The Practical Assessment
PROVE You Can Trade
Whether you have taken one of our trading courses or you are participating in the T4TCapital Funded Trader Program, you will need to prove to yourself and to us that you can safely and profitably trade our T4TCapital Live Funded Accounts. You do this by taking the Practical Assessment.
The Practical Assessment
The Practical Assessment is a simulation of the live trading account. It has the same rules and limits, the same liquidity provider as the Live Trading Account but is in a safe trading environment where if you make mistakes you are not losing real cash.
So how do you pass the Practical Assessment and move on to the Live Trading Account?
Profit Target / Win Rate / Best Day Profit
Rules & Limits of the Trading Accounts
The rules and limits are the same as the live trading account.
The Trading Rules
Breach of these rules will simply close your trade and you will be notified by email.
Maximum Position Risk on any one trade must not exceed 2% of your account balance & Total Open Risk at any one time must not exceed 3%.
Before a trader opens any position, they will have 3% of risk available. If the Maximum Loss Limit is within 3% then they will only have that smaller limit available.
Single Position Risk – If a trader opens a position that exceeds 2% risk of the account balance then the trade will be closed out immediately, and the trader is notified of the soft breach. They can continue to trade.
Total Open Risk – If the total open risk is above 3% it closes out the most recent position opened immediately, and the trader is notified of the soft breach. They can continue to trade.
Updating Available Risk – If a trader has 2 trades open with risk totally 3% and the positions are in profit, if they raise their stop loss orders to breakeven on both trades then they get 3% of additional ‘Available Risk’ to trade with.
Every time you open a position or place a pending order in the market it must have a valid stop loss attached to it!
Why pending orders? Because the entry order could be triggered and with no stop loss attached that could result in the entire account being lost.
You are not permitted to hold positions over the weekend. All positions need to be closed out no later than Friday 7.00pm GMT/UTC.
If you have an open position over the weekend you will require a reset to continue to be eligible for funding.
You are permitted to trade at all other times except if T4T Management halts all trading due to ‘unforeseen highly volatility international events’. In this case, T4T management will notify you directly about the trading halt.
Your largest profit day must be below 40% of your total profits made.
We want profitable traders with consistent risk management, not one hit wonders that make a lot of money on one day and lose every other day. If there’s no plan going up then there’s definitely no plan going down!
The Account Limits
Breach of the limits will result in your account being closed and to continue you will need to reset your account.
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 5% 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:
Account Start Balance:$100,000
Maximum Drawdown: $95,000
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 $98,000. You cannot go below this figure with your Equity Balance.
Account Balance: $105,000
Maximum Drawdown: $100,000
You now have a great week and make $5,000 taking your Account Balance to $110,000. Your Maximum Drawdown has already reached the account starting balance of $100,000. It remains there from now on.
Frequently Asked Questions
If you breach any of the ‘Rules’ your trade will automatically be closed at the current price.
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 or rules..
With our new trading server and liquidity provider we now have many more tradeable instruments. If it’s on the platform you can trade it!
If you Breach a Limit and do not reset your trading account within 30 days of the breach, you will have to pay the full starting fee again
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.
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.