1) Daily Drawdown Limit
The daily drawdown is the maximum amount of loss you’re allowed to incur on your account in a single trading day. It is calculated based on either:
The previous day's ending balance (EOD), or the current day's starting balance (both are the same thing)
🔒 Important: Our drawdown is balance-based, which means open PNL (unrealized profit/loss) is not considered when calculating the drawdown limit.
Your challenge or funded account's Equity/Balance must not hit or fall below the drawdown limit shown on your dashboard at any time during the day. Violating this rule will result in a breach of your account.
A daily loss limit reset countdown timer is available on your dashboard to help you track when your limit refreshes.
✅ Example 1: After a Profitable Day
Previous Day Ending Balance: $10,150 ($150 profit)
Daily Drawdown Limit: 5%
Daily Maximum Loss Allowed Today: $507.5
Daily Drawdown Threshold: $9,642.50
If your balance/equity drops to $9,642.50 or below at any time today, you breach the daily drawdown rule.
❌ Example 2: After a Losing Day
Previous Day Ending Balance: $9,950 ($50 lost)
Daily Drawdown Limit: 5%
Maximum Loss Allowed Today: $497.50
Daily Drawdown Threshold: $9,452.50
If your balance/equity hits $9,452.50 or lower during the day, the account is in violation.
2) Maximum Drawdown Limit
1️⃣ Static Drawdown
Your maximum loss limit is the total amount of loss your account can sustain. At any time, your balance or equity must remain above this limit, it cannot fall below the threshold set for your account.
➡️ The key point: this is a static drawdown, not a trailing drawdown.
Static drawdown means the limit is fixed from the start, based on your initial balance.
It does not move upward as you make profits.
Your maximum loss allowance stays the same throughout all stages, giving you a consistent and predictable risk boundary.
Example
Suppose your starting balance is $100,000 and your maximum loss limit is $5,000.
With a static drawdown, your account can never drop below $95,000 in balance or equity.
Even if you grow your account to $110,000, the loss limit remains at $95,000.
Unlike a trailing drawdown, which would shift upward as your profits increase, the static drawdown stays locked at the original level.
✅ This makes static drawdown easier to plan around: you always know your risk boundary, no matter how much your account grows.
3) Overnight & Weekend Holding
🚀 Trade Without Limits
No restrictions: You’re free to hold positions overnight or over the weekend. no limitations, no forced closures.
24/7 access: Markets never sleep here. You can trade crypto anytime, including weekends, with full flexibility.
⚠️ Important Note: While you can hold trades over weekends, we are not responsible for slippage, gap‑ups, or gap‑downs that may occur when markets reopen after the weekend. These market movements are outside of our control and part of normal trading risk.
4) EA and Copiers/Copy Trading
✅ EAs or Copiers allowed on Challenge accounts
To maintain fair trading conditions and protect the integrity of our ecosystem:
The use of Expert Advisors (EAs) and trade copiers is allowed only during the challenge phases.
Note that we have no control over which EA is compatible with our platforms and which are not compatible, we bear no responsibility if your EAs are not compatible and doesn't work with our platforms.
Automated or mirrored trading strategies are also permitted only during the challenge phases.
✅ Copying Trading rule
Cross‑client copying: Copying positions between multiple client accounts under our platform is strictly forbidden.
Within‑account copying: Copying trades between sub‑challenge accounts or strategies under the same client account is allowed.
Copying trades, taking the same or similar positions with any accounts during the funded stage or funded accounts are not allowed.
5) News Trading
Strictly Prohibited: Opening new positions during major news releases is not allowed. Any attempt to initiate trades in this window will be treated as a violation of policy.
Allowed: Running trades are permitted. If you already have open positions before the news event, you may continue to hold them, there is no requirement to close existing trades.
Restricted Time Window:
🚫 No new trades/positions may be opened 10 minutes before and 10 minutes after a scheduled major news release.
✅ Existing trades may remain active throughout this period.
6) Minimum Trading Days
📌 Minimum Active Trading Days Policy
To ensure fairness and genuine participation in the evaluation process:
All clients are required to genuinely meet the minimum active trading days.
Opening and closing positions merely for formality, or placing random trades solely to fulfill this requirement, is strictly prohibited.
If such behavior is detected during verification, we reserve the right to void and invalidate any targets achieved on the account.
Traders must complete a minimum of five (5) active trading days within each payout cycle (in the funded phase)
An active trading day is defined as any day in which the trader achieves a net gain of at least 0.3% of the account balance. (in the funded phase)
Refer to >> Challenges Section << for more information on each model
7) Consistency Rule
There is no consistency requirement on both the challenge and funded phase for FYT Prime Models.
8) Risk Management
Maximum Risk per Asset: Losses on a single trade or on grouped positions or split positions considered part of the same trade must not exceed 1.5% of the initial account balance.
Trade Grouping Rule: Any new position opened in the same direction (buy/sell) within five minutes of the previous position will be treated as part of the same trade.
Excessive Risk-Taking: Trading behavior that risks the full, or nearly full, daily loss limit on a single trade or across multiple concurrent trades is strictly prohibited and considered gambling-like behavior.
Margin Usage: Traders must maintain prudent margin usage at all times. Margin utilization must not exceed 40% of the available margin to ensure proper risk management and account stability.
Minimum Hold Time: All positions must be held for a minimum of three (3) minutes before closing.
Layering: A maximum of three (3) open positions is allowed on a single asset/instrument. Additional positions opened in the same direction (buy/sell) within five minutes will be considered part of the same position.
Martingale: The use of martingale strategies, including any variations or modifications, is strictly prohibited in all trading activities
One-Side Trading: Opening multiple or single positions exclusively in one direction (only buying or only selling) across the same or different assets, without proper market, fundamental, or technical analysis, is restricted. This practice is deemed speculative, lacks diversification, and exposes traders to a high risk of significant losses.
9) Stop Loss
⚖️ No Stop Loss Requirement : Trade Responsibly
You are not required to use a stop loss on your trades.
However, we strongly encourage you to practice responsible risk management.
Protecting your capital and managing exposure carefully is essential for long‑term success.
📌 While the freedom is yours, the responsibility to trade wisely rests with you.
10) Hedging
🔄 Hedging Policy
Any type of hedging is not allowed in our Prime model.
11) Prohibited Usage
⚖️Freedom With Responsibility
We encourage trading freedom, allowing clients to operate in their preferred style holding positions during news events, over weekends, and leveraging according to their preferences.
However, we strictly prohibit any activity deemed unethical, exploitative, or non‑replicable under genuine live market conditions. Engaging in such practices may result in:
Immediate account termination
Forfeiture of targets achieved
Disqualification from current or future programs
✅ Refer to our Prohibited Usage article for more information on prohibited practices at our firm.
12) Violations/Breaches!
➡️ Soft Breaches
If a violation occurs during the simulated funded phase, the account may be granted an additional chance at our discretion/decision accordingly.
However, repeated/multiple violations can result in account termination and the forfeiture of any gains made on the account. We encourage all traders to carefully follow our guidelines to avoid such situations.
Please note that any soft breach will automatically disqualify the account from receiving challenge bonuses or fee refunds as a penalty, and the amount of profit split will be reduced by 10% for each violation.
➡️ Hard Breaches
Hard breaches are considered serious violations, such as exceeding drawdown limits or inactivity or engaging in activities that compromise the integrity of our services or attempt to exploit our systems.
These breaches allow no second chances, and the account will be immediately terminated without eligibility for rewards, bonuses, or refunds.