Trading Rules, Drawdown Limits & Scaling Plan for the Live Accounts

The Rules for the ‘Live T4TCapital Trading Account’ are exactly the same as the practical assessment, so you should feel very comfortable moving from the demo account to the live account. The Drawdown Limits & Trade Size increase as your account balance grows.

To maintain your live trading account you need to follow our Rules of Engagement.

Drawdown Limits

At the commencement of your Live T4TCapital Trading Account, the Weekly Loss Limit is set at:

• $500 for the $25,000 account
• $1,000 for the $50,000 account
• $2,000 for the $100,000 account

The purpose of the Weekly Loss Limit is to protect last week’s profits. The Weekly Loss Limit remains static from the Monday Open until the Friday Close of trading. At the end of each trading week, the Weekly Loss Limit is re-calculated on the account balance at 5 pm New York on Friday. On the Monday open, the Weekly Loss Limit is reset according to your new balance. The Weekly Loss Limit stays in play throughout the lifecycle of the trading account.

If you hit or exceed the Weekly Loss Limit, with either realized or unrealized P/L at any time during the trading week, (Monday to Friday) your account will be disabled. Any open trades may not be auto-liquidated; however, you will become ineligible for Funding. To continue with the opportunity for funding with one of the Best Funding Trader programs for Forex Traders, your practical assessment account (funded forex trading accounts) requires a reset.

If you have Multiple Positions: The Weekly Loss Limit includes the aggregate of all your stop-loss orders. If you have several positions open then the aggregate of all your stop-loss orders must fall within your available Loss Limit. Having stop-loss orders outside your available Loss Limit is akin to not having a stop loss at all.

Example: If you have 7 positions open the aggregate of all stop-loss orders must fall within the $2,000 Weekly Loss Limit. In the example below the aggregate of all open positions is $6,190 well outside the $2,000 loss limit for the $100,000 account and is, therefore, a breach of the Weekly Loss Limit rule.

At the commencement of your Live T4TCapital Trading Account, the Trailing Maximum Loss Limit is set at:

• $1,000 for the $25,000 account
• $2,000 for the $50,000 account
• $4,000 for the $100,000 account

The purpose of the Trailing Maximum Loss Limit is to protect your overall profits. The Trailing Maximum Loss Limit (as the name implies) trails your highest account balance continuously. If you add profits, the Trailing Maximum Loss Limit also moves higher. If you have lost money, the Trailing Maximum Loss Limit remains the same as the previous day.

If you hit or exceed the Maximum Loss Limit at any time, with realized or unrealized losses, your Live T4TCapital Trading Account will be closed and any open trades will be auto-liquidated. Any outstanding profits will then be split in accordance with the Profit Share table.

Once your account balance reaches 10% profit, the Trailing Maximum Loss Limit will trail your account balance by two times your Weekly Loss Limit.

Multiple Positions: The Trailing Maximum Loss Limit also includes the cumulative sum of all your stop-loss orders. If you have several positions open then the cumulative sum of all your stop-loss orders must fall within your available Trailing Maximum Loss Limit. Having stop-loss orders outside the Trailing Maximum Loss Limit is akin to not having a stop loss at all.

Example: When you start trading the $100,000 account your Trailing Maximum Loss Limit is set at $96,000. As you make money the Trailing Maximum Loss Limit increases with your highest account balance.

If you opened a position of 10 lots on EURUSD and this position generated a realized profit of $3,000 your highest account balance would now be $103,000. Your Trailing Maximum Loss Limit would be raised to $99,000.

Trading Rules

The Maximum ‘Cumulative’ Trade Size is the Aggregate of all open positions and all pending orders.

Note: The Maximum Trade Size depends on what account you selected (see table above). You can trade the maximum trade size from the outset.

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.

Example: $100K Account has maximum trade size of 10.0 lots

If a trader has 5.0 lots in open positions and has 7.0 lots of pending orders this is a breach of the maximum trade size rules because the Aggregate of all open and pending orders is 12.0 lots.

See the table below for an explanation of how the Maximum Trade size works with the $100,000 account.

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.

If you’re using EA’s for execution, it is your responsibility to make sure stop-loss orders are attached to every open position and pending order. We will not accept any excuses. Your Stop Loss Orders, if they were hypothetically instantly triggered, must keep your account balance above your current available drawdown limits, whether that be the Weekly Loss Limit or the Trailing Maximum Loss limit. This is known as a ‘valid stop-loss’ order.

If your stop-loss orders on your open positions or pending orders are beyond your available limits (i.e. ‘Not Valid’) then your account is automatically in breach of the Rules as soon as you place the trades in the market.

Make sure you understand this rule because there is nothing worse than making money and then being told you have exceeded your available limits.

For Example: If you only have $1,000 available on your Maximum Drawdown Limit then opening a position with a stop-loss that would generate a $5,000 loss if hit, is not acceptable. It is ‘invalid’ and would be an immediate Breach of the Rules even if the open position is in profit!

If you have multiple positions, the cumulative sum of all stop-loss orders must not exceed your current available 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 Live T4TCapital 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 with One Position:

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!

Example of an Invalid Stop Loss Order with Multiple Position:

Let’s say you have a $2,000 drawdown limit available.

You have 4 open positions of 2.5 lots on EURUSD with a 30 point stop loss on each. Each stop-loss equates to a $750 loss if it is triggered.

If all stop-loss orders are hit the account will lose $3,000. (4 x $750 = $3,000)

That’s $1,000 more than the drawdown limit. This is a Breach!

As soon as our team identifies you have overexposed the account your practical assessment will be suspended immediately.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 your live account will be closed.

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.

Important FAQ’s

You can trade all forex currency pairs & instruments on the platform:

NOTE: Trade Conditions and Open times for the instruments above

• FX & Metals – Open Sunday 21:00 GMT – Close Friday 20:00 GMT CFD’s – Open times depend on the instrument 

FOREX PAIRS

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

COMMODITIES/METALS

XTIUSD, XBRUSD, XAUUSD, XAGUSD

EQUITY INDICES

DAXEUR, DOWUSD, SPXUSD, NDXUSD, STXEUR, FTSGBP, AUSUSD, JAPUSD

Traders4Traders Inc at their discretion can halt trading on any instruments at any time.Live T4TCapital Trading Account – There is no time limit placed on the management of the FX funded 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 live account will be closed.

Flexible profit payments paid out on the 1st 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 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 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 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 Scale Up 1 ($110,000) = $7,000

80% of the $50,000 above Scale 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 now raised to $101,000.

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 Trailing Maximum Loss Limit is equal to or above your starting balance, then the amount you withdrawal will be deducted from your Trailing Maximum Loss Limit. 

Example: A trader starts with a $100,000 account and makes $2,000, taking their Trailing Maximum Loss Limit from $96,000 up to $98,000. They withdraw the $2,000 profit, 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 Trailing Maximum Loss Limit to $100,000.  

If they withdraw the $3,000 they will have no Trailing 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 T4TCapital 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 Trailing 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 Trailing 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 Trailing Maximum Loss Limit is now $16,000 (10% drawdown). 

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 Trailing Maximum Loss Limit of $6,000.  

The traders, can, of course, choose to withdrawal more of their profits and leave a smaller Trailing Maximum Loss Limit. But if they hit their Trailing 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 Trailing Maximum Loss Limit of $4,000 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 a $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 Scale Up 1
  3. 80% of the $50,000 profit above Scale 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 Scale 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 size, Weekly & Trailing 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 Scale Up 2 at $120,000 and their trade size increased to a maximum of 15.5 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 Scale Up 1
  3. 80% of the $95,000 profit above Scale 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 Scale 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. To continue to get funded trading forex the traders will need to retake the Practical Assessment challenge.

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 Scale Up 1 ($110,000) = $7,000

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

   Total     = $93,000 payoutBoth your Weekly and Maximum Loss limits increase as your account balance grows.

By the time you reach 20% profit your:

• Weekly Loss Limit will increase to 5% of the account balance.
• Maximum Loss Limit will increase to 10% of the account balance.