Forex T4TCapital™ Trading Programme
Rules of Engagement
Practical Assessment – Account Parameters & Trading Rules
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’.
To achieve all the performance requirements you will need to follow our Rules of Engagement:
- Do not exceed the ‘Maximum Trade Size’
- Do not exceed the ‘Weekly Loss Limits’
- Do not exceed the ‘Maximum Loss Limits’
- Make the ‘Profit Targets’without breaching any rules or limits
- A Valid Stop Loss order must be attached to every open position
- Complete the ‘Minimum Trade Volume’
- Make sure you’re flat before all high impacting economic data releases
- Only trade the approved currency pairs & instruments
- Only trade during permitted times
- There is no time limit to complete the practical assessment
- Withdrawals – Flexible profit payments paid out on the 1st business day of each month
The Rules & Drawdown Limits will be strictly enforced!
Once you have completed the requirements for the Practical Assessment you will automatically receive a Fully Funded Trader Account.
The Rules of Engagement are the same for the Practical Assessment as the Live Fully Funded Trader Account.
NOTE: Our team will be reviewing all trading activity prior to Funding the accounts. If we find backdated Rule breaches your account will be ineligible for funding. So it makes sense if you breach any rules, notify the team straight away and reset your practical assessment. It will save a lot of heartache by having you make the profit targets only to be informed that your practical assessment account needs to be reset.
1. Maximum Trade Size
The Maximum Trade Size depends on what account you selected (see table above). You can trade the maximum trade size from the outset.
Note: The Maximum Trade Size is Cumulative Sum of all open positions.
If you want to leave pending orders and you already have open positions, then you must ensure that the sum of all open positions plus potential pending orders does not breach the maximum position size.
Traders who have been funded, your maximum trade size increases with the account balance!
The trading accounts are maintained at 10:1 Leverage. That means if you increase your account balance your trade size also increases.
2. Weekly Loss Limits
At the commencement of your Practical Assessment, the Weekly loss limit is static. At the end of each trading week, the Weekly Loss Limit is re-calculated on the realized and unrealized P&L at 5 pm New York on Friday. The Weekly Loss Limit continually trails your account balance each week.
If you hit or exceed the Weekly Loss Limit, with either realized or unrealized P/L at any time during the trading week, (Monday 9 am Sydney to 5 pm Friday New York) your account will be suspended. Any open trades may not be auto-liquidated; however, you will become ineligible for Funding. To continue with the opportunity for funding, your practical assessment account requires a reset.
The Weekly loss limit stays in play throughout the lifecycle of the trading account.
3. Maximum Loss Limit
At the commencement of your Practical Assessment, the Maximum loss limit is static. At the end of each trading day, the Maximum Loss Limit is re-calculated on the realized and unrealized P&L of the account at 5 pm New York.
If you have lost money, the Maximum loss limit remains the same as the previous day. If you add profits, the Maximum Loss Limit also moves higher & trails your highest realized account balance.
If you hit or exceed the Maximum Loss Limit at any time, with realized or unrealized losses, your account will be suspended. Any open trades may not be auto-liquidated; however, your account will become ineligible for a Funding. To continue with the opportunity for funding, your practical assessment account requires a reset.
Once the Maximum Loss Limit reaches the initial starting balance of your account, the Maximum loss limit will remain static for the remainder of the practical assessment & funded account.
4. Make the Profit Target without breaching any Rules or Limits
The profit targets for the Practical Assessment accounts are as follows:
$25,000 Account = $3,750, $50,000 Account = $7,500, $100,000 Account = $15,000
5. A Valid Stop Loss order must be attached to every open position
The forex market can turn around at any time and if you don’t have a stop loss on your open position the account could incur large losses. So, every time you place a trade in the market it must have a valid stop loss attached to it!
What’s a valid stop loss? It’s a stop loss order that if hit, the account is still within your current drawdown limits.
If you do not have a valid stop loss order attached to your open positions your practical assessment will be suspended immediately regardless if your position is in profit or loss and you will need to be reset to be eligible for Funding.
If you breach this rule with a Funded Account, your account will be closed immediately, and your outstanding profits will be split according to the profit share.
Example of a Valid Stop Loss Order:
Let’s say you have a $2,000 drawdown limit available.
You open a 10 lot position on EURUSD with a 20 point stop loss. If the stop loss is hit the account will lose $2,000.
That’s right on the drawdown limit. That is OK.
Example of an Invalid Stop Loss Order:
Let’s say you have a $2,000 drawdown limit available.
You open a 10 lot position on EURUSD with a 25 point stop loss. If the stop loss is hit the account will lose $2,500.
That’s $500 more than the drawdown limit. This is a Breach!
6. Complete the Minimum Trade Volume
We want to see consistent and disciplined trading and the only way to see that is by getting you to complete a minimum number of trades.
The minimum trade volume is based on the number of lots you trade. One trade is considered to include both the opening and closing of a position.
The minimum trade volume for each account is as follows:
$25,000 Account = 35 Lots, $50,000 Account = 70 Lots, $100,000 Account = 140 Lots
Note: If you break down the minimum trade volume it equates to 14 trades at the maximum trade size.
7. Trading Economic Data Releases
Due to the increased risk around some economic data and central bank releases, all traders in the Practical Assessment and Live Funded Trader Accounts must adhere to our rules on trading economic data releases.
To make it easy to understand we have set up a 3 tier color coding system which not only alerts you to potential hazardous releases but also potential trading opportunities.
Explanation of Data Releases
– Extremely High Impacting – Traders must be flat 5 minutes before in the currency pairs related to the release & wait at least 30 seconds after the release before you trade.
– High Impacting Releases – Traders must be flat 5 minutes before in the currency pairs related to the release BUT can trade immediately after the release.
– Medium Impacting Releases – Traders are free to hold positions through the data release. This data is listed to highlight potential trading opportunities.
If the economic data is not listed on our myFXTradingHub page and it’s not central bank-related you are allowed to hold positions over the release of these numbers.
Ignorance with regards to what economic data is included will not be tolerated.
If you are still not sure, ask!
8. Approved Currency Pairs & Instruments
You are only permitted to trade forex currency pairs & instruments in the list below:
AUDUSD, AUDNZD, AUDJPY, AUDCAD, AUDCHF
NZDUSD, AUDNZD, NZDJPY, NZDCAD, NZDCHF
USDJPY, AUDJPY, NZDJPY, EURJPY, GBPYEN, CADYEN, CHFYEN
EURUSD, EURGBP, EURCHF, EURCAD, EURJPY, EURAUD, EURNZD, EURPLN, EURNOK, EURSEK
GBPUSD, EURGBP, GBPJPY, GBPCHF, GBPAUD, GBPNZD, GBPCAD
USDCHF, EURCHF, CHFJPY, CADCHF, GBPCHF, AUDCHF, NZDCHF
USDCAD, EURCAD, GBPCAD, AUDCAD, NZDCAD, CADCHF, CADJPY
USDCNH, USDMXN, USDNOK, USDPLN, USDSEK, USDSGD, USDTRY, USDZAR
XTIUSD, XBRUSD, XAUUSD, XAGUSD
DAXEUR, DOWUSD, SPXUSD, NDXUSD, STXEUR, FTSGBP, AUSUSD, JAPUSD
It is at Traders4Traders Inc discretion to add or remove currency pairs from this list.
9. Permitted Trade Times
You are not permitted to hold positions over the weekend.
You are not permitted to open a position prior to Monday 9.00 AM EST Australia
All positions must be closed prior to Friday 3.00 PM EST USA
The Daily updates from the T4T team will cease from Friday 2oth December until Monday 6th January. There will also be limited IT support. But you can continue to trade throughout this period.
Note the Trading platform will be closed XMAS day and New Years Day.
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.
10. Time Limit
Practical Assessment – There is no time limit to complete the practical assessment.
T4TCapital Trading Account – There is no time limit placed on the management of the T4TCapital Trading Account.
But if your trading account is inactive for more than 3 months we will assume you have given up and lost interest and your funded account will be suspended.
Flexible profit payments paid out on the 1st of business day of each month
The process of withdrawing profits is flexible and totally in the trader’s hands. You can request a withdrawal at any stage through the month and the payment will be made after on the first business day of the beginning of the next month.
The trader can decide when and 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 tables
Note: 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 $40,000.
The $40,000 is withdrawn from their trading account and distributed according to the $100K account profit share.
The trader gets:
70% of the $10,000 above Draw Up 2 ($160,000) = $7,000
60% of the $30,000 above Draw up 1 ($130,000) = $18,000
Total = $25,000
Their trading account is reduced to $130,000 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 13 lots in line with the 10:1 Leverage for the account.