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Trading Rules

2 Step Challenge

2 Step Challenge Rules

Welcome to our 2 Step Challenge FAQ page, where we aim to answer all of your questions regarding our 2 Step challenges, funding and trading platform. We understand that trading can be a new experience for many of our clients, which is why we have compiled a list of frequently asked questions to help provide clarity and guidance.

Our team of experts are always available to answer any additional questions you may have, so please don’t hesitate to join our Telegram for more information.

Max Lots Rule

Max open positions (lots) must not exceed 1/3,333th the size of the Assessment account (soft breach); for example, a $10,000 account could have ~3 lots open at once

Max Lots With Risk

Below are the maximum open lots across all pairs that a trader can have at any given time.

 

  • $25K: 7.5 lots with risk
  • $50K: 15 lots with risk
  • $100K: 30 lots with risk
  • $250K: 75 lots with risk
  • $500K: 150 lots with risk
  • $1 Million: 300 lots with risk

Trading Rules

  • Soft breach means that we will close all trades that have violated the rule. However, you can continue trading in your Assessment or Funded Account.
  • Hard breach means that you violated either the Daily Loss Limit or Max Drawdown rule. Both rules constitute a hard In the event you have a hard breach, you will fail the Assessment or have your Funded Account taken away.

The Daily Loss Limit is the maximum your account can lose in any given day. Daily Loss Limit is calculated using the previous day balance which resets at 5 PM EST. Unlike other firms, we do NOT base our calculations on previous day equity since the balance only model allows you to scale profits without fear of losing your account. The Daily Stop compounds with the increase in your account.

Example: if your prior day’s end of day balance (5pm EST) was $100,000, your account would violate the daily stop loss limit if your equity reached $96,000 during the day. If your floating equity is +$6,000 on a $100,000 account, your new- day (5pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be

$96,000.

Maximum drawdown is the maximum your account can drawdown before you would hard breach your account. When you open the account, your Maximum Drawdown is set at 8% of your starting balance. This 8% is static and does not trail.

We believe sound risk management using stop losses.  To that end, we require a stop loss on every trade. If you fail to place a stop loss at the time of placing the trade/order, we will close the trade. This is only a soft breach rule, so you can continue trading in your account.

We require all trades to be closed by 3:45pm EST on Friday. Any trades left open after this time will automatically be closed. Note, this is only a soft breach and you will be able to continue trading once the markets reopen.

  • Forex: 1 lot = $100k notional
  • Index: 1 lot = 10 Contracts
  • Cryptos: 1 lot = 1 coin
  • Stocks: 1 lot = 100 shares
  • Silver: 1 lot = 5000 ounces
  • Gold: 1 lot = 100 ounces
  • Oil: 1 lot = 1000 barrels

Below are the maximum open lots across all pairs that a trader can have at any given time.

  • $25K: 5 lots with risk
  • $50K: 15 lots with risk
  • $100K: 30 lots with risk
  • $250K: 75 lots with risk
  • $500K: 150 lots with risk
  • $1 Million: 300 lots with risk

 

For example, if you are in the $100k plan, you will be able to have 30 open lots with risk available.

If you buy 20 lots of EURUSD at 1.20 and your stop loss is at 1.18, you will have 20 lots on with risk, so you would have 10 still available. If the EURUSD moves up to 1.25, and you update your stop loss to be at 1.20, which would be your open price, you no longer have risk on that trade. So, you would again have 30 lots available, even though you currently have 20 lots open.

If you put on too many trades with risk, then our system will liquidate all trades that currently have risk.

Please note, margin and leverage requirements still apply. So, even though these are the maximum lots that can be traded, it is possible based on the leverage of the account that you may not be able to trade up the maximum.

Yes. If you do not place a trade at least once every 30 days on your account, we will consider you inactive and your account will be breached.

Upon passing your Assessment, you will receive an email with instructions on how to access and complete your Trader Agreement and submit your AML/KYC documents. Once the agreement is completed and supporting documentation is provided, your Live Account will be created, funded and issued to you typically within 24-48 business hours.

Once you pass the Assessment, we provide you with a live account, backed by our capital.  The capital in your Funded Account is notional and may not match the amount of capital on deposit with the Broker. 

A Funded Account is notionally funded when actual funds in the account (i.e., the equity in a Funded Account represented by the amount of capital) differs from the nominal account size (i.e., the size of the Funded Account that establishes the initial account value and level of trading). Notional funds are the difference between nominal account size and actual capital in a Funded Account.

Use of notional funding does not change the trading level or that the account may trade in any manner differently than if notional funds were not used. In particular, the same conditions and rules applicable to a soft breach, hard breach, Daily Loss Limit, Max Trailing Drawdown, stop loss and position limits apply.

No. We operate at an arm’s length with the Broker.  All market pricing and trade executions are provided by the Broker and are not changed or modified by us.  Additionally, we do not mark up transaction costs established by the Broker through adjusting bid-offer spreads, markups/markdowns, commission charges or swaps. 

For purposes of managing risk and minimizing transaction costs, we may offset or negate market risk and act as the direct counterparty to certain trades initiated in the Account.  Such trades are executed at prices provided by the Broker. 

This framework is intended to ensure you receive real market execution on your trades, while simultaneously allowing us to manage risk dynamically by routing existing positions or future orders to third parties for execution as we deem appropriate. 

We believe that such real market execution and dynamic risk management would not be possible or as cost-effective if trades were executed in simulated accounts.  Regardless of whether we act as counterparty to your trades, the gain or loss on your Funded Account is not calculated differently. 

However, when we act as the counterparty to your trades, there is an inherent potential conflict of interest because your trades do not result in net gain or loss to us, as your trades would if we were not the direct counterparty. 

We reserve the right to limit the number of open positions you may enter or maintain in the Funded Account at any time, and to revise in response to market conditions the drawdown levels at which trading in the Funded Account will be halted. We or the Broker reserve the right to refuse to accept any order.

The rules for the Funded Account are exactly the same as your Assessment account. However, with a Funded Account, there is no profit target.

If you have gains in your Funded Account at the time of a hard breach, you will still receive your portion of those gains.

For example, if you have a $100,000 account and you grow that account to $110,000. Should you then have a hard breach we would close the account. Of the $10,000 in gains in your Funded Account, you would be paid your portion thereof.

Traders can request a withdrawal of the gains in their Funded Account at any time in their trader dashboard, but no more frequently than once per thirty (30) days. So, if you make gain in your Funded Account, you can request a withdrawal. 

When you are ready to withdraw the gains from your Funded Account, click the Withdraw Profits button in your trader dashboard and enter the    amount to withdraw. Once your withdrawal request is approved, we will pay the monies owed to you via your selected method.

Your first withdrawal can be requested at any time.  Thereafter, you can request a withdrawal of the gains in your account every 30 days. When a withdrawal is approved, we will also withdraw our share of the gains, and your max drawdown will lock in at your starting balance.

The Maximum Drawdown does not reset when you request a withdrawal. Example: You have taken an account from $100,000 to $120,000. You then request a withdrawal of $16,000. In this scenario, you will receive $12,000 and we would retain $4,000. This would also take the balance of the account down to $104,000, and your Maximum Drawdown is locked in at $100,000. So, you would have $4,000 maximum you could lose on the account before it would violate the Maximum Drawdown rule.

If you take a full withdrawal of the gains in your Funded Account, the Maximum Drawdown will still lock in at the starting balance and will therefore result in the forfeiting of your Funded Account, as your balance will trigger the Maximum Drawdown breach rule.

General Questions

We have risk management software that is synced with the accounts we create. This allows us to analyze your performance in real time for achievements or rule violations. As such, you must use an account that we provide to you.

Subject to compliance with applicable laws and regulations, traders from all countries, excluding OFAC listed countries, can take part in our program.

You must be at least 18 years of age, or the applicable minimum legal age in your country, to purchase an assessment.

Upon purchasing an Assessment, you will receive access to a trader dashboard where you can monitor your Assessment and Funded Accounts. The dashboard is updated every time we calculate metrics, which occurs roughly every 60 seconds. It is your responsibility to monitor your breach levels.

Our risk management technology is currently integrated with several trading platforms. These platforms, along with pricing and execution are provided by our Broker.

You can trade any products offered by the Broker, as such products may change from time to time. This includes FX pairs and CFD Indices, Metals, Equity Shares, and Cryptocurrencies.

We allow up to 30:1 leverage. Forex, Metals, and Indices are 10:1. Equity shares are 5:1. Cryptos are 2:1.

Trading hours are set by the Broker. We do not have any control over the trading hours. You can see the trading hours for each product by right-clicking on any product in the Market Watch window of the platform and selecting Specifications from the dropdown menu.

Please note that holidays can have an impact on available trading hours. Additionally, pursuant to the no holding trades over the weekend rule, we close all open trades at 3:45pm EST on Fridays.

We use the RAW accounts from the Broker. These accounts have commission charges for Forex and Equity Share CFDs. The other products do not carry a commission.

Subject to our policy on Prohibited Trading as described below, you can trade using an Expert Advisor.

You are also prohibited from using any trading strategy that is expressly prohibited by the Company or the Brokers it uses. Such prohibited trading (“Prohibited Trading”) shall include, but not be limited to:

  • Exploiting errors or latency in the pricing and/or platform(s) provided by the Broker
  • Utilizing non-public and/or insider information
  • Front-running of trades placed elsewhere
  • Trading in any way that jeopardizes the relationship that the Company has with a Broker or may result in the canceling of trades
  • Trading in any way that creates regulatory issues for the Broker
  • Utilizing any third-party strategy, off-the-shelf strategy or one marketed to pass challenge accounts
  • Utilizing one strategy to pass an assessment and then utilizing a different strategy in a funded account, as determined by the Company in cooperation with Prop Account, LLC at their discretion
  • Holding a Single Share Equity CFD position into an earnings release pertaining to that underlying equity.  To avoid being in breach of this rule, you must close all such Single Share Equity CFD positions by 3:50 pm Eastern Time on the day of the release, if an aftermarket release, or on the preceding day, if a before market open release.  Violation of this rule will constitute an immediate, hard breach of your account and any gain or loss on said position will be removed from any calculations.
  • Entering into an Equity CFD at or near the end of the trading day with intent of profiting from the marketing gap between when the market closes and reopens on the subsequent trading day, as determined by the Company in its sole and absolute discretion.
  • Attempting to arbitrage an assessment account with another account with the Company or any third-party company, as determined by the Company in its sole and absolute discretion.

 

If we detect that your trading constitutes Prohibited Trading, your participation in the program will be terminated and may include forfeiture of any fees paid to us. Additionally, and before you shall receive a funded account, the trading activity of the Trader under these Terms and Conditions shall be reviewed by us to determine whether such trading activity constitutes Prohibited Trading. In the case of Prohibited Trading, the Trader shall not receive a Funded Account.

Additionally, we reserve the right to disallow or block You from participating in the program for any reason, in our sole and absolute discretion.

To  view all Prohibited Uses, please review our Terms and Conditions here,  https://dashboardanalytix.com/client-terms-and-policies/?v=7516fd43adaa.

Yes, you can trade during the news provided that pricing data from the Broker continue to be provided.

Charges come across in the name of Dashboardanalytix.com.

When trading a Funded Account for our firm, you are treated as an independent contractor. As a result, you are responsible for any and all taxes on your gains.

Affiliates are given credit for introducing new Customers to your firm:

  1. Customers are registered to an affiliate during Customer Registration (i.e., when the Customer account is created). This is a separate process from Checkout.
  2. A Customer who creates an account that is NOT registered to an affiliate cannot be registered to an affiliate at a later point. At this point, they are no longer a new customer and therefore the affiliate has not introduced them to your firm. A Customer who is registered to an affiliate will remain registered forever. An affiliate will receive affiliate credit for ALL orders from that customer for their lifetime.

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