have the chance to continue trading with a larger trade size of 21.5 lots.

What Happens if you Breach the Rules & You’re in Profit?

If you breach the rules of engagement on a funded account and your trading account is in profit, you will be paid out all outstanding profits in accordance with the Profit Share table. 

Example: A trader starts with a $100,000 account and makes $120,000 profit over a 6 month period, accruing his profits after each month, taking his trading account balance to $220,000. 

They then breach the maximum trade size limits & their funded account is closed. 

They will be paid out all outstanding profits in line with the profit share split table: 

60% of the $10,000 above the Starting Balance ($100,000) = $6,000

70% of the $10,000 above Draw Up 1 ($110,000) = $7,000

80% of the $100,000 above Draw Up 2 ($120,000) = $80,000

   Total     = $93,000 payout

Read all the Common Frequently Asked Questions