Custom Rules
Economic Release
Proper risk management is of the utmost importance when trading. With that said, TradeFundrr has identified certain economic releases, which require all traders to be flat for one minute before and one minute after the release.
The chart below is an example for the Futures Retail Tradrr and the Retail Tradrr Plus evaluation only. Stocks and Options traders are not required to be flat during economic releases.
The reason for this rule is to mitigate the risk surrounding market-moving releases. Listed below are the economic releases and instruments affected by those releases. Here is an example of the dashboard reflecting the reports for the trading day.
Additionally, on days when there are abbreviated or modified trading hours, these times are subject to change without prior notice. It is the responsibility of the trader to be aware of these releases and the times when they occur.
Consistency Rule
To determine a trader’s ability to be consistently profitable, the trader will need to show that not only can they make consistent profits, but the trader also needs to show the ability to manage risk.
Simply put, TradeFundrr wants to avoid seeing you hit the target objective in a single trade and then scalp the remaining time during your qualification period.
To demonstrate to TradeFundrr your ability to be profitable and to manage risk, you must have the number of trading days averaging at or above 50% of your best trading day.
Example:
Best Trading Day (net profit) = $5,000 (50% = $2,500 consistency target)
2nd Best trading day (net profit) = $3,500
3rd Best Trading Day (net profit) = $3,000
4th Best Trading Day (net profit) = $2,900
5th Best Trading Day (net profit) = $2,100
6th Best Trading Day (net profit) = $1,500
Total of the second to the sixth best trading days (net profit) = $13,000
Total of trading days $13,000 = $2,600 average per day which is now greater than $2,500 consistency target.
Here is an example of the consistency tracker in the TradeFundrr Dashboard.
Consistency Rule
During the evaluation period and while in the simulated trading environment, you will be charged $1.85 per side in simulated trading fees. This will apply to the E-mini-Futures products.
Micro products will be charged $.60 per side in simulated trading fees.
CME Price Limit Rule | No Trading Within 2% Of The Limit
What is a CME Price Limit?
A price limit is the maximum price range permitted for a futures contract in each trading session. Different actions occur when markets hit the price limit depending on the traded product. Markets may temporarily halt until price limits can be expanded, remain in a limit condition, or stop trading for the day based on regulatory rules.
You Can Find More Information on Price Limits Here:
https://www.cmegroup.com/trading/price-limits.html
Items to Remember RE: Price Limits:
- Price limits are based upon the end-of-day settlement prices and will vary based upon product, time of day (day session or overnight session), and contract month.
- Limits are updated daily on the CME website (link above)
- Know your limits for the product you are trading. They are subject to change without notice. You are responsible for knowing the limits of the market you are trading.
- This risk control measure is implemented to protect your capital and the firm’s trading capital.
Commonly Asked Questions:
Q: What is the most efficient way to track this information?
A: You monitor the CME website for changes in the product, manually calculate the percentage, or the easiest and most efficient way is to use the tools provided by your trading platform, i.e., the quote board.
Q: What happens if I break this rule?
A: If you break this rule during your evaluation, your account will no longer be eligible for funding. If you break this rule in a live-funded account, we will review your performance, and the loss of a live account is possible.
Q: Why is this an important consideration in my trading?
A: Price limits are enforced by the CME and the regulatory agencies. It is important as a trader because price volatility creates extreme swings in price action, and once a market is halted, prices can “re-open” aggressively higher or lower. This can mean dramatic swings in the value of your position and can ultimately lead to significant, unexpected losses.