Challenges

Max loss and drawdown rules

Every challenge has an intraday-trailing max loss until your first payout (or first milestone), after which the drawdown floor permanently locks at your starting balance + $100. One-Phase limits: $1,500/$2,500/$3,500. Two-Phase limits: $2,000/$3,000/$4,500. No daily loss limits on any product.

Updated

Exceeding the max loss is the only trading-performance rule that ends a challenge account. (Accounts can also be closed by disqualification for violations of the governing terms — see Prop Account, LLC's Client Terms and Policies.) Here's how the max loss works.

Max loss limits

TierOne-PhaseTwo-Phase
Beginner ($50K)$1,500$2,000
Intermediate ($100K)$2,500$3,000
Advanced ($150K)$3,500$4,500

How the drawdown trails and locks

The drawdown is not static. It works in two stages:

  1. Before your first payout (One-Phase) or through the eval and until your first milestone payout (Two-Phase), the max loss is intraday trailing — the drawdown floor rises as your account balance hits new highs during the day.
  2. After your first payout / first milestone, the drawdown floor permanently locks at your starting balance + $100: $50,100 / $100,100 / $150,100 by tier. It never trails again for the life of the account.

No daily loss limit

TradeSport has no daily loss limits on any product. The only loss rules are the trailing max loss (before the lock) and the fixed locked floor (after it).

Other risk mechanics

  • All positions are automatically flattened at 3:59:59 PM ET every day.
  • If your balance breaches the drawdown floor, the account is permanently closed. You can buy a reset (same price as entry, unlimited) to start a fresh account — see "What happens if I fail?"

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