*THIS PAGE HAS UPDATED DETAILED INFORMATION ON RECENT CLARIFICATIONS OF RULES*
Evaluations Accounts do not have a consistency rule. The evaluation assesses the capability to set profit goals and evaluate a trader's performance using an Evaluation (demo) account over a few days. The trader focuses on overcoming the "Trailing Drawdown," which they know is there and how it works. Take a few minutes to figure out how to adjust your trading and handle that curveball because markets will throw you curveballs all day...without a heads-up!
However, PA and Live Accounts have consistency rules, as explained below. You will understand the consistency rules by first reading what Apex Trader Funding wants and doesn’t want.
For PA and Live Funded Accounts:
As a relationship, Apex is searching for reputable traders who show their abilities to grow their accounts at a STEADY, building, compounding pace.
Growing your account this way exemplifies the discipline of a consistent strategy that is traded ongoing day-to-day. It is not erratic trading with wild swings up and down or unrealistic profit amounts that are unrealistic in real-time markets.
Trader funding and paid performance are designed to be a long-term relationship.
Apex wants to fund and pay out traders who follow a consistent plan in size, stops, and targets. This means not trading the maximum or larger-than-usual contracts on one trade while trading micros for the rest of their time.
Apex doesn’t want traders who flip contracts just to show a trading day, constantly change sizes, or do high-frequency trading. Simply put, Apex wants Traders, not gamblers, scammers, schemers, or anyone looking to take advantage and work the system!
Scaling Program
To promote a cautious approach, the Scaling Program defines how contract sizes are managed during the trading evaluation period. Initially, traders can only trade half of their maximum contracts until they hit a Trailing Threshold equal to the initial drawdown plus $100.
For example, if a $50,000 Performance Account (PA) allows for 10 contracts. Traders can use up to five contracts until they reach the predefined threshold. Once the account balance exceeds the Trailing Threshold (e.g., $52,600 for a $50,000 account), traders may use the full 10 contracts. Traders can continue to use the full 10 contracts even if the account balance goes below this threshold.
This approach encourages disciplined growth and provides some flexibility during challenging periods.
If a trader mistakenly exceeds the contract limits, they must quickly close the excess positions. There are no penalties for such mistakes as long as traders correct them immediately.
With the flexibility supported by this system, traders can experience disciplined growth while managing their accounts.
30% Negative Profit and Loss Rule
The 30% Negative PnL Rule limits the loss a trader can incur on any single trade, providing a structured approach to risk management. Under this rule, the live, unrealized, open negative PnL cannot exceed 30% of the account's profit balance at the start of the day on a per-trade basis.
This is not a daily loss limit but a control to prevent excessive loss on any individual trade. At any point, your combined open negative P&L should not surpass 30% of your start-of-day profit. Regularly monitor your trades and exposure to stay compliant with the rules.
For example, if a trader starts the day with a profit balance of $8,000 in a $150,000 account, the unrealized loss on any single trade cannot exceed $2,400. Losses can be distributed across multiple trades, provided no single trade breaches the 30% rule. Trades that violate this rule will not be canceled but will lead to a warning for the trader.
For new accounts or accounts with profits of less than the equivalent initial trailing drawdown amount, the 30% rule is based on the trailing threshold (e.g., 30% of $2,500 on a $50,000 account is $750).
Once you exit the safety net (i.e., the trailing threshold stops), the rule shifts to 30% of your start-of-the-day profit. If your account doubles its safety net, the allowed drawdown can increase to 50%.
If traders accidentally exceed the 30% limit, it does not immediately mean the account is in trouble. Traders should quickly manage trades and return within the acceptable risk zone. If the breach is minor and corrected promptly, there is no automatic penalty.
For instance, if your P&L drops to 32%, promptly closing or adjusting positions can prevent further issues. Minor, occasional breaches corrected in a timely manner will not lead to penalties.
These terms should be strictly followed, ensuring consistent compliance with Apex's 30% risk management guideline.
30% Consistency
If the PA Account generates more than 30% of the profit in a single trading day, there will be restrictions on profit withdrawals. Once you reach your 6th payout, or are transferred to a Live Prop Trading Account, the 30% rule is no longer in effect.
Trade consistently until the 30% profit balance is gone. The 30% profit guideline is not set in stone for traders who follow a specific system and maintain consistency in their trading activities. It exists to discourage schemers and traders who trade using an erratic, windfall, high-risk, all-in style and then randomly trade while getting to a withdrawal period.
(Note: The Company reviews this 30% rule from approval to approval and may choose to approve or require the profit balance to be above the 30% rule parameters and deny a payout.)
Max Contracts
The trader shall not attempt to abuse the max contracts rule.
Examples include:
- Trading combined instruments to do maximum contracts multiple times, such as 10 on ES and 10 on YM
- Trading 20 contracts on a 10-contract maximum
- Using micro contracts in this attempt
Repeated abuse of this shall cause termination of the account with no refund or payout.
Contract Size Consistency
These rules clearly require consistency of contract size. While this rule doesn't specify identical contract sizes for every trade, it highlights the significance of maintaining consistent overall size and correlation across multiple trades and time.
While there could be valid reasons for adjusting trades or contract sizes, consistency in trading behavior is crucial. Inconsistent contract sizes may indicate erratic trading behavior.
Traders who use a systematic approach, avoiding gambling and large windfall attempts, should have no difficulty complying with these guidelines. Given the numerous possibilities, Apex will not address requests for clarification on every trading scenario. Instead, traders should understand and follow the spirit of these guidelines: Be a trader, not a gambler or schemer. This will address 99% of the questions.
Please note the following:
- Apex will disqualify traders who attempt to manipulate the system by using large contract sizes early on, followed by smaller sizes.
- Apex will not accept questions or requests for feedback on every scenario of scale, size, situation, “what if,” or various systematic approaches. There is an unlimited number of scenarios!
- Traders who begin by using a large contract size in a new PA Account to chase lucky trades, big gains, or to recover from losses and then decrease to smaller sizes will be disqualified.
- Manipulating the system usually causes multiple "blown" PA accounts before reaching the desired windfall.
- To prevent disqualification, a trader might need to maintain consistent trading for eight days with the same contracts, size, and targets as the initial trades to demonstrate profit stability and be eligible for a payout request.
- To trade the account with a larger number of contacts, make a simulated balance increase, then decrease the contract size; just getting to withdrawal is not a qualified strategy and is grounds for forfeit and payout denial.
- A growing balance warrants a steady increase in contact size as the account balance and “cushion amount grow.” That is normal. It makes sense that as the profit balance and cushion increase, so does the use of contracts.
- A growing balance does not warrant a decrease in size. This is not a valid strategy; it is a fear of losing profit before a withdrawal because of a lack of discipline in a strategy.
- Now, if the trader starts off trading a larger size, does not make progress, and the account balance decreases because of losses, then this situation warrants the responsible and reasonable action of trading a smaller size.
- When you withdraw and reduce the balance, it is smart to trade with smaller sizes.
- Individuals who cycle through multiple PA Accounts, starting with substantial amounts only to lose it all and begin anew, or who plan to reach withdrawal time in hopes of a significant win are gamblers, not traders. Apex has no interest in funding this behavior.
- Traders agree and understand that any style of trading like this is prohibited. They will forfeit and have their payout requests denied until they demonstrate consistency, or they could face Probation Status.
- Traders must continue to trade an account in the same manner from the beginning until payout or modify it according to growth or loss, not vice versa.
Dollar Cost Averaging (DCA)
Dollar Cost Averaging (DCA) refers to entering a trade with a directional bias, even as the market moves against the trader. As the market moves against the trade, the trader continues to enter more orders in the same direction as the original order.
Under this Agreement, you can use Dollar Cost Averaging with additional entries.
There are no restrictions on the contract size for additional entries, nor are there specific guidelines on determining entry points, timeframes, or distances from the original entry. However, traders must maintain responsible risk-to-reward ratios in their trades. DCA is acceptable as long as it stays within the boundaries of other consistency rules, such as not exceeding a 30% profit in a day or reaching a 30% negative PnL. DCA needs to be applied consistently and responsibly to satisfy the rules.
Adding Into Trades
Traders may take initial entries according to their trading strategy or system rules and add to those trades as the market moves in their favor. For example, if the trader enters a long trade and the market moves positively, they may add additional long contracts. In PA Accounts, traders are allowed to scale into winning trades, and it is understood that they may use larger contract sizes in such cases. It is key that the trader follows a defined strategy with a directional bias instead of placing trades recklessly in hopes of a sudden windfall.
There is a clear distinction between adding to successful trades based on a strategy and entering large contract sizes at the outset in hopes of a market turnaround. Adding contracts to a profitable trade as part of a strategy is acceptable, but placing large trades without a strategy and simply hoping for a positive market move is prohibited.
News Trading
Under these guidelines, traders can engage in news trading to capitalize on significant market events that create rapid price movements. However, the trader must adhere to a key restriction: during a news event, the trader may take a position in only one direction, either long or short. Holding positions in both directions during a news event is prohibited.
This rule ensures that traders maintain discipline during volatile market conditions, preventing confusion and promoting focused decision-making. The program aims to support strategic trading based on market analysis, not attempts to hedge both sides of a news-driven breakout.
Participation in any groups or schemes will result in the complete closure of accounts and being banned from the Apex Trader Funding website for both parties.
Traders can engage in news trading as long as they do not violate any other consistency rules (i.e 30% profit in a day, 30% negative PnL, etc.).
News trading needs to be applied consistently and responsibly to satisfy the rules.
Automation
AI, Autobots, Algorithms, Fully Automated Trading Systems or Software, High-Frequency Trading (HFTs), or any other automated trading is prohibited on the PA or Live accounts.
It is strictly prohibited to use any type of hands-off, set-and-forget, set-and-walk-away, trading continuously 24 hours a day, or any other type of automation, including those listed above. Using those types of automation will cause the closure of the PA or Live account and forfeiture of all funds and balances.
The use of semi-automated software must accompany full trader monitoring and presence at all times. This means the trader must be present, watching the trades and managing the entries and settings on the semi-automated software. This software assists in placing a trade based on a set of rules that the trader is actively monitoring, adjusting the software for market moves, longs, shorts, pausing, news awareness, market conditions, etc.
It is advisable to turn off and on semi-automated trading or a trade assistant as market conditions begin to set up for a trade or as they deteriorate. Remember, it is to be used to help with the speed or accuracy of placing a trade, not as a system that trades for you.
Hedging and Correlated Instruments
Traders shall not trade one direction on minis and another direction on micros at the same time. Traders shall not spread trade indices, i.e., long ES, and short YM. All Apex accounts must be traded directionally only and never be both long and short concurrently in the same account or in other accounts in any correlated markets. This includes all indices, metals, grains, or any correlating instrument, no matter the size, i.e., micro, mini, etc. For example, the trader cannot be short NQ and Long ES under any circumstance.
Copy or Trading Services Operations or Participations
PA and Live Prop Accounts must be traded by the actual individual listed on the account and not by any other party, person, system, automated trading bot, copy, or trade mirror service. Failure to do so will result in an immediate breach of contract and closure of all accounts.
Defined System with Set Rules
Traders must have a defined strategy or system with set rules for entries, stops, targets, and trailing. They will follow their rules consistently and with discipline. Traders will use a normal day-to-day system that is set, tracked, and explainable upon request.
Purposely and irresponsibly blowing multiple company accounts in an attempt for a “lottery-style lucky windfall” is not the purpose or the intent of Apex Trader Funding. Think about it as if you were funding a trader. Would you be comfortable with your funds being handled by a trader who is inconsistent and has a history of blowing through accounts? That trader is not the type you would trust.
Apex has the authority to request a detailed account of the trading strategy or system used and to review marked-up charts of trades chosen by Apex as evidence of consistent adherence to trading rules. Apex reserves the right to request a live Zoom session to observe and confirm compliance in a trading session.
Apex has the option to ask for recordings of trading sessions demonstrating and explaining entries. Through these recorded sessions, Apex will review your trading system to assess your trading consistency and adherence to your system's rules. Apex will require documentation detailing the tools, indicators, platforms, and contract amounts utilized during the trading days.
Only directional strategies with bias and explanation aligned with a consistent strategy are approved. Traders cannot execute bracket orders in both directions without a directional bias.
You are not allowed to place a long limit order and a short limit order in anticipation of a market breakout for profit. This is the exact opposite of disciplined and consistent trading of a set system. This is often a sign that the trader does NOT have a system. In an attempt to catch a big break, they are working the system with no predetermined direction, bias, or entry rules.
Any trading strategy that involves chasing market movements and seeking windfall profits without a systematic approach is prohibited. The PA Consistency section and video series on the FAQ section of the Apex Trader Funding website state that any funds earned during forbidden periods or transactions will be deducted from the account.
Risk Management, Stop Losses, Profit Targets, Trailing
The Company's "risk capital" scenario provides an excellent opportunity to form a Trader Funding relationship with Apex. However, people often misuse and abuse this scenario, using it to “blow” through risk capital, transferring all risk and loss to the Company while trying to set up windfall payouts for schemers. The Company cannot permit this scenario for a potential transition to a Live Funded Account.
It is prohibited to trade without a stop and to let the Trailing Threshold limit “blow the account” strategy. Taking advantage of Company sales or promos to stockpile discounted backup evaluation accounts is also not allowed. This strategy will not result in funding or payouts but in a forfeiture.
Every successful trader or system incorporates stop losses. Stop, target, or trailing strategies, along with risk management rules, are mandatory for all Prop Firms. Upon entering a trade, every true system or strategy, especially scalping strategies, has a set amount as an initial stop loss.
For example, the trader targets a 10-tick scalp profit target with an initial stop of 30 ticks. This means risking 30 ticks to make 10 ticks. Alternatively, the trader is shooting for 20 ticks in profit with a stop loss of 60 ticks. In this scenario, the trader is risking three times the profit they are targeting.
PROPER RISK MANAGEMENT involves avoiding going all in with a maximum contract in hopes of a windfall without following system and stop rules. Or, at the start of a PA account, going in big with a large contract for a windfall " big pop" to overcome the trailing drawdown, then downsize and work the way to a payout. This is a windfall and gamble strategy and can lead to blowing an account. This is a withdrawal strategy, not a trading strategy.
Risk management involves setting a stop loss and honoring it, exiting the trade, and protecting the account.
With trending or longer-term strategies, the exact target is not always known. The market could go ten ticks or ten points. This is why having an initial stop loss is crucial - it sets the amount you're willing to risk to determine potential gains.
It's always a good idea to trail your stops/exit points when the market is moving in your favor and experiencing a significant trend. Allow your profits to increase, but remember to adjust your stops to prevent losing everything. This is good risk management!
The program requires traders to demonstrate consistent profitability over eight (8) trading days as part of the evaluation process. During this eight-day period, traders need to make a profit of at least $50 on five (5) different trading days to demonstrate their skills in trade management and consistent positive performance. The strategy allows flexibility, including the practice of "flipping," which allows traders to close and re-enter positions to adjust to market conditions. As long as you fulfill the $50 minimum for five (5) days, flipping is permitted.
Required:
Implement risk management that suits the statistics and historical back-tested data of your strategy or system's profitability.
Plan your exit strategy for losses and profits before initiating the trade. It's important to have a PLAN, a SYSTEM, and RISK-TO-REWARD RATIOS in place that are statistically proven to be effective!
Risk-to-Reward Ratios
The program mandates a maximum risk-to-reward ratio of 5:1, so the stop loss should be set at 50 ticks for every 10 ticks of profit targeted. Although mental stops are permitted, the Company requires traders to practice responsible risk management and avoid risking substantially more than the potential reward. Violations of this rule may result in a warning, probation, or disqualification from payouts.
For example, if your target is to make $100 in profit, then do not risk more than $500 as your initial stop loss.
Honor your stop points. Avoid adjusting them in a way that could exceed your planned risk. You can always move stops forward to trail and protect profits, trail profits, and let profits run, but do not move them backward and risk more. Have a systematic plan and stick to it. Don't gamble or take risks in anticipation of a comeback.
ATM strategies allow you to set stop-loss and take-profit levels at the beginning of a trade and then alter them to trail and safeguard the trade. (Or they are programmed within the ATM Strategy to do so.)
Traders can manually set stops and take profits after entering a trade, then adjust and raise them as needed.
Stops and take profit levels can be "mentally planned/known levels." This means you are NOT required to enter the limit order stops or profit targets on your chart. This is not a requirement , unless you are on a Probation status.
Mental Stops: You know your system or strategy, know how to read the market and know how you would manage the trade ahead of time, before an entry. You are ready to manage it!
A trader knows the entry point, the exit point, the profit target, and where to start trailing, and is prepared to manage with discipline.
Prohibited Activities
The following trading behaviors and activities are strictly prohibited in Apex Trader Funding PA Accounts:
- Trading without stop losses or risk management in place.
- Engaging in high-risk strategies that aim for small profits while risking large amounts. An example is having a five-tick profit target with a 150-tick stop loss.
- Using the full Apex Trader Funding account threshold as a stop loss to absorb large losses leading to account liquidation.
- Stockpiling discounted evaluation accounts to cycle through and blow up accounts in pursuit of windfall profits.
- Any trading, risk management strategy, scam, scheme, or implementation that fails to demonstrate sustained growth and consistency for all involved.
- Utilizing trading and risk management techniques that deviate from what you would use in your personal funded account at a Registered Broker.
These activities do not show the disciplined, consistent approach Apex seeks to fund. Any trader engaging in these behaviors will forfeit their account and all associated balances.
Sharing MAC Addresses, Computers, IPs, Credit Cards, or Trade Copies will result in Account Closure and forfeiture. Should this occur, Apex could ask the user to undergo more audits and verification procedures to guarantee that only the authorized user is trading or accessing the account and to ensure adherence to the contract.
Company Code of Conduct
Traders commit to abiding by the Company Code of Conduct and treating all individuals with respect and professionalism. This means behaving professionally and positively in all situations, whether in groups, on social media, in trading rooms, or in any other setting.
Summary of Core Trading Rules
Use a Genuine Trading Strategy:
- Traders must employ a consistent, real-world trading strategy that aligns with live market conditions.
DCA (Dollar-Cost Averaging) is Allowed:
- Traders can use DCA as part of their strategy, provided they apply it consistently and responsibly to satisfy the rules.
- DCA is allowed as long as it doesn't break any other consistency rules (e.g., achieving 30% profit in a day, having a 30% negative PnL, etc.).
Flipping is Allowed:
- Rapidly opening and closing trades is acceptable to meet the requirement for a trading day, as long as the $50 minimum profit for five days is achieved.
News Trading is Allowed (with Restrictions):
- Trading based on news events is permitted; however, traders cannot take opposing positions (e.g., long and short) on the same news event.
- Trading based on news is allowed, provided it does not break any other consistency guidelines (such as making a 30% profit in a day or having a 30% negative PnL). News trading needs to be applied consistently and responsibly to satisfy the rules.
Trade Half Contracts Until Trailing Stop is Achieved:
- Traders are restricted to trading half of the available contracts until they hit the trailing stop threshold, which promotes careful risk management.
Maintain a 5:1 Risk-Reward Ratio on Trades:
- Ensure a maximum 5:1 risk-to-reward ratio on all trades. For instance, if targeting a profit of 10 ticks, the stop loss should not exceed 50 ticks.
Observe the 30% Drawdown Limit (Adjustable to 50%):
- Maintain a 30% drawdown limit based on the account’s profit balance. As the account grows, this limit may be adjusted to 50%, providing more flexibility as the account becomes more established.
Practical Example:
A trader adheres to a defined, consistent strategy, observing the half-contract limit until the trailing stop is cleared. They maintain a 5:1 risk-reward ratio, and ensure no drawdown exceeds 30% (or 50% if eligible). Under Apex rules, this trader is classified as fully compliant.
*******These are some older videos, but help give insight as to the difference between a true Trading System and Strategy versus windfalls, gambling or working the system*******
PA TRADING RULES AND CONSISTENCY- PA CONTRACT REQUIREMENTS:
QUALIFIED AND NON-QUALIFIED PA ACCOUNT TRADING AND TRADE PLANS:
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