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Essential Trading Rules Overview

Quick overview of the most important trading rules every Tradeify trader needs to know before starting to trade.

Core Trading Rules by Account Type:

Evaluation Accounts (Growth and Select)

Daily Loss Limits

  • Select Evaluation: No daily loss limit

  • Growth Evaluation: Daily loss limit varies by account size ($1,250 for $50k, $2,500 for $100k, $3,750 for $150k)

Drawdown Protection Types

What is a Trailing Drawdown? Understanding a trailing drawdown involves knowing it as a dynamic loss limit mechanism. It calculates maximum allowable losses "trailing" or adjusting with your account's peak value, integrating into Tradeify's risk management strategy.

A trailing drawdown is your account's maximum permissible loss limit that adjusts dynamically with the peak Net Liquidation Value (NetLiq) during a session. It follows both realized and unrealized gains, effectively securing profits as your trades succeed. Breaching this limit even momentarily results in account failure, reinforcing disciplined trading practices.

All Evaluation Accounts - End-of-Day Trailing Drawdown:

  • Recalculates only at market close based on your final daily balance

  • Only locks in drawdown improvements when you end the day profitable

  • Provides flexibility during the trading day - temporary intraday losses won't affect your drawdown limit

  • Example: A Growth account ending the day with $52,000 and a $2,000 trailing drawdown will have the next day's threshold locked at $50,100 if it finishes profitable.

Simulated Funded Accounts

Daily Loss Limits

  • Select Flex: No daily loss limit

  • Select Daily: Daily loss limit varies by account size ($1,000 for $50k, $1,250 for $100k, $1,750 for $150k)

  • Growth Accounts: Daily loss limit varies by account size ($1,250 for $50k, $2,500 for $100k, $3,750 for $150k)

  • Lightning accounts: Daily loss limit varies by account size ($1,250 for $50k, $2,500 for $100k, $3,750 for $150k)

  • Note: 25k Lightning funded does not have Daily Loss Limit protection.

Drawdown Types:

All Funded Accounts (Select, Growth, Lightning) - End-of-Day Trailing Drawdown:

  • Recalculates only at market close based on your final daily balance

  • Only locks in drawdown improvements when you end the day profitable

  • Provides flexibility during the trading day - temporary intraday losses won't affect your drawdown limit

Lightning Funded Specifics:

  • Lightning accounts only apply the EOD trailing drawdown, ensuring threshold adjustments align strictly with end-of-day balances.

Universal Rules (All Account Types)

Position Holding Requirements

All positions must be closed before the market closes each day. No swing trading or holding positions overnight is allowed.

Daily Close Requirements

  • Regular Trading Days: Close all positions by 4:45 PM Eastern Time (Monday-Friday)

  • Holiday Early Close Days: Close all positions by 12:59 PM Eastern Time

Trading Hours

  • Market Open: 6:00 PM Eastern Time (Sunday to Thursday evenings)

  • Market Close: 5:00 PM Eastern Time (Monday to Friday)

Automatic Position Closure

Any positions left open when the market closes will be automatically closed by Tradeify. This will not result in account failure or penalties.

Trading Day Definition

A trading day runs from 6:00 PM EST/EDT to 5:00 PM EST/EDT the next calendar day.

Important: If you trade during different market sessions on the same calendar day (for example, at 1:00 AM and again at 7:00 PM), these count as two separate trading days for rule compliance purposes.

Position Limits

Maximum Contract Limits

Account Size

Mini Contracts

Micro Equivalent

$25k

1 contract

10 micros

$50k

4 contracts

40 micros

$100k

8 contracts

80 micros

$150k

12 contracts

120 micros

Contract Size Conversion

  • 10 Micro contracts = 1 Mini contract

  • You can trade either micros OR minis, but not both simultaneously as this is considered hedging.

Position Scaling

  • No scaling restrictions - Use your maximum position size from day one

  • Full limits available immediately - No need to build up gradually

Prohibited Activities

  • Hedging: Not allowed

  • Exploiting Platform Errors: Strictly forbidden

  • HFT Bots: High-frequency trading bots not allowed

Algorithmic Trading

Allowed if:

- You own the strategy exclusively

- Not shared with other traders/firms

- Not high-frequency trading

- Can prove ownership if requested

Microscalping Guidelines

  • Over 50% of your trades AND profits must come from trades held longer than 10 seconds

  • If you do not meet these two criteria then you won't be able to activate your passed evaluation or request a payout.

Payout Eligibility Rules

Payout trading day requirements vary by account type:

  • Select Daily: Daily payouts available (no minimum trading days between requests)

  • Select Flex: 5 winning trading days required per payout cycle

  • Growth: 5 profitable trading days required per payout cycle

  • Lightning: No minimum trading day requirement

  • Minimum Activity: At least 1 trade per week (Monday-Friday) — applies to both evaluation and funded accounts

    • The trade can be as brief as 5 seconds as long as it satisfies the minimum activity requirement.

  • Idle Time Warning: We'll contact you before taking action.

Consistency Rule Quick Guide:

What it means: No single day's profit should be too large compared to your total profits.

Select Evaluation: 40% limit (during evaluation phase only)

Growth: 35% limit

Lightning Funded: 20% limit

Example: If your biggest day was $2,000 profit and you follow the 20% rule, you need at least $10,000 total profit to be eligible for payouts.

Good Faith Trading

Core Principle: Trade honestly and don't exploit platform errors.

Violations Include:

- Taking advantage of price display errors

- Exploiting system delays

- Any strategy designed to create platform errors

Consequences: Account termination for violations

News Trading Policy

Allowed: Yes, but at your own risk.

Restrictions: Specific rules around major economic events

Details: See full news trading policy for complete guidelines

Need Clarification?

Have questions about specific rules?

- Check our detailed rule articles

- Ask in our Discord community

- Contact support for clarification

Remember: These rules exist to help you become a consistently profitable trader. Following them closely will set you up for long-term success with Tradeify!

Detailed Rule Articles:

Your current Trailing Max Drawdown floor is now shown directly on your Tradeify dashboard - it appears as the "Trailing Max Drawdown" figure and updates once per day, at the end of each trading day. For real-time intraday monitoring during the trading day, you can also use the "Distance to Drawdown" feature in the Tradovate platform to visualize and manage your drawdown threshold.

👉 Ready for the next step? Continue to Guidelines for Traders

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